Step 1 Identify core KPIs and set up targets. KPI’s should be SMART – Specific, Measurable, Actionable, Realistic and Time bound.
Step 2 Set up dashboards and MIS systems to report on set KPIs on a timely basis. These dashboards should be automated and should be an integral part of daily business operations.
Step 3 Monitor the KPIs and act on deviations consistently to keep the business on track and to achieve the desired goals.
KPIs change based on industry, product segment and company vision
Some sample KPIs that can be followed in the retail industry are Sales YoY/MoM growth, stock turnover, margins, customer footfall, average basket size, etc.
Business reporting requirements depend on industry, company specifics and management preferences. But overall, dashboards/MIS reports should serve two major purposes:
- Provide insights to management for powerful decision-making.
Provide brief summary to the top-level management on daily/ weekly/monthly operations
Few samples are given below:
Sample 1
This retail dashboard has everything a founder would need to know. Here are some of the essential features a well-designed dashboard should have:
- Real-time live data from the base ERP/software.
- Drill down option where a Founder can double-click on any information for more details.
- Accuracy so the Founder can place complete reliance on dashboard information since it is not edited before reporting.
