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Measures that Matter: Key Performance Indicators


Measures that Matter: Key Performance Indicators

Manage and measure what really matters to the future performance of your business

Key Performance Indicators (KPIs) assist businesses to define and measure progress towards agreed goals. Meaningful performance measurement is crucial to providing useful information to stakeholders, which include boards, investors, potential purchasers and lending institutions.

The MBA Partnership has vast experience in assisting businesses to measure their performance. Here are some common KPI’s for you to consider:


  • Liquidity
  • Gross profit margin
  • Net profit margin
  • ROCE – Return on Capital Employed
  • ROTA – Return on Total Assets
  • Inventory turnover
  • Earnings per share
  • Accounts receivable days
  • Accounts payable days
  • Debt to equity

Financial KPI’s (lagging indicators) are important, but it is the KPI’s below (leading indicators) that really drive business growth:

Customers/Business Development

  • Customer Service
  • Acquisition
  • Retention
  • Loss
  • Satisfaction
  • Profitability
  • Number of referrals and source
  • Unsolicited enquiry rate (number of new customers making cold enquiries)
  • Number of media references

Human Resources/Growth

  • Labour management
  • Order lead times
  • Number of orders in the system
  • Defect rates
  • Wastage
  • Productive efficiency
  • Training hours offered/attended
  • Research systems
  • Training systems
  • Investment in research and development

Internal Business Controls

  • Inventory ageing
  • Order lead times
  • Number of orders in the system
  • Defect rates
  • Wastage
  • Production cost as % total cost
  • Volumes produced vs volumes budgeted
  • Lost time
  • Quality control

In Summary

Identifying profit drivers is the most critical aspect of utilising KPIs.

Next Steps

The MBA Partnership can work with you to determine your businesses profit drivers and assist you to create a specific performance measurement process. Please complete the following booking form and Nicole Pericic, Advisory Principal will contact you to arrange a KPI assessment.