Hello Enlightened Managers,
Are you having a good week so far? I'm very much enjoying mine. Last night I was celebrating the accomplishments of one of my clients - seeing how far they've come in the year since we've done strategic planning. Today I am putting the final touches on my facilitation plans for a round of strategic planning with a new client. These two organizations are very different from each other, but they do have one thing in common, they are both using key performance indicators to monitor company results.
Are you using Key Performance Indicators (KPIs) in your organization? If not, I'd argue that you should be.
A KPI is a numerical target that is actively tracked and managed by one or more members of your management team. KPIs usually track profit & loss, productivity, receivables, and customer satisfaction.
Examples:
Monthly ticket sales (for a theater)
Monthly sales (for a manufacturer)
Percentage of vacancies (for a hotel)
# of projects bid (for a contractor)
The idea is simple. Pick a few KPI's that are very important to your businesses health. Assign a monthly target number for each. Every month, track your expected numbers against actual numbers. When they fall short, talk about how to get them back on track.
Like a blood pressure monitor in a hospital unit, KPIs will provide you with a constant flow of information on the "vitals" of your business.
For more information on KPIs or their use in strategic planning, give me a call.
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