How to measure performance in what we call the KPI or key performance indicators

1. Calculating the KPI
– the easy way
Dr Arriffin Mansor
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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.
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3. What is KPI in graphic?
Input ROE line
Output
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4. What is KPI in graphic?
Equity ROE line
Profit
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5. What is KPI in graphic?
Equity ROE line
Improve d ROE line
Profit
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6. What is KPI in graphic?
Equity ROE line 30%
Improved ROE line
40%
100
30 40 Profit
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7. Accounting KPIs drawn from
the financial statements
• Marketing
• Production
• Personnel
• Finance
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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
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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
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10. What is KPI in graphic?
Input KPI
KPI2
After
Before
Before After Output
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11. What is KPI in graphic?
Input KPI
KPI2
After
Before
Before After Output
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12. Sale per ringgit Advertising
Advertising Sales/advertising
KPI2
After
Before
Before After Sales
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13. Sale per ringgit Advertising
Advertising Sales/advertising
KPI2
After
Before
Before After Sales
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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.
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15. Thank you
Question please
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