How To Use KPIs to Create a Competitive Culture in the Workplace
KPIs are more than an overused acronym thrown around in sales; they’re a great way to motivate your team and connect them with company goals. It’s no surprise you’re more likely to reach your goals when you have one. With KPIs, you get a clear objective into the steps that help you reach your target. Think of KPIs as each step in the “sales ladder”, and the top of the ladder as your closed deal.
A Common Situation
A new job calls for new aspirations, goals, and even a newfound desire to impress. At the start of a new position, we’re often highly motivated and giving our 110 percent. We go above and beyond what is expected of us to give our managers the reassurance that the hiring decision was a good one. Unfortunately, without proper motivators in place, this enthusiasm dwindles. Motivation staggers and meeting the minimum requirement is the new goal.
The Competitive Edge
Competition can sometimes be mistaken as a bad thing. Common associations include negative traits like ruthlessness and aggression. While this may be true for some individuals, it’s not for the majority. When implemented thoughtfully, a little competition can be a great motivator and bring about positive results.
Taking into account the areas your team needs improvement and thinking about how you might encourage them, you can create a recipe for success. Say your reps are zipping through and up the pyramid of prospecting activities, but start to fall off when it comes to getting that last meeting with a decision maker. It’s important to take note of this and make this point the competitive edge for your team. Make it a point to have a race between your reps for most bookings closed, most follow-up emails, or anything that might lead to higher increases in getting that last meeting to hit homerun for a closed deal. When you start measuring what matters, you get results.
Business consultant Jack Welch points out that achieving greater success is all down to engaging with workers. He even claims that it’s more important than customer satisfaction. After all, your team is your business. They are the ones who are either making things happen or not. So, how do you actively engage with your staff? Careful listening, proper training, and fair compensation are a few of the key factors in bringing about better relationships and efficient work habits with your team.
What are KPIs?
Key Performance Indicators, or KPIs, as they are better known, are a useful tool when it comes to measuring quantifiable objectives. They record how businesses are doing over a set period of time. Some of the data gathered includes:
- Business indexes
- Customer retention
- Satisfaction metrics
- Sales figures
- Financial indicators
- Ticket analysis
- Call times
How do KPIs Benefit Businesses?
KPIs let executives know how the company is performing in key areas. This data can then be used to see if they are hitting targets and identify where improvements could be made. Better engagement leads to lower turnover rates. Lower levels of turnover often correlate to higher performance levels – and this hits the jackpot. This means higher levels of capital for your company.
How do KPs Benefit Employees?
KPIs can be displayed on TVs throughout the office so that everyone can see how they are performing. Real-time updates help maintain motivation because goals and achievements are made visible. Giving sales representatives recognition for good work and regular feedback on their performance has its benefits. With better communication between both parties, reps are more likely to feel like a valued team member and be more productive as a result. It also helps that it keeps stress levels low (which means less sick days!).
Digital & Visual Communication
Communicating information through screens is something most of us do without second thought. We spend hours surfing the web, using our phones and tablets for every and all purposes. So, it comes as no surprise that offices are now getting in on that digital screen action.
Malls, billboards, lobbies and offices are just a few of the places where we can expect to see a plasma hanging on a wall. Communicating messages through a TV display is much more engaging than a print poster or a report that’s been emailed to death. When you can change the motivational messages that are displayed to the office, you’re more likely to feel refreshed and inspired. When you see your stats and progress tick higher and higher in real-time, you’re more likely to feel motivated to reach higher avenues.
Remember – what gets measured gets done!