After a couple of misleading KPI results, are you thinking of ignoring them entirely? Are you sure that you are using them correctly? Key performance indicators are crucial to understanding business performance. Nurture them, and they would help you get back on your feet in the post-pandemic world. Let’s find out if you are making these three mistakes that Bernard Marr talks about in his blog article.
Mistakes in Understanding KPI Results
KPI results translate data into meaningful insights that you can use to improve your business. You can be running a small business or a large brand. If you have been unsuccessful in utilizing KPI results to enhance processes and functions, you must be doing something wrong. Check out if you have made the following mistakes that led to misleading KPI results:
Devoted to Measuring All
There is not one element in your business that does not have a KPI attached to it. Now, you have numerous datasets coming from various directions, but you have no clue how to utilize them. So, all your efforts and budget in collecting the data amounted to nothing. Analyze what answers you must have to achieve those business goals. Set questions to get answers as your KPI results.
Having a Herd Mentality
Have you set up KPIs because they look good while presenting to the stakeholders and potential sponsors? Are you establishing key performance indicators following your peers or competitors for fearing of missing out? Do you want to try out those parameters that leadership journals promote continuously? However, it is your money and working hours that you are going to spend, and you would be answerable for losing them. So, apart from some common financial KPIs, do not bother following the herd.
Not Paying Attention to the Essentials
Since there are so many parameters, you might feel overwhelmed and choose the wrong ones. Also, data sources and types are increasing, and you no longer can hold on to the old parameters. To get accurate KPI results, pay attention to those that deliver what you need.
To view the original article in full, click on the following link: https://bernardmarr.com/default.asp?contentID=978