25 Oct

Corporate KPIs are extremely important parameters for monitoring both the performance of business and their path towards achieving certain goals.
This guide will explain you what they are, how to choose the ones best suited to you and why they matter so much.

What are business KPIs

KPI stands for Key Performance indicators.
They are very useful for monitoring the performance of an activity, a company or a given process.
In the analysis phases they are important to assess the progress of a project and to make the necessary changes in case of error/slowdown.

Types of business KPI

The business KPIs are of four types, let’s see them together:
1. General KPI: used to measure the volume of work;
2. Time/service KPIs: they are very useful for measuring response times from the start of a process to its end;
3. Quality KPIs: they are used to assess the quality of results on the basis of certain set standards;
4. Cost KPIs: these are the ones used to estimate costs.

In order to ensure that the KPIs work perfectly, it is advisable to estimate the evaluation parameters precisely, since it is precisely on the basis of the above that accurate analyses can be made.
But that is not all: in addition to evaluation standards, it is necessary to set time limits, through which tangible comparisons can be made.
The deadlines can be monthly, quarterly, half-yearly and so on.
A very practical example is this: pursuing the goal of becoming industry leader is not a good KPI, as you can not quantify it, while aiming to earn a TOT of new customers in the next six months you, since objective monitoring is possible.

Which company KPI to choose?

Now that you have an overall overview of the KPIs, you just have to decide which one to choose.
In this section you will be given very useful advice, namely:
- define your business objectives clearly: only if you know where you want to go can you select the most important performance indicators to monitor;
- choose measurable objectives, both from an economic and a numerical point of view: only then will you have the opportunity to know the tangible progress;
- make sure you have the functionality of the KPI you would like to choose: if you can calculate it quickly, you will have the possibility to make decisions in a short time.
If you need several months to calculate a KPI, it is better to bet on another one, as it is absolutely not suitable for your business.
It is not said that a perfect KPI for professional that you estimate are necessarily suitable for you and vice versa;
- set realistic goals: every entrepreneur wants to take his company to the top and make it a leader in the sector in a short time, but you have to bring achievable goals; otherwise your efforts and self-esteem would be undone in no time;

How many business KPIs to monitor

As for the amount of business KPIs to be monitored, you should know that there is no universal answer for all, as this decision is entirely up to you.
Moreover, it is always good to remember that the success of a company is determined by many factors and that KPIs are only reference points to help you understand everything that works and everything that should be changed/abolished.
Corporate KPIs are to be considered real compasses ready to indicate the way to success, but to achieve it it is necessary to acquire perseverance, keep up-to-date on the market/latest trends and do not expect to get results right away after years of experience.

What can Techmakers do?

Techmakers, a company that develops solutions for the Internet of Things and industry 4.0, through its products such as the Smart Industry Kit, can help companies monitor the KPI choices in the energy field, In fact it is possible to count how much energy is used in a production process or how much energy is needed for the operation of a given machine. 
Thanks to the help of the daily reports provided, the customer is able to observe the energy consumption and with targeted strategies can for example reduce any energy waste or can make more efficient its production reducing the waiting time between one processing and the other.