Last, the use of target figures and key performance indicators (KPIs) are found to have a particular role in Kickass Companies. Here, KPIs are used to improve the performance of the company through a positive outlook.
KPIs are thus not used as a control mechanism but instead to measure, develop, and improve the organisation and to stay focused.
Our study finds that KPIs are all too often not identified through a strict analysis of value creation, for example, based on the business model of the company.
Our analysis of Kickass Companies’ performance concerning some financial and non-financial parameters leads us to formulate four pieces of good advice:
1. Identify KPIs that will motivate owners, managers,and employees.
2. KPIs should be used to focus on what needs to be improved/developed in the company.
3. KPIs should reflect the core focus of the company.
4. KPIs should inspire and create energy around the vision of the company, not serve as control mechanisms.