Business Metrics

Business KPIs Every Manager Must Be Aware Of

As a manager, you are responsible for achieving performance targets and ensuring that team members’ work supports the organization’s goals. To fulfill these expectations, you must create a motivated team by knowing how to define your KPIs. KPIs are the most vital tool in decision-making and help you identify the progress of the team’s work. So, what are the crucial KPIs you must know? In this article at Bernard Marr & Co., Bernard Marr explains some of the essential KPIs that will undoubtedly help you develop a performance management system.

Score Card to Measure Internal Performances

Process Effectiveness

Process effectiveness must measure:

  • Time: How long does the process take?
  • Cost: How much money is utilized in completing the project?
  • Quality: What is the percentage of non-conforming output to total output?

Process Efficiency

This metric provides you with a better idea of how much waste is involved when executing a project. For instance, how much time is wasted due to downtime, technical breakdown, or staff sickness?

Output Quality

This metric helps you measure if your product’s quality is high enough to meet the standards of your clients’ expectations while meeting the internal QA and budgetary guidelines?

Measuring Employees

Staff Advocacy Score

“Staff advocacy score is a measure of the extent to which employees are advocates of the business. It can be measured by asking a simple question: ‘How likely is that you would recommend this company as an employer to a friend?” explains Bernard.

Employee Engagement Level

How does your team members’ behavior contribute to the overall business goals?

360-Degree Feedback

This helps you understand how your employees rate each other and themselves for their performances.

Customer Engagement Metrics

Conversion Rate

It measures the percentage of people who complete an action that’s tied to your project goals. Though what defines a conversion rate varies from project to project, the conversion rate is easy to calculate. Divide the total number of conversions by the total number of visitors, and multiply the figure by 100.

Curious to learn more? Read the original article by clicking on https://www.bernardmarr.com/default.asp?contentID=1003.

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