Set the right incentives in your organisation by tracking and benchmarking SMART KPIs!
Follow these steps to be on the right path:
- Define and set your main objective
- Divide the main objective into weekly or monthly goals
- Track KPIs that support these goals
Let’s assume you are a SaaS company and your main objective is to increase customer satisfaction by 20% year over year. First, we divide the goal into monthly parts. Hence, the goal is to increase customer satisfaction by 1.53% monthly. Second, we identify SMART KPIs that support these monthly targets. For example, improve customer support by shortening response time, simplify installation by reducing the number of steps needed, develop and release features that customers ask the most, etc.
SMART KPIs follow the scheme outlined below:
- Specific: Do your identified KPIs support your main objective?
- Measurable: Can you calculate the KPIs with your available data?
- Achievable: Are your KPIs realistic and reasonable?
- Relevant: Do your KPIs measure the outcome and not the input?
- Timely: Do you have the KPIs calculated early enough to manage your startup?
Tracking SMART KPIs results in a complete overview of progress towards your goals and further improves your decision-making ability.
We have elaborated it more on our website Business Monitoring & Controlling