A Key Performance Indictor (KPI) is simply a value that’s used to monitor and measure an area, process or element within a business. Some KPIs are relevant to all businesses, such as Net Profit, but some industries have specific KPIs.

As with so much within our industry, the very use of the initials, or accounting jargon, can be intimidating!

KPIs are linked to the goals of a business. Owners and managers can use them to set targets and regularly monitor the performance of the business towards achieving those goals.

The challenges around KPIs

There are some challenges in deciding which KPIs to look at for any business:

• If you’re not clear on your strategy and objectives, it can be hard to find relevant, non-financial KPIs, and having indicators that cover both areas of the business gives a better indication on progress.
• Different departments in the business will have different opinions as to which measures may be most important.
• Using KPIs that may influence bonus payment and commissions can be difficult for everyone to look at objectively.
• Your internal reporting process may need to be adjusted to allow accurate reporting in an efficient way.

If you’d like to know more about KPIS, do take a look at our Guide, linked below, or get in touch to chat through how they may look for your business. It’s vital to ensure your choice of KPIs is achievable and relevant, and we can help you do that.

The first section below includes links to our ‘Rebound Resources’, designed during Lockdown to help businesses rebound after months of restrictions and, in many cases, prolonged periods of closure. Whilst we hope that there is no return to those dark days, the value in these resources remains. The loss of a key customer or similar challenge can create comparable pressure in a business, and these resources would be just as relevant.