• Peer Wealth


A business owner needs to know how its business is travelling. Like a driver driving his car, the driver needs a dashboard to tell him how fast he is driving, when he is going to run out of petrol or if his engine is overheating. Key Performance Indicators (KPIs) in a business tell the business owner exactly that!

KPIs are often mistaken for Key Reporting Indicator’s (KRIs). All KPIs have the following 3 things distinct to them:

  1. Key & Critical - having too many KPIs almost guarantees the failure of another KPI, they must support each other. I think 5-10 KPIs is ideal. Too few means you are not measuring everything that is critical for your business and too many mean you run the risk of your team members not becoming engaged with each KPI and just 'going through the motions.'

  2. Forward looking - a KRI is backward looking whereas a KPI is forward looking. A true KPI will paint you a picture of what your future KRIs will look like. The most important part of a KPI is that if the KPI is painting a picture that the business is off track, it tells you exactly what to change in your business in order to get back on track. For example: - KRI - # sales transactions per month - KPI - # sales meetings in diary for next 30 days

  3. Accurate - when you measure the KPI, i needs to be accurate. There is n use having the best KPI but not measuring it with accurate data. KPIs should drive your team's behaviour. The team should be measured based on the business's KPIs. Therefore, if they are not accurate, the team will have less influence over them and they won't align themselves the with KPI.

#TaxAccounting #Business

6 views0 comments

Recent Posts

See All

2017 SNB Business of The Year


Professional Services Award

Contact Information:

(02) 8014 7608


PO Box 444 Manly NSW 2095

Office Locations:

Peer Wealth Manly

Suite 202b, 39 East Esplanade

Manly NSW 2095

Peer Wealth Forster

Shop 2, 12 Wallis Street

Forster NSW 2428

Peer Wealth Pty Ltd is a Corporate Authorised Representative (Representative No, 001281977) ABN 24 115 294 463 of Futuro Financial Services Pty Ltd, Australian Financial Services Licensee (AFSL 238478)

Financial Services Guide

Privacy Policy

This website contains general advice only. You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Futuro Financial Services Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website.

Liability limited by a scheme approved under Professional Standards Legislation.* *Other than for the acts or omissions of financial services licensees.