Performance through People
- Key Performance Indicators (KPIs)
Measuring what matters the most
Key Performance Indicators are quantifiable measurements that reflect the critical success factors of an organization. Based on previously agreed measures, they reveal a high-level snapshot of the organization. The choice of KPIs is crucial to a business, being profitable is great but if you run out of cash, you still go bust.
Here are 3 top level KPIs that a business may consider to balance the needs of it's stakeholders:
These would be further subdivided, so for instance in the case of liquidity, the measures could be low inventory, fast customer payments and late supplier payments - thereby creating a very positive cash conversion cycle.
- Key Question - How do you Measure your Performance?
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