KPIs: The basics you need to know
We all know that while KPIs can be different from one company to another, although not very different, they are still connected with some decisions and major changes.
Thus, the role of key performance indicators is connected with best decision-making within the scope of the strategic objectives of each individual company.
It's never easy to define KPIs but here are some facts that will help you get a better understanding of the company's business objectives when it comes to performance, according to Dkv-benelux.com
Five facts you must consider when setting up KPIs
1. Billable hours
"Time is an important factor in the world of transport, and saving hours implies a great advantage. Actively approaching this KPI will enable you to search for possibilities of better returns on hours within the scope of your current business objectives. You could for instance consider increased efficiency of your records department by introducing innovative tools. This may already yield big returns without requiring many changes and mutations on your part," states the source.
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2. Project pipeline
In other words, you need an adequate prognosis if you want specific and realist results. Your CRM system should provide you with very helpful insight and give you a close to reality overview. You can use an online reporting tool if you want even better results.
3. Turnover leakage
Loss of profit on sales is usually an expensive KPI and inefficient procedures can cause this together with mistakes such as "instance billing errors, time losses when entering and recording hours and purchases, or incorrect time sheets". If you want optimal returns on sales and narrower error bands, you need more efficient procedures and also an online reporting system.
4. Outstanding sales
This refers to use of tools that are more flexible and implement an easier recording system so that you better understand sales at an early stage. The same source explains that a steady cash flow is crucial to any company; transparent records will advance your business.
5. Project margin
"Insight is the key to studying your margins and giving them prominence in decision-making," states the source. In other words, it's essential to use flexible operations so you can retain a clear insight in this KPI and can be achieved by using administrative tools.
These are just some of the factors you need to focus to obtain better results and put together KPIs for your company plans.