SMEs are failing to track and measure the key metrics that drive their business, according to new research.
Geckoboard, a software provider, says that almost half (49 per cent) of SME owners were unable to identify any Key Performance Indicators (KPIs). SMEs have not fully made use of the data that is available to them and over a third (39 per cent) failed to reach their growth targets during 2015.
The Geckoboard survey also revealed the link between the companies that focus on the measurement of their KPIs and the likelihood of success. According to the research, 74% of businesses that monitor business critical KPIs in real time reported hitting their growth targets.
Also, 92% of companies that tracked their metrics in real-time met some or all their goals in the last 12 months – compared to 64% of companies who did not track in real-time.
It has also grown increasingly difficult to motivate and focus team members as a result of an overall lack of metrics and information. Team members were so affected that 50 per cent of those working at SME’s admitted that their overall performance level was compromised due to not being made aware of key information and metrics at their companies.
‘Use the data you have’
The CEO of Geckoboard, Paul Joyce was critical of businesses that are not data-driven and fail to monitor their KPI’s: “With so much available data, entrepreneurs are forgetting to identify which metrics and data are most important to their business using KPIs. This unfortunately means they’re struggling to focus their business on what matters for success If you’re not keeping a close eye on critical business metrics and sharing progress against those KPIs with your team, how can you expect your business to grow? You could also be missing out on important signs for future growth or even worse, signs of trouble ahead.”