SlideShare a Scribd company logo
(What they are and how to
measure)
Decisions Communication
Comparison
Priorities
Personnel Performance
Management
Public Company
Stock Market
Departments
Usage
Predictive Forecasting
Management
Other Companies
IT Staff
Who should determine the
appropriate KPI’s for a company?
Where to get KPIs
DevelopedGiven
• Participation
• Discovery
• Commitment
• Belief
Full Adoption
Longevity
• Quick
• Pre-defined
• IT can manage
• Save time and effort
Some Adoption
Short lived
StakeholdersEmployees
Cash Flow
Indicators
Debt
Asset
Management Market Value
Asset
Coverage
Ratio
Capitalization
Ratio
Debt Service
Coverage
Ratio
DEBT
Debt Ratio
Debt-to-
Equity Ratio
Debt-to-
Income Ratio
Debt/EBITDA
Ratio
Financial
Leverage
DEBT
Equity
Multiplier
Fixed Assets
to Net Worth
Fixed Charge
Coverage
Ratio
Interest
Coverage
Ratio (ICR)
DEBT
Long Term
Debt to
Capitalization
Ratio
Acid-Test
Ratio
Cash Ratio
Net Working
Capital
LIQUIDITY
Current Ratio Quick Ratio
Working
Capital
Working
Capital Ratio
LIQUIDITY
Cash Return
on Capital
Invested
(CROCI)
DuPont
Formula
EBIT (Earnings
Before Interest
and Taxes)
FINANCIAL
Earnings
Before
Interest After
Taxes (EBIAT)
EBITDA
EBITDARM
EBT (Earnings
Before Tax)
Gross Profit
Margin
FINANCIAL
Effective Rate
of Return
Net Profit
Margin
NOPLAT (Net
Operating
Profit Less
Adjusted
Taxes)
OIBDA
Operating
Margin
FINANCIAL
Operating
Expense Ratio
Overhead
Ratio
Profit Analysis
Profitability
Index
Return On
Assets (ROA)
FINANCIAL
Relative
Return
Return on
Average
Assets (ROAA)
Return on
Average
Capital
Employed
(ROACE)
Return on
Average
Equity (ROAE)
Return on
Debt (ROD)
FINANCIAL
Return On
Capital
Employed
(ROCE)
Return On
Equity (ROE)
Return On
Invested
Capital (ROIC)
Return on
Investment
(ROI)
Return on
Research
Capital (RORC)
FINANCIAL
Return on
Net Assets
(RONA)
Return on
Retained
Earnings
(RORE)
Return on
Revenue
(ROR)
Return On
Sales (ROS)
FINANCIAL
Revenue per
Employee
Accounts
Payable
Turnover Ratio
Asset Turnover
Days Payable
Outstanding
(DPO)
ASSET
MANAGEMENT
Cash
Conversion
Cycle
(Operating
Cycle)
Days Sales
Outstanding
(DSO)
Defensive
Interval Ratio
(DIR)
Fixed Asset
Turnover
Receivable
Turnover Ratio
ASSET
MANAGEMENT
Inventory
Turnover
Cash Flow
Coverage
Ratio
Cash Flow
Management
Free Cash
Flows /
Operating
Cash Flows
Ratio
CASH FLOW
INDICATOR
Cash Flow
Return on
Investment
(CFROI)
Price / Cash
Flow Ratio
Business
Valuation
Dividend
Payout Ratio
Dividend Yield
MARKET
VALUE
Dividend
Policy Ratios
Enterprise
Value (EV)
Enterprise
Value Multiple
EV/EBITDA
ratio
Loan-to-Value
Ratio (LTV)
MARKET
VALUE
Gordon
Growth
Model
Net Asset
Value per
Share (NAVPS)
PEG ratio
Price to
Earnings Ratio
(P/E Ratio)
Price/Book
Value Ratio
MARKET
VALUE
Price-to-
Research
Ratio
Pick the right ones for your
business
Gartner
/EBRC
KPI Initiative
AICPA
KPMG,
Deloitte,
PWC
All are valid…
Narrow the focus…
3 are important
From Sales to
Professional
Services
Approximately 30
Measures Found
Top 3 Take-Aways
 Multiple People
 Multiple Departments
 How and when will they be used
 Keep it simple
 The result is more important than the tool
 It is NOT a techie solution
questions?
final thoughts?

