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Key Constraints

For the small business owner, learning how to measure the right Key Performance Indication (KPIs) and how to create actions from the data can differentiate a business from the competition.

The act of measuring your KPIs will promote an atmosphere of learning by your team within your business. Careful consideration on what is important in a business is essential if the KPI is to be an effective measurement and to achievement of the specific goal tied to the KPI.

Creating KPIs form part of developing long-term business goals, but to be effective it is important to keep the measurements consistent over time.  Even if you change your goals, the way you measure the KPI should remain consistent.

When you are developing a KPI it is important to ensure that the KPI leads to specific actions to achieve the goal e.g. if your KPI is to increase customer retention then you cannot reach this goal because the goal does not have a measure that you can verify.

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