As BI (business intelligence) becomes the new buzzword in the software industry, it's important for small to mid-sized businesses to determine what Key Performance Indicators (KPI) are most meaningful to them. Businesses today can collect all kinds of data that can be interpreted to mean all kinds of things. It is important to make sure you are collecting data that tells a story. KPIs show the health of your organization in the form of statistics. It’s no longer enough to simply measure items. It is crucial for your business to understand what you are measuring. KPIs can be used to improve decision making, cut costs, identify new business opportunities, and proactively respond to trending issues.
3 ways to ensure you are measuring the right KPIs
Collect the right information
growth and regulation and have never been KPIs." It is important for business leaders to determine what information is important to measure as it relates to their business.
Monitor and collect information at the right time
Monitoring your data is a critical step in determining whether your information is timely and effective. In the new world of big data and business intelligence, measuring KPIs monthly is a bit outdated – it’s aged and reactionary to past events. KPIs need to be real-time or future-oriented to make a meaningful and proactive impact on the business.
Understand the meaning of data you've collected
Reporting KPIs needs to be viewed as a building block to a foundation that requires the ability by all to collaborate to fix important problems as they occur. To be proactive in assessing what needs to be adjusted for the betterment of the organization. Getting this progressive structure in play can be a struggle for some, but once the results are proven and positive outcomes are seen the opportunity for growth and profitability become limitless.
Ready to find out what your most important KPIs are? Contact us for a free consultation.