How are you scoring against your KPIs? Are your specific KPIs the best metrics to monitor and correct the operational effectiveness of your business? The two first KPIs used for any business are sales (top line) and profit (bottom line) and that is quickly followed by DSO or cash flow monitoring. These are the first critical KPIs for any business.
Following the first financial KPIs, a company must begin to understand and implement additional KPIs for your organization. Traditional KPIs focus on quality, safety, manufacturing effectiveness, customer satisfaction and employee satisfaction.
Developing the correct KPIs, establishing monitoring methodology, gaining employee buy-in and then making them part of the culture is a challenging but critical part of a healthy business.