There are different KPIs for internal processes that can help you generate a report to Management, whether weekly, monthly or annually . In general, they include: what was achieved last week, what is planned, the objectives met, the status of the project being worked on, the problems or risks, etc.
Although useful, senior management is not only interested in having a KPI report to evaluate current performance, but they want to know more about past and future performance.
Today we will learn what KPIs are for internal processes and why it is important to have a more general vision of what happens in your company and do an analysis that allows you to optimize these processes and improve.
What are KPIs for internal processes?
KPIs for internal processes are those that help you measure the performance of the actions involved in achieving the objectives that an organization has set for itself in the short, medium and long term.
Using the data needed to interpret performance indicators, a company manager can evaluate the productivity of his or her organization and control the pace of efforts assigned to him or her. Using these benchmarks, an organization can better guide the improvements to be made that will allow it to achieve its growth objectives.
A KPI is not an activity indicator, but rather a direction indicator. Its objective is to explain why an objective is achieved or not.
Advantages of implementing KPIs for internal processes
These are some of the benefits of having KPIs to evaluate internal processes:
- Efficiency is improved . By monitoring internal processes, your team will be more efficient and you will be able to dedicate more time to the actions that will grow your business.
- Accurate information is obtained . By tracking your internal processes you will have updated and accurate data that will help your team avoid costly mistakes.
- Greater adaptability . By having visibility into your performance indicators you can react quickly to market changes and unforeseen needs.
- You can monitor your results and be accountable . Tracking information from all departments makes it much easier to monitor your team’s performance.
- Higher quality of results . With consistent and effective internal operations, you can increase your profit margins by reducing costs.
Importance of measuring the internal processes of a company
KPIs for internal processes are related to the effectiveness of the organization . These measures help answer what we should stand out for. Some examples are the time it takes to manufacture a product or provide a service.
Measuring your internal and external processes is a vital part of tracking the growth and progress of any company. It involves measuring actual performance against planned objectives.
Knowing how to measure your business performance will protect you from any financial or organizational problems, reduce process costs, and improve productivity and mission effectiveness.
Examples of KPIs for internal processes
A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving its key business objectives. They are measurements that define and track specific business goals and objectives.
How to improve a company’s processes ? The key is to select KPIs that match your strategy, industry and business objectives/goals.
Below are some examples of KPIs to measure your internal processes:
| Category | KPIs for internal processes |
| Customer Support |
|
| Financial |
|
| Internal processes |
|
| Employees |
|
KPIs for internal processes can be illustrated through various types of graphs and visualized through a dashboard to highlight key KPIs.
What KPIs are you reporting? And which have had the greatest impact on the business? If you are not clear about this, a dashboard will be very useful.
Learn how with dashboard software you can have better visibility of what is happening in your business by having information from various sources in the same virtual space, and make an effective analysis of your results for better decision making.