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Small Business Coaching - 5 Steps To Avoid KPI Failure

I can’t tell you I can measure how much passion I have towards what I do. It’s hard to say: “I have 70% passion”. It just doesn’t make sense. 

But it’s stupefying to see small businesses having no Key Performance Indicators (kpi). So, what are kpi and why does the Houston small business owner need them?

KPI help measure what affects business. It’s to define what makes the Houston small business owner successful. And know what doesn’t.

I’d like small business owners to ask: “What metrics would I like to see each day that tells me my business is on the right track.” 

Warning: KPI fail for these reasons.


1) Poor Definition

Make sure you can measure each KPI. And measure it one way.

If you’re measuring Leads, then make it clear how you define a Lead. 

It’s surprising to see how many businesses falter here. I define a Lead as one who has a chance to buy from me. 

And I have material from the Lead, which shows his interest in my service. For example, if someone filled out a survey, I know they’d want to go further.

2) Effect of KPI

If people know they produced X units per hour, it shows if they met their goals. If they did not meet their goal, they need to know how to make up for lost productivity. 

And show new results from effect of new production.

3) Wrong Periods

Use reports each day for businesses that produce goods. They could be making goods each hour.

Use reports each week for any business in service. For example, you could have a sales kpi: ‘appointments you conduct each week’.

People can lose eagerness if you make them report too often. So choose reporting periods carefully. 

And do it especially when more reports don’t add value.

4) Reporting For Non-Key Roles

Decide key roles that would report total kpi. 

Then decide who’d report the 2 or 3 critical kpi that drive results. 

It’s a team effort, so the right kpi from the right roles will drive business forward.

5) Not Communicating KPI To Team

Send email or use bulletin boards to show kpi. And do it every week or at least every month. 

If you don’t show kpi, it’s hard for people to know they’re making progress and moving forward.

Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to learn? Call 281.410.5375 and speak to your Profitability Coach Houston

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