In this episode of “Business Growth Architect Show” we talk to Jeff Smith, whom I consider one of the, if not the father of KPIs. He is the author of The KPI Book (already in its Third Edition) and we are going deep on key performance indicators (KPIs) and their significance in your business strategy. He emphasizes that KPIs are never about measuring people, please listen in, he has some strong words about this, but rather about figuring out what makes sense to measure and then asking yourself why this number even matters.
Jeff explained that KPIs should be used to evaluate whether actions are leading to desired goals, and they serve as a pathway or roadmap to the destination. Because the term KPI is often misconstrued and considered complicated he provides a very simple example of using calorie counting for weight loss. He illustrates that KPIs are not about blaming or terrorizing individuals for not meeting goals, but rather asking questions to understand the causes and effects of outcomes. Game changing.
Next we discuss the difference between cause and effect, emphasizing that the information provided by KPIs raises MORE questions and prompts a deeper understanding of the underlying reasons for the results. You will never look at KPIs the same way again, I promise.
What You’ll Learn In Today’s Episode:
- Jeff Smith discussed the significance of key performance indicators (KPIs) and their role in business strategy.
- He emphasized that KPIs are not about measuring people, but rather measuring activities and asking the question why this KPI is important.
- Jeff highlights the use of KPIs as a pathway or roadmap to achieving your desired goals, illustrating it with an example of calorie counting as a simple KPI for weight loss.
- Jeff highlights that KPIs are not the answer to business performance, but rather pose more questions that prompt a deeper understanding of what you need to measure for this performance to happen.
- He discussed how KPIs can be applied in personal and professional life, emphasizing their universal relevance across various aspects of life and business.
Time Stamps:
00:02:15 Unveiling the Importance and Power of Key Performance Indicators
00:06:08 Using KPIs for Your Goal Achievement
00:08:56 Recognizing if Gross Profit Percentage Actually Matters
00:13:00 Mastering Key Performance Indicators for Success
00:14:18 The Simplified Approach to Finding the Right KPIs
00:15:39 Market and People Change: Business Challenges
00:17:09 Maximizing Business Impact with Effective KPI Utilization
00:18:18 Top 5 Essential Small Business KPIs
00:19:48 Maximizing Conversions with Key Performance Indicators
00:23:22 The Power of Trust and Likability
00:24:31 Building Customer Engagement
00:28:10 Redefining Sales Strategies that Work Today
Resources Mentioned:
Jeff Smith: Website | Facebook | LinkedIn
Ideas Worth Sharing:
KPIs are your roadmap, not a weapon. They measure activities, not people—understand and use them right. - Jeff Smith Click To Tweet Targets are not fixed—challenge them! KPIs guide the way forward. - Jeff Smith Click To Tweet
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