4.1.3 Key performance indicators

Key Performance Indicators

Key Performance Indicators

A series of criteria used to measure certain aspects of a business’s performance

10 KPIs

1. Percentage of market share

2. Net profit figures

3. Rate of productivity growth

4. Number of sales

5. Rate of staff absenteeism

6. Level of staff turnover

7. Level of wastage

8. Number of customer complaints

9. Number of website hits

10. Number of workplace accidents

Percentage of market share (definition & relevant areas)

Definition:

The total number of sales one business has when compared to its competitors

Relevant areas:

Sales & Marketing - communicating correct message to customers

Operations - indicates if quality is meeting expectations of customers

Positive for business?

Increase is positive

Net Profit figures (definition & relevant areas)

Definition:

The monetary amount that remains when expenses have been deducted from the revenue earned by a business

Relevant areas:

All areas. Financial performance

HR - people in the right roles

Operations - high quality affordable output whilst reducing business expenditures

Positive for business?

Increase is positive

Rate of Productivity Growth (definition & relevant areas)

Definition:

The ability of a business to reduce the number of inputs required to produce the same number of outputs from one year to the next

Relevant areas:

Operations - inputs into outputs with greater efficiency

HR - ensuring employees are well trained

Positive for business?

Increase is positive

Number of Sales (definition & relevant areas)

Definition:

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

Relevant areas:

HR - ensuring employees are able to meets the

Positive for business?

Increase is positive

Definition:

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Positive for business?

Definition:

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Positive for business?

Definition:

Relevant areas:

Positive for business?

Definition:

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Positive for business?

Definition:

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Positive for business?

Definition:

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Positive for business?