Performance indicators: how to adopt them in your company
Posted: Wed Jan 22, 2025 6:57 am
How do you usually analyze your company's results? What performance indicators , KPIs (Key Performance Indicators), do you use for evaluation?
Providing clear and objective information about business performance is the function of performance indicators. They allow you to monitor results, analyze what has already been achieved, what needs to be adjusted to achieve goals and, who knows, establish new strategies.
It is necessary to understand in depth which KPIs deserve to be measured in order to generate important reflections for decision-making .
Want to learn more about how to adopt assertive performance indicators to make decisions that aim to grow your business? Keep reading this article!
But before we talk about performance indicators, we need to point georgia whatsapp lead out that in order to analyze any number, it is necessary to have clearly defined value strategies for the business . Therefore, first of all:
– Carry out a self-assessment of the company, highlighting strengths and weaknesses;
– Define strategic objectives;
– Map internal processes to understand what needs to be measured.
– Importance of performance indicators
The purpose of analyzing KPIs is to improve the practices and processes adopted, promoting progress in companies, sectors and teams. In addition, they are also very useful for preventing a crisis or mitigating it, should one arise.
Companies usually base their performance on basic indicators that only assess profits. However, the importance of performance indicators goes far beyond this analysis. They can help structure the work of the entire organization, promoting a closer look at its employees, taking measures to make them more fulfilled and satisfied in their activities.
– Main types of performance indicators in companies
Productivity Indicator Objective: To assess the performance of the company's resources in relation to deliveries, including processes, suppliers and employees.
Low productivity may indicate a deficiency in the relationship with the employee/supplier or also a lack of resources to carry out the work with quality.
Quality Indicator
Objective: Analyze the quality of products or services;
Together with productivity indicators, these indicators help to understand any deviations during the production process. They help to identify points that need to be improved during the process.
Strategic Indicator
Objective: To assist in guiding the company in relation to the objectives that were previously established.
Constant analysis of improvement actions must be carried out to verify whether the company's initial strategies are truly effective and generating results.
Revenue Indicator Objective: To assess how much the business is earning in a given period.
By surveying all the amounts that entered the company's cash flow, it is possible to assess whether the business is selling and whether it is aligned with the defined goals.
Profitability Indicator Objective: To help analyze the simple relationship between operating results and net revenues obtained.
It is used to measure the performance of the business during a given period. Calculating the percentage of profit on revenue helps to better understand which path the business has followed and assists in the analysis of risk prevention strategies by knowing the real cost of the company.
Turnover Objective: To analyze the performance of talent retention and dismissals of professionals in the company.
Through the number of employee admissions and dismissals, it is possible to assess whether the company is experiencing internal problems such as team conflicts, failures in recruitment processes or unfavorable working conditions.
– How to choose the most relevant indicators for the company?
Can you currently identify what your company's biggest pain points are ? The origin of the challenges , why they exist and how they can be eliminated?
To carry out this analysis, it is necessary to carry out a survey of the company's information, cross-reference it and thus be able to reach consistent conclusions, based on data .
It may seem like a very difficult task, but for experts who rely on technology as an ally, it is possible to gather all the information in a digital database in an agile, precise and secure manner.
The Lowtax team relies on automated processes that help quickly generate valuable insights for each client's business. Our analysts have the expertise needed to thoroughly analyze indicators and point out the best paths for each client.
Providing clear and objective information about business performance is the function of performance indicators. They allow you to monitor results, analyze what has already been achieved, what needs to be adjusted to achieve goals and, who knows, establish new strategies.
It is necessary to understand in depth which KPIs deserve to be measured in order to generate important reflections for decision-making .
Want to learn more about how to adopt assertive performance indicators to make decisions that aim to grow your business? Keep reading this article!
But before we talk about performance indicators, we need to point georgia whatsapp lead out that in order to analyze any number, it is necessary to have clearly defined value strategies for the business . Therefore, first of all:
– Carry out a self-assessment of the company, highlighting strengths and weaknesses;
– Define strategic objectives;
– Map internal processes to understand what needs to be measured.
– Importance of performance indicators
The purpose of analyzing KPIs is to improve the practices and processes adopted, promoting progress in companies, sectors and teams. In addition, they are also very useful for preventing a crisis or mitigating it, should one arise.
Companies usually base their performance on basic indicators that only assess profits. However, the importance of performance indicators goes far beyond this analysis. They can help structure the work of the entire organization, promoting a closer look at its employees, taking measures to make them more fulfilled and satisfied in their activities.
– Main types of performance indicators in companies
Productivity Indicator Objective: To assess the performance of the company's resources in relation to deliveries, including processes, suppliers and employees.
Low productivity may indicate a deficiency in the relationship with the employee/supplier or also a lack of resources to carry out the work with quality.
Quality Indicator
Objective: Analyze the quality of products or services;
Together with productivity indicators, these indicators help to understand any deviations during the production process. They help to identify points that need to be improved during the process.
Strategic Indicator
Objective: To assist in guiding the company in relation to the objectives that were previously established.
Constant analysis of improvement actions must be carried out to verify whether the company's initial strategies are truly effective and generating results.
Revenue Indicator Objective: To assess how much the business is earning in a given period.
By surveying all the amounts that entered the company's cash flow, it is possible to assess whether the business is selling and whether it is aligned with the defined goals.
Profitability Indicator Objective: To help analyze the simple relationship between operating results and net revenues obtained.
It is used to measure the performance of the business during a given period. Calculating the percentage of profit on revenue helps to better understand which path the business has followed and assists in the analysis of risk prevention strategies by knowing the real cost of the company.
Turnover Objective: To analyze the performance of talent retention and dismissals of professionals in the company.
Through the number of employee admissions and dismissals, it is possible to assess whether the company is experiencing internal problems such as team conflicts, failures in recruitment processes or unfavorable working conditions.
– How to choose the most relevant indicators for the company?
Can you currently identify what your company's biggest pain points are ? The origin of the challenges , why they exist and how they can be eliminated?
To carry out this analysis, it is necessary to carry out a survey of the company's information, cross-reference it and thus be able to reach consistent conclusions, based on data .
It may seem like a very difficult task, but for experts who rely on technology as an ally, it is possible to gather all the information in a digital database in an agile, precise and secure manner.
The Lowtax team relies on automated processes that help quickly generate valuable insights for each client's business. Our analysts have the expertise needed to thoroughly analyze indicators and point out the best paths for each client.