Key performance indicators: what they are and their importance

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Performance indicators are excellent tools for improving business management and, precisely for this reason, they are being increasingly used by managers and entrepreneurs.

If you are looking for strategies that can guide your business decision-making, performance indicators can be the difference you need. So, find out in this post what they are, which ones are available on the market and why they are important!

Understand what performance indicators are
Performance indicators are metric data that help evaluate a company's workflow and overall results. This information is quantitative and is divided into several types, defined according to the specific interests of the company.

As a result, they guide business decisions, as they reveal what needs to be changed or improved, which sectors have problems and which are the positive points among the aspects analyzed.

However, for performance indicators to reveal conclusive results, you need to have good prior planning. This way, you will have your objectives and goals set, and you will be able to analyze, in the future, whether or not they were achieved.

Importance of performance indicators for business management
Performance indicators are extremely useful techniques for business management. As you can see, they can capture essential information for the health of the business. But, after all, what is the importance of the data captured by performance indicators and why is this tool also important for business management?

The results found through the indicators are able to show managers which flaws are present in the company. With this, it is possible to think of alternatives to solve them, in order to guarantee the improvement in the operation of the company and customer satisfaction.

Furthermore, performance indicators measure the company's structures and processes , allowing them to be optimized, predicting future crises in the company's sectors and avoiding any unpleasant surprises.

Discover the main performance indicators
Now that you are familiar with the concept of performance indicators and understand their importance for a wide range of companies, it is time to learn about the main types of metrics that exist. So, see what they are and choose the ideal one for your business goals!

Productivity indicators
A productivity indicator is one that analyzes the performance of a company's employees in relation to deliveries. Through it, a manager can perceive the efficiency of his employees and observe the reasons for low productivity , such as lack of motivation or the absence of quality resources.

Quality indicators
Man analyzes graphs, maps and metrics that are examples of performance indicators in companies.

Quality indicators are used to indicate what needs to be improved in the production process. This is because if a service or product is not achieving quality in the final result, it means that something in production needs to be changed.

It is always necessary to take into account acceptable errors, since every company is susceptible to them. However, if the errors are greater than the acceptable limit, it is a sign that changes must be made. This will make it possible to obtain greater quality in the processes and, consequently, in the overall results.

Capacity indicators
Capacity indicators are those that assess the responsiveness of processes. In other germany telemarketing data words, this type of indicator indicates how much a company, an employee or a business team is capable of producing during a given period of time.

An example of this is the evaluation of the number of services provided by each employee in a day. This way, you can understand the difficulties of your employees, propose training, provide guidance and much more.

Strategic indicators
Every company that values ​​its growth and success has strategies to promote it in the market. Strategic indicators analyze whether these techniques are effective and show where the company is on the “path” to achieving its final goal. With this, managers can understand whether they should move on to other alternatives or continue with what they had already planned.

Profitability indicators
Profit is a fundamental part of any business. To measure it and assess whether it is satisfactory, profitability indicators perform calculations that reveal the percentage relationship between profit and total sales.

In addition to showing the company's profitability, this type of indicator is very important for a company's financial control. They help in the development of risk prevention actions and avoid the occurrence of crises and even bankruptcy.

Profitability indicators
In order for a company to start operating and provide services to consumers, an initial investment is required. For this reason, investors monitor the return that the venture is providing, as they should receive more than what was invested.

Profitability indicators reveal the relationship between profit and profitability, so it is possible to know whether the company is generating profit or loss for investors. In this way, managers can plan measures that increase the business's return and, consequently, provide greater success in the consumer market.

Competitiveness indicators
Sales team made up of three people. The leader demonstrates the growth of performance indicators in graphs, metrics used for quality control.

Competition is something that concerns managers of any company. Companies in all sectors face this obstacle, which ends up generating competition between them.

With this in mind, competitiveness indicators are those that reveal how your company is doing in relation to its competitors. This way, you can assess whether your business is standing out in the market or whether it needs to undergo changes by creating strategies to attract more customers.

Value indicators
Often, there is no consensus between the value of a product and the price that the customer is willing to pay for it. Therefore, value indicators were developed with the aim of establishing this relationship, analyzing the total costs of the company with the production process of the product and the price perceived by the consumer.