1. Profitability : Net Profit/Working Capital Employed %
e.g. Net Profit before interest and Tax = $200k say.
Working Capital Employed i.e. Net Working Capital (Stocks+Receivables+Cash less Payables) say $1000k
Therefore, Profitability = NP/NWCE =$200/$1000 x100= 20%
2. Productivity : Sales/Employee
e.g. November '06 sales $800k for 20 days - annualised 250/20 = $10M (assume 250 working days pa)
Employees at 30 Nov '06 = 50
Therefore, Sales/Employee ($10m/50) = $200,000
3. Customer Service Index : Service Level %
e.g Take one week of 5 days in November '06 as reference point, measure Order Lines fully Satisfied (OLS) i.e. delivered compared with order lines received (OLR) for delivery in the reference week.
Express as % service level = OLS/OLR x100 say 95%
4. Customer Relationship Mgt (CRM) : MVC Retention Rate%
MVC = Most Valuable Client i.e. spend $500/mo.
Named MVC's spending $500 in January '06
Same-Named customers spending $500 min. in Nov '06
S-N.MVC's in Nov '06/ N.MVC's in Jan '06 x 100 =Retention Rate %
5. Employee Relationship Mgt (ERM) : Retention Rate %
Named employees at 1st January '06
Same-Named employees at 30 November '06.
S-N/ees at 30Nov '06 divided by N/ees at 1 Jan '06 x100 = Retention Rate %.
6. Marketability : Average Order Value, ecommerce %/Sales
Take base reference week of 5 days in November '06, measure total value of orders taken for that week and divide by the number of orders received to reach the average order value.
Ecommerce sales as % of Total sales, for the reference period.
Peter J Frost – 1 Jan 07.
____________________________
|
