Key Performance Indicators – Continued

Key Performance Indicators or KPIs are measurable activities that drive our financial performance.

As previously discussed, your leadership team needs to identify the appropriate Leading KPIs (foresight viewing) for you and get your employees focused on them.

Over the next few posts we will share a few tips to keep in mind regarding KPIs and list some of the KPIs identified in various industries over the years by Brad Hams in his book Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit.

Retail Industry:

  • Sales by category
  • Inventory variance
  • Number of cycle counts completed
  • Sales per staff hour (very useful in scheduling as well)
  • Overtime (dollars and/or hours)
  • Customer count
  • Average ticket
  • Clock-in errors

Grower (plants and flowers):

  • Labour dollar per flat produced (a flat is a group of plants)
  • Shipping cost per flat
  • Average number of trays per customer (to measure upselling)
  • Scrap and spoilage

KPI Tip #2:  “Full disclosure of financial information to all employees is not required to practice Ownership Thinking.”

Until next time,

Perry Phillips, President

Ownership Thinking Canada Inc.

Visit www.ownershipthinking.ca to learn more about Ownership Thinking Canada and our online e-learning tool.

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