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Considerations and examples for Key Performance Indicator design Goal Setting, Metrics, workshops, training and consultancy
Considerations and examples for Key Performance Indicator design
Goal Setting, Metrics, workshops, training and consultancy
The direction and current position of a business should be displayed for management through its key
performance indicators. Where are you? What direction is your business
headed?
The business GPS
Goal Setting, Metrics, workshops, training and consultancy
Many managers are lost in a maze of metrics. The perceived low cost of recording and storing data is
damaging the ability to differentiateWhat are your high impact and low impact
measures?
LOST IN THE MAZE OF METRICS
Goal Setting, Metrics, workshops, training and consultancy
Regulations and law may require specific measures.What are your required metrics?
INDICATOR OBLIGATIONS
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Business indicators are unique to each business.Here are the core areas to measure after legal and
regulatory requirements.Market
FinancialProcessStaffing
Note: Political indicators may become appropriate periodically
CORE INDICATORS
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CAC – Customer aquisition cost.Dividing all the costs spent on acquiring more
customers (marketing expenses) by the number of customers acquired in the period
the money was spent.
Note: A solid strategy will be able to project forward future CAC targets and assist
budgeting
KEY MARKET INDICATORS
Goal Setting, Metrics, workshops, training and consultancy
Customer Retention RateWhat is the number or percentage of repeat
customers?
KEY MARKET INDICATORS
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Net ProfitGross income minus all business expenses.
KEY FINANCIAL INDICATORS
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Cash Conversion Cycle (CCC)The time taken for money invested in the business to return as increased business
revenue.
KEY FINANCIAL INDICATORS
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Earned Value (EV)The value gained from current projects
PROCESS INDICATORS
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Quality IndexFrom customer expectations what is the
performance of your product/service offering
PROCESS INDICATORS
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Human capital value added (HCVA)The individual monetary value of each staff
member
STAFFING INDICATORS
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360 deg. feedbackGroup and personal feedback of each staff
member
STAFFING INDICATORS
Goal Setting, Metrics, workshops, training and consultancy
How are your indicators linked directly to the goals, objectives, vision and mission of your business?
How do you identify and track trends of performance and measures within your existing metrics?
What is the frequency intervals of measurement and what benefits can be made from adjusting them or their scale of measurement?
What impact will the metric have on the business this week, month, quarter, year, 36 month period?
Check List for Indicators:
Goal Setting, Metrics, workshops, training and consultancy
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