Business Performance Management

#002 The basic equation: Cost per Order (CPO)

Klaus D Goepel — Sat, 07 May 2011 15:34:00 +0800

Looking at the key ratio cost per order (CPO) helps to get a better understanding of the overall performance of a company. It also allows to compare different organizations working in a similar business area. This indicator can be used to evaluate and monitor the operational efficiency.

#003 The basic equation: Profit per Cost (PPC)

Klaus D Goepel — Thu, 19 May 2011 09:30:00 +0800

With Profit per Cost (PPC) we introduce another important financial key ratio. Cost per order (CPO) together with profit per cost (PPC) let you calculate the required gross margin percentage (GMP) and the profitability (PR). Vice versa, with a given gross margin and a targeted profitability, you can estimate the CPO and PPC.

#004 Profit per Cost and Order Income

Klaus D Goepel — Sat, 4 Jun 2011 16:00:00 +0800

Profit per Cost (PPC) is related to order income. Any variation of actual order income from planned order income will have an impact on the operational result. PPC is the key ratio that allows a simple calculation, how much deviation from the planned order income target will result in operational losses for the business.

#005 Order Income Variations

Klaus D Goepel — Mon, 20 Jun 2011 09:00:00 +0800

In business we always have to live with uncertainties and risks.In this video we will investigate some of the risks due to order income variations, and discuss how we can make them measurable to adapt our planning accordingly.

#006 Setting up a small Business

Klaus D Goepel — Sat, 16 Jul 2011 22:30 +0800

When you plan to setup your own business, many questions will come up. How to do the planning? How much can I charge to the customer? How many orders do I need? What are the risks involved? In this presentation we will answer these questions using the key ratios we have introduced before. With a simple flow diagram the planning process is explained step by step.

#007 Order Income per Headcount Sales

Klaus D Goepel — Sat, 20 Aug 2011 17:00 +0800

Any business needs sales activities to get orders from potential customers. Often you have dedicated sales people in an organization, promoting and selling your products or services to customers. But how much order income should each sales person achieve? What is the minimum required, what is the maximum possible? We introduce a new key performance indicator Order Income per Headcount Sales

#008 Value Add and Local Content

Klaus D Goepel — Sat, 20 Aug 2011 17:00 +0800

Operating a sales company, the gross margin percentage is often given by the reseller discount you are getting from your suppliers. If you want to increase profitability you could provide value added services with your products, for example maintenance contracts, on-site installations etc. In this presentation we will introduce the key ratios Value Add Percentage VAP and Profitability Value Add PRVA.

#009 Fixed and Variable Operating Expenses

Klaus D Goepel — Mon, 24 Oct 2011 18:00 +0800

The operating expenses of a company have a high impact, not only on the companies result, but also on other parameters, like profit per costs and minimum order income to be achieved. Even the same operating result and profitability of two companies could be of a different quality, because of different relations in fixed and variable expenses. In this presentation two performance indicators will be developed to monitor these important differences.

#010 The Dashboard

Klaus D Goepel — Sun, 4 Dec 2011 14:00 +0800

A dashboard is the panel of instruments and controls facing the driver of a vehicle. Driving a companies business, a dashboard should give you a condensed summary, which allows you to recognize critical areas and take actions to keep the business moving in the right direction - provided you know your destination.

#011 Combined Performance Indicators

Klaus D Goepel — Wed, 4 Jan 2012 18:30 +0800

In order to limit the number of KPIs, and maintain clarity and conciseness of a dashboard, sometimes it might be useful, to combine a set of performance indicators into one single key performance indicator. This presentation will show, step-by-step, how you can build up a combined performance index. It also gives an example how to implement this concept in an Excel spreadsheet.

#012 Analytic Hierachy Process

Klaus D Goepel — Wed, 7 Mar 2012 18:30 +0800

AHP stands for Analytic Hierarchy Process. It is multi-criteria decision making method, originally developed by Prof. Thomas L. Saaty. AHP derives ratio scales from paired comparisons of criteria, and allows for some small inconsistencies in judgments. You can use AHP to evaluate product features, to make a selection from strategic alternatives, to select a set of key performance indicators, or to make consolidated decisions with multiple inputs from different stakeholders.

#013 Strategic and Operational Business Performance

Klaus D Goepel — Sun, 15 Apr 2012 16:30 +0800

Decisions can have a short- or long-term impact; they can be strategic or operational. Measuring strategic or operational performance might require a different set of key performance indicators (KPIs). You need both: Operational KPIs help to measure the short term performance of an organization, strategic KPIs help to measure the implementation of a long term strategy. This video explains the differences using the picture of driving a car.

#014 Diversity Index as Business KPI

Klaus D Goepel — Thu, 18 Oct 2012 08:20 +0800

The mathematical concept of diversity has many applications, ranging from ecology over demography to information science. In the context of business performance diversity indices can be used as key performance indicators (KPIs) to analyze markets, define targets for diversification, and track the success of derived business actions.

#015 Alpha and Beta Diversity

Klaus D Goepel — Sun, 05 May 2013 15:30 +0800

Diversity can be partitioned into two independent components: alpha and beta diversity. This video explains the concept of alpha and beta diversity using a simple example. It helps to understand beta diversity as a measure of variation (similarity and overlap) between different samples of data distributions, and gives some practical applications in the field of business analysis.

#016 Business Performance Management Introduction 2013

Klaus D Goepel — Wed, 15 May 2013 08:05:00 +0800

Welcome to a series of video presentations about business performance