Beyond the Numbers: Rethinking What KPI’s Really Measure

A KPI without context is just a number, and numbers alone don’t tell the story of your business. Key Performance Indicators are meant to tell leaders how their organizations are performing. But there is a problem, a majority of companies measure their outputs without understanding what drives them. A report or spreadsheet full of statistics does not reveal the strength of the relationships between the employees, customers, and stakeholders, which is what really matters.

Image Credit: Luis Gonzalez-Zuniga

Rethinking KPIs for Modern Business

• Measure Everything: Tracking revenue isn’t enough. Engagement, experience, and trust are just as valuable to the success of your company.

• Casualty & Correlation: Engaged employees have the potential to become customer advocates, which can in turn affect shareholder value. KPIs can predict as well as they record.

• Adapt to Change: Metrics and Statistic are always changing along with the market, their conditions, and their expectations. Allow your metrics to have the flexibility to change.

  
  

Success Story

         Take adobe for example. The company abolished their annual performance reviews, opting for regular check ins that focused mainly on their employee development. This shift improved the overall engagement and productivity of the company, which boosted their retention. Its proof of how shifting the way you look at your metrics, aligning then with different attributes besides finances can create more value for your company.

Takeaways

         KPIs don’t just have to be metrics into company finances, they can be lenses to understand how well your business is operated in all aspects. Business leaders who analyze all parts of their business and adapt their KPIs accordingly can turn plain reports into powerful tools for future growth.