KPIs are commonly used to monitor results. It is a great tool for informing you how the business is doing.
Do you know that KPIs can be used as a strategic tool? Let me illustrate.
After setting the annual goals, a common practice is to start brainstorming potential initiatives. Most of the time, you end up with a long list. And you can potentially take on initiatives that are less impactful.
Instead, add a step to turn your goals into measurable results. That clarity helps you focus on end outcomes you want to achieve. And that clarity helps you filter noise, helps you distinguish initiatives that are causally linked to your goals from initiatives that loosely associate with your goals.
Let’s say one of your goals is to improve operations efficiency. It is a broad goal. Do you want every team to improve efficiency? It might be ideal but are there specific areas that you want the business to focus on?
When you take the time to distil what specifically about operational efficiency that is most important to work on, you might hone in on customer support efficiency, for instance.
The measurable KPI could be Tier 1 support resolution. This clarity helps your team focus on Tier 1 customer support and avoid getting every team to look at efficiency improvement and park other priorities.
By turning your broad goals into actionable KPIs, you get clarity on the end outcomes and have everyone align behind that. This shift enables you put aside initiatives that are not strategic. So start using KPIs as a strategic tool to filter noise.
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