To properly evaluate the success of your organization, you must determine the measures that really matter (busniess drivers). As against the use of inappropriate measures may provide an incomplete representation, incorrect or inadequate for your busniess ... .. Hence the importance of choosing the right indicators!
The term KPI (Key Performance Indicators) has become one of the most overused and misunderstood in the field of busniess development and management terms. In theory, they provide a series of measures with which the internal managers and external investors can evaluate the performance of the company and the likelihood of achieving the more medium term goals. Unfortunately, people are confused with the settings - if we can measure it, so this is a key performance indicator. In this context, the real value of a real KPI is lost.
The term KPI (Key Performance Indicators) has become one of the most overused and misunderstood in the field of busniess development and management terms. In theory, they provide a series of measures with which the internal managers and external investors can evaluate the performance of the company and the likelihood of achieving the more medium term goals. Unfortunately, people are confused with the settings - if we can measure it, so this is a key performance indicator. In this context, the real value of a real KPI is lost.
The key performance indicators, when properly developed, should provide all staff with clear goals and objectives, combined with an understanding of how they relate to the overall success of the organization. Published regularly consulted internally and as a reference tool, they will quickly create a mobilization towards the same goals.
How to identify busniess data subsets containing the most strategic information to improve your busniess performance?
First we must ask the following questions:
What is the purpose of the current strategy and the new strategy?
By which translates a success?
What measures should be used to evaluate success?
The fact to focus on key performance indicators could it have unintended consequences?
Key Performance Indicators are measures that represented by graphs and quotas progress and weaknesses of your company. It is therefore important to choose indicators that will correct this situation and plan for the future.
What are the good and bad key indicators:
The bad measures are generally vague and unclear, good requires that all factors likely to affect the result are taken into account. Eg sales only measure of increased sales is not specific enough.
25 Examples of KPIs in sales and marketing:
(CLV) Customer lifetime value
Market share by segment
Results vs competition
Sales by channel
Repeat purchase in%
Average value of sales,
Sales productivity
Productivity advertising channel
Opportunity cost (lead)
Cost per lead converted
Submission Success Rate
Sales by product in%
Average discount by product, product line
Average length of service calls
Average wait time for service calls
Information requests response time,
Customer satisfaction per cycle, per season, per product by product
Turnover of customers,
% Of outsourcing services
(ROI) return on customer investment
Rates or cost of churn, complaints, warranty claims validation
Ratio of seasonality
Customer allocation, broken down by product, by region, representative, etc.
% Of bidding success
Internal satisfaction levels of service ... and many others.
The definition of the key indicators sure you get the participation of all concerned.
Defining appropriate objectives and measures should be the result of a group effort involving all employees in your company. Gavin Boyd, who heads the section from Johannesburg Balanced Scorecard Collaborative African Unit of the company Palladium Company, says that measuring busniess performance often means changing employee behavior, a rather popular action.
"Employees do not always react positively when they realize that their performance is quantified," says Boyd, whose organization has helped nearly 2,500 companies implement busniess information systems.
The steps of:
Organization of workshops with members of the Executive Committee and senior managers of the different busniess units can help to facilitate adherence to KPIs.
Organize workshops in which managers can discuss with their employees to use KPIs to assess their service and the purpose of this assessment.
Managers should consider matching granted rewards and penalties to employees for their performance assessed against KPIs. "This reinforces the importance of key performance indicators,"
A purpose, a goal, or target?
The goals and objectives provide a general orientation towards sustainable development and improving busniess performance. Goals are often intermediate results to be achieved in the time and part of the plan. The objectives represent managerial commitment to achieve specific results in a given time.
The targets are realistic by against statements, measurable and time steps that are required to achieve the objectives. Here are detailed more fully what specific targets in terms of customer or product we seek.
You plan your project, you prepare what could be the next year, and one of your employees ask you:
What is the plan for ??
As a leader, you have a good idea of what will be the plan:
<An increase in sales of 5% and tight management of costs>
But have you mark-target with your representatives? Is this realistic? Can they achieve them, overcome them? Have you communicated these expectations? Can you easily measure the achievement of results?
