Key Performance Indicators (KPI’s) and Your Business

Key Performance Indicators are crucial to the health and success of your business. They allow you to focus on the most important areas that are vital for achieving growth, profitability and your overall strategic goals.

Curious about what KPI’s you should be tracking in your business?

See our list of KPIs by industry below and download yours today!

What are Key Performance Indicators (KPI’s) and Why Are They Important?

KPIs are a dashboard of your business’s health that’s visually communicated using charts and graphs. You only need a few KPIs to measure the most important areas of the business. They are indicators of whether or not you are on target to hit your desired goals. KPIs should be looked at from an organizational level, division/department level, team level, all the way down to an individual level. By looking at them from each of these levels, the KPIs create accountability. By tracking your business’s performance over time, you can also see trends and make necessary adjustments to stay on track towards hitting your goals.

How to Match Your KPI’s to Your Goals

  1. Ask yourself what “success” looks like
  2. Create context around “success” by learning about the industry benchmarks and positioning.
  3. Identify root causes and levers that can move you closer towards success
  4. Determine who controls the levers
  5. Create goals and accountability
  6. Avoid having too many KPIs

The Basic Business Model

The Basic Business Model is a summarized look at how your business is performing. In order to determine the right KPIs for your business, you’ll first need to learn about the benchmarks and positioning for your industry. You can use the Basic Business Model to benchmark your company versus others in your industry to see where you stack up. From there, you can identity the root causes and levers that can move your closer towards success.

What KPI’s do you want to track in your business?

Find your industry. Download your KPIs now!

Need help determining the right KPI’s for your business?

In today’s information age, it’s easy to find yourself wanting to track everything in your business or see everything as “the most important thing” because you have access to so much data. Make sure though that your KPIs are a direct reflection of your most important targets and only focus on the most impactful areas of the business.

If you are looking for help with establishing the right KPIs for your business and outsourcing your accounting, our trained teams can help you start planning for the future starting on day one. TGG’s reporting focuses on timely, proactive information and key metrics to help guide your decision making to ultimately achieve your personal and professional goals.