By Katherine Gifford of Moraware
Goals are critical for any business, including the fabrication industry. Without them, it’s like playing a game of darts in a pitch-black room. You keep aiming and throwing, but you have no idea if you’re ever going to hit the bullseye.
That’s where KPIs come in.
Key Performance Indicators (KPIs) are indicators that track your progress toward a specific goal. KPIs give your business focus – something to work towards. According to Peter Drucker, “What gets measured gets done.”
In this quick guide, we’ll go over how to set and track KPIs that matter for your countertop shop.
What are KPIs?
KPIs help you track the health of your company. For example, here at Moraware, we track new customer activity as a measure of success. Why? Because we’ve found that if our new customers aren’t active within the first few weeks, they aren’t likely to be active at any point and will cancel.
That’s one KPI we measure and report on that directly affects the way we do business. What metrics are important for your business?
First and foremost, you want to make sure it can check a few boxes. Here are a few features of a great KPI:
- You should be able to tell if you’re making progress toward your goal
- Your measurements along the way should help you make better business decisions
- You should be able to compare performance change over time – for example, sales this month versus sales this month last year
A KPI can track efficiency, effectiveness, quality, timeliness, governance, compliance, behaviors, economics, project performance, personnel performance, or resource utilization.