Since we are talking about the importance of KPIs, you who are looking to improve your management know the main types of indicators that companies use.
There are different categories, which measure different aspects of your organization.
In fact, it can even be said that key indicators are different from one type of business to another.
That is to say, the KPIs of a distributor are different from those of a manufacturer, for example. Everything depends on the objectives and metrics that influence the company.
Below we explain some of the main types, with some examples to better illustrate their function. Check this out:
Financial and economic indicators
Good financial management depends not only on cash flow lithuania whatsapp data control, but on the entire financial control of the business.
This depends on managing key indicators to understand the company's momentum, its ability to pay bills and its revenue potential.
Among the main financial and economic indicators of a business, we can mention:
Average ticket;
Gross income;
Predetermined;
Net income;
Profit margin.
Productivity indicators
Productivity indicators are those related to the practical part of the company's results.
That is, the level of delivery that led the company to its current results.
The most commonly used productivity indicators are:
Return on investment
Quality level;
Sales success;
Production capacity.
Quality indicators
These KPIs are extremely important in indicator management, as they allow the company to measure its efficiency and, in turn, customer satisfaction.
In other words, if a company managed, over a period of time, to meet 100% of its deadlines, this means a victory for its quality indicators.
However, in addition to this example, there are other indicators that can be taken into account, such as:
Added value;
Customer satisfaction;
Loyalty.
Sales indicators
Finally, sales indicators are considered one of the main measures of a company's success.
They serve as an anchor for everything else, so they should always be monitored.
In the list of most relevant sales KPIs, we can mention:
Sales;
Conversion rate;
Tracking fee;
Lifetime value (LTV).
How are indicators managed?
Before moving on to the practical part of management, it is necessary to understand how to get to this point.
The main thing is to define the indicators and metrics that will feed them.
In other words, each indicator relies on different metrics: to measure profitability, you will be based on different data than the data on which customer satisfaction is based.
Here, it is important to establish who will be responsible for collecting and monitoring this data frequently.
At this point, a management system is essential, as it allows you to automate the collection and make all the information available in a very complete interface.
Sales data, for example, often needs to be collected and updated daily. Others, such as financial indicators, may only need to be updated weekly or even monthly.
As for the professional in charge, the ideal is someone directly linked to metrics control. This is something that the sector managers themselves can do, after all, they are the ones who usually present the KPI reports.
Also, communicate the indicators (what they are, their importance, how they are measured, etc.) clearly to everyone involved.
If you are responsible for a team or your role is linked to an organizational indicator, you should pay attention to this point.
You need your reports to tell you exactly how each KPI impacts you.
This way, managers and decision makers will understand exactly what activities need to be carried out to solve problems and make improvements.
In this case, using a strategy such as a balanced scorecard can be very useful to measure operational efficiency in a comprehensive manner.
Together with a management system, the visualization of each action performed becomes broad and, at the same time, deep, helping you measure successes, failures and opportunities for improvement.
After that, you can make changes and see how the indicators respond.
With this type of management, you can adjust your operations as you wish and see fit.
Because KPIs tend to react quickly to changes, you can experiment with different changes and stick with the ones that produce the best results.