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DocuWrx is a premiere FileMaker developer. Our flagship solution, Kosmas, is an end-to-end vertical market solution for the construction industry. DocuWrx also creates first class custom business solutions for many different industries including hospitality, retail, property management, healthcare, manufacturing, and many more. If you are looking for a custom solution for for your business or are interested in Kosmas, inquire below.

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How KPIs Can Grow Your Business

You’ve probably heard the term KPI (Key Performance Indicator) thrown around before. You may have even considered using KPIs to manage your business. Before setting out on the path of developing and tracking your company’s KPIs, let’s first take a look at what KPIs are and why you need them in construction and field service.

What is a KPI?

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets. Selecting the right KPIs depends on your industry and which part of the business you are looking to track.

Why Are KPI’s Important?

From reviewing employee performances to tracking company progress, there are a number of reasons why KPI’s are an important factor in assisting your company’s growth.

Measure Your Targets

Though they may be easily confused, KPI’s are not company goals or targets themselves, but they’re a measurement of goals and targets. For instance, if your company goal is to sell a certain amount of high ticket products each month, your KPI’s will show you how close or far you are from reaching those targets.

A KPI in this instance may indicate that your sales team is only generating 20% of the desired amount of leads your company has set as a benchmark. As a manager in this situation, you are instantly made aware of your sales team’s progress and the reason for not hitting the desired numbers of leads. When you’re able to measure your goals this way, it gives you the opportunity to see where you’re going wrong and subsequently make decisions that help you reach your goals faster. This is arguably the most important reason why KPI’s should be used and the most significant usage of a KPI.

Encourage Learning

Being able to measure targets using KPI’s can create an educative atmosphere within your company. According to Root Cause, the data that is generated by measuring KPI’s leads to important conversations within the workplace.

When you notice an unfavorable reading on a KPI, you have the chance to talk to the individual or team involved with that specific KPI. This a great opportunity for you to teach the employees how to do things differently and perform better in order to reach set targets. Additionally, you can analyze whether the set KPI’s are an effective measurement, and conversely, make necessary modifications if the employee feels that the targets are unrealistic to meet.

Immediate Information

KPI’s provide an immediate snapshot of the overall performance of your company. When you’re in a highly competitive market, that information can be a crucial part of your attempts to “beat” your competition.

The real-time data that KPI’s provide allow you to make systematic adjustments so that you’re not left making frantic changes at the end of each month to reach your goals. Some companies use KPI’s to measure how well they are reaching certain standards that may not be directly related to their business or profits.


Without KPI’s revealing vital statistics about performance, you run the risk of making inaccurate decisions about employees during reviews. You may assume that an employee is performing poorly because he/she has punctuality issues or a perceived lack of company engagement, but you have no quantifiable proof. A KPI may reveal that your assessment is incorrect and the perceived “poor performer” may have some favorable stats and delivers good results.

On the contrary, poorly performing employees can hardly argue their case if their KPI stats show unfavorable readings. Essentially, KPI’s encourage accountability for both employees (if they’re not performing) and employers (if KPI’s are deemed unreachable).

Improve Morale

Employee motivation and job satisfaction are extremely important in order to improve company performance and culture. It can often be difficult to motivate your team when set targets can only be achieved once a quarter or once a year. It can be quite rewarding and motivating for employees to receive positive reports for meeting certain KPI’s in the interim. The results are often instant. It creates a sense of purpose and keeps them focused on meeting their goals.

TRUE Construction Software reinforces this point by emphasizing the importance of an effective KPI strategy toward employee satisfaction. They report that if you were to take a professional, industry-accepted survey of your company’s employees, you’ll likely find that most supervisors are only utilizing about 60% of their team’s capability. That’s a damning stat for most motivated leaders.

A good KPI system will increase that number by keeping your leadership abreast of their team’s performance. They could use this information to document employee’s actions and progress, discuss their findings, provide feedback, and ultimately increase job satisfaction as forthcoming targets are met.

DocuWrx has compiled a list to highlights some of the key construction KPIs contractors are measuring today. While each indicator on the list can be important for various reasons, start with only four or five that will be most useful for your business instead of trying to implement all of them at once. Determine which are most important to your organization by evaluating problem areas, and then, only after reaching your original goals, add to the list. Once you have defined your business’ goals and strategy, identifying and aligning the KPIs for your business will be much simpler.

Key Construction KPIs Every Subcontractor Should Know:

  • Average travel metrics
  • Response time
  • Average service times
  • Employee utilization
  • Billable time
  • Cost of emergency orders

Although KPI’s are important for reaching company goals (and inevitably growth) by allowing you to make systematic, timely adjustments, you must ensure that those goals have the potential for you to create actionable KPI’s based on them.

You could modify the goal slightly by demanding an increase in customer retention by 20%. You now have a quantifiable and measurable target which allows you to create the appropriate KPI’s. Always establish specific goals which allow you to create the necessary KPI’s in order to improve the overall results of your business.

New technologies and service apps, like TRUE,  have made it easier to identify what to measure and to retrieve accurate information quickly. So while the KPIs themselves have remained relatively stable over the last decade, contractors’ ability to set smart goals, track performance, and make informed changes has made it more important than ever to perform well and exceed customer expectations.