Many SMEs are failing to identify key metrics and track them accordingly, which is having an adverse effect on growth.
Data released by Geckoboard, the live TV dashboard application, found that nearly half (49%) of SME owners have failed to identify any Key Performance Indicators (KPIs), the critical metrics which contribute to their business’s growth. Even those that did establish KPIs most commonly only looked at them on a monthly basis. A third of businesses (31%) also said that the key numbers they tracked were never reassessed.
This widespread data denial syndrome is clearly taking its toll, with the research also revealing that more than a third (39%) of SME’s failed to meet all of their growth targets in 2015. The lack of available metrics and information is also making it harder to motivate and focus team members. Half (50%) of British staff admitted that their overall performance was compromised when they were not made aware of key company information and metrics.
However, the research did highlight a smaller group of SMEs who are taking KPI measurement very seriously, with around a quarter (24%) saying they monitor their KPIs in real-time. The research also found these businesses were reaping the rewards of careful tracking – three quarters (74%) of businesses which monitor KPI’s in real time hit all their growth targets, almost twice the average.