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KPI

Editor's Notes

  1. The world has changed. We are interconnected – globally and in real-time. Companies and People publish mountains of insight like never before The challenges of big data are affecting everyone. It can either paralyze you with sheer volume, or be leveraged for better, richer insight and better decision making. Harnessed, this information is a treasure trove – unlocking dramatic competitive advantage and productivity In order for social data to be useful it must be: Easily accessible Real-time Accurate Meaningful and purposeful Relevant The data is available from many sources: cloud services, social networks, RSS feeds and many more The key and our goal is to make it contextually relevant to drive actionable insight. E.g. give me full insight into a prospect, contact or account immediately by “mashing up” information from all these data sources and present it to me in a way I can understand and determine actions – make CRM my trusted advisor! At Microsoft we’re making significant investments in these areas: Azure datamarket SQL Azure Labs codename “Social Analytics” Future Social Experiences (FUSE) Labs Outlook Social Connector We also have relationships with key social networks and data providers: LinkedIn Facebook Twitter InsideView And many others Today we’ll show you some practical examples of how social intelligence embedded in CRM can drive better insight and decision making which positively impacts productivity
  2. The world has changed. We are interconnected – globally and in real-time. Companies and People publish mountains of insight like never before The challenges of big data are affecting everyone. It can either paralyze you with sheer volume, or be leveraged for better, richer insight and better decision making. Harnessed, this information is a treasure trove – unlocking dramatic competitive advantage and productivity In order for social data to be useful it must be: Easily accessible Real-time Accurate Meaningful and purposeful Relevant The data is available from many sources: cloud services, social networks, RSS feeds and many more The key and our goal is to make it contextually relevant to drive actionable insight. E.g. give me full insight into a prospect, contact or account immediately by “mashing up” information from all these data sources and present it to me in a way I can understand and determine actions – make CRM my trusted advisor! At Microsoft we’re making significant investments in these areas: Azure datamarket SQL Azure Labs codename “Social Analytics” Future Social Experiences (FUSE) Labs Outlook Social Connector We also have relationships with key social networks and data providers: LinkedIn Facebook Twitter InsideView And many others Today we’ll show you some practical examples of how social intelligence embedded in CRM can drive better insight and decision making which positively impacts productivity
  3. The world has changed. We are interconnected – globally and in real-time. Companies and People publish mountains of insight like never before The challenges of big data are affecting everyone. It can either paralyze you with sheer volume, or be leveraged for better, richer insight and better decision making. Harnessed, this information is a treasure trove – unlocking dramatic competitive advantage and productivity In order for social data to be useful it must be: Easily accessible Real-time Accurate Meaningful and purposeful Relevant The data is available from many sources: cloud services, social networks, RSS feeds and many more The key and our goal is to make it contextually relevant to drive actionable insight. E.g. give me full insight into a prospect, contact or account immediately by “mashing up” information from all these data sources and present it to me in a way I can understand and determine actions – make CRM my trusted advisor! At Microsoft we’re making significant investments in these areas: Azure datamarket SQL Azure Labs codename “Social Analytics” Future Social Experiences (FUSE) Labs Outlook Social Connector We also have relationships with key social networks and data providers: LinkedIn Facebook Twitter InsideView And many others Today we’ll show you some practical examples of how social intelligence embedded in CRM can drive better insight and decision making which positively impacts productivity
  4. The world has changed. We are interconnected – globally and in real-time. Companies and People publish mountains of insight like never before The challenges of big data are affecting everyone. It can either paralyze you with sheer volume, or be leveraged for better, richer insight and better decision making. Harnessed, this information is a treasure trove – unlocking dramatic competitive advantage and productivity In order for social data to be useful it must be: Easily accessible Real-time Accurate Meaningful and purposeful Relevant The data is available from many sources: cloud services, social networks, RSS feeds and many more The key and our goal is to make it contextually relevant to drive actionable insight. E.g. give me full insight into a prospect, contact or account immediately by “mashing up” information from all these data sources and present it to me in a way I can understand and determine actions – make CRM my trusted advisor! At Microsoft we’re making significant investments in these areas: Azure datamarket SQL Azure Labs codename “Social Analytics” Future Social Experiences (FUSE) Labs Outlook Social Connector We also have relationships with key social networks and data providers: LinkedIn Facebook Twitter InsideView And many others Today we’ll show you some practical examples of how social intelligence embedded in CRM can drive better insight and decision making which positively impacts productivity
  5. The world has changed. We are interconnected – globally and in real-time. Companies and People publish mountains of insight like never before The challenges of big data are affecting everyone. It can either paralyze you with sheer volume, or be leveraged for better, richer insight and better decision making. Harnessed, this information is a treasure trove – unlocking dramatic competitive advantage and productivity In order for social data to be useful it must be: Easily accessible Real-time Accurate Meaningful and purposeful Relevant The data is available from many sources: cloud services, social networks, RSS feeds and many more The key and our goal is to make it contextually relevant to drive actionable insight. E.g. give me full insight into a prospect, contact or account immediately by “mashing up” information from all these data sources and present it to me in a way I can understand and determine actions – make CRM my trusted advisor! At Microsoft we’re making significant investments in these areas: Azure datamarket SQL Azure Labs codename “Social Analytics” Future Social Experiences (FUSE) Labs Outlook Social Connector We also have relationships with key social networks and data providers: LinkedIn Facebook Twitter InsideView And many others Today we’ll show you some practical examples of how social intelligence embedded in CRM can drive better insight and decision making which positively impacts productivity