25 KPIs Every Manager Needs To Know


The Presentation inside:

Slide 0


Slide 1

Key performance indicators (KPIs) should be the vital navigation instruments used by managers to understand whether their business is on a successful voyage or whether it is veering off the prosperous path. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 2

The problem is that most managers are struggling to understand and identify the vital few management metrics and instead collect and report a vast amount of everything that is easy to measure. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 3

Based on many years of helping companies across the world select and use KPIs, I have picked my top 25. Published in my latest Financial Times book: 25 Need-to-Know Key Performance Indicators © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 4

I have picked the ones that should be relevant to most companies. But remember, these are KPIs you need to know, not use! Only use the ones that are relevant to your business strategy and make sure not to miss out the industry specific ones for you (you won’t find those in any generic list). © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 5

I have organized my top 25 KPIs into the following four business areas: Measuring and understanding your customers Measuring and understanding your financial performance Measuring and understanding your internal processes Measuring and understanding your employees © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 6

Part 1 Measuring and Understanding Your Customers © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 7

1. Net promoter score (NPS)  -How likely is it that a customer will recommend your business to a friend? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 8

2. Customer profitability score - How much profit do individual customers bring your business, after deducting the costs of attracting and keeping them happy with advertising, customer services etc? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 9

3. Customer retention rate  -How many of your customers are going to come back for more? And how loyal are they to your brand, organization or service?


Slide 10

4. Conversion rate - How well do you translate enquiries, sales calls and web page views into paying customers?


Slide 11

5. Relative market share -  How big your slice of the pie is, compared to your competitors in the same market. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 12

Part 2 Measuring and understanding your financial performance © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 13

6. Revenue growth rate -  The rate at which you are increasing your company’s income. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 14

7. Net profit – Income minus expenses – the bottom line, but certainly not the only metric you need to worry about! © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 15

8. Net profit margin -  The percentage of your revenue which is net profit. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 16

9. Gross profit margin -  The percentage of your revenue which is gross profit (the profit generated for each dollar of sales). © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 17

10. Operating profit margin - Operating income divided by revenue – another measure of a company’s profitability. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 18

11. Return on investment (ROI)  The revenue generated by investing money into an aspect of a company’s operations, in relation the cost of that investment. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 19

12. Cash conversion cycle (CCC) - How long does it take for money invested in the business (for stock etc) to come back to the company in the form of increased revenue. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 20

Part 3 Measuring and understanding your internal processes © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 21

13. Capacity utilisation rate (CUR) -  Are you meeting your potential in terms of amount of work you can carry out, with the resources you have available? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 22

14. Project schedule variance (PSV) -  Are your projects reaching completion on time? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 23

15. Project cost variance (PCV) -  Are your projects coming in without going over budget? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 24

16. Earned value (EV) metric - Value generated by your company’s ongoing projects. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 25

17. Order fulfilment cycle time (OFCT) -  The time that it takes from a customer placing an order, to the product or service being delivered. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 26

18. Delivery in full, on time (DIFOT) rate -  Customer orders filled in full, and on time, compared to total number of customer orders. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 27

19. Quality index -  Is the quality of your goods or services as high as your customers are expecting? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 28

20. Process downtime level - How much time is wasted due to downtime, technical breakdown or staff sickness. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 29

Part 4 Measuring and understanding your employees  © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 30

21. Staff advocacy score – How likely are your staff to recommend you as a company to work for? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 31

22. Employee engagement level -  How does your employee’s behaviour contribute to the business’s overall goals? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 32

23. Absenteeism Bradford factor -  How much is unauthorized staff absence costing your business? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 33

24. Human capital value added (HCVA) -  The financial value added to the business by individual members of staff. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 34

25. 360-degree feedback score How staff rate each other – as well as themselves. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 35

Find out more and order the book here: 25 Need-To-Know Key Performance Indicators © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 36

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 37

© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 38

Order Options: Amazon US Amazon UK Barnes & Noble Pearson © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


Slide 39

About This overview was put together by Bernard Marr, Founder and CEO of the Advanced Performance Institute. Bernard Mar is a bestselling business author, keynote speaker, strategic performance consultant, and analytics, KPI & Big Data guru. He helps companies with their KPIs and trains teams to better develop and use KPIs. Read Bernard’s blogs: LinkedIn Influencer Blog Connect with Bernard on: LinkedIn Twitter Advanced Performance Institute © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.


×

HTML:





Ссылка: