Many businesses implement KPIs because they feel the need to measure something. Doing so makes owners feel that they have their fingers on the pulse of what is going on, but whether these are the right KPIs measuring the right things is not always considered.
We believe that implementing the correct KPIs at the right point in time and linking these directly to reward is critical to successfully growing a business.
The ‘FLOW – Review’ section of our Business Waterwheel™ helps business owners hit the sweet spot with that all important link and here are some things for you to consider.
– Start by verifying that your KPIs are aligned with both business profitability and the pay packages that you use to incentivise your people. Any disconnect here can be fatal for the business and yet, some businesses don’t put much thought into it. They pay what they can and feel uncomfortable pushing colleagues for fear of having to go through the hassle of replacing people. If done correctly, this verification can reduce the likelihood of losing employees.
– Sit down with each colleague and explain how the processes they perform and the KPIs you measure drive profit within the business. Discuss working hours, time off, pay needs, development opportunities and working styles. Studies show that for an extra day off per month people will work almost an extra hour per day so shape your packages accordingly and make sure you are ticking as many boxes as you can for your team members.
– Have a look at the impact on profitability when colleagues go the extra mile and estimate what the business impact would be if everyone in the team exceeded. Craft a bonus scheme to share with colleagues who over deliver on core KPIs and use a creative blend of cash and other perks thereby incentivising mutual success.
For more information on how to implement this effectively and for other tips on how to increase your profitability get in touch now or visit our website www.cleartrackbusinessgrowth.com
We can’t wait to work with you and it’s time to grow your business!