As the owner or executive of a business, you have business goals. You have your 5-year goals or your long-term goals, and then there are steps along the way to reach those goals: medium-term goals and short-term goals.
If you were a retailer you might have the following goals:
Short term: sell a certain amount each sunny day, a certain amount each rainy day, a certain amount each holiday, weekend and weekday.
Medium term: Identify your best suppliers. Establish relationships with the most efficient, timely, reliable and innovative suppliers. Attract a higher number of baby boomers than your competition.
Long term: Continue to create innovations in the marketplace that can set you apart from your competition, such as innovative loyalty programs or bleeding edge point-of-purchase technology.
In business planning and business performance management, key performance indicators (KPIs) are fundamental to knowing where you are in your path towards a certain goal.
This is what Wikipedia says about KPIs:
A performance indicator or key performance indicator (KPI) is a measure of performance. Such measures are commonly used to help an organization define and evaluate how successful it is, typically in terms of making progress towards its long-term organizational goals. KPIs can be specified by answering the question, “What is really important to different stakeholders?”
Wikipedia mentions long-term, but that misses out on important short-term and medium-term goals which I’ll explain shortly. The other key term here is “stakeholders.”
Each goal, whether short-term or long-term, has different stakeholders.
If you have daily retail sales goals, then a store manager has to have access to data that shows him or her in real time what’s going on in the store.
If you have quarterly or yearly goals vis-a-v?s your suppliers and different customer segments, then an operations person or sales director needs access to information that shows how you’re doing along these paths.
If you have long-term plans to create innovative solutions and become a market leader, then the CEO or owner needs access to key data to know how you’re doing against these plans.
Different time-frames, different stakeholders, different goals, different KPIs.
What tools are available to help you along the path?
David Abdo wrote a post entitled “Business Intelligence Software: Who Is It Really For?” where he argued for the democratization of business intelligence software across the enterprise.
The existence of a multi-tiered goal structure as illustrated above implies the requirement of a company to implement a business intelligence tool that’s accessible to all people within the company.
What are your thoughts on the matter?
For more information on how to implement a business intelligence tool to navigate your way towards your goals, click here to sign up for a free webinar!
Fernando Labastida is a communications specialist for KPI Online [http://kpionline.bitam.com]. He blogs about how small and medium sized business can improve performance with Business Intelligence software.
Article Source:
http://EzineArticles.com/?expert=Fernando_Labastida
Go here to read the rest: Business Planning – Short Term, Medium Term and Long Term Goals
