How KPIs Will Simplify Your Field Management

For Field-Based Organizations which regularly perform merchandising, marketing, selling, inspection, or servicing functions, day-to-day operations likely involve a great deal of Field Activity Management (FAM). While things like mobile data collection and real-time communication are made easy with cloud-based FAM software, there is still the matter of converting collected information into a format which helps to guide the decision-making process. This is where KPIs come into play.

KPIs (Key Performance Indicators) are constructs used in business to measure the success of individuals and organizations at achieving certain goals. While KPI’s vary from organization to organization, the fundamental purpose of KPIs remain the same: to measure the success of individuals and organizations at achieving certain goals.

How exactly can managers go about applying KPIs to their Field Activity Management strategies? The two primary components of an effective KPI strategy are creation and interpretation.

Creation

The creation process involves looking at seven different characteristics and tailoring your approach around them. An indicator which possess all seven of these characteristics will be far more helpful than one without them.

Interpretation

These KPIs then must be compared against specific, intelligent goals. What’s more, these goals cannot be static; they must be measured over time to be of any use. For example, the KPI “Number of Customers” is useless if the data is only collected from a single period as it gives no indication as to the growth or relative performance of the number compared to previous data or industry standards. To derive any value from the data means looking for one of these three things:

1. 
   

   Variance (Compares Data to the Goal)

   
   


2. 
   

   A Developing Trend (Compares a Minimum of Three Data Points Over Time)

   
   


3. 
   

   A Net Change Over Time (Compares Data to Prior Periods)

   
   

Understanding the creation and interpretation stages of KPIs in greater detail is vital for managers and business owners looking to optimize their organizational efficiency. KPIs are useful for everything from measuring employee performance to choosing your next retail location. Making sure KPIs are clear and visible to representatives is vital to their success. Knowing the metrics by which their performance is measured will provide guidance and encouragement to reps in the field, and will allow managers to make important decisions while maintaining communication across the entire organization.

How KPIs Will Simplify Your Field Management