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The Fundamentals of Setting Your Growth Plan Objectives and KPIs

April 24, 20243 min read

Welcome, fellow growth experts and enthusiasts! Today, we're diving into the exciting world of setting objectives and key performance indicators (KPIs) for your business growth plan. It's like mapping out your journey to success, complete with signposts and milestones to guide you along the way. So grab your compass and let's explore six fundamental considerations when setting objectives and KPIs that will propel your business to new heights!

  1. Start with the Core: Values, Vision, and Mission Statements Before you can chart your course for growth, you need to know where you're headed and what you stand for. That's where your core values, vision, and mission statements come into play. Combined with your Key Differentiators, they form your UVP, but we've already covered that in an earlier article. These cornerstones form the foundation of your business and provide the guiding principles that shape your objectives and KPIs. So, take some time to revisit and refine these foundational elements, ensuring they align seamlessly with your growth aspirations.

  2. Get SMART About Objectives: Now that you've established your core values and vision, it's time to set some SMART objectives. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Think of your objectives as the destination points on your growth journey—they need to be clear, quantifiable, realistic, and aligned with your overall vision. Whether it's increasing revenue, expanding into new markets, or launching a new product, make sure your objectives tick all the SMART boxes.

  3. Lead with Lead Indicators: When it comes to KPIs, it's essential to include both lead and lag indicators. Lead indicators are like the headlights on your growth roadmap—they illuminate the path ahead and help you anticipate what's coming next. These KPIs are forward-looking and predictive, providing early warning signs of potential opportunities or challenges. Examples of lead indicators include website traffic, social media engagement, and lead generation metrics.

  4. Validate with Lag Indicators: On the flip side, lag indicators are the mile markers that measure your progress against your objectives. These KPIs reflect historical performance and tell you how well you've executed your growth strategies. Lag indicators include metrics like revenue growth, customer acquisition rate, and profit margins. While lag indicators are valuable for tracking past performance, it's crucial to balance them with lead indicators to ensure you're staying ahead of the curve.

  5. Align KPIs with Business: Objectives Your KPIs should serve as the compass that guides your business toward its objectives. Each KPI should be directly linked to a specific objective and provide a clear measure of progress toward achieving that goal. For example, if your objective is to increase customer retention, your KPIs might include metrics like customer churn rate, net promoter score, and repeat purchase rate. By aligning your KPIs with your objectives, you create a clear and cohesive roadmap for success.

  6. Iterate and Evolve: Finally, remember that setting objectives and KPIs is not a one-and-done exercise. As your business grows and evolves, so too should your growth plan. Regularly review and refine your objectives and KPIs to ensure they remain relevant and aligned with your changing priorities. Be open to feedback, iterate on your strategies, and celebrate your successes along the way.

In conclusion, setting objectives and KPIs is a fundamental step in any growth plan. By starting with your core values, vision, and mission statements, setting SMART objectives, and incorporating both lead and lag indicators into your KPIs, you'll create a roadmap for success that guides your business toward its goals. So, grab your compass, chart your course, and get ready to embark on an epic journey of growth and prosperity!

Please feel free to connect with me!

Eric

PS: SIX:A1 is presenting a MasterClass on May 2nd, starting at 2:00pm. Please join us!

PPS: SIX:A1 is starting a new Cohort soon for its Collective for Growth Program. Where you can Learn, Grow and Connect with like-minded entrepreneurs in mastermind-type environment.

SMARTObjectivesKPIPerformanceLeadLagIndicators

Eric Giguere

Publisher

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