Strategic Objectives & KPIs for business growth
Daniella Genas MA. MBA
Business Growth Strategist ?? l Helping Founders reclaim their time, streamline operations, boost staff performance and build sellable businesses l TEDx Speaker l Charity Trustee
It can be detrimental to take an ad-hoc approach or wait until the end of the year when measuring business performance. Even the astute, who check on a monthly basis won't have an entirely accurate understanding of how the business is performing if it is not measured against a goal or strategic objective.?
The key to achieving business success and growth is to take a systemised and structured approach, have clear and trackable KPIs and follow this 4 part process...
1. The Vision
Set your KPIs with your Vision in mind. This will inform the key areas of performance that your business should be focusing on.
Your vision may be to “be the number one for customer service in our industry”. In this case, one area you will need to measure is customer service. You must understand these things so you are not just going through the motions and banking on a good outcome.?
2. The Values
Your company values are another area which should inform measurement. If one of your core values is “innovation”, measuring the Innovation Sales Rate (ISR) as a KPI for example, will help you to determine how successful new products/services are.?
If you don't have clarity on what your company's vision and values are, now is a great time to sit down and map these out.
3. The Strategic Objectives
Establishing strategic objectives is key to measuring business performance and should align with your vision, values and overall strategy. They are your business's goals over a specified period, (usually 3-5 years) and typically incorporate Finance, Processes, Customer and People.
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Having 3 – 4 strategic objectives for each area is ideal, with no more than 15 in total. Your strategic objectives should be split into:
The theme (Customer retention)
The action (to increase)
The impact (customer retention by 70%)
How you will achieve it (by significantly improving our onboarding and offboarding processes and providing consistent exceptional customer service)?
4. Measuring Performance
The next step is to determine the specific tactics and metrics for achieving your vision, values, and strategic objectives. It is important to set a measure against the tactic and the overall performance towards the strategic objective too. You should also determine how frequently the data would be collected and reported to help you identify whether you are reaching your goal or need to implement a method or required improvement to address this.
Need some assistance getting clarity on your vision, values, strategic objectives and KPIs? Find out more and see the full working example for use in your business
???? https://shesthebossintl.com/blog/strategic-objectives/