When working on operational improvements and business optimization, it really helps to set yourself some mile markers so you can more easily see where and how you are making progress. In business lingo, these are called KPIs, which stand for Key Performance Indicators.

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If we remember what this acronym stands for, the concept of KPIs is less scary and more straightforward:

Key: the most important one,

Performance: We are working to improve the overall effectiveness of the business – the performance,

Indicators: Just like road signs and turn directions, indications that we are on the right track.

How to choose Key Performance Indicators?

I refer to these as the metrics that matter and we’ll be walking through the 1st of the 5 simple steps to discovering these in this episode. Which means that episodes 4-7 will cover the remaining 4 steps. Don’t worry! Each episode is just about 5 minutes, so you can get all this information in less than 30 minutes.

Step 1: Have clear, specific goals with timelines

Wait, what does that have to do with metrics. Well, everything. It’s pretty hard to chart a course if we don’t know where we are going. Goals are the finish lines, the X marks the spot for what we are trying to achieve. Without clear goals, our KPIs are unlikely to be useful.

Okay – back to the goal. If it is helpful, use a goal structure like a SMART goal, or I prefer the EXACT goal structure (credit to Carol Wilson).

EXACT stands for:

Explicit: clear concise, singular in focus

Xciting: positively framed and inspiring

Accessible: measurable

Challenging: it stretches you. A coach of mine, Tara Newman, likes to say a goal is less about the actual goal and more about who you become along the way.

Time-framed: you have a timeframe between 3-6 months. Sure, many organizations set out annual goals, which is great. However, a lot can change in a year. If you have an annual goal it likely will be more tangible to break it down into phases that are 6 months or less.

Take a look at what you are striving to accomplish this month, quarter or in the next 6 months and be sure that is clearly stated as a goal. The more clear the goal is, the easier it is to define the milestones along the way that indicate your progress.

Paint it Done

I also like to reference Brené Brown here when defining goals. In her book ‘Dare to Lead‘ Brené suggests to “paint it done” for your team. What does it look, feel, and sound like when this is achieved? Taking this extra step for clarity can be very beneficial when we do the next steps to discover the metrics that matter.

Need help or want a written guide for this? No problem, we’ve got you. Head over to fieryfx.com/5steps to download a worksheet to help you define the metrics that matter to your business and success.