How to choose the right KPIs for your business

How to choose the right KPI for your business 

What is a KPI?

This abbreviation stands for key performance indicator. Businesses use KPIs to measure the success of their activities, but they don’t have to be one specific thing. A KPI can be anything that is a relevant and useful measure of your business’s performance – from net or gross profit, website visits or conversions, to social media metrics. 

How do I choose the right KPI?

Your KPIs will depend on many things, such as your industry, the size of your business, or whether it is based on individual or business-wide goals. 

Here are 3 tips for choosing KPIs that work.

  1. Make it measurable

To choose the right KPIs, check that what you’re using as an indicator of success is measurable, and that it is useful. If you can’t measure it, or your measurement isn’t useful to your goals, it will only indicate failure – even if you are performing well. 

  1. Keep it simple

Be careful not to select too many. Choosing just one or two will keep you focussed on achieving your goals. 

  1. Review them regularly

Over time, your priorities will change. This means that your KPIs might too. Review your KPIs regularly to ensure that they’re relevant to the work you’re undertaking at that time, and reflect your overall business goals. A relevant KPI is a useful one.

Chew on this:

Do you use KPIs? Are they still relevant to your goals?

 

Author: Safaraz Ali
My career began in the financial services sector and since 1999, I have been involved in the world of business. I am Head of Pathway Group, which is a workforce development solutions provider. Pathway Group specialise in apprenticeship training and recruitment. I also offer independent strategy, advice, and investment for a wide range of private business sector. These include: social care, education, training, and recruitment.