How to Set Smart KPIs that Drive Business Success
Michelle T. O'Connor
Strategic Business Growth Consultant for B2B & B2C | Expert in Strategic Planning, Performance Management, and Entrepreneurial Success | Proven Results in Scaling Businesses & Driving Revenue | Schedule Your Consultation
As we prepare for a new year, it’s easy to set big goals. But without clear KPIs, those goals are just dreams.
Key Performance Indicators (KPIs) are the measurable benchmarks that keep you on track. They help you focus, track progress, and make adjustments where needed.
I often encourage entrepreneurs to think about going on a trip.
We think about every aspect of our trip such as:
I want you to think about your business the very same way.
Ask yourself:
Here’s how to set SMART KPIs that align with your goals
1?? Specific: Clearly define your KPI. Avoid vague terms like "improve sales" and instead say Increase monthly sales by 15%.
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2?? Measurable: Your KPI should have a number attached to it so you can track progress.
3?? Achievable: Set goals that are ambitious but realistic.
4?? Relevant: Align your KPI with your overall business goals. If your focus is customer retention, don’t set KPIs about lead generation.
5?? Time-bound: Set a deadline to hit your target. For example, Increase average customer review scores from 4.2 to 4.5 by June 30, 2025.
SMART KPIs turn your goals into actionable, trackable results. They’re your secret weapon for achieving growth.
?? Pro tip: Start with 2-3 key KPIs to focus your energy on what matters most.
What KPIs are you setting for 2025?
Let’s discuss in the comments!
Blessings,
Michelle
I develop your skills so that you can obtain top International Qualifications that lead to your success!
1 个月HI Michelle T. O'Connor sorry to seem to be raining on your parade and forgive me if I give the impression that I'm acting as a know-it all. I am the first to admit that there's a lot of things I'm ignorant about and functionally illiterate in Still, I have to comment on this for the benefit of those entrepreneurs who did things like chemistry or history and don't know much about management issues. It is possible that they may be misled as not everyone speaks the language of business You seem to be referring to objectives, not performance indicators. A KPI is a benchmark that you look at to get an idea of how well you are doing, its not a target that you aim at For example, "increase sales by 5%/$50k per month" is a target. You want to know if you are on the way to meeting the target, so you set up a KPI that tells you this. Looking at actual results vs this figure will then give an indication of your performance and provide insight into how likely you are to meet the target To determine the KPI to use, its best to determine what will cause you to reach the target then express that as a figure. If making cold calls is the Critical Success Factor that leads to the sales target, the KPI should be "# of cold calls per day.