What benefits do indicators have for an SME?

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What is management by indicators and what is its main objective?
Before continuing, we need to define what a company's management indicators are.

Key performance indicators (KPI) are those that allow the performance of a process to be converted into quantitative data , always based on previous data with which a comparison will be made. In other words, it is about taking reality (which is usually complex) and transforming it into simple numbers to understand it better.

An example of the context in which you can evaluate based on indicators could be: the number of calls or meetings your sales team has, either by contacting prospects on social singapore telegram data networks like Linkedin or by subscribing to your website.

The main objective of using management indicators is to know what adjustments can be made to the processes so that they produce better results ; in favor of achieving goals and objectives previously established in the company.



What benefits do the types of management indicators have for an SME?
Management indicators are practical examples of metrics that allow monitoring the operation of a company, in order to identify areas for improvement. Let's see below what the most notable benefits are.

Explanatory value
It involves detecting what actions or inactions led us to a certain result.

Predictive value
With enough prior information collected, they have the power to predict the result that we will achieve in an activity, with an acceptable margin of error.

Planning value
In order to set realistic goals, it is essential to have relevant historical data. Both the predictive and explanatory aspects are enhanced to understand what efforts must be made to reach a certain level of performance.