What does KPI mean to you?

What's a KPI? Oh, that's easy, right? It is a measurable value or metric used to evaluate how effectively an organization achieves its key business objectives.

I want to share with you five reasons why KPI might be something else.

For some time, many of us running a small business have been shown the flaws in our design. "You're too focused 'in' your business. You need to stop doing that." Look at all the big corporations out there. They are all driven by numbers. So, do what they do. It will make your brand a success. But what does it cost you? What are you ignoring?

OK, before you hammer out those comments, I'm not saying don't pay attention to those metrics. Your coaches aren't wrong. Focusing on performance indicators is essential for measuring progress and ensuring the organization is on track to achieving its goals. By setting and monitoring key performance indicators (KPIs), business owners can gain insights into the effectiveness of their strategies and make adjustments as needed. This can help to ensure that the organization is operating efficiently and effectively.

BUT, Let's also look at another, perhaps even more critical KPI, Keep People Involved and Informed.

Every business owner I talk to shares the same story of how hard it is to find good team members and even harder to keep them. Many business owners need to give more attention to the value of their most significant assets when becoming too focused on the numbers.

Keeping people informed and involved is essential for building a positive and engaged work culture, which can lead to better performance outcomes.

There are several reasons why it is essential to keep people informed and involved:

1. Builds Trust: When people are informed about what is going on, they are more likely to trust their leaders and the decisions that are being made. Transparency and open communication can help build trust between leaders and their people.
2. Increases Engagement: When people feel involved in the decision-making process, they are more likely to be engaged and committed to the organization's goals. This can lead to better performance and increased productivity.
3. Reduces Confusion: When people are not informed about what is going on, they may become confused and uncertain about the direction of the organization. This can lead to misunderstandings, mistakes, and a lack of productivity. Or worse it may lead to losing a valued team member.
4. Promotes Collaboration: When people are informed and involved, they are more likely to collaborate and work together towards common goals. This can lead to better teamwork and more effective outcomes.
5. Encourages Innovation: When people are informed and encouraged to share their ideas, they are more likely to develop innovative solutions to problems. This can lead to new opportunities and a competitive advantage for the organization.

Overall, keeping people informed and involved is essential for building trust, increasing engagement, reducing confusion, promoting collaboration, and encouraging innovation. This can ultimately lead to better outcomes for the organization as a whole.

A great way to keep your people involved and show them and your customers that your team members are essential to the company's culture is to ask them what they think. I guarantee that you will hear some amazing things. Interview them on camera about what they love about working with you and the rest of your team. And then share those great testimonials so that everyone else can hear it too.

So, in general, keeping people informed and involved and focusing on performance indicators are essential for achieving success in a business. It is up to business owners to strike the right balance between the two, depending on their specific goals and the needs of their organization.

And if you would like some help recording the stories of your team members and customers on video, Spark Interactive can help you out. We've worked with businesses across North America, helping them document their success stories with video. Learn more about Spark Interactive at SparkInteractive.com