all of you spend a lot of time and money in getting your annual accounts prepared and squared away ... who can forget it! These accounts are useful to keep taxes and bank people happy, for the sale of your business and bring in investors / new partners. However, even the most efficient of you do not have your annual accounts do til two months after the end of the financial year - 14 months after the year began. These accounts do not have their uses (as above), but you can not run your business on a day-to-day for them - they too blunt a tool for such work fine
many of you do (or have done) monthly accounts and this she is, in a more efficient, so after three weeks of work, so to speak. This monthly accounts are accurate tool for the job but, like your annual accounts, take a lot of effort to prepare - accounting for debtors and creditors, counting stock (inventory) and so on. Huge efforts and costs in the preparation of accounts and be available after a long period of work, it is the main reason KPI invented.
What are the key performance indicators
KPI does not stand for the Institute of Kerry Packer! KPI stands for key performance indicators - big term that means to choose, in your particular business, what are the main ingredients or essential to make a profit. Each different business so that key performance indicators are different.
key performance indicators are not always financial indicators. And KPI is a way to measure the specific business process, a bit like evaluating the success of the company in this particular field. By recording and analyzing key performance indicators at the company level, the employer can see at a glance the processes that need attention.
How can we help key performance indicators
provide key measures of performance indicators the details of your business that is purely financial measures can not. For example, the use of what is a big profit when customers lose huge quantities through customer service recession? But, if you use key performance indicators to measure ...
- has missed
- deadlines customers?
- What is the conversion rate of quotations on sales?
- Walta was to manage customer complaints received?
- What is the direct cost of the complaints?
then you have already seen why it was losing customers, and how much it was costing you exactly where you need to start making some improvements
key performance indicators clients Sample:
- What would be the effect if a key customer, or failure to leave work?
- What is the percentage of sales are exported?
- What is the level of customer complaints?
- Why the delay is being caused by the quality assurance system?
- What are the results of customer surveys that?
- what deadlines customers might have missed?
- What is the percentage of complaints to the sales for each section?
- What is the number of new customers in the department?
- What is the average amount of the sale to new customers?
surviving in the business world today is more about measuring the value added (see previous article added value to customers). This means gauge how you are performing against your business goals and objectives and, to a large extent, where you can improve. Your calculations will tell you whether you make a profit or not, and they may give you an idea of where they might be problem areas. Key performance indicators, on the other hand, tell you exactly what is going wrong, where they are going wrong, and they usually help you in deciding what to do about it.
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