Episode description
Episode description
Today we will be discussing the concept of Key Performance Indices (KPIs) and their importance in measuring success. A KPI is essentially a measurable value that shows the progress towards a specific goal. For instance, weight is a common KPI for many people. However, the challenge with this type of KPI is that it is a lagging indicator, meaning it only tells us what has already happened, not what is going to happen. In a business setting, it is more valuable to use leading indicators, which are KPIs that predict future outcomes, in order to make adjustments and achieve our goals.
For example, as a solo entrepreneur, we may be most concerned with the amount of money our business makes, whether it be revenue or profit. However, once January is over and we know how much money we made, it is too late to make adjustments to achieve our goal of growing our business in 2023. That's why we need to be measuring things that are related to actually achieving the goal, not only measuring whether or not we achieved the goal after the fact.
One example of a leading indicator in a business setting could be using affiliate marketing as a way to predict and potentially achieve a goal. By closely monitoring the progress and success of our affiliate marketing efforts, we can make informed decisions on how to adjust and improve in order to reach our desired outcome.
In conclusion, leading indicators are crucial for predicting and achieving business goals. We hope you found this information valuable, and encourage you to look into more resources on KPIs and leading indicators to take your business to the next level.