Measuring The Right KPIs For Business Improvement

Posted by Ananya Kripalani on December 4, 2014

Measuring the Right KPIs for Business Improvement

How to use enterprise resource planning software to create measurable KPIs.

Your business is growing – but how well is it really doing? And do you have any meaningful way of measuring it?

Key performance indicators (KPIs) are well known but often underused.

KPIs which are commonly measured by Professional Services firms include:

  • Gross margin
  • Increasing working capital
  • Reducing Days Sales Outstanding
  • Net margin
  • Staff hours used
  • billable staff hours
  • Number of days to payment of invoice

Today’s fast-growing Professional Services firms aspire to be market leaders, but to do this they need a means of comparing themselves with their competitors in a like-for-like way. Which is where recognised strategic and operational KPIs come into their own.

In essence, goals and objectives reached over a set period of time act as a barometer of performance. And more importantly, recorded in black and white, which makes them a point of reference and the project and individuals involved accountable.

Enterprise resource planning software can help you to both create and measure your business’ KPIs by producing consistent and measurable data which can be matched with individual projects.

Drive - don’t drain

It’s easy, then, to see the value of KPIs and why most successful, fast-growing Professional Services firms have them. But it is also important to make sure they are realistic and built around real, live, measurable data. This will ensure your staff are set realistic and achievable targets which will inspire and drive them, not scare and drain them. After all, you need to motivate them to keep them on board.

This all sounds great, but where should you start?

It’s easier than you might think with the help of enterprise resource planning software, which can do all of the above and more. By bringing all your people and projects together - and using KPIs to monitor and measure both - you will gain a 360 degree overview of your people and their projects and performance.

An enterprise resource planning software package can help you to drive improvement throughout your projects and set measurable KPIs that will keep your team driven too.

Want to learn more?

Download our free eGuide: The Ultimate List of KPIs Every professional Services Firm Should Measure