Managing a business used to be simpler. You studied quarterly and annual reports for revenues and expenses, analyzed market trends and made predictions about market demand. Then, best guess forecasts would be made on where anticipated sales might fall. You’d look back on those conjectures, assemble the reports, then forecast the whole thing all over again.
Today, Key Performance Indicators (KPIs) are used to measure both financial and non-financial indicators. This gives us a more accurate sense of past performance and a predictive look of actual business environments.
This new wave of KPIs tells how well a business is performing in real-time as opposed to traditional financial metrics that only showed how a business had done in the past.
The advent of smart technologies has made data tracking commonplace for business and personal use. Consumers are getting used to tracking all kinds of metrics about their daily lives—how many steps they took, how many calories they consumed, where their package is in the shipping process, and how many miles they drove in a day.
These advances have only increased expectations we have on what information should be available to access. It’s become increasingly important to collect and share meaningful performance indicators with your customers.
It’s just as important to understand and share performance indicators across teams. According to Adaptive Insights, “Nearly 50% of CFOs report that finance and other departments are not aligned on key metrics.”
This may be because some business units and departments are developing their own, separate nonfinancial metrics. There is little oversight between departments and lack of a centralized place to keep the KPI data. What appears to be happening is that the focus has been on indicators in general, with less focus on key indicators.
Since businesses traditionally were most interested in financial indicators, CFOs were responsible for this data collection. Now, CFOs are tracking more and more non-financial KPIs to get a more accurate measure of their current and future corporate performance.
Although managing a business might have been simpler in the past, it’s much easier to get a full picture about where a business was and where it is going now. As KPI data get consolidated and better understood, improved customer service and the ability to forge long-term customer relationships has never been greater.
Thank you for reading. Please share with your colleagues who might find this of interest. Authored by Accelerator CC, providers of cloud-based commercial cleaning software that helps you profitably manage contracts, bids, operations, sales, and staff while providing advanced on-site inspection and quality assurance to your customers. One of the fastest-growing SaaS platforms on the market, Accelerator CC delivers an advanced level of automation, remote/field connectivity and built-in best practices that specifically target the needs of commercial cleaning organizations and their customers. To see a demo of Accelerator CC, please email email@example.com or call 610.849.5039.