As discussed before, Key Performance Indicators or KPIs are measurable activities that drive our financial performance. 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 continue to 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.
- Food cost
- Employee turnover
- Average check (average dollar amount per diner – a good measure of “upselling”)
- Sale per staff hour
- Hourly payroll as percentage of sales
- Kitchen audit score
- Average comment card score
Technology Recycling Company:
- Recycle, remarket, and service revenue
- Recycle pounds
- Recycle pounds per man-hour
- Number of assets processed
- Number of assets processed per man-hour
- Days to process recycling
- Remarket inventory dollars
KPI Tip #3: “In order to manage financial performance proactively, it is important to focus on leading, activity-based measures (KPIs).”
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.