What tools do businesses use to monitor progress towards objectives?

Businesses use tools such as Key Performance Indicators (KPIs), Balanced Scorecards, and Management Information Systems (MIS) to monitor progress towards objectives.

Key Performance Indicators (KPIs) are a popular tool used by businesses to measure progress towards their objectives. KPIs are quantifiable measures that reflect the critical success factors of an organisation. They are based on the specific objectives of the business and provide a way to measure how well these objectives are being met. For example, a business might set a KPI for the number of new customers acquired each month, or the percentage increase in sales. By regularly monitoring these KPIs, businesses can identify areas where they are not meeting their objectives and take corrective action.

The Balanced Scorecard is another tool that businesses use to monitor progress towards objectives. This tool provides a balanced view of the organisation's performance by measuring financial results, customer satisfaction, internal processes, and learning and growth. The Balanced Scorecard helps businesses to align their day-to-day activities with their strategic objectives, and to measure their progress in achieving these objectives. For example, a business might use the Balanced Scorecard to monitor its progress in improving customer satisfaction, by measuring the number of customer complaints, the results of customer satisfaction surveys, and the number of repeat customers.

Management Information Systems (MIS) are also used by businesses to monitor progress towards objectives. These systems collect, process, and distribute information to support decision making in an organisation. They can provide managers with the information they need to monitor progress towards objectives, and to make informed decisions about how to achieve these objectives. For example, an MIS might provide information about sales trends, customer behaviour, and market conditions, which can help a business to adjust its strategies and tactics to achieve its objectives.

In conclusion, businesses use a variety of tools to monitor progress towards objectives. These tools provide a way to measure performance, identify areas for improvement, and make informed decisions about how to achieve business objectives.