Key Performance Indicators (KPI) The 75 measures every manager needs to know

by Marr, Bernard

• ISBN13: 9780273750116
• ISBN10: 0273750119
• Edition: 1st
• Format: Paperback
• Copyright: 2012-02-16
• Publisher: FT Press

Summary

Short, practical overviews of the most useful Key Performance Indicators (KPIs) for business in an easy-to-use format. Key performance indicators (KPIs) are the vital navigation instruments used by every organisation to help them understand whether they are on a successful voyage or whether they are veering off the prosperous path. This book will make life easier for busy managers by identifying and describing the most powerful financial and non-financial KPIs. It defines them, explains how and when they should be used and provides a rich library of KPIs that have been proven to significantly improve performance. It presents case examples to illustrate the selection and use of the KPIs and provides tools such as KPI selection templates and Key Performance Questions to help readers apply the most appropriate KPIs effectively in their business. For ease of use, the KPIs are categorised according to the type of thing they measure. For each KPI, the book: Gives a detailed definition Gxplains why it is one of the top 100 KPIs Shows how to calculate the KPI Outlines the best forms of data collection to ensure readers get robust and reliable

Author Biography

Bernard Marr is a leading global authority and best-selling author on organisational performance and business success. He regularly advises leading companies, organisations and governments across the globe, making him an acclaimed and award-winning keynote speaker, researcher, consultant and teacher. He is acknowledged by the CEO Journal as one of today’s leading business brains. Bernard  has written a number of seminal books and over 200 high profile reports and articles on managing organisational performance.

Table of Contents

Contents

 

Introduction                           

PART ONE    Financial perspective

 

1          Net profit       

           

2          Net profit margin      

                      

3          Gross profit margin   

             

4          Operating profit margin        

             

5          EBITDA        

           

 6          Revenue growth rate

             

7          Total shareholder return (TSR)       

             

8          Economic value added (EVA)           

             

9          Return on investment (ROI)

             

10        Return on capital employed (ROCE)           

          

11        Return on assets (ROA)       

             

12        Return on equity (ROE)       

            

13        Debt-to-equity (D/E) ratio    

             

14        Cash conversion cycle (CCC)          

             

15        Working capital ratio

             

16        Operating expense ratio (OER)       

          

17        CAPEX to sales ratio

             

18        Price/earnings ratio (P/E ratio)         

             

PART TWO   Customer perspective           

 

19        Net promoter score (NPS)    

             

20        Customer retention rate       

         

21        Customer satisfaction index 

             

22        Customer profitability score 

          

23        Customer lifetime value       

             

24        Customer turnover rate        

             

25        Customer engagement          

             

26        Customer complaints

             

PART THREE           Marketing and sales perspective    

 

27        Market growth rate  

             

28        Relative market share          

             

29        Brand equity  

             

30        Cost per lead 

             

31        Conversion rate        

             

32        Search engine rankings (by keyword) and click-through rate        

             

33        Page views and bounce rates           

             

34        Customer online engagement level  

             

35        Online share of voice (OSOV)         

            

36        Social networking footprint  

             

37        Klout score    

             

PART FOUR  Operational processes and supply chain perspective         

 

38        Six Sigma level          

             

39        Capacity utilisation rate (CUR)       

             

40        Process waste level   

             

41        Order fulfilment cycle time (OFCT) 

             

42        Delivery in full, on time (DIFOT) rate         

             

43        Inventory shrinkage rate (ISR)       

             

44        Project schedule variance (PSV)      

           

45        Project cost variance (PCV) 

             

46        Earned value (EV) metric     

             

47        Innovation pipeline strength (IPS)   

             

48        Return on innovation investment (ROI2)     

             

49        Time to market         

             

50        First pass yield (FPY)           

             

51        Rework level 

             

52        Quality index 

             

53        Overall equipment effectiveness (OEE)      

             

54        Process or machine downtime level 

       

55        First contact resolution (FCR)         

             

PART FIVE    Employee perspective          

 

56        Human capital value added (HCVA)           

            

57        Revenue per employee (RPE)         

             

58        Employee satisfaction index 

             

59        Employee engagement level

             

60        Staff advocacy score 

             

61        Employee churn rate 

             

62        Average employee tenure    

             

63        Absenteeism Bradford factor           

     

64        360-degree feedback score  

             

65        Salary competitiveness ratio (SCR)

             

66        Time to hire   

             

67        Training return on investment          

             

PART SIX      Corporate social responsibility perspective

 

68        Carbon footprint        

             

69        Water footprint         

             

70        Energy consumption 

             

71        Savings levels due to conservation and improvement efforts        

             

72        Supply chain miles    

             

73        Waste reduction rate 

             

74        Waste recycling rate 

             

75        Product recycling rate