How do you measure key performance indicators?
Key performance indicator (KPI) measurement helps you manage both your financial and non-financial data in a simple way. It would have been impossible with just a spreadsheet. You can measure your team’s performance as a whole and individually, bringing a sense of shared accountability and informing your team to where they need to improve.
Tailor your metrics to your business for maximum impact
Every business is unique. While some KPIs (like cost of goods sold, for example) will be suitable for many companies, the majority of your KPIs should be bespoke.
Think of your main goals. This practice will help you to recognise the path you need to follow. Once you’ve done this, think SMART:
- Are they Specific to your objective?
- Can you Measure your progress towards your goals?
- Is your goal Attainable?
- Are they Relevant to your business goals?
- What’s the Timeframe for achieving your goal?
Measuring your KPIs in Futrli
In Futrli, there are a few options for displaying your KPIs.
The Snapshot card
This card can display up to five metrics. When you’re tracking your KPIs, this one is the best way to get a quick view of the information you need. It can show you…
- Revenue for the current period up until today
- The forecast for revenue for the month up until today
- How you are performing against your forecast target
- How you are performing today in comparison to last month for the same period
- How you are performing today in comparison to last year for the same period
The Report card
You must monitor your report card regularly for it to be effective. Giving you insight across your business, their flexibility allows you to view any account, category, account group, non-financial data, formula (KPIs), historical and future periods for actual and/or forecast data over tailored periods.
Drill into the KPIs with the formula builder. It’ll allow you to assess a variety of key measures such as ROI, wage %s, productivity, and more. Because Futrli is so user-friendly, the KPIs you choose or your business can then be applied in dashboards or scenarios. We’ve ensured you can create dashboards for your departments, or see a full overview.
Interpret your success
This is the longest part of the KPI measurement process. To make your results meaningful, you need to give them a bit of time to come into effect. Once you’ve got results for a couple of periods, you need to be monitoring the results and comparing them in your forecast. This will keep your business on the right track to achieving your goals.
Now you can work out your averages and compare your results. Our alerts feature can tell you when you’re not meeting targets too, so you can get back to running your business the way you want to.
Fancy a free trial?
7 days – Instant access – No credit card needed