Pillar 8: Business Management – Key Performance Indicators

pillar8-kpi-part2

The series is from Chartered Accountant, consultant and author, Jeff Borschowa, from his book, 8 Pillars for Exponential Business Growth. The series is focused on how to find new and better ways to integrate innovation and technology to enhance the customer experience and improve efficiency in the accounting process.

Key performance indicators (“KPI’s”) measure how well your business is meeting your CSF’s. Well-designed KPI’s will help you answer some variation of the question: “Are we getting closer to our definition of success?” KPI’s will be very specific to your business type or industry, as they are created based on the CSF’s that keep your business going.

If you do not currently have KPI’s, do research to see what others in your industry are measuring. Implement KPI’s slowly at first. I often see a lot of businesses going from no KPI’s to suddenly having a significant number to monitor. Too much at once can be counterproductive and confuse staff. I suggest picking your most important CSF and creating two or three KPI’s around it. Once you are comfortable with the process, start to expand to cover additional CSFs.

Next: Part 3 – Customer Selection and Ranking