The operating expenses of a company have a high impact, not only on the company’s result, but also on other parameters, like profit per costs and minimum order income to be achieved. Even the same operating result and profitability of two companies could be of a different quality, because of different relations in fixed and variable expenses. In this presentation two performance indicators will be developed to monitor these important differences.
Succession planning for leadership positions plays an important role for the future business of any company. Leaders have not only to have a strategic view, good management skills and the necessary technical knowledge. With their behavior they also determine the motivation of their teams and employees, and with that finally the productivity and profitability of the whole organization.
Leaders have to give an example, they need to show initiative and have to be efficient. In a continuously changing business environment leaders need also to be open to new experiences, and they must show willingness to change. Emotional intelligence and critical self reflection combined with integrity will yield to mutual respect of their people, and result in a high acceptance for necessary business decisions.
Only with the right values behind people driving their behavior, the most important pre-condition for a successful leadership is met.
But how to assess these values?
NEO-select personality test is a tool to get a better insight in the different strengths of individuals. The test is developed based on the model of the big five dimensions of personality, and is conducted as a self-reporting assessment. Using a combination of selected facets in these dimensions, a ranking of leadership values is derived. It will give the person a better insight in his or her behavior, and the driving forces behind it.
The test is not equivalent to the commercial inventory on which it is based, the NEO PI-R™, but it is constructed from the public domain IPIP items, assembled by Dr. Lewis R. Goldberg.
The inventory does not reveal hidden, secret information. The five dimensions (broad domains) cover normal differences in personality that should be obvious to people who know the person well. NEO-select is designed to complement other assessments of job suitability, as for example the Harrison Innerview or others.
The basic equation – financial performance indicators: Profit per Cost (PPC)
With Profit per Cost (PPC) we introduce another important financial key ratio. Cost per order (CPO) together with profit per cost (PPC) let you calculate the required gross margin percentage (GMP) and the profitability (PR).
Vice versa, with a given gross margin and a targeted profitability, you can estimate the CPO and PPC.
Conjoint analysis or stated preference analysis is used in many of the social sciences and applied sciences including marketing, product management, and operations research.
Here you find an simple example, how you can calculate part-worth utilities and relative preferences in Excel using multi-variable linear regression. (4 attributes, 2 level, fractional design)
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Conjoint analysis online – Conjoint.ly
Here you find information and links to my collection of videos about business performance management and other topics.
Episodes published (June 2013):
- #002 The basic equation: Cost per Order (CPO)
- #003 The basic equation: Profit per Cost (PPC)
- #004 Profit per Cost and Order Income
- #005 Order Income Variations
- #006 Setting up a small Business
- #007 Order Income per Headcount Sales
- #008 Value Add and Local Content
- #009 Fixed and Variable Operating Expenses
- #010 The Dashboard
- #011 Combined Performance Indicators
- #012 Analytic Hierachy Process
- #013 Strategic and Operational Business Performance
- #014 Diversity Index as Business KPI
- #015 Alpha and Beta Diversity
Some additional videos are available on my Youtube Channel: https://www.youtube.com/bpmsg
I appreciate your comments and feedback.
Here you can download the slides of my video presentations.
Video: #010 The Dashboard