Data flows everywhere through Small to Mid-Sized Businesses.  Data to keep your business running and also Data to analyze trends, gauge results, and forecast future growth.  Getting the correct information, therefore, is critical to help guide your business.  Key Performance Indicators, or KPIs, are important measurements in your business that can gauge your results with insights into the health of your organization.  Keep reading this White Paper to learn more about Essential Key Performance Indicators for SMBs including why companies should pay careful attention to KPIs and which ones to look for.

Ever-increasing disruptions are putting more pressure on leaders who run small and medium-sized businesses (SMBs). New competitors offering new business models or additional innovative products and services are entering the market place faster than ever. Gone are the days when your only competition is a town over. In today’s digital world, consumers have access to products and services globally, continually changing their expectations on quality, availability, price, and how they want to do business with you.

Business success requires you to rethink how you operate fundamentally, not just today but tomorrow and every day after that. Organizations that thrive master change using a business continuity and resilience framework that drives business agility and continuous innovation.

All remarkable strategy frameworks start with how you can measure business outcomes. Traditional business key performance indicators (KPIs) focus on four critical dimensions:

  1. Revenue Tracking your bottom line or financial gains will always be necessary.
  2. Profitability It is essential to know how efficient the company is at turning sales into profit or tracking margins and always working towards lean operations.
  3. Growth Rates Business continuity requires that you are forward-thinking and always looking for innovations that will accelerate growth, even during a crisis.
  4. Risk and Returns Thin margin businesses are riskier, as they cannot withstand an economic downturn for very long. Of course, investors expect higher returns the higher the risk.

The principle “what gets measured gets managed” dictates that by examining a process, you can not only better understand it, but you can also find ways to improve it or get back on track if you know in advance when you are off course. KPIs help you measure strategic, financial, and operational performance compared to a set of targets, objectives, or industry benchmarks. However, many SMB leaders only focus on KPIs that measure business outcomes, which means they only know if they missed the target after it is too late to course-correct. Business outcomes or lagging KPIs are essential to understanding performance; however, you create a framework to measure agility and continuous process optimization by tracking leading indicators.

Tracking profit, profitability, growth rates, and risk and returns remain the backbone of KPI tracking is indeed a necessity. Going a level deeper and adding the KPIs that can help your business pivot quicker is the key for SMBs to stay agile and profitable in today’s marketplace. This White Paper introduces you to KPIs that can help you measure business agility and business process optimization, giving you the tools you need to continually measure your process, product, and service innovation long before they hit your bottom line KPIs. Measuring the right KPIs can ensure your business embraces agility as more than just a concept by embedding the ability to adapt into your organization’s fabric. Using the right leading KPIs will keep everyone precision-focused on the speed of doing business and delivering optimal outcomes to your customers. This is only possible if you have the right tool to track data across your entire business and measure the right leading and outcome KPIs.

To make your business dreams a reality, you need business solutions that keep pace with a continually changing world. That’s why successful SMBs have moved to the cloud with Microsoft Dynamics 365 Business Central.  Now more than ever, SMBs are smart to embrace digitalization because “business as we know it” has changed. Expectations have changed. The customer experience has changed. Even where we work and how we work is changing right before our eyes. Yet, so many businesses remain limited by systems that don’t allow for change. That’s why Microsoft has launched our next evolution of Microsoft Dynamics 365 NAV, GP, and SL resulting in Microsoft Business Central; to help SMBs become powered by the cloud, powered by connected data, and powered by business intelligence.

This modern ERP solution brings together the productivity of Microsoft Office 365, the data connectivity and business intelligence of the Microsoft Power Platform, including Microsoft Power BI, and the security, scale, and geographic presence of Microsoft Azure. Dynamics 365 Business Central unifies those assets into a single application that connects business management across finance, sales, service, supply chain, distribution, and manufacturing. Get access to the performance metrics that help you to adapt faster, work smarter, and perform better through using modern business technology solutions available today and offered by your local Microsoft Partner such as iCepts Technology Group, Inc. 

Next Steps:

Download the White Paper-Essential Key Performance Indicators for SMBs

Learn about Microsoft Dynamics 365 Business Central

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