A business exists to provide a valuable good or service that customers want or need. The good or service is valuable to both the customer and the business.
Your business should be providing value to not just your owners and customers, but also to your employees and your community.
Financial related metrics, like profit, gross margin, revenue growth are outcomes and not drivers of business performance. You need to develop real time metrics for measuring your non-financial performance in key areas that are true value drivers.
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Customer satisfaction and retention
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Lead generation and customer conversion
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Human resouce development
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Process effeciency
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Leadership effectiveness
Tools we use:
3 to 5 years of financial reports
3 to 5 year of industry information
identified target market and trends
How we use them:
Financial analysis of Key Performance Indicators, such as
$/employee
# employees by period
Employee turnover
$/customer
# customers per period
profit per customer, etc.
We look at trend analysis...
for your company
for your target market
for your industry
for your community
Value you receive:
Understanding your trends versus your industry peers and target market....do you correlate well?
How to use Key Performance Indicators to review the past and forecast the future.
