In today’s business world, it is more important than ever to set key performance indicators (KPIs) for your firm and team. Why? Because KPIs are metrics that tell you if what you’re doing is working or not! At Glow Accounts, we can help you to monitor this, but to start here is how to set KPIs for your company and individuals within.
1. Decide on your KPI's (refer to your business plan)
Your KPIs need to be relevant to where you want to take your company, so go back to your business plan. What are you trying to achieve? What are the key figures you need to know?
When you’ve decided on what needs to be measured and monitored, you then need to communicate this to each individual.
2. Agree on these with each individual
When deciding on your KPIs, you should have identified a set of figures for everyone. Communicate this with them and agree upon these with them. Explain how they will support the firm by achieving these KPIs.
3. Revisit and reset targets every 3 months
The small business world moves at lightning speed. Any targets you set now will likely be out of date within 6 months. To keep on top of change, sit down with your team every 3 months and revisit their KPIs and targets.
- Give them feedback on what they are doing well. (Any negative feedback should have been given to them at the time).
- Talk to them about how the firm is performing and their part in influencing your firm’s performance.
- Listen to what motivates them and how they are viewing their work but also the amount of work they are required to do.
- Seek out their views on what is working or not working within the company.
- Help them decide on what is a meaningful and motivational target for them to achieve.
- Discuss what they can influence.
Start getting results from your numbers
How often are you setting and monitoring KPIs in your firm? When was the last time you spoke about KPIs with your team?
If the answers are ‘not enough’ or ‘a while ago,’ you need to start being serious about tracking and monitoring performance. The good news is, that you now know how to set KPIs, but if you want further advice or information or help to analyse the data relating to KPIs, Glow Accounts are here for you!
