Types of Business Performance Indicators

KPIs are key performance indicators. Adjusting the management system according to KPIs is based on the likelihood of achieving the main business goal due to the performance indicators of employees in different departments.
Types of Business Performance Indicators
Key Performance Indicators (KPIs) are numerical values or metrics that help companies measure how well they are achieving their goals and provide insights into which areas can be improved to maximize profits.
Considering the diversity of organizations and the principles and specific goals of the business, we can mention a large number of existing KPIs that can be used in management accounting for the analysis of dynamics. Key performance indicators (KPIs) can be classified according to various criteria, but the main ones will always be considered: ● Area of activity;
● Functional business areas;
● Strategic goals of the company.
All indicators used to assess the effectiveness of corporate management can be conditionally divided into groups according to their value.
Financial KPIs include indicators that allow the analysis of:
● Cost of orders;
● Liquidity ratio;
● Turnover of assets;
● Profitability;
● Ratio of assets to liabilities;
● Net income per share;
● Net profit.
Operational KPIs provide information about the efficiency of equipment use. For analysis, it is worth obtaining the following values:
● Production cost per unit of production;
● Share of failures or production defects (share, percentage);
● Production volume;
● Duration of the production cycle.
Project indicators are related to the specific goals of the project and testify to the effectiveness of the implementation of the entire project and its individual parts.