Consultation

Choosing KPIs

To Inspire Action

Before you can use KPIs to evaluate your performance, you have to identify the goals your management consulting business is working toward. Your goals help you select relevant KPIs from the hundreds of variables that measure your company's performance. You may be trying to increase profitability, grow your business, improve the quality of your team or achieve better results for your customers. The goals you choose will determine which performance indicators are key for your company

Defining KPIs

Keep Simple

KPIs related to consulting performance include customer satisfaction, number of new clients and number of repeat clients. KPIs relating to team qualifications could be number of training hours, number of employees receiving training and percent of budget spent on training. You have to choose those KPIs directly related to your goals. While you can track many other variables, changes in them will not be relevant to what you are trying to do with your business. The KPIs you choose are the variable that let you make the decisions that help you improve company performance.

Tracking KPIs

Communicate Data

What a KPI is NOT: If a measurement of activity or metric does not directly influence your achievement of business goals, then it is not a KPI, it is simply a metric. Not all measurements are equally important, therefore, not all metrics are KPIs.