Key Performance Indicators

System
System Posts: 100,534 🤖 Admin 🤖
edited June 9 in AAT member discussion
I work for a property/construction company. I want to introduce new Key Performance Indicators such as ratio's, not the usually current ratio or GP margin but something creative.

Can anyone suggest anything ?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Key Performance Indicators

    You seem to infer you've been using the accounting ratios alot.

    Perhaps you can try getting into the more finance related indicators such NPV's, payback periods, internal rate of return etc. I guess thats only an option if you can segment your work into specific projects however and is considerably more work.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Key Performance Indicators

    What ratios do you use at the moment and what sort of place do you work on (construction is quite a large field) - give us something to go on!

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Key Performance Indicators

    We are a property regeneration company, involved in refurbing derlict buildings into residential/commcercial space. The ratio's currently used are Internal rate of return and NPV.

    Im looking for creative ratios or overhead analysis tools, anything that does not need to be specifically for a construction company but can be used to monitor/control costs. Someone suggested measuring the £ per sales versus £ spent on advertising ?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Key Performance Indicators

    ok maybe my first suggestion was crap ive been doing to much academic stuff lately. Lets see if I can embarass myself again:

    staff to sales/overhead etc
    staff turnover
    retruns to sales (in your case failed initiated sales)
    sales (units) to turnover
    asset tunover (sales to fixed assets/net assets)
    stock turnover (days or times)
    debtors turnover (days or times)
    creditors tunover (days or times)
    admin expenses to sales/cost of sales
    distribution expenses to sales/cost of sales
    Standard costing (obvi0usly)
    Activity Based Costing (obviously)
    Zero based budgeting
    Life cycle costing
    Profitability Index (PV of future cashflows divided by capital outlay)
    Accounting Rate of Return (ARR)
    Return On Investment (ROI)

    Anyway most are probably of no use to you or what you are looking for but maybe it will provoke an idea of your own.

    Adrian


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