KPI CALCULATION

23,280 views

Published on

How to measure performance in what we call the KPI or key performance indicators

Published in: Business, Technology

KPI CALCULATION

  1. 1. Calculating the KPI – the easy way Dr Arriffin Mansor 1
  2. 2. What is KPI?• The efficiency indicator at output or outcome phase.• How much output are you generating with a given input?• An example of KPI for the CEO is the ROE i.e Return on equity.• ROE shows how much profit return is generated from an equity of RM1. 2
  3. 3. What is KPI in graphic?Input ROE line Output 3
  4. 4. What is KPI in graphic?Equity ROE line Profit 4
  5. 5. What is KPI in graphic?Equity ROE line Improve d ROE line Profit 5
  6. 6. What is KPI in graphic?Equity ROE line 30% Improved ROE line 40%100 30 40 Profit 6
  7. 7. Accounting KPIs drawn from the financial statements• Marketing• Production• Personnel• Finance 7
  8. 8. Performance figures• Input Costs• Output Targets• Key Performance Indicators• Performance change and value• Eliminating the change in input volume• Intervention impact and its costs 8
  9. 9. The benefits of performance measures• Proper delegation and Accountability• Identify performers and determine their incentives.• Measure performance and relate it to its relevant costs• Measure performance improvement• Benchmarking and performance standards 9
  10. 10. What is KPI in graphic?Input KPI KPI2AfterBefore Before After Output 10
  11. 11. What is KPI in graphic?Input KPI KPI2AfterBefore Before After Output 11
  12. 12. Sale per ringgit AdvertisingAdvertising Sales/advertising KPI2 After Before Before After Sales 12
  13. 13. Sale per ringgit AdvertisingAdvertising Sales/advertising KPI2 After Before Before After Sales 13
  14. 14. Benefits of the KPI in graphic• Understand KPI in terms of output input causal relationship• Compute the change in input and output• Compute the output input ratio i.e ROI to justify the need for intervention. 14
  15. 15. Thank youQuestion please 15

×