As the founder of modern management, Peter Drucker, once said, “What gets measured gets improved.” Without a set of sales KPIs and an effective system to track and monitor them, a sales team is operating without knowing where the goal posts are.
Every business is different. There’s no one set of KPIs that works for everyone. However, there are a few rules that companies can use to help them select the right ones for them. We even offer our Ultimate Strategic Planning Guide to get you started for success. Unlock Now
Lagging indicators consists of output or outcome metrics, such as month to date revenue, profit, and deals won, labor cost per unit (no); essentially anything that is a result.
While lagging KPIs are necessary, they have some limitations. It’s why they are often paired with leading indicators, which are behavioral measures.
While it’s tempting to track everything, it can lead to confusion. The more KPIs you have, the more difficult it is for your staff to know which to prioritise.
When setting KPIs, keep it simple. Less often leads to more. For example, focus primarily on four KPIs:
Lack of direction, not lack of time, is the problem. We all have 24- hour days. –Zig Ziglar