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5 facts about KPIs

What are KPIs?

KPIs are financial or non-financial metrics, used to quantify
objectives that reflect the performance of an organization, they
measure the level of performance of a given process,
indicating how effective the processes are.

How are KPIs created?

Factors that really affect the business:

Analyze the typology and weight of income
and expenses
Which products and/or services report more
income and which generate more expenses.
KPI requirements
A KPI or Key Performance Indicator must
meet the following requirements: ·Relevant.

· Concise.
· It must allow the greatest number of details
to be thoroughly examined.
· Simple.
·Easy to process.

History of KIPs
No one knows the exact origins of KPIs
but it is believed that they began to be
used by the Chinese royal family of the
Wei dynasty.
In the 19th century, a Scottish miller
began measuring the performance of his
employees with colored cubes. It was
not until the 20th century that KPIs were
formally adopted by companies along
with other concepts such as return on
investment to document business
performance.
KPI software
There are tools that allow you to define,
measure and manage KPIs, known as KPI
Dashboards, containing a quick summary of the
company's performance and its projections.
Some software are:
· Scoro
Datapine
·InetSoft
·SimpleKPI

KEY PERFORMANCE INDICATORS

Examples of KPIs
Evaluation Performance Indicators

Examples of KPI indicators are:

Sales qualified leads (SQL)
Organic traffic (Organic website searches)
Goals Optimization Strategy

Customer satisfaction score (CSAT)

Return on equity (ROE)

Analytics Growth Implementation

José Alexander Sermeño Zetino UDB DMD941

 Balanced
Scorecard (BSC)
What is a Balanced
Scorecard?

The Balanced Scorecard (BSC) is a

management tool that allows implementing a
company's strategy, allowing permanent
control over all the factors of the
organization, interrelating objectives and
relating them to specific actions.

How is it done?

The process of developing the Balance

Scorecard in a company involves
several steps, which we could
summarize as follows:
·Establish a clear vision of the future.
·Define strategic objectives ·Determine
critical success factors.
BSC Benefits ·Select indicators to measure and track
performance
They are summarized in the following scenarios: ·Establish goals, action plans and
• Financial perspective: Steps to achieve initiatives.
financial success and growth.
• Customer perspective: Actions to guarantee a
good image in front of customers and
demonstrate superiority over the competition.
• Perspective of internal processes: What are
the business processes that increase our
excellence in quality and innovation.
• Learning and Growth Perspective: A culture of
growth and continuous improvement
throughout the entire organization.

How did BSC

come about? Tools for B SC

Created by professors Robert S.

Kaplan and David Norton in their
Some software with
famous 1992 Harvard Business
Review article titled: “Balance tools for BSC
Scorecard: The Measures That management are:
Drive Performance. More than [Link]
creating an appropriate method of
measuring the company's
[Link] Timeline
performance, they developed an [Link]
efficient system to support [Link]
decision making and help
[Link]'s strategy
strategic management.
Software

JOSÉ ALEXANDER SERMEÑO ZETINO UDB DMD941

 Integrate
KPIs
at BSC
The task of the strategic map is to clarify the objectives that the organization must
achieve to obtain correct performance. On the other hand, the job of KPIs is to
provide an executable nature to these objectives. Therefore, when establishing
goals for the KPIs of the Balanced Scorecard, there is the challenge of interrelating
the tangible goals.

Kpis and BSC

These goals must be compatible and their achievement
will make it easier for the company to achieve its vision.
There are two techniques aimed at establishing goals:
breaking down the global value range into associated
goals and defining goals based on the cause-effect logic
of the strategic map.

KIP and BSC Tools

There are tools that integrate the management of KIPs
and the BSC, such as BSC Designer, which is a popular
software for Balanced Scorecard, allowing you to view
the performance indicators while generating the Scorecard framework. Yo

BSC and KPI Finance

• Net income.
• Net margin
• Gross profit
• Cost per employee
• Profit per customer
• Team effectiveness.
• Profit per product, etc.

BSC Sales KPI

• Closed Sales
• Calls made
• Number of blogs written
• SQL
• SALs
• Emails
• Success percentage, etc.

BSC KPI of Internal Processes

• Production capacity
• Operating efficiency
• Machine out of service time
• Scheduled out of service
• Inventory rotation
• Customer returns
• Quality
• Labor cost, etc.

José Alexander Sermeño Zetino UDB DMD941

_ EXAMPLES OF
BACANCED
SCOKtCAKD
 EXAMPLES OF BSC APPLICATIONS

JOVEHÍA
Goals Goals Indicators Initiatives
Financial:
Increase 15% New ways of
Increase
of profitability Financial state payment and
cost effectiveness credit
Customer: Increase of Count Improve
Improve stores visits by 20% customers jewelry
Increase praise exhibition
Internal Pro: Redesign customer
by 15% and Statistic analysis
Best service service
Growth: reduce
complaints
Sales force ARTISAN
Replace 50% of Number of contracts x
Start recruitment
professional and process.
withvat Goals Indicators
sellers layoffs

s
experience
Financial: 10% increase New policies
Financial state of credit
Increase income useful
Customer: Ticket increase Improve the mix
Invoice value of
More sales of 15%
Internal Pro: products
50% sale on % of sales by
More channels Implementer
the new channels channel
sale telemarketing
Train 100% Number of and
Growth:
of the force of certificates virtual
Sales force
sales obtained Partner with
Qualified

EñP^ESA E-COfíñE^CE
Financial: + Sales +15% costs - Negotiate with
Goals
sales - cost Goals Indicators
10% Financial state Initiative
suppliers
Customer: Throw 15% Amount of
R&D Committee
Greater variety new products releases

Internal Pro: Start 5 projects Information of Acquire software

Innovation innovation projects
new of design
Growth:
Staff Have at least Number of Award
two masters specialists scholarships
for specialists
highly qualified

FLOUISTEHYA
Goals Goals Indicators Initiatives
Financial: - Reduce waste Costs of Do business
waste by 50% disposal with
Customer: Increase the gatherers
Promotions
Ticket value
Biggest sales 12% specials
purchase Contest
Remodel 10 Number of
design of
Internal Pro: stores remodeling interiors
Remodeling Adapt
Number of Look for
Growth: spaces of designers
designers
Hire sale local
designer

CONCLVS/ONES
Both KPIs and Balanced Scorecard are tools
very useful business to direct a business to achieve the
goals that have been proposed, whether due to the mission and vision
of the
same as the shareholders and owners.

. ' U I _ IIlI . nder Setmeño Zetino UDB PMD491 I

Jos
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