Flashcards in 5. Business Measures Deck (13)
Loading flashcards...
1
Balanced Scorecard
P. 55
Organizational metrics into four perspectives:
1. Financial
2. Customer
3. Internal Business Process
4. Learning and Growth
2
Key Performance Indicators
P. 56
Financial and nonfinancial metrics that reflects an organization's key business drivers (KBD), also cretical success factors (CSF)
-Quantitative and measurable
-Goal based
-Strategy based
-Time based
3
SMART (KPI)
P. 56
-Specific
-Measurable
-Achievable yet aggressive
-Relevant
-Time bounded
4
Customer Loyalty Metrics
P. 59
-Customer referrals
-Customer abandonment rate (customer churn)
-Customer retention rate
-Customer renewal rate
-Repeat customer
-Share of wallet (loyalty of other product)
5
Lagging Indicators
P. 60
Indicator follows an event, after the fact.
6
Leading Indicators
P. 60
Indicator predicts or infers a future event.
7
Common Financial Measures
P. 62
-Percent profit margin (net profit / net sales)
-Percent gross margin (gross profit / net sales)
-Percent operating margin (operation profit / net sales)
-Percent net margin (net profit / net sales)
8
Net Present Value
P. 64
PV= F (1 + i)^ -n
F- Amount to be received n periods from now
i- Annual interest rate expressed as a decimal
9
ROI
P. 65
Income - Cost / Cost (%)
10
Cost-Benefit Analysis (CBA)
P. 65
SUM NPV all benefits anticipated / SUM NPV of all costs anticipated = benefit per dollar expended
11
Cost of Quality (removed)
P. 67
-Appraisal costs (inspection)
-Prevention costs
-Internal failure costs
-External failure costs (while customer owns the product)
12
Hard Dollars (cost savings)
P. 69
-A prior baseline of spending must be established
-The dollars must have been planned and in the budget
-Cost saving must affect bottom line
1. Cost take out
2. Revenue Growth
3. Working capital / cash flow
13
