So yeah I ended the last post pretty abruptly… let me expand it on it some more.
KPIs Key Performance Indicators
Should they be the same year after year? Are the goals the same year after year? Sure there are probably some overarching goals like make more sales. But what do sales numbers really mean as far as action items? What’s more impactful is tracking the metrics that support the strategies defined for the year with specific action. Knowing that sales is up or down is okay, but how do you know what to do about it? If you’ve built well-thought out action plans leading up to your strategy, for example – let’s sell more mattresses to people who haven’t replaced their mattress in over 10 years, then the metrics should be specific to that strategy. Get data on that target, create action items on how to sell to them, and then track those specific action items against the forecast. Don’t forget about context to easily see which path you are heading.
Another example – I would like to lose weight. I can weigh myself every day (eegads!), but that won’t help me. What will help is to write down that I am going to go swim every week day for 30 minutes, and track that. Hopefully that is a sound strategy and it can lead to dropping a few pounds. Then I can see clearly whether or not I am meeting the actions that will support my overarching goal, eventually impacting my original intention.
And you know I love acronyms, so here it is – AIM – Action Item Metrics
Create your charts with AIM and hit those targets. 🎯
