How To Create KPIs To Boost Your Business

A leader who can create KPIs

Are you having trouble figuring out how to create KPIs for your team?

Depending on the business you work for, you’re either one month into the new year or five months away from the next one. Either way, it’s time to review and create new goals for you and your team.

But how do you do this when the company you work for hasn’t revealed the strategy for the year? If you’re not sure where to start, try these tips to help get you on the right track.

Should You Simply Lift the Targets?

The easiest thing to do is to increase the benchmarks. But how much longer can you take the easy way out? You need to ask yourself if it is really driving the right business outcome. You should also check to see if moving the goalpost is achievable for your team members.

If there is no possibility of reaching them, then all you’re going to do is reduce motivation instead of increasing performance. Do you think you’re capable of helping your team reach the higher KPI’s or should you look for a better way?

Complete a Review of Your Current KPIs

A better place to start when reviewing KPIs is referring to your company’s purpose. It’s the one constant that rarely changes.

Most business purposes are something along the lines of:

Our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices.

So what words stick out for you in the statement above. Now ask yourself how you can use them to create KPIs?

How to Create KPIs From Your Company Purpose

Let’s look at the highest level of service. Firstly, how do you define that?

Perhaps it could be that you want every customer (internal or external) you interact with to walk away so happy that they would talk about the experience with their friends, family, and anyone else who will listen.

Next, what does your team need to do to achieve the above goal?

Do you need to review your processes because they’re not customer-friendly? How about your scripts. Are they are simple and easier to understand? Should you look at your problem-solving matrix when your customers are in distress?

Whatever needs to be reviewed is what now becomes your goal.

How to Measure Success

Finally, how will you measure that you’re on the right track? Here are some potential metrics that can help you assess whether you’re achieving the desired outcomes:

  • Net Promoter Score
  • Customer satisfaction
  • Repeat business
  • Customer retention
  • Customer lifecycle
  • Sales conversion

How to Achieve Your KPIs

So now you’ve got some goals to achieve and some measurements to ensure that they’re working and you’re on the right track. The next step is to try and achieve them. This is where your leadership capability comes in. Have a think about what development you need so you can lead your team and help your people achieve their KPIs.

If you need some direction on how to create KPIs and achieve them, then make sure you’re following the Better Boss Blog. You’ll find plenty of advice that can help you become a stronger leader. Follow pwf services on LinkedIn, Instagram, and Facebook, so you never miss a post.

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