Being the Chief Executive Officer of the company, you have diverse responsibilities to fulfill. These may include, handling the accountability of business issues, satisfying the stakeholders, or being the organization’s chief decision-maker.
To be successful in all the tasks, it becomes crucial to design KPIs for business and get a clear glance at the business’s progress metrics.
The KPIs help to track the business health and project key business information in a personalized manner. Eventually, you will experience increased productivity at work and a better generation of results.
KPI has now become a powerful tool to achieve more sales and improve certain factors of the business. The top 10 KPIs that are practiced by leading companies are discussed below.
1. Employee satisfaction and retention: This KPI helps to track employee satisfaction and retention. A poor workplace can increase the attrition rate of the company which in turn raises the cost to the organization. The executive needs to give due attention to how their employees feel in the workspace. A motivated employee gives 100% performance despite any new challenge.
2. Progression towards business targets: While drafting the monthly, quarterly, and annual targets, use visual representation to make a simple comparison of actual profits and expected profits. This would help you to extract on-time results and take immediate decisions to please the stakeholders and board of directors.
3. Per customer profit: The CEO needs to have a measured graph of how much customers are spending on his concerned product/service. Building better relationships can help you improve customer loyalty and expect per customer profit increase.
4. Revenue growth rate: Keeping an insight into the changing revenues helps to track what’s going right and what’s going wrong in the business. CEO needs to have a sharp eye and a clear understanding of the revenue growth rate. Companies use various infographics for constant monitoring.
5. Project completion rate: Projects are the main income of most organizations. The Chief Executive must have the clarity of how, when, and why of the project start and completion. Tracking the project updates can make your employees questionable for the delay.
6. Expenses of the company: The company handles a number of expenses including the machinery, the overhead costs, the CTC, IT, employee cost, etc. The CEO must have a breakdown of all the assets cost for an easy evaluation of profit over investments.
7. Return on investment (revenue generated per employee): ROI generated from the employee side is very important for a company. Constant evaluation of employee’s performance is mandatory to justify his hiring.
8. Net profit: No doubt, this KPI requires regular examination. Net profit is something the CEO must have a constant eye into. A quarterly update of the data and its analytics will aid you to get real-time detailed information.
9. Cycle time per order: Getting the orders completed on time or sooner proportions to loyalty and retention of customers. As an executive, you need to track the order updates through the dashboard and identify what were the obstacles that occurred.
10. Downtime: Factors like absenteeism, machine breakdown, or overhead faults are responsible for the downtime at work. Tracking can help to identify the patterns of disturbances created and how can you implement improvement for the future.
Source: https://www.linkedin.com/pulse/top-10-executive-kpis-run-your-business-harsh-gupta/
