KPIS of business performance

Key Performance Indicators

Percentage of market share

Represents the total number of sales one business has compared to its competitors represented as a percentage.

Increase = Positive for a business

Decrease = Negative due to customers purchasing more from competitors

Areas of business performance it relates to

Marketing: Indicates whether marketing strategies are communicating the correct the correct message and connecting to customers

Operations: Indicates that the quality of the product is meeting the expectations of the customers

HR: Indicates that the employees are performing their roles to customer expectations leading to new and repeat purchases

Net profit figure

Monetary amount that remains after expenses have been deducted from the revenue

Increase: Positive for business as they earn more profit

Decrease: Negative as they are losing money

Area of business performance it relates to

Financial Performance: Indicates how successful the business is at generating profit after expenses

Operations: Indicates how efficiently resources are being used to control costs and maximise profit

Rate of productivity growth

 Ability of a business to reduce the number of inputs required to produce the same number of outputs

Increase: Positive for business as more goods or services are being produced efficiently

Decrease: Negative as efficiency is declining

Area of business performance it relates to

Operations: Indicate how efficiently goods and services are being produced

HR: Indicates whether employees are working effectively and contributing to higher output

Number of sales

The amount of goods or services purchased by customers from a business.

Increase: Positive as revenue is likely to increase

Decrease: Negative as fewer customers are purchasing

Area of business performance it relates to

• Marketing: Indicates whether promotional strategies are encouraging customers to buy.

• Operations: Indicates that products are available and meeting customer needs.

• Financial Performance: More sales generally result in higher revenue and profit.

Rate of staff absenteeism

 Number of employees who fail to turn up to work when they scheduled to do so.

Increase: Negative as it can reduce productivity and increase costs

Decrease: Positive as employees are attending work more regularly

Area of business it relates to

• HR: Indicates employee satisfaction, motivation, and wellbeing.

• Operations: High absenteeism may reduce productivity and disrupt business activities.

Level of staff turnover

Number of staff who leave a business and need to be replaced during a specific time period

Increase: Negative as recruitment and training cost rise

Decrease: Positive as employee retention is improving

Area of business performance it relates to

• HR: Indicates employee satisfaction, workplace culture, and retention.

• Operations: High turnover can lead to skill shortages and reduced efficiency.

Level of wastage

 Amount of unwanted or unusable material created by the production process of a business.

Increase: Negative as costs rise and efficiency falls

Decrease: Positive as resources are being used more efficiently

Area of business performance it relates to

• Operations: Indicates how efficiently materials and resources are being used.

• Financial Performance: Lower wastage reduces costs and improves profitability.

Number of customer complaints

 Amount of negative feedback a business receives from its customers.

Increase: Negative as indicates customer dissatisfaction

Decrease: Positive as customers are happier

Area of business performance it relates to

• Marketing: Indicates whether the business is meeting customer expectations.

• Operations: Indicates the quality and reliability of products or services.

• HR: Indicates how effectively employees interact with and serve customers.

Number of website hits

 Amount of visits a business’s web pages receive

Increase: Positive as more potential customers are showing interest

Decrease: Negative as there is less customer engagement

Area of business performance it relates to

• Marketing: Indicates the effectiveness of online advertising, promotions, and brand awareness activities.

• Financial Performance: Increased website traffic can lead to more sales and revenue.

Number of workplace accidents

 Measures the amount of times someone is injured or becomes ill as a result of some aspect of work.

Increase: Negative as indicates poor workplace enviroment

Decrease: Positive as work enviroment safety is improving

Area of business performance it relates to

• HR: Indicates the effectiveness of employee training and workplace safety programs.

• Operations: Indicates whether safe work procedures and equipment are being used effectively.

• Financial Performance: Fewer accidents can reduce costs associated with injuries, compensation, and lost productivity.