Arguing the Case for KPI's
We associate KPI's with figures and reports but there's so many other reasons for using them to guide and develop your business
Yes, if the figures you collect are correct they accurately measure all aspects of a garden centre to ensure every part of its operation is carried out intentionally and for the right purpose. In other words, what gets measured, gets managed.
In a garden centre, KPI’s measure the results of changes in strategy; operational changes; layout and fixture improvements; merchandising; signage; promotions; pricing; stock control; product mix changes; staff productivity; expense control; use of space
Profitability of stores can improve through increased stock turns and reduced expenses due to the efficiencies gained from measuring KPI’s.
But let’s be clear they are not a target. The ‘I’ stands for Indicator.
The data collected should assist and inform decision making and where appropriate lead to actions.
We often forget a very important point: if they are used and owned by everyone in your management team to identify areas that could be improved then they become powerful enablers
In this sense if you support and motivate your team then it’s likely your business will do better. KPI’s are about acknowledging their hard work and securing their feeling of responsibility.
If everyone has KPI’s they are responsible for, there’s recognizable evidence of their contribution to the team and they are motivated by their achievements to do their best.
We don’t want KPI’s to stymie or inhibit the performance of individuals or the enjoyment of pulling together and working towards a common goal.
‘You can’t manage what you can’t measure’ doesn’t necessarily mean a rigid set of performance measures that exclude trust, common sense, sensible decisions, managerial discretion and professionalism.
KPI’s give you valuable insights that can be acted on allowing you to build the confident culture and successful business you have envisaged.
- Joy Lamb
25 Jul 2018