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    Watching The Numbers

    Most owners or managers are pretty good at watching the hard numbers - the key performance indicators (KPIs) of their business. 

    The problem with measuring the usual KPIs of turnover, gross profit, sales and debtor days is that they are historic data. To successfully forecast business growth, you also need to measure the competencies that drive your business.

    There are two questions you need to ask when assessing the competencies which drive your business:

    • Why do customers come to us?
    • Why do customers come back to us?

    If you consider your customer persona, you can begin to identify the key competencies that help you retain customers.

    Two common examples are:

    • Client focus (understanding your customers needs)
    • Quality and accuracy (making sure your product is fit for purpose)

    You should also consider in-house processes which minimise the cost of sale

    • Quality and accuracy (minimising wastage)
    • Team communication (minimises account management time)

    It is widely agreed that effective performance management drives competitive advantage, so as an employer one of your most important tasks is to  evaluate, support, motivate and influence the performance of your team. Developing an Assessment Criteria Matrix would help you measure a range of 20 common competencies that help you grow your business.

    Blog written by Lisa Mackay from HR Toolkit.

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