How to Establish Your KPI’s

It is quickly coming up on the end of another year.  You, as the business owner, should have already planned your new year budget, growth goals, and assigned the KPI’s to achieve those goals.

What you say is a KPI?  In lay terms, a KPI is a Key Performance Indicator of your business.  In business terms, a KPI is a measurable value that showing how effectively your company is achieving its key business objectives.

Selecting the right KPIs are crucial to your business success.  Each department in your business (i.e. Front Desk, Marketing, etc.) will use different KPI to measure success based on specific goals.  Once you’ve selected your key business metrics, you will want to track these KPIs in a real-time dashboard that is updated and shared with key managers in your business.

How do you define a KPI?  It can be done in three simple steps:

Step 1: Establish Your Goal – What is the purpose of your business?  What is the purpose of your employees?  What is the purpose of a specific department.  As an example, the goal of the receptionist is to ensure patients arrive for their scheduled appointments.

Step 2: Establish Your Success Factor – A success factor is a key activity (or activities) that will lead to success and are measurable within a set time frame.  These two elements are key: measurable over a specific period of time.  Using the example above, we currently have a 90% patient arrival rate and we would like to improve this by 5% over the next 12 months.

Step 3: Establish your KPI – the success factor above is not the KPI, but leads to the measure that quantifies the success factor.  The KPI in this example will be a 95% patient arrival rate.

Once you have determined the success factors and established your KPI’s, it is now time to track and report these KPI’s.  Using a dashboard, that is updated regularly, will show you (as the owner) and your team the progress you are making towards your set KPI.

When you use KPI’s to drive your business, it will lead to success and ultimately profit for your business.  Do you struggle to define and measure your KPI’s?  If so, click here for a FREE consultation call to learn more how we can help!

Andrew Vertson, PT, DPT, ATC
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