KPIs, or Key Performance Indictors, are used by many types of organizations to evaluate many types of performance. The indicators vary but the process of understanding, measuring, and acting on the data is the same, no matter what you are measuring.
For insurance agencies, using KPIs can be a great way to motivate your team. This type of focused analysis helps everyone to understand what’s working and what can be improved. Setting agency targets helps you to keep your team pulling with you in the right direction so that you create the results you want together.
Here are the steps to knowing and measuring your KPIs.
The first step is to decide what you want to achieve. Do you want to 20 new policies a month from each of your people? Do you want to set targets for the number of calls to be made by each person? Past data can be a great help in determining what your current target should be. If you don’t have a clear picture, just start somewhere.
Set a Timeframe
An important component of measuring KPIs is the timeframe. An indefinite timeframe will lead to unclear results. So, set a target date for meeting your goal. Your timeframe should be long enough to gather enough data, but short enough to be able to review and adjust.
Set Measurements of Success
How will you know if you are successful? Of course, hitting your target is an easy indicator of success. But, what if you come close? Do you consider that success? Be clear about ranges of success and failure.
Share with Your Team
Sharing your KPIs and their measurements with your team is the most important step. In order to create a culture in which everyone is pulling together towards the same goal, everyone must be clear about what the goals are and how they will be measured.
Measure Your Progress
Periodic and frequent measuring of your progress towards the targets can be a great motivator. Everyone on the team should always know where they are as you move towards the end of the timeframe. When the timeframe is met (or sometimes before), take some time to analyze the data and what you’ve learned.
Adjust your Targets and/or Timeframes
Once you understand the data, you may want to adjust your targets and timeframes to improve performance. This is the meat of using KPIs: the ability to analyze and adjust.
Finally, if you’ve met your targets be sure to celebrate with your team. If you haven’t, use the data to motivate everyone to improve. Either way, repeating the process over and over is what will ultimately lead you to success through continuous improvement.