The business world is competitive. It is even more competitive during this economic recession. Managers and business owners are doing almost anything possible to turn a profit while employees are doing all that they can to keep their jobs. As the competition heats up, more and more businesses will turn to key performance indicators (KPIs).
KPIs attempt to take a very wide set of goals and boil them down to the most important factors. Most people agree that to achieve any goal, you need an immense amount of focus. If you have a hundred goals, then chances are you will spread yourself too thin and you won’t be able to reach all of them. Many organizations and individuals have found success by spending the time to really filter out the extras and focus on just a few key goals. These goals are tracked using KPIs.
A KPI dashboard can come in various formats: spreadsheets, printouts, and even huge TV screens. The bottom line is that these dashboards show the most important and relevant metrics. Now, keep in mind that relevance is in the eye of the beholder. Your company’s KPI dashboard for your sales staff will show different metrics than the dashboards for your top managers.
These metrics can be a valuable tool for motivating your employees. Humans love instant feedback that is not ambiguous. If you don’t believe me, then take a look at the sports world. Imagine a basketball, football, or soccer game where the score wasn’t kept. Can you imagine people playing their hearts out if the score wasn’t kept? If your employees know exactly where they stand, they will give you their best efforts.
Having KPI dashboards provides the instant feedback that employees crave. The key word in that last sentence is instant. If your employees don’t know how well they are doing right away, then they will start to deviate. Going back to the sports example; imagine how hard athletes would play if their scores weren’t tallied up for another month or two. The beauty of KPI scoreboards is that employees know right away whether they did something good or not.
Every company should have someone that digs through the data to provide these summary metrics to the individuals. It’s probably not a good idea to waste upper-management’s time digging through databases. Having someone prepare a dashboard for them will help them make intelligent decisions in an efficient manner.
Business competition is heating up and organizations are turning to metrics and statistics to find a way to stay profitable. If you need help coming up with a KPI dashboard example, there are plenty on the internet. Having KPI dashboards that keep your employees on track will definitely help your cause.