We are regularly asked 'what is a KPI?' Well, KPI stands for Key Performance Indicator. This is a financial measure of how your business performs over a given period. They can be calculated daily, weekly, monthly or over longer but what is most important is to only use the KPI’s that are relevant to your own business and the industry within which you operate. Anything that moves in a business is measurable, however if you attempt to measure everything you may well get bogged down with too much Management Information.
Traditional accounting measures such as gross profit margin, net profit margin, debtor and creditor days etc. are all well and good but to really understand a business you need to understand what drives it, where do revenue streams come from, how are they created and so on. The detail in the numbers that underpin your headline figures is where Elite MI can add some serious value to your business. We approach each client in a unique way, working out what needs to be monitored, how often and how that information is reported to management. We also consider the people working within the business and how information is communicated to each one. Having a detailed approach such as this enables a much better decision-making process and can really help move a business forward.
Want to learn more about what is a KPI and how our approach will improve your business? Email us today at firstname.lastname@example.org.