key performance indicators ( kpis)
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Key Performance Indicators ( KPIs). By: Monica Moawad. What are Key Performance Indicators?. Key metrics Different types of measures Determined by a business ’ s goals and objectives Aid decision-making. Why KPIs are Important?. - PowerPoint PPT PresentationTRANSCRIPT
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Key Performance Indicators (KPIs)
By: Monica Moawad
![Page 2: Key Performance Indicators ( KPIs)](https://reader035.vdocument.in/reader035/viewer/2022062221/56812a52550346895d8d9d86/html5/thumbnails/2.jpg)
What are Key Performance Indicators?
Key metrics
Different types of measures
Determined by a business’s goals and objectives
Aid decision-making
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Why KPIs are Important?
Provide information on the performance of key business activities
Track progress of key business activities
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Who Uses KPIs?
Usually used by managers of different departments within a business
Employees
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Types of KPIs1. Leading indicators – indicators that measure a
business’s possible future events– E.g. Customer satisfaction ratings
2. Lagging indicators – indicators that measure a business’s past events
– E.g. Profitability
3. Qualitative indicators – indicators that provide observations of specific things
– E.g. Customer loyalty
4. Quantitative indicators – indicators that provide numerical results on specific activities
– E.g. % of new employees that stay in a business for a specific time
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Types of KPIs1. Leading indicators – indicators that measure a
business’s possible future events– E.g. Customer satisfaction ratings
2. Lagging indicators – indicators that measure a business’s past events
– E.g. Profitability
3. Qualitative indicators – indicators that provide observations of specific things
– E.g. Customer loyalty
4. Quantitative indicators – indicators that provide numbers on specific activities
– E.g. % of new employees that stay in a business for a specific time
![Page 7: Key Performance Indicators ( KPIs)](https://reader035.vdocument.in/reader035/viewer/2022062221/56812a52550346895d8d9d86/html5/thumbnails/7.jpg)
Steps Managers take when Implementing KPIs
1) Identify core business activities
1) Identify key measurements for activities
1) Develop key measurements for activities
1) Implement key measurements to analyze activities
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Steps Managers take when Implementing KPIs
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Steps Managers take when Implementing KPIs
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Steps Managers take when Implementing KPIs
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Steps Managers take when Implementing KPIs
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Examples of KPIs
Productivity– Dollar revenue from new customers
Quality– Percent returns, customer complaints
Profitability– Profit contribution by customer segment
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Examples KPIs (Cont’d)
Recruitment – Average time to recruit
Employee development– Average training costs per employee
Environmental– Amount of energy saved due to conservation
and efficiency improvements
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Examples of eCommerce KPIs
% online positive comments– i.e. A business that wants to improve its online
reputation system
# of followers on social media platforms– E.g. Facebook
% customer transactions via Internet– i.e. A business that wants to eliminate physical
stores
% subscription renewal– E.g. Netflix
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Approaches to Developing KPIs
Balanced scorecard
Create a list of goals
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How are KPIs Organized and Reported?
KPI dashboard
Excel
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KPI Challenges
Identifying the right KPIs that help the business achieve its goals and objectives
Gathering the right data for the identified KPIs
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KPI Advantages
Gives top managers information on the progress of a business over time
Gives managers of different departments information on the progress of their departments over time
Reliable basis for action
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KPI Disadvantages
Might be misleading if it is not the right KPI for the task
Data overload
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Interesting Quotes
“Not everything that can be counted counts, and not everything that counts can be counted.” - Albert Einstein
"You get what you measure. Measure the wrong thing and you get the wrong behaviors.” - John H. Lingle
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Time’s Up!
OAbout your speaker:OName: Monica MoawadOEmail: [email protected]
Thank You for Listening
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References
• Images:– http://www.kaizen-analytics.com/2008/11/defining-actionable-business-
driven.html
– http://www.inetsoft.com/images/screenshots/exec_sales_dashboard.png
– http://www.cartoonstock.com/lowres/dcr0293l.jpg – http://www.m-g-e.org/wp-content/uploads/2011/04/Support-not-Reports-
A-new-way-to-think-about-Management-Information..jpg– http://www.epmreview.com/Experts-Zone/Cartoon-Corner/KPI-Door.htm
l– http://www.sqaki.com/7/BalancedScorecardKpi/screenshot.gif
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References (Cont’d)
• Information:– http://www.davechaffey.com/Internet-Marketing/C4-Strategy/leading-lagging-performance-indic
ators-ecommerce/– http://chiefmarketer.com/crm_loop/performance-indicators-062806/– http://www.ap-institute.com/Key%20Performance%20Indicators.html– http://smallbusiness.chron.com/planning-kpi-4607.html– http://www.simplybusiness.co.uk/knowledge/articles/2010/07/2010-07-26-key-performance-
indicators-measuring-the-success-of-your-business/– http://www.clickz.com/clickz/column/2074940/quotes-analytics-success– http://corpslakes.usace.army.mil/employees/perform/quotes.cfm– http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/
Default.aspx– http://www.information-management.com/issues/20041001/1011028-1.html– http://rapidbi.com/created/samplekeyperformanceindicatorskpi/– http://www.smartkpis.com/kpi/functional-areas/online-presence-ecommerce/