The Issue With Key Performance Indicators in Small Businesses…
The majority of profitable small and medium-sized companies track and monitor their performance.
However, many business owners regard Key Performance Indicators as a tool better suited to larger corporations… or they may believe they utilise KPIs in their organisation, but in reality, it’s hit-or-miss.
Many business owners, in my experience, are either unduly casual about the need of setting good KPIs or fail to measure them regularly enough.
Here are some of the most typical issues I encounter while working with KPIs in SMEs…
📌 The KPIs are measuring incorrect areas.
📌 The KPIs are outdated.
📌 Data is frequently lost, delayed, or incomplete.
📌 They are not monitored on a regular (or frequent) basis.
📌 When problems are detected, no action is performed.
📌 Alternatively, the reaction is inadequate or takes too long.
📌 There is insufficient individual responsibility for each KPI (lack of ownership)
Businesses of all sizes are looking for quicker, more effective, and efficient methods to attract and retain customers, improve sales, and optimise profitability.
However, understanding where (and where not) to spend time, energy, and resources; what to repair and what to eliminate all need good quality data, which can be obtained by simply asking the correct questions, which support making consistently high quality judgments.
Tactical, everyday decisions, not simply long-term strategic judgments.
KPIs used correctly will deliver just that.
