10 Ways KPIs Improve Execution
If you want to execute your strategic plan, you have to let your people know what to do on a day-to-day basis. They want to help. They want the company to succeed. They want their jobs to be secure. You can put all that good will to use.
The essence of great strategic execution comes down to the little things that you employees can control on a daily basis. If they understand how those little things connect to the big, grand strategic plan then they can work with confidence.
KPI's improve decision-making.
One accurate measure can be worth a thousand opinions. Since KPIs measure daily activity, and since they are objective, management becomes much easier and more team-like.
KPI's improve business execution.
What gets measured gets done, simple as that. This is especially true when you close the loop by reviewing KPIs during short, well-organized meetings.
KPI's clarify expectations.
They let managers to communicate their expectations to employees in a clear and unambiguous manner, taking “subjectivity” and “favoritism” out of the picture.
KPI's direct people’s behavior.
Employees love clarity and objectivity because it enables them to succeed on a daily and weekly basis, improving their attitudes and their ability to work together.
KPI's focus attention.
Employees are faced with many competing demands on their time. When they know the 1 or 2 numbers that their performance will be measured on, it keeps them focused on doing the right things.
KPI's promote consistency.
Activities and outcomes that are not measured every week tend to fluctuate up and down. The ones you measure are tended to consistently, with great results.
KPI's make performance visible.
Keeping the scores visible where everyone can see them, shows who is performing well and who is struggling. This establishes a culture of excellence, so long as stragglers are helped and A-Players are allowed to do their best.
KPI's provide objectivity about performance.
Data enables you to “manage by fact.” It’s not about “keeping busy” — it’s about achieving success.
KPI's help you give clear feedback.
Your job as a business leader is to support your team to achieve their goals, so you must give clear feedback about what actions need to be taken - by them and by you. You only succeed as a leader when your team succeeds.
One final tip:
KPI’s should be graphed on a dashboard to show the current score, and historical trends every week. ResultsBI, we might point out, is the perfect platform for that.
There are countless benefits to using KPIs the right way. So how do you get started? Download our free KPI Success Kit. Define and use KPIs in your organization now, and you should see the impact before the end of the year.