KPI CALCULATION
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This document discusses key performance indicators (KPIs) and how to calculate them graphically. [1] KPIs measure output levels given a certain input, like return on equity (ROE) which shows profit per RM1 of equity. [2] Graphs can show the relationship between inputs and outputs, with KPI lines depicting the output-input ratio. [3] Calculating KPIs graphically allows understanding how inputs affect outputs, quantifying changes, and justifying interventions by their impact on the output-input ratio.
KPI CALCULATION
- 1. Calculating the KPI – the easy way Dr Arriffin Mansor 1
- 2. What is KPI? • The efficiency indicator at output or outcome phase. • How much output are you generating with a given input? • An example of KPI for the CEO is the ROE i.e Return on equity. • ROE shows how much profit return is generated from an equity of RM1. 2
- 3. What is KPI in graphic? Input ROE line Output 3
- 4. What is KPI in graphic? Equity ROE line Profit 4
- 5. What is KPI in graphic? Equity ROE line Improve d ROE line Profit 5
- 6. What is KPI in graphic? Equity ROE line 30% Improved ROE line 40% 100 30 40 Profit 6
- 7. Accounting KPIs drawn from the financial statements • Marketing • Production • Personnel • Finance 7
- 8. Performance figures • Input Costs • Output Targets • Key Performance Indicators • Performance change and value • Eliminating the change in input volume • Intervention impact and its costs 8
- 9. The benefits of performance measures • Proper delegation and Accountability • Identify performers and determine their incentives. • Measure performance and relate it to its relevant costs • Measure performance improvement • Benchmarking and performance standards 9
- 10. What is KPI in graphic? Input KPI KPI2 After Before Before After Output 10
- 11. What is KPI in graphic? Input KPI KPI2 After Before Before After Output 11
- 12. Sale per ringgit Advertising Advertising Sales/advertising KPI2 After Before Before After Sales 12
- 13. Sale per ringgit Advertising Advertising Sales/advertising KPI2 After Before Before After Sales 13
- 14. Benefits of the KPI in graphic • Understand KPI in terms of output input causal relationship • Compute the change in input and output • Compute the output input ratio i.e ROI to justify the need for intervention. 14
- 15. Thank you Question please 15