Business Analysis Toolkit

Introduction 

Once a business has examined it mission, recognized all its stake drivers, and organized its objectives, it needs a method to calculate progress toward those intents. Key performance indicators are those dimensions. They are a measurement of performance, which will not only measure the constructive areas of a company but also calculate the destructive areas of an organization in a detailed manner. Also they are quantifiable measures, which are often designed against a time range.  Usually, they are represented in charts and scorecards. Today, we are going to discuss some important examples of KPI in business. Read below: 

KPIs in the Field of Marketing 

The first example of KPIs is their frequent circulation in the field of marketing and advertisement. More often than not, they are advertised by the top rated businessmen. Customer base and customer base growth rate are the most preferred KPIs for marketers. The customer base KPI is typically used to represent to the total number of exclusive clients that a corporation has. On the other hand, customer base growth rate is the rate at which the customer base is getting higher.

KPIs in the Area of Manufacturing

In this field, they are the rate of production, volume of production, performance, quality and so on. Normally the rates are measured per unit time. However, the performance and quality are typically calculated in proportion. The Overall Equipment Effectiveness (OEE) is frequently employed as the standard set of metrics to calculate the activity of an industrialized unit.   

KPIs in the Sales Department

There is no denying that sale department is the backbone for any business organization. If the sales are on top, obviously the return will be high. If the sales are on low level, the return will be lower. Here few metrics are employed for evaluation for instance sales volume, percentage of returns and growth. In other words, it can be said that KPIs for sales are the indicators.

KPIs for Personal Performance of Staff

It mainly includes some important elements such as annual revenue, fluctuations, deviations, growth rate, geographical locations, etc. By employing personal staff performance KPIs, the businesses can evaluate the activities and performance of their workforce in a detailed manner. As a result, it will help them to achieve their organizational goals in a positive manner.

KPIs for Problem Solving

Last of all, KPIs are used as a way of problem solving in many organizations. For example, if a company has failed to increase its sales, KPI will provide the company a detailed guideline for increasing its sales.

Conclusion

It short, we can say that key performance indicators (KPIs) are such a great way to calculate your business productivity in a proactive manner. All you have to do is to learn this tool with great dedication and motivation so as to achieve your organizational goals in an efficient manner.