Performance indicators are essential management tools for measuring a store’s results. With them it is possible to monitor whether goals set in your cash-flow are being achieved and what is the percentage of improvement or worsening with respect to past financial indicators.
What are performance indicators for?
To sum up, in order to improve it is necessary to measure and you can use several different indicators. See below indicators classified with respect to your objective or related to a specific area of the business.
Classification of the performance indicators
One possible classification of the performance indicators is the following:
Strategic performance indicators
Quality performance indicators
This strategy can provide a broad vision of the more general objectives and goals of the company, as well as allowing the comparison of previous actions with current results.
Normally, quality is connected to the conformity or not of a product or service delivered and, with that, it allows you to observe flaws in the processes of production, management or provision of a service. In the case of a construction material store, the quality could be measured by a satisfaction survey.
Examples of performance indicators for specific areas within companies On the other hand, there are indicators that are essential for some specific areas of a company. See below some examples of indicators for certain sectors that are important in the management of an organization:
Revenue – Expenses – Profit or Loss – Profitability
Success rate in sales (quantity of successful sales divided by the quantity of negotiations) – Sales funnel – Revenue per salesperson – Revenue per region – Revenue per sale
Finally, it is safe to say that the indicators have the objective of extracting from data and results its broadest meaning with the aim of supporting the business progress and the follow-up of the strategic planning, bringing the desired results in a short or long term.
Use AUTOMEC and our reports, they can assist you in the decision-making!