Key Performance Indicators (KPI) The 75 measures every manager needs to know Financial Times Series

By identifying and describing the most powerful financial and non-financial KPIs, this book will make life easier for you by defining them, explaining how and when they should be used and providing a rich library of KPIs that have been proven to significantly improve performance.

The book presents case examples to illustrate the selection and use of the KPIs and provides tools such as KPI selection templates and Key Performance Questions to help you apply the most appropriate KPIs effectively in your business.

Contents

Introduction

PART ONE Financial perspective

1 Net profit

2 Net profit margin

3 Gross profit margin

4 Operating profit margin

5 EBITDA

6 Revenue growth rate

7 Total shareholder return (TSR)

8 Economic value added (EVA)

9 Return on investment (ROI)

10 Return on capital employed (ROCE)

11 Return on assets (ROA)

12 Return on equity (ROE)

13 Debt-to-equity (D/E) ratio

14 Cash conversion cycle (CCC)

15 Working capital ratio

16 Operating expense ratio (OER)

17 CAPEX to sales ratio

18 Price/earnings ratio (P/E ratio)

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Bernard Marr is a leading global authority and best-selling author on organisational performance and business success. He regularly advises leading companies, organisations and governments across the globe, making him an acclaimed and award-winning keynote speaker, researcher, consultant and teacher. He is acknowledged by the CEO Journal as one of today’s leading business brains. Bernard has written a number of seminal books and over 200 high profile reports and articles on managing organisational performance.

Key performance indicators (KPIs) are the vital navigation instruments used by every organisation to help them understand whether they are on a successful voyage or whether they are veering off the prosperous path.

This book will make life easier for busy managers by identifying and describing the most powerful financial and non-financial KPIs. It defines them, explains how and when they should be used and provides a rich library of KPIs that have been proven to significantly improve performance.

It presents case examples to illustrate the selection and use of the KPIs and provides tools such as KPI selection templates and Key Performance Questions to help readers apply the most appropriate KPIs effectively in their business.

For ease of use, the KPIs are categorised according to the type of thing they measure. For each KPI, the book:

·      Gives a detailed definition

·      Gxplains why it is one of the top 100 KPIs

·      Shows how to calculate the KPI

·      Outlines the best forms of data collection to ensure readers get robust and reliable