Don??™t think of the scorecard??”think of the set of KPIs and
how they can be used to build any number of scorecards.
Example KPIs
There are many example KPIs that can be tracked, and many of these depend on
the functional area that will be tracking them. Remember that there are likely a set
of KPIs that cover the entire business, but there can be many more of interest to
only one or a few organizations within a company. With that in mind, many people
generally think of KPIs as being financial in nature, so these examples will begin
with some possible financial KPIs and then list a variety of KPIs for additional
functional areas. Naturally there will be some overlap and this list is by no means
complete. Each organization needs to determine the KPIs that make sense for
their business, and this is typically done by creating a strategy map, which will be
discussed later in this chapter.
Financial KPIs
Financial KPIs are often the most common because companies generally track their
finances closely. Some financial KPIs might include:
Sales??”Both in dollars and units
Expenses
Gross Margin
Average Sale??”Both in dollars and units
Cost of Goods Sold (COGS)
Taxes
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
Common dimensions used to examine these KPIs might include:
Time
Product
Customer
C h a p t e r 4 : S c o r e c a r d s a n d K e y P e r f o r m a n c e I n d i c a t o r s 67
GL Account
Employee
Manufacturing KPIs
Manufacturing organizations often place great importance on controls over inventory
and production quality.
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