We are continuing to share a few tips to keep in mind regarding Key Performance Indicators (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.
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.
KPIs identified for a Software Company:
- Sales by product group
- Percentage of sales from top 10 (customer diversity measure)
- Install margin
- Data conversion turn
- Call response time
- Renewal revenue per employee
- Number of demos
- Support labor dollars per incident
KPIs identified for a Grower (plants and flowers):
- Labor dollars 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 #4: “Do not go to the “key indicator buffet.” Trying to measure too many things leads to an overwhelmed staff, poor measurement, and, ultimately, the abandonment of the process.”
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.