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Strategies For BI Dashboards To Create SMART KPI

  • We frequently see owners not understand their business. They fail to log departmental metrics throughout the year, leaving them with an idling company wondering where problems lie. 

     

    KPIs measure your business's successes and failures. KPIs often called flash reports or dashboard Business Intelligence, give business owners and managers an overview of how their organization or particular departments perform. 

     

    A KPI compares company goals to actual, quantifiable data over time. 

     

    Not all KPIs measure business performance. Larger companies may have SMART KPI sets for each department or area.

     

    The term SMART KPI for businesses means that their Key Performance Indicators should: 

     

    - Specific

    - Measurable

    - Attainable

    - Relevant

    - Time-Bound 

     

    The manager who institutes the policy of using SMART KPI may describe them as 'SMARTER KPIs,' meaning that in addition to being SMART, the KPIs are also: 

     

    1. Explainable (simple to explain to your colleagues) and 
    2. Relative (measured in percentages or other methods that avoid "vanity metrics")

    Vanity Metrics look overly rosy if the business grows (or highly negative if shrinking). 

     

    Notably, a SMART KPI discourages managers and employees from evaluating performance based on qualitative elements (corporate politics, etc.) rather than quantitative ones (did the employee achieve a goal?), thereby reducing the use of vanity metrics that don't affect the business. 

     

    How to strategize BI dashboards for SMART KPIs? 

     

    The importance of SMART KPI strategies is widely acknowledged. Still, not all businesses have adopted SMART KPIs for their staff in their Business Intelligence tool

     

    The goals and results of an organization's performance can be more easily understood using SMART KPI techniques. In the end, they help your company and its people succeed. 

     

    1. S-Specific 

     

    There will be less difficulty in monitoring the KPI in the Business Intelligence tool if it is more specific. When goals and objectives are detailed, employees or managers have less room for confusion. 

     

    EXAMPLE: 

     

    Establish daily phone call quotas or quotas for new product sales as a SMART KPI.

     

    1. M-Measurable 

     

    Clarify the metrics used in the dashboard Business Intelligence. Indicate the anticipated growth or decline in activity with a specific number or percentage in your Business Intelligence tool. 

     

    EXAMPLE: 

     

    Within the first month of employment, all new hires must answer all external inquiries within 24 hours of receipt or complete their induction training. 

     

    1. A-Attainable/Achievable 

     

    Your employees should be motivated to work hard for a SMART KPI that is also realistic. 

     

    EXAMPLE: 

     

    75% month-over-month customer retention or one-hour quotation turnaround for quote requests. 

     

    1. R-Relevant 

     

    Your company's short-term and long-term objectives should be consistent with each SMART KPI. As a KPI, its importance to success must be paramount. 

     

    EXAMPLE: 

     

    Maintain a customer satisfaction rate above 80% or expand market share by a predetermined amount by the end of the year. 

     

    1. T-Time-Bound 

     

    Setting a deadline for KPIs increases the likelihood that the team will be able to meet the deadline. It also facilitates monitoring the process and results of the intended outcomes. 

     

    EXAMPLE: 

     

    Either earn a mandatory credential by the end of the week or boost qualified leads by 25% by quarter's end. 

     

    Closing Words-

     

    Using Grow's Business Intelligence tool with relevant SMART Key Performance Indicators (KPIs), you can monitor progress toward your business objectives and guarantee that your staff performs to their maximum capacity. To learn more, read Grow.com reviews

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