How do you measure performance?
When it comes to business, key performance indictors (KPIs) are typically used to measure how well the business is doing against pre defined targets or expectations.
However, with so many different types of KPIs to choose from, what is right for one type of business may not be right to use within another for measuring performance. When designing the most appropriate KPIs to use, a good Finance Director will consider things like the industry sector, trading environment, internal strategy and the end goal for the business owner(s). The KPIs used could then be further analysed to measure internal performance against external averages for the market in which the business operates in.
KPIs also don’t necessarily have to be based purely on the financials only either. For example, brand awareness and employee morale (as reported on platforms like glassdoor) are both often used as KPIs to measure public perception of a particular company.
What KPIs do you use in your business and how accurately do they fit your needs and expectations?
#fluidfd #financedirector #cfo #sme #keyperformanceindicators