The Importance of Key Business Performance Indicators to Small Business Management

How do you know how well your small business is doing? Do you look at profit? Do you look at your sales numbers? Do you measure growth? Most businesses use monthly financial statements, which include sales revenues. Some compare those monthly results to the plan and/or to the previous year’s results. All business should continue to use that information to manage their business. However, all small businesses should also include more significant key performance indicators as part of their measurement process. As a small business owner, managing-by-measuring performance is a significant key to your success. Develop a set of key performance indicators (KPIs) to track your business growth and success. These measures will keep you focused on your business goals. When you write your business plan make sure that you include measurable goals and objectives. Then set in place a system that will provide you with regular indications of performance. KPIs can be easily developed and monitored however each business needs to customize the measurement process to their own business needs. Here are just a few KPIs you can consider for your business: Number of orders in a day/week/month/year Number of estimates in a day/week/month/year What kind of ‘win’ ratio does your business enjoy (e.g. do you ‘win’ 15% of all estimates – track this data)? How long does it take for you to respond to customer queries: estimate turn-around times; order processing; time from order placement to order delivery; responsiveness in handling customer complaints; and so on? How often do you hit your ‘promise’ date (i.e. the date you promised to deliver the order to your customer)? Analyze...

What Does Customer Relationship Management Mean to Your Business?

Mention the phrase “Customer Relationship Management” in a corporate meeting, or perform a search for it on the Internet, and what you will get is mentions of an overwhelming choice of programs that will supposedly make you run your business in a much more efficient manner. Now that computers have become almost ubiquitous, CRM seems to have been reduced to a mere piece of software. As it turns out, true, effective CRM is much more than a piece of software, it’s not a bunch of forms that you fill out either. In fact, CRM is not even something you can buy. The real concept behind good customer relationship management came about way before computers even existed. It’s all about how you run your business and interact with your customers. Good CRM, like we said, is not all about the software. Sure, the software helps, but as they say, garbage in, garbage out. So you have to understand that true CRM involves two things: 1) running your company with the customer as the central focus point, and 2) storing and using knowledge about your customer in your data bank. The first thing you need to know is who is your customer. Well, in the spirit of good CRM, the answer is simple, but loaded with implications: a customer is anyone, anywhere, who uses your company’s product or service. Yes, that sounds very far-reaching, but that’s the truth. Focusing on the current customers is very limiting, you have to also consider your prospective customers. Now that you’ve defined who is your customer, and grasp your market as a whole, you need...

Leadership Designs In Modification Management – Three Key Lessons From The Arduous Man

I am constantly on the planning out for interesting, informative stories and illustrations of leadership styles that support successful modification management – and especially ones that are people centred also process focused. Within the course of recent research I stumbled on the terribly interesting story of the man of nails who found his heart. Andy Pearson founding chairman and former CEO of Tricon Global Restaurants Inc. [KFC, Pizza Hut, and Taco Bell] has recently undergone an enormous change in leadership style. The new Andy Pearson, a person who is currently in his mid-70s, has transformed himself into a new reasonably boss who majors on inspirational motivation. Having carved himself a decades-long name of ruthless, exhausting-nosed, numbers obsessed success in corporate America with corporations such as Pepsi Co and McKinsey, he now feels that he has came across a personal purpose of amendment that he feels has universal significance… Through operating with colleagues at Tricom, Pearson experienced a Damascene conversion as he realised the importance of the human heart in driving a company’s success – one person at a time – and the way this kind of success can’t be imposed from the top however should be ignited and nurtured through attention, awareness, recognition, and reward – true inspirational motivation. Lesson number (one) – People can answer their leaders efforts to connect with their emotional facet Pearson realised [albeit rather late in life in my read!] that the need for recognition which the necessity for approval is a fundamental human drive – and key to inspirational motivation in amendment management situations He was also a massive enough man [in my...

Definition and Importance of Management

  Management Practices have been an Important part of our life since beginning not only in the e huge tasks Requiring a set of skills for accomplishment but also Including the usual daily life Activities that we don’t consider important enough to be given That much amount of Focus and time.   Management is a word that is quite wide spread and cannot ever have a precise and concise definition. There have been lot of Definitions to it in the past that have tried to define the meaning, objective and scope of management in our lives but none of them has been able to precisely and completely define the scope and meaning of management. Some of the widely known definitions of management are as mentioned here.   Management is the guidance and control of action required to execute a program. Also, the individuals charged with the responsibility of conducting a program. This definition of management refers to management as a program. It implies that and effective management practice is where there is some type of defined approach or system in place. This system becomes the plan behind achieving an objective and management than is process of guiding others in following that plan to achieve the same. This is often the downfall of managers as they have no plan or system that results in their actions seeming to be random to the people they are managing and this leads to confusion and disappointment across the employees thus degrades the performance of firm.  According to another famous definition of management, it characterizes the process of leading and directing all or part...

Social Media Management Solutions For Facebook And Twitter

Promoting yourself or your company could be quite time consuming specifically when it has to complete with social media. Two with the most heavily utilised sites on the internet are Fb and Twitter. Either they are being used or else you don’t. Numerous people who begin using these communication tools for organization don’t have any concept how to rely on them correctly after which quit as well rapidly. There is a way to aid in this area. It is straightforward to possess an individual handle your Facebook and Twitter accounts through social media administration. A social media management business might be utilized to help your firm or personal identity grow on social media sites this kind of as Fb and Twitter. They are able to locate you a lot more followers or friends to communicate with. They’ll also assist together with your everyday communications of the fans and fans. This takes both hands off of making posts everyday and considering every day tweets. It truly is an excellent time saver. A social media administration organization may also develop a marketing and advertising strategy that can aid your Fb and Twitter accounts explode into a viral realm of success. They may have ideas such as the best way to market your Facebook page and Twitter account in the offline world. They are able to come up with ideas such as printing your fb and twitter pages on your receipts to using posters on your own walls with the follow us sign on the bottom. These concepts are simple but a good social media administration firm can come track of even...
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