What KPIs do you look at every day?

Discussion in 'General Business Forum' started by ChrisGoodfellow, Jul 4, 2017.

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  1. ChrisGoodfellow

    ChrisGoodfellow UKBF Regular Full Member - Verified Business

    143 43
    Hello,

    I'm just researching an article about KPIs and the figures business owners look at every day (or perhaps once a week) to check the health of the company. Here are a few suggestions that have come up in previous conversations with business owners:
    • Cash in the bank
    • Sales pre-book
    • Average debtor days
    • Orders out
    • Qualified opportunities
    • Revenue pace on previous year
    • Site traffic
    • Number of returns
    I'm interested to know whether you use this kind of report, how often you check it and what figures you include.

    Thanks,

    Chris
     
    Posted: Jul 4, 2017 By: ChrisGoodfellow Member since: Jul 10, 2014
    #1
  2. DEFCON1

    DEFCON1 UKBF Contributor Free Member

    64 11
    Off the top of my head..
    Revenue, Orders & Advertising Spend - Daily.
    Cash in the bank - Weekly.
    Net Profit - Site Traffic - Monthly.
    Revenue pace on previous year - Quarterly.
     
    Posted: Jul 4, 2017 By: DEFCON1 Member since: May 28, 2016
    #2
  3. Jonathan Black

    Jonathan Black UKBF Contributor Free Member

    79 12
    Hi,

    I have a SaaS product, and we are a relatively new business, so the daily KPI i pay closest attention to is sign ups. Closely followed by daily active users and number of paying accounts.

    Financial KPIs are checked on a weekly basis.

    I recommend doing a survey on SurveyMonkey to get more detailed/accurate results.

    All the best.
     
    Posted: Jul 21, 2017 By: Jonathan Black Member since: Jul 19, 2017
    #3
  4. ChrisGoodfellow

    ChrisGoodfellow UKBF Regular Full Member - Verified Business

    143 43
    Thanks @Jonathan Black. I've got a little further down the line with this and am now relying primarily on phone interviews (this thread was more of a quick straw poll).

    I'll let you know how I get on and post the links to the final articles.
     
    Posted: Jul 24, 2017 By: ChrisGoodfellow Member since: Jul 10, 2014
    #4
  5. webgeek

    webgeek UKBF Big Shot Full Member - Verified Business

    4,029 1,476
    Don't you use different KPI's for each department, with the sum of those departments constituting the overall picture of health?

    The operations team are going to care about getting orders delivered On Time In Full (OTIF).

    Sales care about driving ever-increasing sales order volume and profitable order volume as well as customer retention.

    Marketing is worried about getting more qualified leads into the hands of the sales team, more engaged visitors within their chosen demographic, increasing visitor numbers and basically keeping the top of the funnel overflowing.

    Finance wants to know aged debtors, cash on hand, profitability, run rate - there's a ton of similar KPI's showing what you've got, what you're spending, who owes you and whether it's a better picture than the previous period or year.

    Which set of KPI's are the health measures? All of them!

    If you're not bringing in more qualified leads, converting them into paying customers at a good rate, getting products into their hands in a timely fashion, keeping them happy and staying as customers - then it's incredibly unlikely you're financials are going to paint a picture of sugary success.

    You need all points on the compass creating targets, planning, executing and measuring their success.
     
    Posted: Jul 24, 2017 By: webgeek Member since: May 19, 2009
    #5
  6. Petr Gogolin

    Petr Gogolin UKBF Contributor Full Member

    58 15
    Since we are a software development company, we monitor efficiency in terms of how many hours we spent and how many are actually billable. That's main KPI for production.

    We monitor how many new leads and deals we got plus from which channel. That's main KPI for sales and marketing.

    We also monitor how many new leads we got for open positions and from which channels. This could be different if a company isn't growing too much in personal count though. Main KPI for HR.

    Main financial KPI is new brutto profit added per month to our year projection with comparison to previous year.

    Of course we check other detailed indicators for each department, but on less frequent basis. It's our experience that too many KPIs actually slow growth by distorting focus. Many people disagree, but we strive for maximum of 5 absolutely critical KPIs for general management of the company health.
     
    Posted: Jul 24, 2017 By: Petr Gogolin Member since: Apr 28, 2017
    #6
  7. ChrisGoodfellow

    ChrisGoodfellow UKBF Regular Full Member - Verified Business

    143 43
    Agreed. Indeed, individual workers might have a bespoke set of KPIs they've developed for their role that drives the objectives of the department and the business.

    While all of these metrics you suggest are health checks, what I'm trying to get to is what the company owner looks at every day. So, in the finance example, it might be just one or two stats, rather than the whole list of important metrics (eg. revenue and cash in the bank).

    Thanks @Petr Gogolin. If you don't mind me asking, do you have a particular reporting tool or dashboard you've developed for the critical KPIs? What's the process?
     
    Posted: Jul 25, 2017 By: ChrisGoodfellow Member since: Jul 10, 2014
    #7
  8. webgeek

    webgeek UKBF Big Shot Full Member - Verified Business

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    If you're using a management dashboard or multiple dashboards, hopefully you're looking at near real time numbers with 5 to 9 KPI's per dashboard, staring at your face each day. If it's on the wall, you get a glance and know perspective without spending more than a few seconds to stay on top of the strategic and tactical views.
     
    Posted: Jul 25, 2017 By: webgeek Member since: May 19, 2009
    #8
  9. Free.stockphoto.com

    Free.stockphoto.com UKBF Contributor Free Member

    32 9
    • Sales ($ and number of orders)
    • Downloads (of individual stock photos and vectors)
    • New signups
    • Images added to lightboxes (Like a 'favourites' or bookmarks of images that a member keeps - this gives me a good feel of forward sales)
    • Traffic (Number, duration, source, % conversion)
     
    Posted: Jul 26, 2017 By: Free.stockphoto.com Member since: Jul 17, 2017
    #9
  10. ChrisGoodfellow

    ChrisGoodfellow UKBF Regular Full Member - Verified Business

    143 43
    Cheers for weighing in everyone. What I'm finding most interesting is the way the metric sets connect and provide more detail as you work down from the business owner. Generally speaking, most leaders seem to have half a dozen or less health-check KPIs (those they look at every day or week). And perhaps a North Star metric that's useful for communication. Then there's department-based stuff and then even employee-by-employee targets.

    Here's an interesting explanation from an ecommerce CEO (this is just in draft form at the moment):

    Let’s run through an example. Ecommerce business Zaggora is an omni-channel sportswear retailer (its websites accounts for the vast majority of sales). It’s North Star metric is daily revenue in dollars. That’s the number that tells them whether they’re on course, although they are checking more granular data on an hourly basis.

    Zaggora’s secondary metrics are a direct function of its daily revenue. This means looking at the amount of traffic its websites get, multiplied by the conversion rate, multiplied by the average order value. If revenue isn’t where they want it to be they can start asking questions of that secondary level: is the distribution of Facebook ads, one of their primary sources of traffic, working? Have they made a tweak to the website that’s impacting conversion? Are order values lower because something’s out of stock?
     
    Posted: Jul 27, 2017 By: ChrisGoodfellow Member since: Jul 10, 2014
    #10
  11. Petr Gogolin

    Petr Gogolin UKBF Contributor Full Member

    58 15
    Since we are still a very small company, we don't have any special tools for this other than simple Google spreadsheet. The process is that the three of us associates get together our numbers and fill them in before we have our weekly executive meeting :)
     
    Posted: Aug 2, 2017 By: Petr Gogolin Member since: Apr 28, 2017
    #11
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