KPI For Business Performance Analysis: Cell: 01936000036, 01799985299, 01740868520
KPI For Business Performance Analysis: Cell: 01936000036, 01799985299, 01740868520
KPI For Business Performance Analysis: Cell: 01936000036, 01799985299, 01740868520
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 1
Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 2
Learning session on “KPI for Business Performance Analysis”
Indicator
• Means: Measurement factor/ areas
• Time factor: within this month/ this week/
year etc
• Quality / quantity standard: 10/15/ 0%
error/ 1 % error/ 1 crore etc
• Cost
• Profitability
• Sales Volume
• Retention
• Engagement
• Learning
Performance Indicator
• Measurement areas of
Results
• Differ due to different
positions
• NOT Target/ Goal
• Measurement area of Target
/ GOAL Achievement
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Learning session on “KPI for Business Performance Analysis”
Result Area
•Area through which the Result is visible
•Example: Profit, Compliance
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Learning session on “KPI for Business Performance Analysis”
Goal/ Target
• Future oriented
• Based on Prediction
• Sometimes Goal setting
influenced by
Performance Indicator
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Learning session on “KPI for Business Performance Analysis”
KPI: Insights
1 Indicator not target
2 Universal 3 Aligned
4 Relevant
Standard measurement 6
Cascade down to
5
tools individual
7
More focused on
number oriented goal
8 Cost Effective 9 Verifiable
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Learning session on “KPI for Business Performance Analysis”
Clarity Focus
Communication
The World
The World of Understand KPIs KPI Typology KPI Taxonomy
KPI Selection
KPI Alignment
KPI Documentation Working with Data Gathering Data Visualization Course 13
KPIs
KPIs Targets Review
TERMINOLOGY STANDARDS
Objectives KPIs Initiatives
start with start with start with
$ = Value of
% = Percentage of
# Complaints received
% Customer satisfaction
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Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 8
Learning session on “KPI for Business Performance Analysis”
Types of KPI
Strategic
As per
Contribution
Operational
Types of KPI
Leading
As per
Focus Lagging
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Learning session on “KPI for Business Performance Analysis”
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Learning session on “KPI for Business Performance Analysis”
Types of KPI
Output Impact
Outcome
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Learning session on “KPI for Business Performance Analysis”
Types of KPI
As per measurement
Qualitative Quantitative
“Quality KPIs are statistical measures that give an indication of output quality. However, some quality
indicators can also give an indication of process quality.”
ESS Quality Glossary, European Union (2010)
All KPIs are quantitative, but they can measure different aspects of an objective, such as:
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Learning session on “KPI for Business Performance Analysis”
Effectiveness
Efficiency
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Learning session on “KPI for Business Performance Analysis”
Financial
Types of KPI
Learning &
Customer
Growth
Internal Business
Process/
Operational
As per Function [based on Balanced Scorecard]
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Learning session on “KPI for Business Performance Analysis”
BSC Perspectives
Perspective Key Concept Key Focuses
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Learning session on “KPI for Business Performance Analysis”
STRATEGY MAP
The
The World
World of Understand KPIs KPI Typology KPI Taxonomy
KPI Selection
KPI Alignment
KPI Documentation Working with Data Gathering Data Visualization Course 32
KPIs
KPIs Targets Review
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 16
Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 17
Learning session on “KPI for Business Performance Analysis”
Quality Quantity
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Learning session on “KPI for Business Performance Analysis”
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Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 20
Learning session on “KPI for Business Performance Analysis”
Objective KPI
Financial
Increase profitability 1, 10
Maintain financial discipline 5, 12
Customer
Maintain high levels of customer satisfaction 3, 15
Serve new market segments profitability 4, 9,
Internal Processes
Ensure quality services 13, 16
Improve process management capability 11, 18
People, Learning & Growth
Nurture engagement, creativity and innovation 6, 7
Develop workforce skills and competences 2, 8
Ensure talent availability
The World of Understand KPIs KPI Typology KPI Taxonomy
KPI Selection KPI Documentation
14, 17
Working with Data Gathering Data Visualization Course
KPIs KPI Alignment Targets Review
3 WHY?
• Gain insight into how the objective can be measured from different perspectives.
• Enables the selection of the most relevant KPIs for the objective.
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Learning session on “KPI for Business Performance Analysis”
# Time to answer an
# Customer service % Solved inquiries
inquiry % Customer satisfaction
representatives index
Improve customer
satisfaction with
service levels
# Client needs
$ Customer # Meetings with key % Returning customers
identified
engagement budget customer
Concept of Business
Input
= Output
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Learning session on “KPI for Business Performance Analysis”
Conversion/ Transformation
• Efficiency
• Intelligence
• Management
• Effectiveness
• Productivity
• Process Reengineering
• Strategy
Canvas Model
Key activities Customer Customer
Key partners What will your business relationships segments
spend the most time doing?
