Can you improve what can’t be measured?
Key Performance Indicators (KPIs) are the numbers that help you see if your business is moving in the right direction. Good KPIs keep everyone on the same page, highlight progress, and quickly show when things are off track.
But not just any metric will do. For real impact, KPIs should be SMART:
Specific: The goal is clear and focused on something concrete.
Measurable: You can track progress with actual numbers.
Achievable: The target is realistic and possible, not just wishful thinking.
Relevant: The goal supports your overall business strategy.
Time-bound: There is a deadline that creates urgency and keeps things moving.
SMART KPIs in Action: The Bakery Example
Specific: Vague: “Increase sales.” | SMART: “Increase whole wheat bread sales by 15% over the next three months.” This tells you exactly what to work on and which product to focus on.
Measurable: Count the number of whole wheat loaves sold each week. Regular tracking shows whether you are getting closer to your 15% increase.
Achievable: Instead of setting a target that is out of reach, use your sales history to choose a realistic goal. Aiming for 15% growth over three months makes sense if it matches your market and resources.
Relevant: If your bakery wants to attract health-conscious customers, focusing on whole wheat bread sales supports that bigger goal.
Time-bound: Having a three-month window gives your team a clear timeline. You can check in along the way and adjust if things are not going as planned.
Why Use SMART KPIs?
SMART KPIs help you turn big ambitions into practical steps. They cut through the noise, making it clear what needs to be done and by when.
With the right KPIs, your team can stay focused, track results, and react quickly when things change.
Want to set goals that actually drive results? Make your KPIs SMART, and your business will thank you.