kpis boost business performance: whitepaper from results.com
Post on 14-Sep-2014
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http://info.results.com/rethinking_kpis | Key performance indicators (KPIs) are metrics that help business leaders measure business success over time. Learn how establish realistic goals for sales, marketing or customer service by reading our white paper.TRANSCRIPT
white paper
RETHINKING KPIs
Written by Stephen LynchContains excerpts from: Business Execution for RESULTS
A definitive guide for engaging your team and driving business results with Key Performance Indicators
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About this white paper
In this white paper, you will learn how to get your people
focused on the numbers that are truly important to drive your
business forward. We call them your Numerical Targets and Key
Performance Indicators (KPIs).
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NUMERICAL TARGETS
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Tips for setting numerical targets
TIP: You will track these numbers publicly, so select measures that you don't mind sharing.
Single Point Accountability.Many people can be involved,
but only ONE person can be
held accountable
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Keep the numbers relevant
Display the numbers over different time periods.
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Make the numbers relevant!Nothing is more demoralizing than
displaying annual targets that bear no
resemblance to the current reality.
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How to choose your numerical targets
Now it's time to get to work. Get your team together and do the following:
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2.
3.
4.
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KPIs(key performance indicators)
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KPIs: a quick level set
"If we get these things right, we'll have good results on our financial statements and increase the value of our company."
Start smallA small handful of leading
indicators that predict and
drive the success of your
current business model
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Don’t just focus on the end result. First understand which activities drive those results.
TIP: remember to pick KPIs that drive financial results in your current business model. Start by listing the outcome you are looking for - the end result. Now ask yourself the following two questions:
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2.
Driving KPI effectiveness
activity effectiveness RESULTS
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With KPIs, you get what you inspect
What you pay attention to drives behavior
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Daily and weekly KPIs
problem identification
analysis
TIP: Daily and weekly measures let you spot trends earlier
correction
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Fix problems when they are small
>>
Address problems earlyThe longer a problem lives, the
bigger and nastier it gets!
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Selecting the right KPIs(key performance indicators)
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Use the tropical island test to select the right KPIs
Imagine that you're vacationing on a distant tropical island. It's lovely there, but it's very remote.
Communications are severely limited. In fact, you can only receive a single five-line text message per week to let you know how things are going at the company.
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Use the tropical island test to select the right KPIs
Which 5 numbers sum up the state of your business?
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What keeps the lights on?
Start with the minimum acceptable level
RED= the minimum
performance level
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What about good performance?
Now set the threshold for solid / good performance
GREEN= desired / solid
performance
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Now choose your company’s KPIs
Now it’s time to get to work. Get your team together and do the following:
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2.
3.
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SCHEDULE YOUR FREE DEMO
a complete KPI solution for SMBs● identify what’s happening in your company right now
● visibility into what different people and teams are working on
● identify which areas are excelling and which require attention
● recognize top performers and assist people who need help