When it comes to tracking the abilities and performances of your business you want to make sure that you’re doing it properly. That’s where metrics and specifically KPI metrics come in. We’re going to take a look at both of these methods of measurement and just what they’re going to mean for your business and your bottom line. By better understanding each one and how to measure it you’re going to have a better opportunity to improve your current situation and continue to provide even better returns and opportunities for your clients and your employees.
Let’s start from the top. What exactly are metrics? Well, metrics are a way to help you measure the performance of your business and the success of some of the different tasks that you are responsible for within the business. But metrics can take several different forms. That means KPI’s which are key performance indicators, are a type of metric, but they aren’t the only type of metrics that you’re going to want to track. So, let’s take a little closer look at just what metrics are before we dive into the specifics of KPI’s.
Metrics are any type of quantifiable measurement that lets you know just how your business is doing. But it’s important to recognize that metrics are related to several different factors within your business. Everything about your business can be tracked through metrics. You want to be able to track anything and everything you can within your business because that’s how you’re going to keep progressing and improving in all aspects of your business. The more you know the better you’re going to do and the happier your clients and employees are going to be.
Metrics can tell you a number of things because they’re not only tracking your core business tasks. They’re tracking all of the different parts. So, if you notice something that you don’t like (or do like) in your KPI’s you can go back and check the metrics to see why that’s happening. It’s going to help you improve your process.
Now let’s dive a little deeper into the process. Metrics can be related to a number of different factors and they are. You want to track as many metrics as you possibly can. But when it comes to the specifics of what’s important to your business and to keep it running, that’s where you’re going to need the KPI’s. These are the key performance indicators or the most important business objectives that are going to help you achieve the goals and perform tasks that you are looking for. They’re the core business targets.
Now, KPI’s also need to be as specific as possible and they need to be something that is measurable. That’s how you’re going to know what they’re doing and how they’re changing over time. If you can’t measure them you can’t tell if you’re doing better, worse or the same over a specific amount of time. And if they’re not specific enough you’re not going to know if you’re measuring the right things. You may find that there’s a difference but not know what to attribute it to. That’s going to cause you even more problems and take more time to sort out.
Remember, you don’t need to have the same KPI’s as any other business. There are likely specific markers that are important to you but not as important to another business. Things like sales growth, lead to client conversion rate, cost of customer acquisition, social media metrics, free cash flow, and more could all be KPI’s for different businesses.
When it comes to tracking each of these things you’re going to need several different metrics and KPI’s that will help you monitor. But you also need to know what to do with them once you’ve actually tracked them. Once you know that certain metrics are going up or going down or staying steady, how are you going to change them (if you want to change them)? There are several things that you can do, but the most important thing is to start setting objectives.
Objectives are your goals for what you’re going to do with your different results. So, if you look at your KPI’s and realize that your sales are lower than you want them to be you need to set an objective for what you want to do in order to get the numbers better. So, you might set an objective to increase your social media spending by 10% in order to generate more leads. Or you might set an objective to decrease the cost per customer acquisition by 20% over the next five years.
It’s important that you set your objectives in the best way possible so that you know what you’re working toward and you can create a plan of action for just how to get there. After all, you don’t want to find yourself struggling with bad KPI’s and bad metrics but no idea how to change things and improve the standards that you’re already working with. You need to immediately be able to recognize what needs to happen and how you can push yourself and your business in the right direction.
Do you really need to be paying attention to both KPI’s and metrics? We’ve touched on this already but the answer is absolutely, yes. You need to know both your metrics and your KPI’s because your metrics are going to cover a whole lot more than your KPI’s will. If you’re not tracking a whole lot of additional things through metrics you’re going to end up with KPI’s that won’t really help you because you don’t know why they are what they are. If you track both you can check back to see what is causing those KPI results.
When you track these measurements you’re going to have the ability to improve your business and improve the experience for your customers. You can make sure that they are getting the absolute best that you have to offer and you can continue to improve the experience in the ways that are going to make the biggest difference. Because you’re tracking your KPI’s you can see when things are going well or not so well. Because you’re tracking metrics you can figure out why your KPI’s are what they are and you can continue to change and improve those as well.
You’re also going to be able to improve the experience for your employees because you can make sure that you’re doing everything possible to get tasks completed efficiently. When you can see where the benefits and the drawbacks are for your employees you can make sure that they are getting the best possible experience while working on tasks and projects as well. This is going to help you improve your business all around and make you more effective at what you do.
Okay, so now that we know that KPI’s and metrics are both important and how they’re different and we know about setting objectives, how do you make sure that you’re tracking the right things? How do you know what your KPI’s actually are? You’re going to have to look at several different factors, but mostly you’re going to need to consider your business and the specifics of just what your business is responsible for or capable of. The more you know about the business and the objectives that you have the easier it’s going to be to set what the key performance indicators are for that business to reach those objectives.
The most important thing is for you to set the right type of KPI’s and to track the most important things for your business in particular. You’ll need to have KPI’s in general that are specific, measurable and relevant to your business. The most specific indicators are going to be best and you should have specific numbers that you’re tracking. They need to be focused and you need to be able to measure them in some way. You then also need to be able to relate the KPI to your business and what is going to help you move the needle forward in that business.
You need the right tracking service to make sure that you know what your KPI’s are and how they are going to influence your business. If you have the right tracking system it’s going to be easy to monitor and you’ll be able to immediately change the way you’re doing things to react to that problem. But what is the best method for tracking? There are a number of different dashboards and systems that can help you and Instagantt are one of those. You can set up the things you want to track including general metrics and KPI’s and then you can continue to monitor them for as long as you need.
Your KPI’s may make sense at this moment, but you may need to adjust them or change them entirely over time. The most important part of this step is to always take e a look at your KPI’s to see if they are still providing you with the service that you actually need. Are they still the most important indicators in your business? Are they still the things that you need to monitor or track in order to move forward with your business? If not, then change or adjust as needed until they are.
If you’re ready to get started tracking your projects, your KPI’s and your metrics then it’s time for you to give Instagantt a try. You’ll find a whole lot of great features and options that are going to make it a whole lot easier for you to stay on top of everything that’s going on with your business. You’ll be able to set up and customize your charts to make sure that they work for you, your team, and your business as a whole.
You can create projects, tasks, or other things that you need to monitor on a Gantt chart or a Kanban board. From there, you’ll be able to create as many categories or subcategories and tasks and subtasks as you would like. You can set up different people who are responsible for them and you can track just how far your projects are going and how much more they need in order to be completed. All of this will allow you to improve your business and provide more for your team and your clients at the same time.
If you’re looking to improve the way that you track things happening in your business you’re going to want to look closely at KPI’s and at the metrics you’re already tracking. If you are tracking properly you’re going to see a number of different factors that are going to influence your business and lead you in the right direction or the wrong one. The more you track and the more you pay attention to the things that affect your bottom line, the better off you and your entire business are going to be. And with Instagantt to help you with tracking you’re going to be even better prepared.
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