Two of the most critical actions any company can take are to streamline processes and to use Key Performance Indicators (KPIs) to measure success. By streamlining, companies need fewer resources and can reallocate freed resources to save time and become more efficient. KPIs are essential for determining whether goals are met and profits are made.
Each factor is important independently. But when used together, KPIs and process streamlining will help companies maximize operations and reach their goals.
Let’s take a closer look at how the right KPI mix and streamlining your processes will bring you success.
Why KPIs matter
Some people interchange KPIs with Critical Success Factors (CSFs). They are related, but there is a clear difference.
CSFs are the reasons for your achievement while KPIs are the measures of your actions towards that achievement. Another way of thinking about the difference between the two is that CSFs are the answers to the question, “What do we need to do to achieve success?” while KPIs answer the question “What measures indicate whether we are moving towards success?” KPIs will let you hone in on the core data and reveal if your CSFs are on track.
With so much data available today, it’s important to have a keen understanding of the key data points that are truly indicate progress. Identifying the right KPIs will help you learn which measures are simple, aligned with company goals, relevant, time-limited, achievable and visible to the right audience (which may include employees, managers, stockholders, board members, investors, customers, and suppliers).
Why process streamlining is important
People are resourceful and creative. In the absence of resources (time, money, staff, technology), we find ways to get the work done. In every organization, large or small, processes have evolved over time, shaped by the people who have done the work.
Yet for a business to thrive, it’s important to continually evaluate and reevaluate internal processes in order to gain efficiencies and reduce costs. That is because processes are usually modified over time and inefficiency can result. By evaluating your process, you might find that data is being entered into systems multiple times or paper reports are being printed, filed and forgotten.
Whether it’s a lack of technology, employee skill-level, cost-cutting or an unwillingness to change, processes can run amok. By taking a close, impartial look at processes on a regular basis – and streamlining them – you can achieve significant savings in time and resources.
Tying KPIs and process streamlining together
You can use KPIs to encourage and drive process streamlining. How? By identifying the KPIs that will help you measure the process you are assessing. Are the KPIs repeatable and reproducible? Is there enough historical data to make process decisions? Can the data be gathered in a timely manner?
If the answer to those questions is yes, then you can use those KPIs measure your processes and determine what, if any, changes you need to make. KPIs also serve as an anchor for the process changes, ensuring that changes are done in order to meet your CSFs.
At NexTec, we help companies identify the right KPIs, streamline processes, save resources and achieve success. Whether it’s a Business Intelligence tool, ERP software solution, ERP automation, business software automation or other integrated software solutions, NexTec has extensive insights into various vendors and products, providing you with the solution that best meets your needs. Download our brochure our use the contact form on the right to learn more.