8/13/2023 0 Comments Index of performanceThe number of overtime hours worked may be a leading KPI should the company begin to notice poorer manufacturing quality. Consider two different KPIs: the number of overtime hours worked and the profit margin for a flagship product. Leading/lagging KPIs describe the nature of the data being analyzed and whether it is signaling something to come or something that has already occurred.These types of KPIs may be strategic or operational but provide the greatest value to one specific set of users. For example, the finance department may keep track of how many new vendors they register within their accounting information system each month, while the marketing department measures how many clicks each email distribution received. Functional KPIs hone in on specific departments or functions within a company.For example, if an executive notices that company-wide revenue has decreased, they may investigate which product lines are struggling. These operational KPIs are often used by managing staff and to analyze questions that are derived from analyzing strategic KPIs. These KPIs measure how a company is doing month over month (or even day over day) by analyzing different processes, segments, or geographical locations. Operational KPIs are focused on a much tighter time frame.Executives are most likely to use strategic KPIs, and examples of strategic KPIs include return on investment, profit margin, and total company revenue. These types of KPIs may indicate how a company is doing, although it doesn’t provide much information beyond a very high-level snapshot. Strategic KPIs are usually the most high-level.
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