How To Set KPI As A Freelancer To Grow Your Business?

KPIs are important as they offer goals for teams to strive in making better decisions. It is significant that you customize KPIs to your business and develop to help you achieve your goals. Check out the article to find out more.

A key performance indicator (KPI) is a quantitative value used to assess how successfully an individual or organization achieves goals. You can have high-level KPIs to evaluate your company that delves into individual or departmental procedures. These KPIs (s) help in quantitative assessments. 

Importance of KPI(s)

KPIs are important as they offer goals for teams to strive towards, benchmarks to evaluate progress, and insights that aid individuals throughout the organization in making better decisions. Some other reasons why you need key performance indicators are as follows: 

  • Keep your teams standardized and on the same page.
  • KPIs support the strategic advancement of every department within the company, from marketing and sales to finance and human resources. 
  • The KPIs provide a realistic look at the financial indicators and risk factors.
  • It helps you make regulations based on which KPI metrics.
  • KPIs also help teams be accountable to the company and vice versa. 

How to design KPI(s) as a freelancer?

KPI(s) based on the acronym SMART (the objective must be Specific, Measurable, Attainable, Relevant, Time-bound) framework. It is effective since certainty helps in the elimination of any ambiguity. On the other hand, poor KPIs (s) would not be based on any context and would not align with the priorities they should measure. 

The execution of your plan is directly affected by choosing the appropriate KPIs. Most people make the error of selecting just one or two key performance indicators when determining their goals. You have the foreseeable goals and the metrics that the company needs. 

Understanding your organizational objectives, how you intend to achieve them, and who can act on the information will help you build a strategy for developing KPI(s). You develop a grasp of which business processes belong on a KPI dashboard and with whom you should share it as you iterate and evolve.

How to set and write KPI(s) as a freelancer?

As already mentioned, it is significant that you customize KPIs to your business situation and develop them to help you achieve your goals. Some tips for setting up a KPI are as follows: 

1. Write a clear objective for your KPI

You should align your business purpose with your KPI. You are working toward a goal that isn't relevant to your organization if it does not match your KPI for a business purpose. A KPI must also be more than just a random number. 

Your KPIs must reflect the strategic goals of your organization. Your KPI (s) should, above all else, tell the story of your business.

2. Share your KPI with other stakeholders

Context is necessary for the effectiveness of KPI(s). You must explain what you are measuring and why you are doing it. 

Inform your employees and stakeholders of your KPIs to make them understand the objectives and goals. Withholding that knowledge leads to team misalignment. You may discover and improve how you communicate your objectives and KPIs (s) by listening to comments and inquiries.

3. Review your KPI(s) periodically

You must regularly assess your KPIs to ensure success. Examine your KPI(s) from the viewpoints of your progress toward the KPI and effectiveness. 

If you are not making progress, your KPI target might not have been effective.

Examples of KPI (s) to monitor growth: 

KPIs are used to monitor the growth of a business. Let us say the objective is to increase your monthly engagement on your social media blog. We can understand how you define the KPIs. For instance, if the question is: "What is your desired level of engagement?’ we can set the responsive KPI in numerical percentages, such as a 20% increase from the preceding year. 

Based on the same consideration, you can have different KPI metrics, such as the person responsible for the business outcome, influences, and how often you should review the progress. 

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