What are Key Performance Indicators?
Key Performance Indicators (KPI) are measurable values that demonstrate how effectively a farm business is achieving key business objectives. KPIs are sometimes called Benchmarks. Although the two use the same measures, their purposes are different:
- KPIs are used when you are setting on-farm targets, e.g. increased lambing % or number of lambs sent to the works at weaning
- Benchmarks are for comparing against other farms, e.g. against a regional or other farms of the same farm class
Why and What to Measure
Understanding how your farm business is performing is critical to making decisions on how to improve performance. You need to know where you are now, to be able to set targets and then see how actual performance measures up against these targets.
Working with the Red Meat Profit Partnership PGP and B+LNZ, a group of industry experts have identified a core set of measures which are fundamental to getting a good understanding of how your farm business is performing.
What do I do with the figures?
Understanding how you are performing is the beginning. Once you know this you can start to drill down to the underlying causes for the current performance and begin to develop a plan for improving the results.