Every company, regardless of size or scope, has goals. Breaking them down into actionable steps is how outcomes are achieved. This is relevant to facilities management (and any industry really.)
Key performance indicators (KPIs) help facilities managers identify room for improvement so businesses can correct problems and remain competitive. Drawing on data from multiple sources, KPIs offer objectivity so companies can move in the right direction.
It’s important to understand that KPIs aren’t the same as metrics. Metrics are simply units of measurement, like X-percentage growth in a quarter. KPIs take it a step further in that they are associated with designated targets. A monthly sales target is an example. Whatever KPIs are defined, they should be relevant, reflect organizational goals and of course be measurable. Software can be helpful in developing and tracking KPIs.
Numbers don’t matter without meaning behind them though. That’s why KPIs are useful, because they can help bridge the gap between raw data and business strategy. With the right tools you’re able to take numbers that may seem out of context and analyze them with an understanding of how they fit into the bigger picture. The results of KPI tracking can include cost savings, improved revenues, and a stronger competitive edge.
Financials aside, one of the most important things KPIs do is start conversations. Simply having KPIs and knowing there is a system in place to track progress helps promote an attitude of buy-in and agency. Insight from reports often inspire dialogue about what the KPIs measure, whether they need to be adjusted, and what can be expected upon meeting these goals. The result is usually a more informed organization with people at the top who are more qualified to make critical business decisions. And who wouldn’t want that?
If you have embraced KPIs, how have they shaped your business’ trajectory? I am anxious to hear your insight on my Facebook Page.