ChicExecs VP of Global Strategic Accounts, Lydia Vargo, shares her tips on why you still need strategic KPIs to reach your goals in 2022 on Forbes blog. Enjoy this excerpt from the feature.
KPIs, or key performance indicators, can serve as important yardsticks for measuring your brand’s performance. Unfortunately, just like New Year’s resolutions, all too often businesses set KPIs at the beginning of the year—only to allow them to fall to the wayside when things get hectic.
Below are seven reasons they still matter in 2022.
1. They’re a report card for your business.
Have you ever wondered how your business is doing as a whole? Or if certain departments are performing as they should?
KPIs measure the overall health and performance of your business. They should give you a general idea of how your company is growing and meeting established goals.
2. They can help you hit your long-term goals.
Here’s the thing about goals: you can only reach them if you actively address them on a daily, weekly, monthly and quarterly basis. It isn’t enough to simply create a five-year plan and hope your business will hit its goals without a hitch.
3. They can warn you to pivot before it’s too late.
The pandemic taught us that sometimes businesses have to pivot overnight—or suffer the consequences. While you can’t predict everything, KPIs will tell you which initiatives aren’t working. This way, you can stop investing time and money in the wrong areas and reroute your resources to things that actually work for your business.
4. They can help you find profitable opportunities.
Despite their important ability to help you avert disaster, KPIs are not all doom and gloom. They also help identify the positives in your business strategy. Perhaps you discover your margins on one product are especially high. Within that information, you can also discern opportunity: you may consider expanding the product line, for example, or using it as a blueprint for future products.
5. They draw your attention to patterns.
Sometimes we’re blind to our own weaknesses. Fortunately, KPIs are quantified data that don’t lie, and that’s a huge benefit for brands.
Use your KPIs to identify patterns such as:
• Sales lulls
• Lead volume
• Sales team performance
6. They motivate you to improve processes.
One of the hardest things about running a business is knowing when something isn’t working. For example, if your entire sales team isn’t hitting their goals, it probably means there’s something wrong with your processes. Instead of digging in your heels and spending time on initiatives that don’t work, KPIs can help you highlight the ones that do and address the ones that don’t.
7. They track employee performance.
Trying to manage a remote team? Instead of micromanaging your team or tracking their activity, consider focusing on KPIs. These will spell out whether employees are hitting the mark. KPIs help managers focus on what really matters—employees’ impact on the bottom line—instead of nitpicking over meaningless details.
Read Lydia’s entire blog on Forbes here.