What are the right KPIs for your business?
For the last 18 months, I’ve been studying business KPIs across a huge number of industries. And I’ve discovered that many businesses consider some KPIs insignificant and don’t realise how monitoring them could actually make a huge difference to their business.
Monitoring certain KPIs that seem mundane or are used for only one particular area can actually give you insight into other areas.
For example, at DMS, we started monitoring alarm system activation to ensure that staff were turning the alarm on. However, this unexpectedly enabled us to see what period of time the cleaners were spending on site, which was useful information for us.
Another example was the DMS website. Monitoring our website performance unexpectedly showed us that our web host was having occasional but significant failures and, at times, taking down our website for up to 12 hours. We’d had no idea that this was happening! (How many businesses sit looking at their website all day to make sure it’s still up? You just ‘trust’ that your host is doing a good job, don’t you?)
Additionally, different industries need to monitor different KPIs. Sometimes the ‘normal’ business KPIs (i.e. number of sales, revenue, number of clients) will not be the ones that most influence your particular business. You could be dependent on factors such as temperature, pressure, humidity, light levels and sound levels. For example, you might run a restaurant or event management business where the possibility of rain could influence sales or productivity. Here, weather KPIs would be vital.
If you have cold storage, you might need to monitor your power supply, because finding out one morning that your freezers have been off overnight could be disastrous. You need to be alerted immediately if a circuit breaker trips or there is any other type of failure.
We ourselves had to monitor our own power supply due to the grid or circuit breaker failures we sometimes experienced. As part of our business involves website hosting, if we lost power, even with uninterruptible power supply backups, those websites would eventually go down. And the first we’d hear about it would be from a customer — not ideal!
This is where dashboards and complex reporting systems just don’t work. When something goes wrong in your business, you need to know immediately, so you can take action. That’s why we’ve reinvented the concept of business monitoring with Bizeo — the world’s first business monitoring system.
Take a moment now to think about your business. What KPIs are most vital for you?
Note: The Bizeo launch is happening on Thursday 24 January at The Polish Club, Milton. There I’ll be giving a talk about KPI monitoring and answering all the curly questions the audience can throw at me. I’d love to see you there! You can find out more at http://www.bizeo.com.au/events/launch