So what are KPI, and how can they help you? KPI stands for Key Performance Indicators. These are metrics that help managers understand what kind of efforts are working well for their company. If a company has a high quality performance indicator, the manager knows exactly what kind of steps he or she needs to take to make that high quality performance the norm instead of the exception.
Consider an example of how KPI can be used. Let’s say that you are in charge of the marketing department for a local pizza shop. During your daily operation, you will come up with a list of the things that you would like to improve. Instead of just addressing the pizza part of the business, you can use this list as a case study for your team. This case study will show everyone what changes need to be made, and what the goals are for reaching those improvements.
A good example of a KPI example can be found on the web at Yahoo Answers. Yahoo Answers is a web site that answers questions. One of the questions that people commonly ask is, “How can I make my online business more profitable?” The group answers this question by giving a long and detailed explanation of several different elements that go into a successful marketing campaign.
One of these elements is a good customer service policy. The web site asks how you can improve customer service, and then gives an example of a case study in which that policy helped the company reach its objectives. Everyone who takes the time to read through the explanation of what the case study means can see what elements of the policy need to be improved. If the policy needs to be changed, it may take some tinkering, but it is much better than simply ignoring it and hoping that the company will figure it out on their own.
Another excellent example is the company blog. Every company has one, but if you aren’t careful, it can turn into an annoying interruption to the flow of work. The blog is usually written by an employee who is disgruntled or frustrated with the current state of the company, so it is filled with a lot of exclamation marks and angry words. Instead of reacting to every comment with rage, try to take a step back and look at the comment in a detached manner.
The goal behind what are kpi examples is to demonstrate that every element of your business has a direct correlation to the performance of the company. That way, if something isn’t working as well as it should, the person who created the metrics can show you where it’s wrong and how it can be fixed. If your organization is constantly losing money, it is important to show the audience that the problem lies with your financial management rather than the actual products or services itself. This example can take a number of forms, but the gist is that if you want to run a profitable operation, you have to be more organized than your competition. You can easily create a spreadsheet to track your expenses or just take a few minutes to take notes during the day about what you do and what you buy. It is important that you do not do everything at once, but small steps are better than nothing.
What are KPI examples are a great way to get everyone on the same page? If someone in the office sees how easy it is to make changes, they will be more apt to make the changes themselves to save the company money and improve the operations. Once everyone is on board, a company can dramatically increase profits and reduce expenses at the same time.