KPI’s and Customer Focused businesses – are they connected.
There is a well worn saying that “what you measure you can manage”. I believe thatnot all things can be measured but I will leave that for another time. However I also am of the opinion that what a businesses measures can have a significant impact on what the true underlying focus is of the business.
For instance if the number one KPI is productivity or gross sales then this will be the focus of the team. This is particularly so if there is some connection between the KPI and their pay and bonus structure. Remember this connection may not be a direct connection (ie a particluar result in the KPI gets a particular bonus) but it can be indirect (ie. when it come to the performance review these KPI’s are taken into account).Now productivity and amount of sales are important but if we are to have a customer business which is highly profitable then we need to have the KPI’s that are measuring what is important to the customer.
With KPI’s that are measuring what matters in place these then need to be made the most important in the business. We can attached the performance review to these KPI’s.
With a customer focused business, customers will be happy, everybody in the team will enjoy the place and it will be significantly more profitable business.
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