My video “Diversity Index as Business Performance Indicator” is now added as episode #14 in my BPMSG podcast feed.
Decisions can have a short- or long-term impact; they can be strategic or operational. Measuring strategic or operational performance might require a different set of key performance indicators (KPIs). You need both: Operational KPIs help to measure the short term performance of an organization, strategic KPIs help to measure the implementation of a long term strategy.
This new podcast episode #13 explains the differences, using the picture of driving a car.
After being on-line with the website for 1 year, it’s time to change the entry page!
Here, on BPMSG.com you will find a couple of interesting articles related to business performance management, from a more practical than theoretical point of view.
Topics covered range from
- Basic financial parameters – cost per order CPO, profit per cost PPC, order income variations and related risks – to some
- Practical advice, how to apply them, when planning to setup a small business, to more complex
- Decision Making Methods, like the Analytic Hierarchy and Analytic Network Process or Conjoint Analysis.
A new topic was introduced just recently: “Value-driven leadership”. I started with a general article, and added a personality profiling tool (NEO-select). If interested, you might participate and send back the completed questionnaire to get a full report.
In the section other stuff I post other interesting information, not fitting to the main topic of the site. For example a nice video of the olive-backed sunbird, a review of the Sennheiser Bluetooth Headset etc.
Please also be so kind, if you use parts in your web-site or blog, to give credit and a link to my site. I hope you will find some useful information, let me know your feedback or contact me directly for any suggestions.
Klaus Goepel, Mar 2012
In order to limit the number of Key performance Indicators (KPIs), and maintain clarity and conciseness of a dashboard, sometimes it might be useful, to combine a set of performance indicators into one single key performance indicator. This latest episode of my podcast will show, step-by-step, how you can build up a combined performance index. using
a target value,
- a base value and
- a weighting
for each individual indicator. It also gives an example how to implement this concept in an Excel spreadsheet.
Operating a sales company, the gross margin percentage is often given by the reseller discount you are getting from your suppliers. If you want to increase profitability you could provide “value added services” with your products, for example maintenance contracts, on-site installations etc. In this presentation we will introduce the key ratios “value add percentage” VAP and “profitability value add” PRVA.
A dashboard is the panel of instruments and controls facing the driver of a vehicle. Driving a companies business, a dashboard should give you a condensed summary, which allows you to recognize critical areas and take actions to keep the business moving in the right direction – provided you know your destination.
Any dashboard without a clearly defined strategy for the organization will be useless. Only if you know the destination, you can derive the right set of key performance indicators and arrange them in such a way that they give you the current position of the organization, highlight deviations and allow you to make necessary corrections.
When you plan to setup your own business, many questions will come up.
- How to do the planning?
- How much can I charge to the customer?
- How many orders do I need?
- What are the risks involved?
In this presentation we will answer these questions using the key ratios we have introduced before. With a simple flow diagram the planning process is explained step by step.
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.