Why Performance Metrics Are Used and Why Different.pptx

Importance of Performance Metrics not single but use multiple aspects of performance.

1. Why Performance Metrics Are Used and Why Different Types Are Used Instead of a Single One?? Understanding the Importance and Diversity of Performance Metrics. PRESENTED BY:- DHEERAJ SHARMA

2. INTRODUCTION Definition: Quantitative measures used to evaluate and track the performance of an organization, department, or process . Purpose : To provide objective data that informs decision-making, Provide Broader Overview and Detailed Data points on selective Objective. Track the Activities, Behavior and Capabilities.

3. Importance of Performance Metrics Helps in goal setting and tracking progress. Identifies areas of improvement Facilitates strategic planning Enhances accountability and transparency Decision Making Resource Allocation Motivation Goal Alignment

4. Types of Performance Metrics Financial Metrics: Revenue, profit margins, ROI Operational Metrics: Efficiency, productivity, quality, Mean time repair. Importance : Reflects efficiency and effectiveness of operations. Customer Metrics: Satisfaction, retention, Net Promoter Score Employee Metrics: Engagement, turnover, performance

5. Why Not Use a Single Metric? Complexity of business environments Different aspects of performance to measure Avoiding the risk of a narrow focus Ensuring a balanced view

6. Why Use Multiple Metrics? Different aspects of performance Comprehensive evaluation Reducing bias and error

7. CASE STUDY ON AMAZON TO UNDERSTAND PERFORMANCE METRICS KRAs (OBJECTIVES) KPIs (CRITICAL METRICS /MEASUREMENT OF OBJECTIVES ) PERFORMANCE METRICS (BRODER VIEW,DETAILED DATA POINTS,COMPREHENSIVE ANALYSIS ) Customer Satisfaction. Operational Efficiency. Revenue Growth. Customer Satisfaction Score. Order Processing Time. Annual Revenue Growth Rate. 1.Customer Service Response Time. 2. Return Rate. 3. Product Review Score. 4.Cost Per Order. 5.Monthly Sales Figure. 6.Geographical Revenue Distribution. 7.Fullfiment Accuracy.

8. CHARACTERSTICS OF PERFORMANCE METRIC Relevant Understandable Measurable Actionable Timely Comparable Balanced Consistent Integrated

9. Thank You