Key Performance Indicators, or KPIs for short, are measurable values which demonstrate how effectively a company is achieving key business objectives. In other words, KPIs are the stats we use to determine how we measure up with industry peers and our stated goals. While some key performance indicators might be similar across industries, like net profit, others are very much unique to each individual entity.
Before we can identify what your KPIs are, we need to first understand what your key business objectives are. It is tempting to take a one size fits all approach to credit union KPIs. After all, credit unions are all looking to see loan, share, and membership growth…right? But this shortsighted approach ignores everything I love about credit unions: their individuality.
Identifying and analyzing your KPIs and incorporating those insights into your business planning sessions can help ensure your teams stay focused on your key business objectives. What are we looking to accomplish in the next 12 months? What operational metrics can be used to quantify our progress towards those goals?
By definition, KPIs are measurable allowing progress and results to be quantified and tracked. This also allows for the creation of S.M.A.R.T. goals (goals that are Specific, Measurable, Achievable, Relevant, and Timebound). Identifying your key business objectives for the next year, determining the KPIs to measure progress, and finally establishing S.M.A.R.T. goals will give your team a defined target to aim for, and a clear definition for how to measure success.
2020 shook many of our business plans and turned them upside down, exposing both strengths and weaknesses within our operations as well as new opportunities which previously were undiscovered. Your data can be used to not only identify these opportunities, but also empower you with the confidence to act on insights and drive results. Now is the time to position for the recovery, position for the future and the new social norms that are sure to develop. It’s time to look forward, targeting those opportunities and weaknesses and make any needed investments to position operations to capitalize on opportunities and accelerate your KPIs towards your strategic goals.
Your data is an asset which can be both leveraged and monetized. What are your key business objectives? What KPIs are you using to track and measure your progress towards these goals? How can we incorporate these metrics into our business planning sessions? Are you effectively progressing towards your goals and vision for the future? It’s easier to get to your destination when you’re driving with a map.