Measures of performance

Measures of performance

1. KPI's...

   • Non-financial...
     • Qualitative ways of measuring the performance of a business (AO1)
       • + How happy employees are (AO2)
     • 3) ROCE (AO1)
     • 2) Operating expenses margin (AO1)
     • 1) Gross/Net profit margin (AO1)
   • Financial...
     • Quantitative ways of measuring the performance of a business (AO1)
       • + Financial ratios (AO2)
     • 2) Operating expenses margin (AO1)
     • 1) Gross/Net profit margin (AO1)
     • 3) ROCE (AO1)

2. A&Ds...

   • - Too much data = confusion (AO3)
   • - Forgot importance of feedback (AO3)
   • - Lead to a negative response (AO3)
   • + Make strategic changes (AO3)
   • + Pinpoint areas of weakness (AO3)
   • + Improve performances (AO3)

3. Disads of relying on financial...

   • - Internal focus (AO3)
   • - Short-termism (AO3)
   • - Miss valuable information (AO3)

4. - BUSINESS NEEDS BOTH!! (AO4)

5. - How happy customers are (AO4)

6. - How much data they have (AO4)

7. - Full control of the business (AO3)

8. - Monitoring success (AO3)

9. - The business becoming more efficient (AO3)