Why It’s VITAL to Keep an Eye on Your KPI's

Begin with having key managerial personnel meet once a month to review the company’s KPI’s and brainstorm ways to improve them.

 

For example, if your number of sales is down during a particular month, brainstorm ways to find new prospects.

 

Next, using your sales per salesperson indicators, look at who is converting these leads most effectively and who is not following up leads effectively.

 

You must always have solid data on how your teams (particularly sales teams) are performing.

 

Remember, if one person is doing well, they probably have some tricks up their sleeve that they could share with everyone, to improve overall conversion. Don’t let your business flounder because of a lack of communication or failure to share knowledge.

 

 

Involve Your Team

 

Make the discussion of KPI’s a central focus for your employee team meetings. One way to do this, that’s also incredibly motivating, is to implement a reward system based on the company’s overall KPI’s.

 

Obviously, sales teams will have their own specific targets to meet, but at an organisational level, it does wonders for morale when goals are met and everyone in the company is rewarded. A reward system is a great way to get your team on board and have everyone working toward the same end.

 

It’s also important to involve your team if one or more of your KPI’s vary from the ‘standard’. Some companies even like to print out weekly KPI reports and briefly cover them during team meetings, to address and rectify any problems before they emerge as more pressing issues at the month end.

 

If you’re seeing big variances from week to week, this more frequent reporting could also be a great idea for your particular business. Once statistics becoming more standardized, you can go back to monthly reviews.

 

Finally, watch for trends – don’t look at monthly reports in isolation. You might have a slump in sales in December, if for example, you’re a recruitment agent (typically employers wait for the new year to hire where possible, to avoid having to pay out holiday leave etc).

 

However, if January, February and March are ALL showing slumps, you should look at the reasons behind this trend and address it.

 

 

So, in conclusion

 

It’s your responsibility to ensure your business is performing efficiently and profitably. Keeping a vigilant eye on your key performance indicators is a huge help in this regard and with the wide range of electronic accounting programs now on the market, producing accurate reports at the touch of a button is easier than ever.

 

If you have any questions on this blog post, contact the team at YBT today! You can phone 03 479 3890 or email info@ybt.co.nz and arrange a free, no obligation consultation with our team.