As part of a regular series for TIA UK News, Lee Dickinson, a licensed business coach with ActionCOACH, explains the importance of Key Performance Indicators.
“There are four things that every business owner needs to understand,” says Lee. “Firstly, the profitability of the business depends on how well the employees consistently perform critical activities.
“Secondly, employees perform best when they understand how their performance affects the bottom line, and how their performance is measured.
“The third fact is that small changes in critical areas can have a great impact, and finally, what gets measured gets done, and what gets rewarded gets done again.
“Key Performance Indicators (KPIs) are quantifiable measurements that reflect the critical success factors of a business.”
So why are KPIs so important?
“Business owners are often overwhelmed and distracted by day-to-day tasks,” Lee explains. “They often have to make important decisions, quickly, and often with only limited information to hand.
“They tend to concentrate on the tactical decisions and neglect the strategic ones. If we focus on KPIs we ensure what gets done is what most needs to be done.
“When setting KPIs you must only focus on the most important business objectives. Every KPI must reflect performance and progress of business and must be quantifiable.”
“KPIs are not just targets to hit – they can help you better understand your business. KPIs can inform, communicate, and diagnose problems and help you make decisions and take action based on precise information specific to your business.”
The Tennis Industry Association is working with Lee Dickinson, a licensed business coach with ActionCOACH, to provide business mentoring to its members.