Manage and measure what really matters…business performance

Key Performance Indicators (KPIs) assist businesses to define and measure progress towards management agreed goals. Meaningful performance measurement is crucial to providing useful information to stakeholders, which include boards, investors, potential purchasers and lending institutions.

William Buck has vast experience in assisting businesses measure their performance.

Following are some common KPIs for your business to consider…

Financial
Liquidity Inventory turnover
Gross profit margin Earnings per share
Net profit margin Accounts receivable days
ROCE – Return in Capital Employed Accounts payable days
ROTA – Return on Total Assets Debt to Equity

Financial KPIs (lagging indicators) are important, but it is the KPIs below (leading indicators)

that really drive business growth

Customers/business development
Customer service

  • Acquisition
  • Retention
  • Loss
  • Satisfaction
  • Profitability
Number of referrals and source
Unsolicited enquiry rate (number of new customers making cold enquiries)
Number of media references
Human resources/growth
Labour measurement

  • Average length of service
  • Employee satisfaction
  • Staff turnover
  • Reasons for departure
  • Absenteeism rates
  • Injury rates

 

 

Productive efficiency
Training hours offered/attended
Research systems
Training systems
Investment in research and development
Internal business controls
Inventory ageing Production cost as % total cost
Order lead times Volumes produced vs. volumes budgeted
Number of orders in system Lost time
Defect rates Quality control
Wastage

Identifying profit drivers is the most critical aspect of utilising KPIs – contact us us today

to find out how we can assit you with the performance measurement process