What are the Benefits and Advantages of KPIs?

Eliminate Waste – Don’t invest time and effort on activities that don’t provide value. KPI reporting will help identify and reduce wasted effort. This lets you redeploy capacity to more valuable work activities.

Define Expectations – Create performance standards and baseline expectations for your employees with KPIs. Measure current performance and set aggressive but achievable targets to give employees a clear goal.

Benchmark Performance – After KPIs are defined, tracking and keeping them updated provides continuous performance data. Use this information to measure against current goals and external peers.

Quantify Results – Putting a number on an achievement speaks volumes. With this number, you can report results to management, shareholders, and your direct reports.

Improve Performance – Updated performance dashboards with effective KPIs will make meetings more effective. Focus on what’s most important to streamline processes and boost output.

Increase Market Flexibility – Current-state data can provide insight into your marketing efforts. These allow you to allocate resources to a new campaign or training to better equip employees to excel.

Provide Effective Performance Feedback – Managers can use key performance indicators to create an easy-to-follow roadmap to success. This enables continuous and focused feedback to employees. Clear objectives, standards, and criteria will help to improve your team’s engagement.

Pre-empt Problems – With consistent, up-to-date KPI data, you can anticipate problems in a process or activity—and stop them in their tracks. Don’t let unmeasured activities ruin your business.

Improve Accountability – Measuring activities and monitoring team and employee performance enable proactive management. This provides objective data to hold teams accountable for success.

Generate Motivation to Succeed – Routine, consistent feedback supported by data shows that employees’ efforts are recognized and rewarded. This will motivate them to reach daily goals.

 

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