Category Archives: Finance & Control
Employees with delegated spending authority
Definition:
Number of employees autorized to sign contracts of a certain amount of money. A higher number means higher empowerment, higher skilled and experienced employees, but can also mean higher risk.
Calculation:
Sum of employees autorized
This KPI is measured as: Number (amount Of Units, Rating, Etc)
Interpretation of results: Depends On The Goals
Strategic objective:
Skilled and experienced workforce
Number of employees autorized to sign contracts of a certain amount of money. A higher number means higher empowerment, higher skilled and experienced employees, but can also mean higher risk.
Calculation:
Sum of employees autorized
This KPI is measured as: Number (amount Of Units, Rating, Etc)
Interpretation of results: Depends On The Goals
Strategic objective:
Skilled and experienced workforce
Percentage of invoices processed within a certain period
Definition:
Part of all the invoices that have been processed within a predefined period. This figure can be relevant for managing the creditors ledger.
Calculation:
(Invoices processed in the defined period / total number of invoices) * 100%
This KPI is measured as: Percentage (%)
Interpretation of results: Higher Is Better
Strategic objective:
Efficient operations; good relationship with creditors
Part of all the invoices that have been processed within a predefined period. This figure can be relevant for managing the creditors ledger.
Calculation:
(Invoices processed in the defined period / total number of invoices) * 100%
This KPI is measured as: Percentage (%)
Interpretation of results: Higher Is Better
Strategic objective:
Efficient operations; good relationship with creditors
Return on Investment
Definition:
The revenues (before interest, taxes and dividends) earned on invested capital. Calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid.
Calculation:
(revenues / investment) * 100%
This KPI is measured as: Percentage (%)
Interpretation of results: Higher Is Better
Strategic objective:
Increase profitability
The revenues (before interest, taxes and dividends) earned on invested capital. Calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid.
Calculation:
(revenues / investment) * 100%
This KPI is measured as: Percentage (%)
Interpretation of results: Higher Is Better
Strategic objective:
Increase profitability
KPIs by Business Process
All KPIs at KPI-Start.com are categorized to business processes. The model below is based on the value chain of Porter (1985). The primary processes are shown vertically, the secondary processes horizontally. Click at a process to take a look at the KPIs that measure that specific business process.
