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27 October 2024

KPI analysis: The secret of smart decisions for managers

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KPI analysis is a central building block for managers who want to achieve sustainable success. It makes it possible to make the progress of projects and teams transparent. Many clients come to me because they want more clarity about their performance. KPI analysis helps you to make strategic decisions and deploy resources in a targeted manner. iROI coaching supports you in identifying the right key figures and analysing them in a meaningful way.

Why KPI analysis is important for managers

Managers face the daily challenge of maintaining an overview. The KPI analysis helps to record the status quo and recognise developments at an early stage. It creates transparency and enables a common language within the team. This makes it easier for everyone involved to understand their contributions to the company's success.

Example: A sales team uses the number of contracts concluded as a KPI. This allows the manager to see who is achieving their targets and who needs support. An IT project team measures the number of error-free releases per month. This helps to increase the quality of work. An HR team analyses employee turnover and recognises where action is needed.

The KPI analysis also promotes motivation. Employees are given clear targets and can see how their work contributes to the overall success. They can measure and adjust their performance directly. This strengthens commitment and responsibility for their own tasks.

KPI analysis in practice: examples from different areas

KPI analysis in sales

In sales, key figures such as sales growth, average order value and customer loyalty are particularly relevant. The KPI analysis shows which measures are effective and where there is a need for optimisation. This allows a sales manager to offer targeted training or adapt processes.

Example: A company analyses the number of new customers per month. The KPI analysis shows that the figures have stagnated in recent quarters. A new acquisition programme is then launched. The results are regularly reviewed and adjusted.

KPI analysis in project management

In project management, key performance indicators such as project progress, cost deviations and adherence to schedules are helpful. KPI analysis enables projects to be managed efficiently and risks to be recognised at an early stage. This allows managers to intervene in good time and ensure success.

Example: An IT project team uses the number of completed milestones as a KPI. The KPI analysis shows that some milestones are regularly late. As a result, resources are reallocated and communication is improved.

KPI analysis in human resources

Key performance indicators such as employee satisfaction, staff turnover and commitment are important in human resources management. The KPI analysis helps to record the mood in the team and take targeted measures. This enables managers to improve the working atmosphere and increase performance.

Example: An HR team analyses the results of the employee survey. The KPI analysis shows that satisfaction in one department is particularly low. As a result, workshops are offered and communication is optimised.

BEST PRACTICE with one customer (name hidden due to NDA contract) A medium-sized company was struggling to increase employee satisfaction. The KPI analysis showed that staff turnover was particularly high in one department. Together with the HR team, we conducted a detailed survey and analysed the results. Targeted measures such as team-building events and regular feedback meetings were then introduced. The KPI analysis after six months showed a significant improvement in employee satisfaction and a drop in staff turnover.

How KPI analysis supports smart decisions

KPI analysis is not an end in itself. It serves as a basis for well-founded decisions. It enables managers to adapt their strategies and deploy resources in a targeted manner. KPI analysis helps to measure success and recognise potential for improvement.

Example: A company analyses customer satisfaction and recognises that complaints are particularly high in one area. The KPI analysis shows that the processing time for enquiries is too long. As a result, a new ticket system is introduced and the processes are optimised. The KPI analysis after three months shows a significant improvement in customer satisfaction.

The KPI analysis also promotes communication within the team. Everyone involved has access to the same data and can better understand their contributions to the company's success. This strengthens trust and collaboration.

My analysis

KPI analysis is an indispensable tool for managers who want to achieve sustainable success. It creates transparency, promotes motivation and enables well-founded decisions. iROI coaching helps you to identify the right key figures and analyse them in a meaningful way. The KPI analysis supports you in achieving your goals and strengthening your teams.

Further links from the text above:

Key Performance Indicators (KPI) explained simply

KPIs: Definition, measurement and examples of success criteria

KPI: What is that?

Key Performance Indicators (KPI) explained simply

For more information and if you have any questions, please contact Contact us or read more blog posts on the topic internet Return on Investment - Marketing here.

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KPI analysis: The secret of smart decisions for managers

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