What is the role of performance indicators in quality management?

Performance indicators are critical for a company to achieve good results. It is the indicators, or KPIs, that tell us what state the business is in and whether we are actually meeting the previously established goals. Based on company performance indicators, managers can make more assertive and informed decisions. BAM tools such as Multipeers allow you to keep track of KPIs continuously and in real time, allowing you to gain insight into the achievement of goals. We will understand in today’s article the role of performance indicators in quality management!

They give us a global understanding of company strategy

It is very important for companies to know where they are going and for each employee to know the work they have to do, otherwise they will not be able to achieve their goals. If we are unaware of the results we must achieve with our work, we can do anything, and this is possibly not in line with the overall goals of the organization. Defining the indicators of each employee and linking them to the monitoring system is essential in order to obtain a global and integrated view of the company’s state and performance. In the end, the quality of each employee will be much higher, so the company will benefit greatly.

They show us reliable information about the current state of business

Indicators allow for measurable results. And this is very important in a company because the numbers don’t lie and help us understand where we go wrong and where we got it right and which way we should go from time to time. Subjective knowledge of company results is not enough; One must know objectively the true values ​​of the organization.

They allow us to make better business decisions

The indicators give us a lot of information about the company and to that extent make decision making much more efficient. There is a lack of information available about the company to make a conscious decision and these performance indicators play a prominent role when making decisions about the future of the company. Managers can only make assertive and correct decisions if they have a complete knowledge of the business reality. And nothing better than updated management indicators that are appropriate to the reality of the company.

 

Having a broader view is key to being able to keep up with the business and make the right decisions. In today’s hectic business day-to-day and with the ever-increasing demands of consumers, knowing the market is a must-have weapon to win. Download our business monitoring e-book and learn how a BAM system can help your business grow steadily!

The best human resource KPIs your business can have

Without people, companies are nothing, and the internal public is one of the most important in organizations, since it is this that makes companies grow and evolve. People Analytics is the process of collecting, organizing and analyzing employee behavior data in order to contribute to decisions made in the company, anticipating trends and adjusting strategies. This term is increasingly important to companies and is expected to grow in importance over the next few years, which means that more and more data on employees exists and there is a need to do something useful with that data. KPIs help us work on information and gain insights for decision making. In today’s article, we present the best human resource KPIs your business can have!

Employee turnover rate

It indicates the number of employees who leave and enter the company, during a certain period. For the company, this index should be as low as possible because it means there is retention of talent. A high index may indicate a low attractiveness of the company in relation to the competition.

Absence

Absenteeism measures employee absence rates and indicates the actual reasons for absences or delays. Absenteeism may be linked to poor working conditions, such as ergonomics in the company or bad environment in the team.

Turnover Costs

In order to calculate this indicator, it’s necessary to include all the expenses with the payment of the contractual terminations and to add all legal and procedural costs. It is also necessary to add the expenses with the replacement of the professional who left, besides the investment in training.

Ratio between extra hours and worked hours

This indicator is linked to the concept of productivity and demonstrates the relationship between the amount of overtime (paid or accumulated in the time bank) and total hours worked. It’s an important indicator for analysing the overload, operational capacity and labor allocation.

Employee satisfaction index

This index is calculated by collecting opinions from employees, who can respond to surveys where they show their satisfaction on a numerical scale. The higher this level, the better the human resources area will be and the greater the motivation of employees to work.

Average cost by employee

This indicator shows us how much it costs, on average, each employee of the company. It is obtained after adding all personnel expenses (salary, food allowance, holiday and Christmas allowances, contributions to the State, among other expenses) and divided by the total number of employees of the company.

KPI’s sales that every business needs

Defining KPIs is essential to the good performance of a company. KPIs are key performance indicators that tell us what state the business is in and how far (or near) we are from meeting the stated goals. Based on the indicators and the company’s performance, managers can make more informed decisions. The sales area is one of the most important in any business, because it is through sales that companies manage to generate wealth to keep the business running. Each business has its own specifics, but there are KPIs across all areas. In today’s article, we’ll cover the sales KPIs that every business needs!

