key performance indicators

Examples of key performance indicators in the following topics:

• The Importance of Performance Targets

  • Managerial effectiveness is often assessed on the ability to achieve performance targets.
  • Three basic concepts are involved in communicating and achieving targets: key performance indicators, goal setting, and motivation.
  • A key performance indicator is a tool for performance measurement used by organizations.
  • It is used to set a performance standard for an organization, a business unit, or an employee.
  • Challenging goals tend to result in higher performance than easy or no goals.

• Methods for Evaluating Marketing Performance

  • KPIs, ROMI, and Accountable Marketing are all metrics that are used to track marketing performance.
  • Organizations use various methods to evaluate marketing key performance indicators (KPIs) or metrics.
  • Marketing Performance Measurement, Marketing Performance Management, Marketing Return on Investment (ROI), Return on Marketing Investment (ROMI), and Accountable Marketing are all metrics that companies use to connect marketing performance to the financial performance of the organization.
  • To ensure meaningful comparisons among activities, brands, markets, and time periods, organizations may employ a common scale to analyze performance metrics.
  • Using an established methodology to evaluate marketing effectiveness helps companies accurately measure performance and assess business needs.

• The Importance of Evaluating Marketing Performance

  • Evaluating marketing performance guides future marketing initiatives and helps a company achieve its goals.
  • Ideally, marketing performance measurement should be a logical extension of the planning and budgeting exercise that happens before a company's fiscal year.
  • Companies employ various methodologies to measure marketing performance and ensure they meet those performance goals.
  • Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals, but also for non-marketing executives.
  • Evaluating marketing performance helps companies plan and budget for the following fiscal year.

• Measuring Organizational Performance

  • There are many different performance measurement tools available, such as organizational and employee performance evaluations.
  • While there are a wide variety of perspectives on controlling performance, each more or less appropriate depending on the objectives and industry of the organization, a few key metrics exist.
  • Measuring profitability margins indicates the cents-per-dollar the organization makes by investing in operations.
  • Growth - Raw revenue growth is also important, as it indicates expansion and potential economies of scale and scope.
  • Market share - Generally described as a percentage, this indicates success relative to the competition.

• Performance Assessment

  • A performance appraisal is done to assess an employee's job performance and productivity on certain preestablished criteria and objectives.
  • A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employee's job performance and productivity, in relation to certain preestablished criteria and organizational objectives.
  • Sometimes, this may include a scale rating indicating strengths and weaknesses in key areas (e.g., following instructions, promptness, and ability to get along with others).
  • Often, the supervisor and manager will discuss the key areas.
  • PA is often included in performance management systems.

• Building a Culture of High Performance

  • An effective way to achieve high-performing culture is to create high-performing teams.
  • High-performance teams are a central building block of high-performance culture, and they thrive in innovative and empowering environments.
  • Culture is defined by creating its own consciousness in an organization, indicating shared norms and values.
  • In short, shared values are key to creating strong team dynamics.
  • Open and clear communication – As always with group dynamics, communication is key to success.

• Measuring Success

  • Continuous monitoring of performance against predetermined targets is of utmost importance.
  • The most important elements of marketing performance which are normally tracked include:
  • Key ratios include gross contribution to net profit, gross profit to return on investment, and net contribution to profit on sales.
  • The above performance analyses concentrate on quantitative measures directly related to short-term performance.
  • However, there are a number of indirect measures tracking customer attitudes which can also indicate the organization's performance over a longer period of time.

• Delivering Constructive Feedback

  • Constructive feedback, both positive and negative, can help individuals learn and improve their performance.
  • Critical assessments are essential to learning and performance improvement.
  • A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employee's job performance and productivity in relation to certain established criteria and organizational objectives.
  • Using specific examples of each behavior to support each assessment is helpful in indicating what someone needs to do differently or improve.
  • This after-action review entails a candid analysis of work product, communication practices, individual effort, coordination and planning, and other key aspects related to the project.

• Visual Scorecards

  • The visual scorecard is a graphic analogy of the balanced scorecard framework and a key visual link between performance and strategy.
  • The cyclical visual scorecard with four components (financial, internal, innovation, and customer) is a very common design that successfully bridges performance and strategy.
  • Recent design enhancements to visual scorecards include the use of red (danger), yellow (caution), and green (safe) color schemes to reflect various performance attributes.
  • Similarly, the presence of green indicates that the targets are being met or exceeded.

• Methods of evaluating competitors

  • An understanding of the industry and the key success factors for the industry allows the entrepreneur to assess the performance of competitive firms.
  • City and other directories contain additional information on competitors, including ownership, key employees, and the number of employees.
  • The entrepreneur should be parsimonious in his/her approach to collecting information and one means of being parsimonious is to focus on information related to the industry's key success factors (KSF).
  • Since the best indicator of future performance is past performance, the entrepreneur should pay close attention to the longevity and historical performance of competitors.
  • Relevant information beyond key success factors is commonly included in the comparison and may include size measures, reputation, age, largest customers, key suppliers, and almost anything else deemed relevant to the competitive environment.