How Key Performance Indicators (KPIs) Work

How Key Performance Indicators (KPIs) Work

Key Performance Indicators (KPI) in business are financial and non-financial metrics generated by My Business Manager to define and measure progress toward organizational goals.

Managers use Key Performance Indicators (KPI) in business to assess the present state of the business and to prescribe a course of action. KPIs are typically tied to an organization’s strategy (as exemplified through techniques such as the Balanced Scorecard and Business Performance Management or BPM).

Typically, managers will use My Business Manager to monitor and track:

Financial KPIs

 Balance Sheet Drivers
 Have a major impact on cashflow
 Must be managed
 Are impacted by internal policies
 Should be monitored for any increases

Profitability

 Show how the business is performing
 Margins and profitability need to be monitored
 Have impact on funds available to cover break-even and to fund growth
 ROI shows business performance as an investment.

Liquidity

 Show the financial health of your business.
 Investment/Equity/Capital
 Indicate the financial strength of your company
 Show its ability to pay its own way.

Investment / Equity / Capital

 Indicate the value of the company
 The level of debt compared to value
 And the effectiveness of the business as an investment

Performance KPIs

With the My Business Manager web-enabled Performance KPI tools, you can assign sets of KPIs to individual employees in order to track the performance of;

 Activities
 Assets
 People

My Business Manager tracks all of these dynamically so that you can see the trends and compare the performance of your business to other similar businesses.

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