Speed of sale

Measuring the speed at which a sale is made is an important strategy to evaluate the company’s performance in attracting customers and responding to their expectations. The lower the sales cycle, the greater the effectiveness. Thus, it’s essential to invest in actions that stimulate the customer’s interest and in strategies that accelerate the purchase.

Average value of sale

This indicator is the result of the division of revenue generated by a seller by the number of sales made by the professional in a given period. This indicator is important because it allows to establish a profile for the members of a team and allows people to adapt according to their characteristics.

Churn Rate

The Churn rate indicates the percentage of abandonment of a product or service, meaning the number of customers who have given up on continuing with your business. The higher the churn rate, the lower the company’s chances of growth, as new customers will only serve to replace leaving customers and don’t generate new wealth.

Number of won deals

It’s important to know the number of closed deals in a given period to create realistic goals. A good example of the applicability of this indicator is to compare 2 sellers and check the number of closed deals and the average ticket. There are salespeople who prefer to work better on the lead, spending more time with it, and this lead can have a greater return from that customer.

Customer Recommendation Index

Indicator that shows us the percentage of current customers who arrived at the company due to the recommendation of another customer. To measure it, just ask the new customer how he met the company at the time of the sale. The best advertising for a business will always be word of mouth, so if this rate is too low you need to invest in this area to increase current customer satisfaction.

Follow up rate

Few sales are made on first contact with the prospect. You need to keep in touch with him a few times. This indicator aims to answer the question: how many contacts are needed to make a sale? In this indicator it’s also important to know how many customers close deals in the first three contacts. The answers to these questions will help define a new follow-up strategy.

Defining business indicators in a conscious way is fundamental to being able to analyze the business objectively. It is essential that the indicators analyzed show managers the way forward in order to correct errors and apply new strategies. Multipeers offers you a set of 50 KPIs essential for 360º management of your business. Download our e-book!

10 Essential Metrics to Analyze Your Business

Get to know the essential KPIs for your business

A KPI is a Key Performance Indicator, and have vital importance for companies as they measure process performance and by analyzing collected information it’s possible to work to improve future actions. There are numerous performance indicators in a company and its definition always depends on the area of ​​activity. However, there are transverse factors to all activities and in this article we highlight the 10 most important.

Net profit

It’s one of the most important values ​​for any company. We’ve reached this amount after adding up the entire billing volume and deducting costs and expenses.

Net Profit Margin

The profit margin represents what the company plans to make in return for what it invested. In addition to calculating net income to obtain the net profit margin, companies must stipulate an amount that is in accordance with what the market is willing to pay for their product. If the expectation of profits is well above normal there may be problems with future planning.

EBITDA

EBITDA means for Earning Before Interest, Taxes Depreciation and Amortization and it’s a way of calculating how much a company generates of resources only with its operation, that is to say, before subtracting the value of the taxes. The formula for achieving EBITDA is Net Operating Income + Depreciation + Amortization. This is a very important value for companies that are looking for investors and serves as a comparative point with other companies in the same industry.

ROI

ROI means return on investment and it’s the return on made investment. This value is the result acquired with the investment made.

Market Share

Market share means the participation of a company in the market in which it’s located. This value can be found through billing measurement, quantity of customers, among others.

Cost Per Lead

This is a value widely used in the digital world, which is gaining importance in the business world. The cost per lead is composed of the sum of the expenses with marketing actions divided by the leads generated through these actions.

Customer Lifetime Value

This metric seeks to define the profit that a company may have. CLV represents the total value obtained with a given customer within a given period and for how long it can still be a customer.

Liquidity

Liquidity is the ability to turn an asset into cash. The faster the conversion is, the more liquid an asset is. This indicator assesses the ability of the company to pay employees and suppliers.

Index of compliance

Controlling accounts is crucial so that the company can balance its accounts payable. This indicator evaluates what the company has to receive and how much of that amount is late or has not been paid.

Employee satisfaction index

It’s very important to analyze the satisfaction status of a company employees. This indicator should identify the main GAPs of management and to guide actions to improve organizational culture.

Knowing the state of the company at every moment is vital for managing the business effectively and objectively. Multipeers enables real-time analysis of the state of the business and provides key metrics for the successful pursuit of objectives.