Key Performance Indicators That Guide Strategic Entrepreneurship

KPIs - Complete Controller

KPI (Key Performance Indicator) -measurable values which demonstrate how efficient a corporation is at attaining key objectives of the business. KPIs are used for the evaluation of success in the attainment of targets.

 KPI must be

  • Well-defined and measurable
  • Well communicated to all departments of an organization
  • Vital to achieving goals.
  • Valid to Line of Business

Financial metrics

  1. Revenue: it is one of the most significant performance indicators to evaluate the success of the organization. Bookkeeping helps you in evaluating revenue. Check out America's Best Bookkeepers
  2. Expenditure: calculate cost-effectiveness to find out the best methods for reduction and managing of costs. Expenses are determined by good bookkeeping practices.
  3. LOB profits vs. objective: it is an evaluation of actual profits and projected profits to identify the performance of a department.
  4. Expenditure Of supplies Sold: evaluate profit margin by calculation of production costs and assess product markup and actual profit margin.
  5. Day transaction Outstanding:  better the accounts receivable, the better is the efficiency of the organization.
  6. Sale by area: analysis of sales area-wide helps in making better strategies in areas where sales objectives are failing to achieve.
  7. LOB operating expense Vs. Budget: comparison of forecasted budget and actual overheads helps in creating an effective budget for the future.

Customer metrics

  1. Client Lifetime Value (CLV): CLV helps determine the value received from a long-term client of the organization. This is useful in keeping the best customers. Check out America's Best Bookkeepers
  2. Client Acquisition Cost (CAC): it helps in evaluating the cost-effectiveness of a marketing campaign.
  3. Client Satisfaction & custody: by making customers happy and satisfied, you encourage them to become permanent customers.
  4. Net Promoter Score (NPS): make a survey quarterly and evaluate the company’s growth for long periods.
  5. Several clients: this is a simple and straightforward KPI like Profit. The number of customers gained or lost determines whether customers’ needs are met or not.

Process metrics

  1. Client Support Tickets: analysis of CPT helps in creating a successful customer service dept.
  2. Percentage Of manufactured goods defect: lesser the number, the better is performed.
  3. LOB effectiveness evaluates: Efficiency is measured by the number of products manufactured in specific periods.

People metrics

  1. Employee Turnover Rate (ETR): high ETR requires investigation and evaluation of packages and organization culture.
  2. Percentage of Response to Open Positions: many applicants indicate that the organization is doing well and that people want to work with you.
  3. Employee Satisfaction: the larger the number of happy employees, the healthier the organization.
  4. Retirement Rate: This is important for developing strategic workforce plans. Check out America's Best Bookkeepers
  5. Knowledge Achieved with Training determines the value of employee training and knowledge enhancement.
  6. Internal Promotions vs. External Hires: this metric is valuable for determining succession planning of the organization.
  7. Salary Competitiveness Ratio (SCR): used to assess the competitiveness of compensation options.

Customer metrics

  1. Customer Churn Rate: determines the percentage of customers who stop purchasing or availing of the service.
  2. Contact Volume by Channel determines the number of customer requests and the method adopted by the customer for communication, i.e., email, phone, or other.
  3. Percentage Of Customers Who Are “Very” Or “Extremely” Satisfied: Determines the opportunity to survey customers’ expectations.
  4. Several New Vs. Repeat Site Visits provides differentiation of prospective clients and website traffic.

Financial metrics

  1. Cash Flow from Financing Activities: demonstrates financial strength.
  2. Average Annual Expenses to Serve One Customer: the average sum required to serve one customer.
  3. EBITDA (Earnings before Interest, Taxes, Depreciation, & Amortization): Formula: (Revenue) – (Expenses Excluding Interest, Tax, Depreciation & Amortization) = (EBITDA).
  4. Innovation Spending: the higher the spending figure, the more the value of innovation in an organization.
  5. (Customer Lifetime Value) / (Customer Acquisition Cost): this value should be greater than one.


Periodic evaluation of KPIs helps make a better strategy for entrepreneurship. It guides in adjusting necessary for growth and expansion.

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