If this exercise is tedious for you, your employees, and it is not yet clear, use your Grabb - Results Configurator Required (TM). This utility allows you to set your goals and your target in terms of customers or sales territories. You can also set product categories with growth targets, all broken down monthly or weekly.
You can do this targeting exercise in the morning, then provide concerned persons via web for corrections and approvals.
Once the plan is approved, it will be synchronized to your Grabb for close monitoring by web, with updated results every hour, every day or every week! A simple, economical, focused on results. You'll never look the same way!
How to identify busniess data subsets containing the most strategic information to improve your busniess performance?
First we must ask the following questions:
What is the purpose of the current strategy and the new strategy?
By which translates a success?
What measures should be used to evaluate success?
The fact to focus on key performance indicators could it have unintended consequences?
Key Performance Indicators are measures that represented by graphs and quotas progress and weaknesses of your company. It is therefore important to choose indicators that will correct this situation and plan for the future.
What are the good and bad key indicators:
The bad measures are generally vague and unclear, good requires that all factors likely to affect the result are taken into account. Eg sales only measure of increased sales is not specific enough.
25 Examples of KPIs in sales and marketing:
(CLV) Customer lifetime value
Market share by segment
Results vs competition
Sales by channel
Repeat purchase in%
Average value of sales,
Sales productivity
Productivity advertising channel
Opportunity cost (lead)
Cost per lead converted
Submission Success Rate
Sales by product in%
Average discount by product, product line
Average length of service calls
Average wait time for service calls
Information requests response time,
Customer satisfaction per cycle, per season, per product by product
Turnover of customers,
% Of outsourcing services
(ROI) return on customer investment
Rates or cost of churn, complaints, warranty claims validation
Ratio of seasonality
Customer allocation, broken down by product, by region, representative, etc.
% Of bidding success
Internal satisfaction levels of service ... and many others.
The definition of the key indicators sure you get the participation of all concerned.
Defining appropriate objectives and measures should be the result of a group effort involving all employees in your company. Gavin Boyd, who heads the section from Johannesburg Balanced Scorecard Collaborative African Unit of the company Palladium Company, says that measuring busniess performance often means changing employee behavior, a rather popular action.
"Employees do not always react positively when they realize that their performance is quantified," says Boyd, whose organization has helped nearly 2,500 companies implement busniess information systems.
The steps of:
Organization of workshops with members of the Executive Committee and senior managers of the different busniess units can help to facilitate adherence to KPIs.
Organize workshops in which managers can discuss with their employees to use KPIs to assess their service and the purpose of this assessment.
Managers should consider matching granted rewards and penalties to employees for their performance assessed against KPIs. "This reinforces the importance of key performance indicators,"
A purpose, a goal, or target?
The goals and objectives provide a general orientation towards sustainable development and improving busniess performance. Goals are often intermediate results to be achieved in the time and part of the plan. The objectives represent managerial commitment to achieve specific results in a given time.
The targets are realistic by against statements, measurable and time steps that are required to achieve the objectives. Here are detailed more fully what specific targets in terms of customer or product we seek.
You plan your project, you prepare what could be the next year, and one of your employees ask you:
What is the plan for ??
As a leader, you have a good idea of what will be the plan:
<An increase in sales of 5% and tight management of costs>
But have you mark-target with your representatives? Is this realistic? Can they achieve them, overcome them? Have you communicated these expectations? Can you easily measure the achievement of results?
If this exercise is tedious for you, your employees, and it is not yet clear, use your Grabb - Results Configurator Required (TM). This utility allows you to set your goals and your target in terms of customers or sales territories. You can also set product categories with growth targets, all broken down monthly or weekly.
You can do this targeting exercise in the morning, then provide concerned persons via web for corrections and approvals.
Once the plan is approved, it will be synchronized to your Grabb for close monitoring by web, with updated results every hour, every day or every week! A simple, economical, focused on results. You'll never look the same way!
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