Tag: key performance indicator

Dicas de Gestão

Get to know the importance of indicators management

Indicators are fundamental to the good performance of a company. 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 like Multipeers allow you to keep track of KPIs continuously and in real time, allowing you to pay greater attention to meeting your goals, effectively increasing the company’s degree of success. Let’s understand in today’s article how important is the management of corporate indicators!

Company strategy known by everyone

“If we don’t know where we are going, any path is good,” so it is very important for companies to know where they are going and for each employee to know the work they are supposed to do. 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 to the monitoring system is essential for obtaining a global and integrated view of the company’s state and performance.

Making the right decision

The indicators give us a lot of information about the company and to that extent make decision making much more efficient. Managers often complain about the lack of information 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.

Give us real numbers about the state of the company

Indicators allow for measurable results. And this is very important in a company, because numbers don’t lie and help us understand where we go wrong and where we get it right. It is not enough to have a subjective knowledge about the company’s results: it is necessary to know objectively the true values ​​of the organization. By analyzing the KPIs it is possible to redefine strategies and change what is not giving positive results.

Increase sales and improve overall business performance.

When well defined and implemented, management indicators help drive sales. When there are definite goals and rewards associated with achieving them, the tendency is for employees to strive even harder to achieve their goals. This creates healthy competition between the different salespeople and in the end the company gains from increasing sales.

Definição de métricas de negócio

Everything you need to know about the relationship between BAM and KPI’s

Get to know the relationship between BAM and KPI’s

We have already talked on the blog about BAM tools and their importance for business continuity. In this article, we’ll cover the relationship between business monitoring tools and KPIs!

What is a KPI?

KPI stands for key performance indicator. In the business world, KPIs are quantifiable measures that serve to understand whether the company’s goals are being met or whether the strategy needs to be modified to achieve them. For example, productivity KPI is very important to measure the productive capacity of a collaborator. This indicator shows us the relationship between the work produced by a collaborator and the resources used for this purpose. For example: a worker installs 20 m2 of floor in an hour. His colleague can install only 17 m2 of floor in the same time, being less productive than the first.

Relationship between BAM and KPI’s

Companies that decide to invest in a BAM system must have mechanisms to continuously measure the business, because only with constant analysis does investment make sense.

In order for a BAM system to be well implemented and to present practical results it is necessary to follow some good practices, of which the following stand out:

– Survey of critical business processes

– Define which metrics you need to analyze

– Find the best way to compile the information present in the various systems

– Present the information in an intuitive dashboard and adapted to the needs of each user

– Ensure historical data and make projections based on real-time data analysis vs. historical data

– Constant analysis of results

Analyzing performance consistently ensures that more attention is paid to meeting the objectives. An efficient process must be planned and controlled.

Continuous performance monitoring plays a key role in planning and subsequent control because it provides information on processes developed by the organization. The effectiveness of any control strategy depends to a large extent on the correct suitability of developed performance metrics and KPIs.

 

If you want to know more about the importance of monitoring tools download our free ebook and understand how a BAM system can change the whole management of your business!

 

Soluções de Gestão

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.