How many KPIs?
People often ask us how many KPIs a business should monitor. Recently I met a business advisor and he was very proud of the fact that he had taken one of his clients from 30 KPIs down to just 5 and my first thought was ‘what have they just taken their eyes off?’
The thing with KPIs is that each one generally involves some degree of overhead, so somebody has to continuously calculate the KPI and report it. Bizeo eliminates that step so you can have hundreds of KPIs with no additional effort. So why wouldn’t you monitor every aspect of your business?
You might be the CEO of a large organisation and yet you’re still responsible for things like the website going down or if there is an OH&S breach or if the debtors get out of hand. Those are all your responsibility as well.
If there is no overhead associated with monitoring these things why not let Bizeo do it for you?
If you’ve got kids you probably spend a fair amount of your time wondering about how well they’re doing and worrying about things going wrong. The things is, we do the same with our businesses. The irony is that we worry so much about wanting to do well in our businesses to support our children that we spend a lot of time away from our children.
One of the beautiful things about Bizeo is it goes a long way towards giving you some of that time back. It can monitor parts of your business operations for you so that you don’t have to keep running around checking on things.
When you go on holidays you don’t have to keep phoning the office to make sure things are okay or to find out how things have gone. When you go home at night you can relax and spend some time with them without stressing out and that’s a great thing.
Sometimes when I’m showing what Bizeo can do one of the examples I use is the debtors KPI. With it I can keep track of how many outstanding debtors we have. It is quite natural for the next question to be ‘how can I get a list of those debtors?’
Well the short answer is, that is not what Bizeo does. What Bizeo does is monitors all of the metrics across an entire business and lets you know if something goes wrong. You can always go to your accounting system and get your list of debtors and you can go to Google Analytics if you want to see stuff about your website or you can go to your CRM system, you can always get reports out of those systems.
As a business owner or CEO, usually what I do when handed a report is go to the last page and look at the numbers at the bottom. My next question is ‘are they higher or lower than last time, i.e. what is the trend – and should I be worried about those numbers?
That’s what Bizeo does, it answers those questions and lets you get on with business.
I often get asked what sort of business Bizeo is ideal for and the short answer is just about anything. What I find is the more complex a business environment is the better Bizeo can add value because what it does is simplify things.
So, picture for example a franchisee who might own a few franchises. They have multiple individual businesses they have to monitor and then there is franchisor who might have to monitor hundreds or even thousands of franchises.
Bizeo can monitor individual stores, groups of stores, it can pass all of the data up to the franchisor so they can see how individual stores are operating and take action if some are not performing as well as they hoped. They can then summarise data and then pass summary data back to the franchises so they can see how they’re performing against the group average.
Bizeo makes this sort of complex process really simple.
There is an old saying in business that if you can’t measure it, you can’t manage it.
KPIs or Key Performance Indicators are about simply measuring business processes or items that influence the performance of your business.
They might be things like your sales processes or they could be things like your staff retention, they could be the productivity of your workers, it could be something like the weather or the exchange rates.
There are lots of things that influence our business and in general one of your jobs is to find ways to improve those measurements.
Say we want to improve staff retention for example, the way we do this is by developing new processes within our business that might help improve that. The way you know whether it works or not is by measuring those outcomes through key performance indicators.
That’s what Bizeo does.
What to Watch
I have a lot of people ask me, ‘What should I monitor with Bizeo?’
The simple answer is just about everything.
I use Bizeo to monitor everything from my accounts and my IT infrastructure, I use it to monitor how my customers are performing and how the products we deliver them go.
I use it to monitor how external influences such as economic indexes are performing, I use it to monitor things like the weather. I can see for example when it is snowing in Chicago which is where my girlfriend lives, little things like that. Bizeo lets me know just about everything about the world that might influence me or my personal life.
Don’t be restricted just to business items as well, you can also monitor things like your weight or blood pressure. A lot of time business owners forget about themselves, watch those things as well.
Look after yourself with Bizeo.
What is Bizeo?
I have a lot of people ask me what Bizeo is and what does it do?
The short answer is, it is designed to simplify business and give you back control of that business and your life.
How does it do that? Those of us who run and own a business are really passionate about them. We spend our days and nights, our weekends and holidays checking on things, hoping to improve things and worrying about things that might have gone wrong.
Bizeo does that running around for you.
It can monitor every part of your business, let you know the second something goes wrong, gives you all the key metrics you need to monitor performance and best of all it reassures you that everything is ok so you can get back to enjoying your life.