Latest / The GrowthPro Edge / Your KPI Problem Isn't the Numbers—It's the Action Plan | The GrowthPro Edge
Transcript
- 0:00Speaker: Welcome to the GrowthPro Edge.
- 0:02We're here to help scale your business, build stronger teams,
- 0:06and sharpen your leadership skills.
- 0:10Hello and welcome back to the GrowthPro Edge.
- 0:13I'm Denise Killian with the GrowthPro Group.
- 0:16Today we're talking about something that every business owner knows that they
- 0:19need, but most are overwhelmed by KPIs.
- 0:24Those key performance indicators.
- 0:26And here's the truth, most businesses aren't struggling because they lack data.
- 0:32They're struggling because they're tracking the wrong data.
- 0:36So today I'm gonna help you cut through the noise and identify the
- 0:39KPIs that actually drive results so that your business runs with
- 0:44clarity, focus, and purpose.
- 0:48So let's start simple.
- 0:49KPIs are just key performance indicators, the numbers that tell you if your
- 0:54business is actually moving forward.
- 0:57But here's the shift I want you to make.
- 0:59KPIs are not just for spreadsheets, they're the dashboard for your business.
- 1:05Think about driving a car.
- 1:07You, you don't need 50 gauges, you just need the right ones.
- 1:10Speed.
- 1:11Fuel, engine health, same thing in business.
- 1:15KPIs should measure what matters most.
- 1:18Keep you focused on progress, not just activity, and align your team around
- 1:23clear goals, because being busy is not the same thing as being effective.
- 1:29But before you even think about KPIs, you need to answer one question.
- 1:34What are your top business goals?
- 1:37Not 15, not 10, just one to three priorities.
- 1:43For example, increasing revenue, improving customer retention,
- 1:48raising average transaction value, or improving operational efficiency
- 1:54if your goals aren't clear.
- 1:57Your KPIs won't be either.
- 1:59So here's a quick exercise.
- 2:01Ask yourself, what are the three most important outcomes I need this
- 2:07year to be successful in my business?
- 2:11And write 'em down because KPIs don't come first.
- 2:15Clarity does.
- 2:17Okay.
- 2:17Now that you have your goals, we connect the dots, and every goal should
- 2:21have one to two KPIs attached to it.
- 2:24For example, if your goal is to increase revenue, your KPIs could
- 2:28be your monthly revenue growth or the average transaction value.
- 2:34Both of those are indicators as to whether or not you're meeting the
- 2:37overall goal of increasing your revenue.
- 2:41If your goal is customer retention, your KPIs could be repeating purchase
- 2:46rate or customer lifetime value.
- 2:49If your goal is efficiency, KPI cost per unit or service delivered your
- 2:55KPI could be revenue per employee.
- 2:59Here's the key.
- 3:01You want a mix of leading indicators and lagging indicators.
- 3:06The leading indicators tell you what's about to happen, and the
- 3:10lagging tells you what has already happened, and you need both.
- 3:16Not all KPIs are created equal a meaningful KPI
- 3:21follows the smart framework.
- 3:23You wanna be specific.
- 3:26Have a clear and full focused goal, measurable that you
- 3:29can track consistently.
- 3:31It needs to be actionable so that you can take action to do something about.
- 3:36It needs to be relevant, meaning it's tied directly to your goals,
- 3:41and it needs to be time bound where it's measured over a defined period.
- 3:47Here's what you should also avoid.
- 3:50Vanity metrics, things like social media likes and website
- 3:54traffic with no conversions.
- 3:57If it looks good but doesn't drive decisions, it's not a KPI.
- 4:02It's just a distraction.
- 4:06So let's talk about where business goes wrong first.
- 4:10You're tracking too many metrics.
- 4:12More data does not equal better decisions.
- 4:16It usually leads to confusion.
- 4:19Second, not sharing your KPIs with your team.
- 4:24If your team doesn't know the numbers, they can't influence them.
- 4:27And third, choosing irrelevant KPIs.
- 4:31Just because another business tracks it doesn't mean that you should too.
- 4:36And fourth, ignoring the customer experience.
- 4:40You can hit every financial target and still fail if your
- 4:44customers aren't coming back.
- 4:47So here's a simple rule.
- 4:48If a KPI does not lead to action or conversation, it's not meaningful, I.
- 4:57How you involve your team is where the magic happens.
- 5:02KPIs should not live in a spreadsheet on your computer.
- 5:05It should live in your team culture.
- 5:08Ask your team what drives performances in your role.
- 5:11What numbers reflect success?
- 5:14When people help define KPIs, they can take ownership of them and then
- 5:19review them in regular meetings, keep them visible, and use a simple
- 5:23dashboard or scorecard because what gets talked about gets improved.
- 5:32Now your business changes and your KPIs should too.
- 5:36So you should set a quarterly check-in, and this is the perfect time to do so as
- 5:41we're just beginning the second quarter.
- 5:44Ask yourself, are these still relevant?
- 5:47Are they driving action?
- 5:49And are we making better decisions because of them?
- 5:53If the answer is no, you need to make an adjustment.
- 5:57KPIs are not static, they're tools.
- 6:01So let's bring this home.
- 6:03Here's what I want you to do.
- 6:05I want you to write down your top two to three business goals and
- 6:09assign one to two KPIs for each goal.
- 6:14Then I want you to share them with your team and track them weekly.
- 6:20And finally, adjust as needed and ask yourself one powerful question, if this
- 6:29number changes, would we act on it?
- 6:34If the answer is no, well it's not the right KPI.
- 6:40And that's your edge for today.
- 6:42Stop drowning in data and start using it to drive results.
- 6:48If you enjoyed today's conversation and if you are ready for growth
- 6:51yourself, I certainly hope that you look us up@GrowthPro.com
- 6:56and schedule a free growth call with one of our coaches.
- 7:00I'd like to take a moment to thank our sponsors for 2026 in the GrowthPro
- 7:05Edge Party Center Software Roller Betson, and A&A Global Semnox
- 7:11Embed and Shaffer Distributing.
- 7:13We appreciate what they do, which is to help us bring you a new episode of
- 7:17the GrowthPro Edge each and every week.
- 7:21I'm Denise Killian, your host with the GrowthPro Group.
- 7:25Keep growing, keep learning, and keep striving for the extraordinary.