The importance of using performance indicators to run your company

In an economy characterized by high costs, increasing competition, and rapid technological change, business managers must keep an eye on certain performance indicators to ensure the survival and growth of their organizations. These indicators provide vital information to make strategic decisions in a competitive environment.

Benefits of using performance indicators in your company

Informed Decision Making

Using performance indicators allows us to have objective data that helps make decisions based on facts and not assumptions.

Quick Problem Identification

Monitoring a company's indicators allows you to quickly identify potential problems before they become crises. For example, a decrease in customer satisfaction can be an early sign of problems in service or product quality.

Progress Measurement

The use of performance indicators allows us to measure the progress of each area, week by week, to achieve the company's goals. This is essential to adjust day-to-day strategies and ensure that the company meets its sales, profitability or growth objectives.

Increased Responsibility and Motivation of Staff

Sharing performance indicators with employees increases their sense of responsibility and motivation. When teams understand how their work influences the company's results, they tend to be more committed to achieving the goals of their area and the company.

Recommended indicators for your company

Profit Margin

This indicator shows the profitability of the company after deducting all its costs and expenses. It is crucial to evaluate the efficiency of the company and measure the profitability of each branch or line of business.

Cash Flow

Cash flow is vital to keeping the company operating. This indicator measures the amount of cash available and the company's ability to pay its commitments such as payroll, suppliers and taxes.

Customer Satisfaction Index

Customer satisfaction is a direct indicator of the quality of the products or services that the company offers. Measuring and analyzing this index allows us to identify areas for improvement and maintain high customer satisfaction and preference.

Personnel Turnover Rate

This indicator measures the stability of the work team. A high turnover rate can be a symptom of internal problems that need to be resolved, such as outdated processes or policies, lack of respect for lines of command, workplace harassment, or poor working conditions.

Conclusion

Monitoring these performance indicators allows directors and owners to make informed and strategic decisions, quickly adapt to market changes and ensure the survival and growth of the company in competitive times, benefiting everyone who works in the organization.