KPI reporting can clearly communicate the progress of a company towards its performance goals. Not only the managers can access key results in an instant and transparent manner, but also make informed strategic decisions.
Here are the top benefits of investing in a great KPI reporting tool for your organisation and management.
1. They Let You Measure Results
Measuring is an important part of KPI reporting. It is the primary key that informs you about the success or failure of your work. You need to measure the progress made towards the achievement of your target: the number of sales increased (sales performing), the number of new customers or anything in your business you want to measure.
KPIs provide actionable information because they are always measurable and quantifiable. For example, if one of a hotel company's identified CSFs maintains a high level of occupancy throughout the year, a KPI would be the percentage of occupancy of rooms, measured on a weekly basis, using the previous year as a benchmark.
2. They Help You Set Business Goals
You need to set a target and aim to reach it in a set period. You can set more than one targets and create different keys for each of your targets to ensure you measure your progress and then try to achieve your goals.
It's often difficult to keep all departments or teams within an organisation aligned and working toward common goals. Once an organisation's Mission, Vision and CSFs have been written into a strategic plan, KPIs break down complex information into understandable metrics and provide feedback on the organisation's progress. Communication of progress toward KPIs keeps everyone moving forward in the same direction.
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3. They Offer Incentives to Your Team
KPIs are often linked to incentives. Teams or individuals are offered an incentive to improve their KPIs to a particular level during a specific time period. In order for this to be successful, the KPIs have to be clearly understood and quantifiable, and reporting must be accurate. The information provided by KPIs empowers people to improve their own personal performance along with that of the organisation.
4. They Help Your Find Issues in Your Business Strategy
Managers can use KPI to identify any issues present in the construction of business. Any type of problems such as labor productivity issues, danger to employee safety and failures to meet the expectations and needs of customers. KPI enables businesses to recognise these issues to take appropriate action to rectify these problems. Companies can also resolve customer’s issues and concerns with the help of KPI by analysing feedbacks from clients to check whether the expectations of clients are met or not. This approach also helps in eradicating future potential issues that may occur in the future projects.
4. They Let Your Discover Strengths in Your Strategy
With the KPIs, companies can easily unearth potential strengths to use any opportunities that you can use to enhance the performance of your business. Businesses can easily find the strengths whenever a post-project review shows a high score and this score indicates your performance in your performance. Companies can follow the same procedure to upgrade the performance of their company if your post-project review shows high score.
5. They Align Your Marketing & Sales Efforts
With help of KPIs, companies can easily measure and calculate all efforts that also includes marketing spend and sales department so that all departments can work in a harmonised way. When goals are decided by companies, team members start work in collaboration. This approach brings two departments closer for better insight.
6. They Save Business Expenses
With KPIs, you can easily recognise any cost saving prospects related to the project construction and also craft ways to curb any extra costs that may occur in future. KPI basically include tracking of uncommitted costs and also upsurges committed costs as and when required. Business can easily add factors like contingent costs and price escalation into the committed costs to restrict financial exposure. The knowledge that is gained from the audit can assist companies to manage all labor and material costs when they do bidding for construction in the future.
Are you considering getting your own KPI dashboard?
Try SimpleStrata
SimpleStrata provides a complete solution which enables organisations to communicate and execute their strategy in an effective way, by helping them:
Manage Results
Set goals, objectives, and KPIs
Generate periodic measures
Distribute to employees
Schedule review meetings
Generate results’ scores
Manage efforts
Plan initiatives, projects, jobs
Link to strategy plans
Schedule and assign activities
Monitor progress
Generate efforts’ scores
Create visibility
Define correlations between results and efforts
Generate business intelligence dashboards
Provide insights about corrective actions
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