Time and attendance tracking is necessary for obvious reasons, yet many business owners do not realize that this data can deliver enormous benefits to the organization, aside from payroll. In fact, having employees track their time against tasks and projects allows managers to develop key performance indicators to measure progress against strategic goals such as increased billability, adherence to project estimates and project profitability optimization.
Key Performance Indicators
A 'key performance indicator' or KPI measures an organization's progress towards a strategic goal. When leveraged correctly, KPIs can make a huge impact.
First, you must determine what the most important business goals are. It might be increased profitability, reduced number of defective parts per thousand, maintaining a certain percentage of customer satisfaction, or perhaps revenue per store location. Once this is established, you can create a KPI to help you measure your progress.
Next, you must ensure that your KPI is measurable. "Make customers more successful" is not an effective KPI without some way to measure the success of your customers. "Be the most convenient drugstore" won't work either if there is no way to measure convenience.