Key Performance Indicators – Everything Old is New Again

Long before “hashtags” and “followers” and “likes” (and long before “friend” was a verb), you measured success with key performance indicators (KPIs). These are defined as measurable ways of assessing a company’s performance on important business goals, and they’ve been part of the business lexicon for years.

But interestingly, in this age of quick-hit technologies, KPIs are bigger than ever. According to Peg Guinta in RISMedia, “Today more KPIs than ever are tracked.” Says Guinta, “Performance Measurement = Standard Practice.”

In Results.com, Stephen Lynch sums up the importance of KPIs. “Your KPIs establish the pulse of your organization and ultimately its success.” And there’s more. Writes Lynch, “The key question to ask yourself for every KPI you come up with is: How frequently do we need to view and discuss this number to make sure things are on track – or if it is off track, to take corrective action in a timely manner?”

The executives at Forbes Finance Council seem to agree. In a recent article, council members list eight important financial KPIs. According to council members, business owners need to track these “less visible metrics that can make or break their company.”

Of course, these days there’s software to simplify everything. An article in Business.com includes fourteen tools to help businesses measure their indicators, based on speed, ease, cost, and more. These provide a good cross-section of user-friendly dashboards for virtually every business. Because, as many experts suggest, virtually every business should be tracking its KPIs.

Like it or not, it’s smart to follow your KPIs.