A Simple Approach To Measuring Your Success

To keep your business on track to success, you need to keep a close eye on specific Critical Success Factors (or CSFs) in your business. The best way to monitor these factors, is by measuring them against Key Performance Indicators (or KPIs).

 

There are just three kinds of KPIs to be aware of.

1.  Generic KPIs

 

You can identify these by asking yourself:

• How do you get business?

• How many enquiries do you convert into sales?

• What’s the average value of a sale? 

 

For example, a radiologist may get ‘sales’ from doctors’ referrals. Their first CSF then, might be in developing effective relationships with doctors. A good KPI to measure this may be the number of referrals they get from doctors.

 

Others could be the average transaction value, number of transactions per doctor, and so on.

2.  Industry-specific KPIs

 

These are indicators that are specific to your industry.

 

Using our earlier example, let’s say the success of the business depends on getting the x-rays done quickly, reputation for safety and patient care.

 

The KPIs here may be the number of x-rays performed in a day, the number of incidents, and the level of customer satisfaction.

 

3. Initiative-specific KPIs

These are specific to an activity or initiative. For instance, if your business comes chiefly from incoming calls, by training your team to better manage and convert these calls, you can compare conversion rates from before and after the training.

Once you know how things are working, you’re in a position to control and better manage your results.