Paul Golden looks at how SMEs can get it right when it comes to selecting the most appropriate metrics or KPIs to ensure continued growth.
The sheer volume of information available to managers of start-up or early-stage enterprises can be a distraction. This is why they are encouraged to focus on indicators that reflect the performance and progress, are measurable, can be compared to a standard (such as a budget) and are actionable.
According to business adviser Tina Marie Parker, these key performance indicators (KPIs) are vital to monitoring the growth and development of an emerging enterprise: “If you are not measuring and monitoring your performance you cannot know what is working and what is not in the process of growing your business.”
Among these indicators will be those which are key markers of the business performance, and hence the emphasis on the identification of those markers which are so vital to the business that they become “key”. One of the key success factors for a start-up is recruiting the right people, and it is critical that the management team is in full control of the process, says KPI expert David Parmenter.
This is an extract from the Business & Management Magazine, Issue 240, February 2016
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