Key Performance Indicators and Goals

How your company measures its output is what matters. A company needs to measure what its staff do daily to determine the end goal with a customer. A customer will come through the door with a request and then it will be up to the owner and staff to determine how they provide the value of the product in production costs that are less than what it sold the product for.  

Key Performance Indicators

Staff will always want to know how they are being evaluated amongst their peers and the company. We have found that the easiest way to do this along with a job scorecard is through KPIs – Key Performance Indicators. KPIs are goals and values that businesses and staff will have that lead them to success. For the blog, we will concentrate on the employee. KPI examples for staff can be the following; 

  • Quality – use a measurement tool that identifies the worker’s ability to produce quality 
  • Quantity – use a measurement tool that measures the output of a worker 
  • Sales – how many sales are they able to achieve amongst work peers 
  • Absenteeism – based on a normal rate of missed work, how does a staff member compare 
  • Turnover – what is the turnover rate of the staff and how is it made better 

Staff need to understand where they have been, where they are now and how do they move into the future.  

Corporate Strategy Consulting | Key Performance Indicators and Goals

The Idea Around Goals

What is the level of comfort for employees to set realistic obtainable goals? The idea around goals for staff that are used to them is quite comfortable. For people like myself, when we were in the beginning stages of an employee, setting goals was quite uncomfortable because people were not used to setting them, keeping up to date with metrics and honestly the idea of goals just went away. Goals can be a very beneficial tool to use in business but if not monitored correctly, it can cause a lot of pain to employees and owners. Some of our recommended ways of keeping up to date with goals are; 

  • Keep them simple and direct 
  • Have a timeline associated with them 
  • Ensure you have a way to track them properly 
  • Have an agreement between staff and leadership of the goal 
  • Communicate more often than quarterly or yearly.  

People are habitual creatures, so if you do not enforce the idea around goals and the importance of them, people will stop thinking and working on them.  

Customer and Employee Value

KPI and Goals creation will bring enormous value to your company in the long run. People need to feel valued in the company and setting metrics to their employment may be painful at first, but it does pay off. Our recommendation, however, is to make sure that there is a reward attached to reaching specific KPIs and goals. You need to create value for staff and in return, it will reflect in the value for the customer. Everyone needs to benefit by becoming better and learning more about how to serve the customer more effectively.  

Whichever value or goals you are trying to obtain at your company, let Future to Now Consulting assist you with the process. Reach out to our business management consulting team to start the conversation.