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What is the Key Performance Indicator (KPI)?

A Key Performance Indicator (KPI) is a Metric that is primarily aligned to a 'Key' business objective. It tracks how effectively an organisation is performing against that objective, target or goal. Companies use KPIs to bring about performance improvements that drive growth.

Objectives of KPI Report:-

Monitor Company Health

Measure Progress

Analyse Patterns Over Time

Tackle Problems or Opportunities

Make Adjustments & Stay on Track

Process of Establishing your KPI report

Define company vision and goals
Break down company goals into Key Performance Questions
Select KPIs answering Key Performance Questions
For each KPI, set the target for evaluating each KPI performance
Select date sources for KPIs
Produce KPI report measuring actual performance Vs targeted goals
Identify the reason for variance between the actual performance and targeted goals

KPI reports which are crucial in understanding your business performance

Financial Performance Review Report:

Reportswhich shows the following financial metrics-

Gross Profit Margin Percentage
Operating Profit Margin Percentage
Operating Expenses Ratios
Net Profit Margin Percentage

Financial Business Operational Efficiency Report:

Reportswhich shows thefollowing operational efficiency metrics-

Inventory Holding period
Debtors Collection Period
Vendors Payable Period
Cash Conversion Cycle
Working Capital Turnover

Sales Performance Review Report:

Reportswhich shows thefollowing sales metrics-

Sales Growth
Sales Target
Average Revenue Per Unit
Customer Acquisition cost
Customer Lifetime Value

Sales conversion review Report:

Reports which shows the following sales metrics-

Lead-to-Opportunity Ratio
Opportunity-to-Win Ratio
Lead Conversion Rate

Benefits of KPI Report:

Measures Budgeted Sales

It helps you in providing the analysis on budgeted sales over the achieved sales during a specified period that eventually helps in analysing all the discrepancies.

Consumer Product Satisfaction

It helps to gain information onwhether the ultimate consumer is satisfied with the product or not, which helps inachieving better retention ratio.

Human Resource Satisfaction

It helps to monitor the satisfaction level of workers which helps to retain the worker for an extended period for the smooth working of the organisation.

Reduction of cost

It helps in small business accounting to reduce the cost by understanding which expenditure is essential to the working of the business and which are not.

Decision Making

KPIs provides you with facts and figures of your business performance which allows you to take quicker yet informed decisions for your business.

Improving Operational Quality

KPIs help companies to identify their respective strengths and weaknesses and how those traits line up with their objectives for enhance overall efficiency.

Some of the industries where we are consulting on developing KPIs reports:

We at Whiz Consulting help in developing industry-specific KPIs for Australian Businesses. Every industry has its unique structure and different kinds of issues, we understand this and provide businesses in-depth understanding of their business operations and their comparison to the company goals. This leads them to identify their business strengths and weaknesses and helping them to bring more synergies and efficiencies to business processes.

Key Performance Indicators & The Reporting Tools for Success