1 / 23

Key Performance Indicators (KPI)

Key Performance Indicators (KPI). By: Monica Moawad. What are Key Performance Indicators?. Key metrics Different types of measures Determined by a business ’ s goals and objectives Aid decision-making. Why KPIs are Important?.

Télécharger la présentation

Key Performance Indicators (KPI)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Key Performance Indicators (KPI) By: Monica Moawad

  2. What are Key Performance Indicators? • Key metrics • Different types of measures • Determined by a business’s goals and objectives • Aid decision-making

  3. Why KPIs are Important? • Provide information on the performance of key business activities • Track progress of key business activities

  4. Who Uses KPIs? • Usually used by managers of different departments within a business • Employees

  5. Types of KPIs • Leading indicators – indicators that measure a business’s possible future events • E.g. Customer satisfaction ratings • Lagging indicators – indicators that measure a business’s past events • E.g. Profitability • Qualitative indicators – indicators that provide observations of specific things • E.g. Customer loyalty • Quantitative indicators – indicators that provide numerical results on specific activities • E.g. % of new employees that stay in a business for a specific time

  6. Types of KPIs • Leading indicators – indicators that measure a business’s possible future events • E.g. Customer satisfaction ratings • Lagging indicators – indicators that measure a business’s past events • E.g. Profitability • Qualitative indicators – indicators that provide observations of specific things • E.g. Customer loyalty • Quantitative indicators – indicators that provide numbers on specific activities • E.g. % of new employees that stay in a business for a specific time

  7. Steps Managers take when Implementing KPIs • Identify core business activities • Identify key measurements for activities • Develop key measurements for activities • Implement key measurements to analyze activities

  8. Steps Managers take when Implementing KPIs • Identify core business activities • Identify key measurements for activities • Develop key measurements for activities • Implement key measurements to analyze activities

  9. Steps Managers take when Implementing KPIs • Identify core business activities • Identify key measurements for activities • Develop key measurements for activities • Implement key measurements to analyze activities

  10. Steps Managers take when Implementing KPIs • Identify core business activities • Identify key measurements for activities • Develop key measurements for activities • Implement key measurements to analyze activities

  11. Steps Managers take when Implementing KPIs • Identify core business activities • Identify key measurements for activities • Develop key measurements for activities • Implement key measurements to analyze activities

  12. Examples of KPIs • Productivity • Dollar revenue from new customers • Quality • Percent returns, customer complaints • Profitability • Profit contribution by customer segment

  13. Examples KPIs (Cont’d) • Recruitment • Average time to recruit • Employee development • Average training costs per employee • Environmental • Amount of energy saved due to conservation and efficiency improvements

  14. Examples of eCommerce KPIs • % online positive comments • i.e. A business that wants to improve its online reputation system • # of followers on social media platforms • E.g. Facebook • % customer transactions via Internet • i.e. A business that wants to eliminate physical stores • % subscription renewal • E.g. Netflix

  15. Approaches to Developing KPIs • Balanced scorecard • Create a list of goals

  16. How are KPIs Organized and Reported? • KPI dashboard • Excel

  17. KPI Challenges • Identifying the right KPIs that help the business achieve its goals and objectives • Gathering the right data for the identified KPIs

  18. KPI Advantages • Gives top managers information on the progress of a business over time • Gives managers of different departments information on the progress of their departments over time • Reliable basis for action

  19. KPI Disadvantages • Might be misleading if it is not the right KPI for the task • Data overload

  20. Interesting Quotes • “Not everything that can be counted counts, and not everything that counts can be counted.”-Albert Einstein • "You get what you measure. Measure the wrong thing and you get the wrong behaviors.”-John H. Lingle

  21. Time’s Up! • About your speaker: • Name: Monica Moawad • Email: monica.moawad@utoronto.ca Thank You for Listening

  22. References • Images: • http://www.kaizen-analytics.com/2008/11/defining-actionable-business-driven.html • http://www.inetsoft.com/images/screenshots/exec_sales_dashboard.png • http://www.cartoonstock.com/lowres/dcr0293l.jpg • http://www.m-g-e.org/wp-content/uploads/2011/04/Support-not-Reports-A-new-way-to-think-about-Management-Information..jpg • http://www.epmreview.com/Experts-Zone/Cartoon-Corner/KPI-Door.html • http://www.sqaki.com/7/BalancedScorecardKpi/screenshot.gif

  23. References (Cont’d) • Information: • http://www.davechaffey.com/Internet-Marketing/C4-Strategy/leading-lagging-performance-indicators-ecommerce/ • http://chiefmarketer.com/crm_loop/performance-indicators-062806/ • http://www.ap-institute.com/Key%20Performance%20Indicators.html • http://smallbusiness.chron.com/planning-kpi-4607.html • http://www.simplybusiness.co.uk/knowledge/articles/2010/07/2010-07-26-key-performance-indicators-measuring-the-success-of-your-business/ • http://www.clickz.com/clickz/column/2074940/quotes-analytics-success • http://corpslakes.usace.army.mil/employees/perform/quotes.cfm • http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx • http://www.information-management.com/issues/20041001/1011028-1.html • http://rapidbi.com/created/samplekeyperformanceindicatorskpi/ • http://www.smartkpis.com/kpi/functional-areas/online-presence-ecommerce/

More Related