Selection of performance indicators for an enterprise
Posted: Sun Dec 22, 2024 5:45 am
To analyze each given goal, a specific metric must be calculated. When choosing an indicator, it is taken into account that it must be:
measurable (in quantitative or price terms) or there must be a way to qualitatively assess it;
time-dependent - you can trace its japan phone number change over time (how it changed over several periods);
concrete and achievable - its calculation gives clear results.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153114
There must also be accurate data to calculate the indicator.
By time, KPIs are:
lagging ones - with their help they evaluate the existing results, analyze the work over the past period;
operational - they exist in the present time and provide the opportunity to make changes to the business strategy and carry out operational management.
The table contains examples of the main indicators of the effectiveness of the enterprise's commercial activities.
Type of activity Indicators
Manufacturing of goods
Criteria for the use of resources: their price and degree of application (turnover ratios of funds, fixed assets of the company, accounts receivable, as well as the capacity and return of funds).
Productivity indicators - indicate the intensity of capacity utilization on production lines.
Parameters of production output, assets.
Indicators representing the results of production work.
Implementation
These indicators primarily reflect the results of the work of managers whose work is related to sales: metrics of profitability, cost effectiveness, revenue, and sales volume.
Customer indicators - indicate the growth of consumers and their quality properties (increase in traffic of new customers, regular customers, working with negative reviews and reducing them to a minimum, an increase in the number of positive comments).
Financial indicators (growth in revenue and number of orders, productivity of individual employees).
Human Resources Management
Quantitative (production rate, working on holidays and weekends, overtime, working beyond the established hours, etc.).
Qualitative (reduction of defects, positive feedback from customers and their attitude towards the work of employees, no delays, meeting deadlines, etc.).
Employee motivation, rewarding the best employees, encouraging staff, and so on.
If you have decided on the performance indicators of the financial and economic activities of the enterprise for your specific purposes, now you should clarify whether they meet your needs. To do this, you need to answer the questions:
What result do you want to get and what goals do you want to achieve?
Do you have all the source data you need to calculate and analyze your key performance indicators?
What can be done to improve the results of determining values?
Who is this information intended for?
It can be difficult to correctly determine the type of KPI, the main thing is to quickly and efficiently collect data to calculate the indicators, because if the information does not correspond to reality or is not relevant, then you will not see any benefit from calculating the KPI.
measurable (in quantitative or price terms) or there must be a way to qualitatively assess it;
time-dependent - you can trace its japan phone number change over time (how it changed over several periods);
concrete and achievable - its calculation gives clear results.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153114
There must also be accurate data to calculate the indicator.
By time, KPIs are:
lagging ones - with their help they evaluate the existing results, analyze the work over the past period;
operational - they exist in the present time and provide the opportunity to make changes to the business strategy and carry out operational management.
The table contains examples of the main indicators of the effectiveness of the enterprise's commercial activities.
Type of activity Indicators
Manufacturing of goods
Criteria for the use of resources: their price and degree of application (turnover ratios of funds, fixed assets of the company, accounts receivable, as well as the capacity and return of funds).
Productivity indicators - indicate the intensity of capacity utilization on production lines.
Parameters of production output, assets.
Indicators representing the results of production work.
Implementation
These indicators primarily reflect the results of the work of managers whose work is related to sales: metrics of profitability, cost effectiveness, revenue, and sales volume.
Customer indicators - indicate the growth of consumers and their quality properties (increase in traffic of new customers, regular customers, working with negative reviews and reducing them to a minimum, an increase in the number of positive comments).
Financial indicators (growth in revenue and number of orders, productivity of individual employees).
Human Resources Management
Quantitative (production rate, working on holidays and weekends, overtime, working beyond the established hours, etc.).
Qualitative (reduction of defects, positive feedback from customers and their attitude towards the work of employees, no delays, meeting deadlines, etc.).
Employee motivation, rewarding the best employees, encouraging staff, and so on.
If you have decided on the performance indicators of the financial and economic activities of the enterprise for your specific purposes, now you should clarify whether they meet your needs. To do this, you need to answer the questions:
What result do you want to get and what goals do you want to achieve?
Do you have all the source data you need to calculate and analyze your key performance indicators?
What can be done to improve the results of determining values?
Who is this information intended for?
It can be difficult to correctly determine the type of KPI, the main thing is to quickly and efficiently collect data to calculate the indicators, because if the information does not correspond to reality or is not relevant, then you will not see any benefit from calculating the KPI.