Indicators of Business Performance Essay

1914 WordsJan 6, 20158 Pages
Table of Contents: Page Summary 2 1. Introduction 3 2. Business performance monitoring. 3 3. What is a key performance indicator (KPI)? 4 4. How to choose the right KPIs for your business. 4 4.1 Balanced scorecard 4 5. Conclusions 9 6. Recommendations 10 7. References 11 8. Appendix 1: List of typical indicators of business performance 12 Appendix 2: Key Performance Indicators for Business Portal (Microsoft) 13 Summary In modern business, increasing standards, automation, and technologies have led to vast amounts of data becoming available. This report provides an insight into how to choose key performance indicators (KPIs) in business, using a balanced scorecard model, and why they are required. The report concludes that KPIs once identified should be used as a performance management tool, and recommends businesses should regularly review their business plans in relation to KPIs, using application software which is readily available. 1. Introduction Why is it that competing businesses with similar products, the same marketplace, and comparable resources can have far different business results? The difference is related to the indicators used to drive business performance throughout the organisation. This report briefly outlines, the key techniques for monitoring business performance and tells you how to choose key performance indicators (KPIs), using tools typically used for business performance management (balanced scorecard) with an example. 2. Business performance monitoring There are a number of ways to monitor business performance, while many of them complement each other, they should all be linked into the overall financial targets. • Draw up a new business plan – this offers you the chance to assess
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