What types of interactions Who are your paying
What external
Product development? will your customers expect customers?
partnerships should
Sales? Other? to have with you?
you invest in? Do you have any non-
Value paying customers?
• Mentors?
• Lawyers? proposition How large is this group?
• Distributors?
Key resources Channels Do you have multiple
• Suppliers? customer segments?
How will customers find
What will it cost for: out about you?
Manufacturing?
Intellectual property? How will you get products
Human resources? to them?
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Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 24
Learning session on “KPI for Business Performance Analysis”
Production Efficiency
Total Sale/ Total Man Hour
Monthly
Product Value/ Man Hour worked
% of Raw Material Cost to (Total Sale/ Total Raw Material
Quarterly
Sales used)%
Wastage Rate Wastage/ Total Raw Material Monthly
Rejected Unit/ Total Production
Rejection Rate Monthly
or Rejected value/ total sales
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Learning session on “KPI for Business Performance Analysis”
Sales Efficiency
% of Salary to Sales (Total Sale/ Total Salary)% Monthly
Total Branding & Promotional
Monthly
Cost per Lead Cost/ No of new customer
Gross Profit Margin (Revenue-Cost)/Revenue*100 Yearly
% of Credit Sales Credit Sales/Total Sales % Monthly
Average Credit Period per
(No of days * Amount )/1 lac Yearly
Lac
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Learning session on “KPI for Business Performance Analysis”
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Learning session on “KPI for Business Performance Analysis”
Smart reporting
Resource allocation
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Learning session on “KPI for Business Performance Analysis”
Organizational Benefit
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Learning session on “KPI for Business Performance Analysis”
Approaches of KPI
•Result based
•Output
•Outcome
•Impact
•Task Based
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Learning session on “KPI for Business Performance Analysis”
•Organizational Level
•Departmental / Team Level
•Individual Level
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Learning session on “KPI for Business Performance Analysis”
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Learning session on “KPI for Business Performance Analysis”
•Volume of Sales
•% of growth
•No of Customer
•Cost to Sales
•Profitability
•% of return
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Learning session on “KPI for Business Performance Analysis”
Format
KRA KPI Wei Targ Achiev Score (F) Final
(A) (B) ght et ement If the higher the Score
(C) (D) (E) better: (E/D)*100 F*C
If the lower the
better: (D/E)*100
Recrui Lead 15 60 70 86 13
tment time to % day days
hire s
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Learning session on “KPI for Business Performance Analysis”
Compete
Profit
Model of ncy
Success
Management Perform Engagem
System ance ent
Effort
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Learning session on “KPI for Business Performance Analysis”
CEEPP
• Ultimate goal
Profit
• Means Achievement
Performance
• Means initiative or action
Effort and its continuity
• Means attachment both
Engagement
physically and mentally
Competency • Comprised of Knowledge,
Skill and Attitude
Waste areas
Over-production
Producing more than what the
customer needs
Intellect Waiting
Not using employees full Employees waiting for another
intellectual contribution equipment, process or information
Defects Transportation
Reprocessing, or correcting Moving product from one
work place to another
Inventory
Building and storing extra services the
customer has not ordered
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Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 37
Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 38
Learning session on “KPI for Business Performance Analysis”
Calculation of CCC
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Learning session on “KPI for Business Performance Analysis”
Calculation of CCC
• Calculate DSO:
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Learning session on “KPI for Business Performance Analysis”
Operating Cycle
• Operating Cycle = DSO + DIO
• This is how many days it takes for a company to process raw material
and/or inventory and collect cash from the sale.
• Basically the Operating Cycle tells you how many days it takes for
something to go from first being in inventory to receiving the cash
after the sale.
• You want this number to be low meaning that merchandise isn’t
sitting on shelves too long and customers are paying relatively quickly.
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Learning session on “KPI for Business Performance Analysis”
Calculation of CCC
• Calculate DPO:
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Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 43
Learning session on “KPI for Business Performance Analysis”
Facilitated by: Rupak Zaidi, KPI, Business & Management Consultant [[email protected]] 44
Learning session on “KPI for Business Performance Analysis”
Percentage of Percentage of
NPS Promoters Detractors
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Learning session on “KPI for Business Performance Analysis”
Number of defective
products requiring rework
over a specific period
Rework
Levels 100
rate Total number of products
produced over a specific
period
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Learning session on “KPI for Business Performance Analysis”
Contact details
Email: [email protected],
FB: f:/zaidirupak
LinkedIn: [email protected]
Cell:, 01799985299, 01936000036,
01740868520
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