Step 9 of Building a Better Business
Monitor your progress to reach your targets.
Monitoring your business’s progress is crucial for achieving your goals and targets. Just like keeping an eye on important indicators while driving, having a business dashboard with key performance indicators (KPIs) ensures you stay on track. In this article, we outline a four-step process to create a customised dashboard that helps you monitor your KPIs effectively.
Creating Your Custom Business Dashboard: A Four-Step Process
Step 1: Determine Relevant Key Performance Indicators (KPIs)
Identify the KPIs that have the most significant impact on achieving your goals. For example, consider measuring the average hourly rate invoiced, gross margin per job, or average transaction value for a specific period. Choose no more than five KPIs to focus on for your dashboard.
Step 2: Establish Measurement Methods
Automate the measurement process wherever possible. Utilise accounting software to track financial KPIs efficiently. Determine suitable tools or systems to measure non-financial KPIs effectively. Ensuring streamlined and accurate measurements will provide valuable insights for decision-making.
Step 3: Produce a Concise Regular Report
Create a simple one-page report to track your progress and results. Generate this report on a weekly, fortnightly, or monthly basis, depending on your business’s needs. Set aside dedicated time to review the report and share the results with your team. This fosters transparency and facilitates discussions about improvement strategies.
Step 4: Engage Your Team in Monitoring
Involve your team members in monitoring and achieving their own KPIs. Identify the specific KPIs that each team member should focus on, aligning with their roles and responsibilities. This helps clarify their definition of a successful day’s work. Regularly communicate and discuss the KPIs to keep everyone on track and motivated.
Successful businesses prioritise monitoring and measuring their progress. Establishing a custom dashboard with key performance indicators (KPIs) empowers you to track the metrics that truly impact your goals. By following the four-step process outlined in this article, you can streamline your monitoring efforts, automate measurements, and engage your team effectively. Remember, effective communication of measurements is key to driving success. Start monitoring your progress today and propel your business toward greater achievements.
