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How to keep your company's KPI higher than your competitor?

Just say your industry and how to do you keep it up

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Question added by Nourhan Darwesh , Product Manager , Mysteronix
Date Posted: 2014/03/06
Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Conceptually, KPIs are to measure the company's achievements in its critical success factors. Different companies compete to have different strategies to differentiate themselves from competition and therefore will have different critical success factors and accordingly different KPIs.

Companies with the same KPIs better revisit thier strategies to target a defferintating competitive position to ensure sustainable competitive advantage(s).

If you mean here similar Key Result Indicators (KRIs), then companies need to increase the effeciency of thier business processes to achieve higher KRIs.

Tahir Ahmed
by Tahir Ahmed , Sales Execitive , Group 4 Securicor

KPI should be based on your overall business goals and the role your website plays in achieving those goals. KPI is all about Profit, Revenue ,Cost & Quality control. KPIs should be company specific and not influenced by industry averages or your competitors' KPIs.We need to understand the our company parameter before setting the goal or target in order to make our company ahead from our compitiors like

Organizational Goals:

  • It is important to establish KPIs based on your own business goals rather than standard goals for your industry. Expanding on this, a company whose goal is "to be most profitable" will have different KPIs than a company who defines their goal as "to increase customer retention fifty percent." The first company will have KPIs related to finance and profit and loss, while the second will focus on customer satisfaction and response time.
  • Measurement Purpose: It is important to analyze KPIs over time, allowing you to make changes to improve website performance – then periodically reevaluate performance to verify progress. For this reason, KPIs must be measurable. The goal "increase customer retention" is useless because there is no quantifiable goal, whereas the aforementioned goal, "to increase customer retention fifty percent" has a definite quantity that can be tracked.
  • Goal Continuity: KPIs are long-term considerations designed to help with strategic planning. While it is important to have targeted goals, they should be incremental to an overall success. Simply because something is measurable does not mean that it is significant enough to be a key performance indicator. You must define your KPIs and keep their measure the same from year to year. Not that you can't adjust your goals, but you should use the same unit to measure those goals.
  • Managerial Consensus: It is important to have all managers on the same page because personnel from different functions within your company will help create the KPIs. If your KPIs truly reflect your organizational goals then it is necessary for all levels of your company to get with the program. Encourage company unity and enthusiasm for the project and make sure that everyone knows what the KPIs are.