Keeping an eye on the company's performance is a critical part in assuring its success over the long term. The best way to achieve this is by comparing the actual performance outcomes to the intended objectives. By this very definition, there is more than one way of assessing and identifying an organization's performance, based on what that intended goal may be.
An increasing revenue stream and equally rising profits are significant objectives that most companies use to measure their performance, but they are not the only ones. Other vital statistics for evaluating success are equally as important since they offer valuable insights into how the company functions. And even though they are not necessarily direct indicators such as profit or revenue, they do, however, help business owners evaluate the efficiency of their ongoing strategies.
Key performance indicators (KPIs) can evaluate the success of an organization, as well as a particular activity such as various programs, projects, or strategies that it engages. In this context, performance can take on many forms including things like zero product defects or perfect customer satisfaction, to name a few.
In other words, it is essential to define the nature of success in every instance before choosing the right KPIs. Even though some of these KPIs can be applied in various circumstances, it's necessary to remember that most vary by discipline (HR, finance, marketing, sales, customer service, IT, etc.) and by sector (retail, manufacturing, professional services, wholesale trade, finance, and insurance, etc.).
Customer satisfaction is a significant performance indicator for almost every business out there. It's relatively safe to say that if a customer is not happy with your product or service, they will not buy from you again. There are also multiple ways of measuring customer satisfaction, each with its pros and cons.
Nevertheless, among the easiest to implement is the so-called Customer Satisfaction Score (CSAT). Thanks to its simplicity, the CSAT can be used across multiple points in the buyer's journey, giving you a much clearer picture as to what areas need improvement and which are working as they should.
In short, the CSAT is nothing more than a simple customer satisfaction survey which measures customer satisfaction with service, purchase, interaction, or the business as a whole. At the end of every touchpoint, you ask the customer a question along the lines of "How happy were you with your experience?" with the answers provided being on a scale of 1 to 10.
Any company is only as good as its employees. With that in mind, keeping your employees' morale up will also increase the company's performance. The best way to assess their level of satisfaction is through regular performance reviews.
These will allow you to see just how content your staff is at their jobs, as well as how effective they are at completing their tasks. These performance reviews will tell your employees what they need to improve. It also can give valuable insights about their workload, and other issues that may not be immediately apparent from the management position.
While your increasing revenue and profits are a good sign for your organization's overall performance, these other indicators presented here can offer you a clearer picture of your company's inner workings that will prove useful down the line.
Our specialty at Titanium Cobra Solutions is delivering project management services, IT systems engineering solutions, strategic business process optimization, and customized training solutions to both Government and commercial clients. If you want to assess better and identify your organization's performance, feel free to contact us.