Articles
What Sank The Titanic? The top of the iceberg or the bottom?
by Ronald Wolf Business Consultant
When you look at this picture above you can see that the areas below the waterline, drive the top level goals. The clear message that we send to Business Owners is that monitoring sales, profit and cash at the end of each month are the starting point of good business management…but you need to expand your monitoring to include non-financial KPI’s. Two simple examples…
The number of leads or web visitors is an indicator that future sales are likely to occur.
0r if we ensure that staff have weekly telephone script training sessions then this ensures that sales conversion rates remain high and the business continues to meet sales targets. In this case, a KPI could be a monthly target of 4 (ie 4 sessions)
As a Business Advisor we strongly recommend that you encourage your clients to expand into a greater level of KPI’s. Below are some more examples of KPI’s.
The Institute of Advisors is running a course on this on May 24th in Sydney as well as a Certified Business Advisor credential. Contact Peter Hickey hick@maus.com.au for more details.
Sample KPI’s
CUSTOMER
Number of customers
Market share
Average value sale
Customers lost (no. or %)
Average time spent on customer rel’s
Sales closed / sales contacts
Satisfied customer Index
Number customer service calls
Customer loyalty Index
Number of complaints
Refunds
Marketing expenses
Average duration customer related.
Number customer visits
PEOPLE
Employee suggestions for improvements
Employee suggestions implemented
Patents pending
Satisfied employee Index [research]
Ratio new / established products
Employee buy-in ($ or %)
Marketing expense/customer
Investment in the development of new markets
FINANCIAL
Revenue
Profit
Cash
Total assets
Total assets/employee
Revenues / total assets
Revenues / employee
Profits / total assets
Return on capital employed
Profit margin
Return on investment
Total costs
Market value
SYSTEMS & PROCESSES
A number of calls by accounts receivable, sales or customer service.
Administrative expense / totals revenue
On-time delivery
Average lead time
Lead time, product development
“ “ , from order to delivery
“ “ , suppliers
“ “ , production
Average time for decision-making
Inventory turnover time
Improvement in productivity
PEOPLE
Employee suggestions for improvements
Employee suggestions implemented
Patents pending
Satisfied employee Index [research]
Ratio new / established products
Employee buy-in ($ or %)
Marketing expense/customer
Investment in the development of new markets
INNOVATION
Revenue from new products
Expense on R & D
R & D expense / total expenditure
IT development expense / IT tot. expense
Hours, R & D (no. or %)
Investment in training
Investment in research (e.g., customer)
ABOUT THE AUTOR:
Peter Hickey is the founder and CEO of MAUS Business Systems and the president of the Institute of Business Advisors.
He is a bestselling author and creator of a wide range of business tools that have been used in over 60,000 businesses around the world. One of those tools is MasterPlan Lean, a Business Planning software tool.
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About Ronald Wolf 
Business Consultant
13 connections, 0 recommendations, 38 honor points.Joined APSense since, January 10th, 2018, From Perth, Australia.
Created on May 16th 2019 08:14. Viewed 317 times.
