Key Performance Indicators need to be formulated using the SMART criteria. I’ve written about this previously and you can find the article here:
In this post I’m going to focus on the ‘T’ part of the SMART criteria, ‘Timely’. To be able to see KPI’s on a timely basis you need a system in place to ensure the data is put together in a timely fashion and is accurate. There is no point putting together KPI’s that are not accurate as you could end up making a decision, or not making a decision based on incorrect information.
The question I asked at the beginning of the post is, if you are looking to monitor your restaurant or pub KPI’s, do you have a system in place so that you can review them on a timely basis. If the answer is no, then I have some suggestions to help you speed up this process:
- Use as many cloud-based financial systems as possible. For example, Xero, Deputy etc.
- Have processes in place so that tasks are completed within a certain timeframe.
- Use controls to ensure tasks are completed accurately. For example, check to see if the bank is reconciled.
- Have monitoring tools to ensure tasks are completed within these timeframes. This could be tasks in Outlook or a more advanced workflow management tool.
- Try and use either standard or customised reports so report production does not delay the process.
- Ensure the KPI’s are sent to key stakeholders at a regular time. If you are sending weekly KPI’s then this could be before a manager meeting so that you can discuss previous weeks KPI’s.
Sending a KPI report weekly is a standard part of what all clients of Pacific Business Partners receive. That’s due to us ensuring all of the above is put in place. It means that clients are able to make decisions quickly as they are armed with information. For example, if wages are too high then they can adjust the roster the week after it happens to avoid a repeat.