Practical guide how to use KPIs to understand & manage a business
Most businesses on the face of it look very complicated and difficult to understand. On top of that the competition is so fierce that you have to take decisions based on data and not on gut feeling (a very misleading creature). That’s why it’s crucial to define and understand the main drivers and metrics measuring those drivers. If you have properly defined Key Performance Indicators (KPIs) you can understand the mechanism behind any business, you will be able to model it in Excel and you will know how to grow it or improve it. You can also use properly defined KPIs to manage people efficiently, give them goals aligned with your goals. That’s why I have decided to create a course solely concentrated on this KPIs.
This course will give you the knowledge and insight into drivers and KPIs used in different business models that can be used for understanding the business, managing it, motivating people and improving results. The course will make your life during a consulting project much easier. If you are already a manager thanks to this course you will learn how to use the KPIs to understand and grow your business.
This course will help you drastically improve your knowledge and skills in understanding and improving your business using KPIs. It is designed for management consultants and newly appointed managers that want to excel at their work. In the course you will learn 6 things:
1. How to understand the business through KPIs
2. How to use KPIs to model the business in Excel
3. How to use KPIs to manage the business
4. How to use KPIs to motivate people
5. How to use KPIs to improve the business
6. What is a good KPI
For more check my course: http://bit.ly/KPIsCourse
2. 2
Management consultants are brutally efficient
Only things that are measured get managed. That it’s
why it is vital for every business to have well defined
KPIs
3. 3
You will learn in this presentaiton how to use
KPIs to understand and manage your
business
5. 5
Introduction
How to understand the
business through KPIs
How to construct a great
KPI?
How to model the
business in Excel using
KPIs
How to use KPIs to
manage a business?
How to use KPIs to
motivate people?
The presentation consist of 6 sections
7. 7
KPIs for Management Consultants and
Business Analysts
$190
$19
What you will see in this presentation is a part of my online course where you
can find case studies showing analyses along with detailed calculations in Excel
Click here to check my course
8. 8
To get the most out of the presentation please try to solve the problem
sets / cases studies on your own before going to the solution
Problem set / Case
study
Pause the course and
solve the problem on
your own
Go to next lecture
where you will find the
step by step solution to
the problem set
11. 11
Quite often you don’t understand the business. To achieve better
understanding you have to define the drivers of this business and proper KPIs
# transactions
Average
revenue per
transaction
Total revenuex
% Fee of the
marketplace
Average
transaction value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors
to searches
Average cost of 1
visit
+
x
Development
12. 12
KPIs help you manage the drivers of your business model
Define Strategy
Pick the Business
Model
Identify drivers Define KPIs Set targets for KPIs
13. 13
In this section we will talk about 3 things
Short example on drivers
and KPIs
Overview of business
models
Cases showing KPIs for
different busines models
15. 15
To understand and analyze business you have to identify the drivers / KPIs
that a key for specific business and translate it into a model in Excel
# transactions
Average
revenue per
transaction
Total revenuex
% Fee of the
marketplace
Average
transaction value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors
to searches
Average cost of 1
visit
+
x
Development
16. 16
Imagine that you have to estimate typical family spending's. You can take
into account countless number of factors…..
17. 17
…or you can limit yourself to the most important ones i.e. number of kids,
size of house, main repetitive spending like food.
18. 18
To measure the selected factors you have to use some sort of KPIs
Spending per 1
person per month
per category
# of people in
average family
Average size of the
house in sq. m
Average rent per
sq. m
20. 20
SaaS
E-commerce
Media site
2-sided market
User Generated Content
Mobile Applications
Retail
B2C Service
B2B Service
FMCG
SMCG
Commodity
There are 6 offline business models and 6 online models. Every
business model has its set of KPI
22. 22
In this section you will see how to define KPIs for different business
model
KPIs for a cinema KPIs for a marketplace KPIs for a retailer
KPIs for a SaaS KPIs for a restaurant
KPIs for a consulting
business
KPIs for a FMCG business KPIs for a SMCG business KPIs for an e-commerce
24. 24
Imagine that you were responsible for managing the cinema. What KPIs
metrics you would look at to see whether you are doing a good job?
25. 25
Let’s see what KPIs you should look at
# sold tickets
Average revenue
per Ticket
Total revenue Total Costs
x
Total margin
-
Average price per
ticket
Average additional
purchase per ticket
Total capacity in
tickets
% Utilization
Rent
People
# of People
Average wages
+
+
x x
# of sq. m
Fee per sq. m x
27. 27
Imagine that you were responsible for managing a marketplace for patients
and doctors (i.e. Docplanner). What KPIs you would look at?
Patient DoctorMarketplace
• On-line booking
• Reviews
• Statistics for doctors
29. 29
Let’s see what KPIs you should look at
# transactions
Average revenue
per transaction
Total revenue
x
% Fee of the
marketplace
Average transaction
value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors to
searches
Average cost of 1
visit
+
x
Development
30. 30
Let’s see what KPIs you should look at
# transactions
Average revenue
per transaction
Total revenuex
% Fee of the
marketplace
Average transaction
value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors to
searches
Average cost of 1
visit
x
Development
Cost of acquiring
partners
# of Suppliers that
have to be acquired
Cost of Acquirng 1
supplier
x
+
32. 32
Imagine that you are responsible for managing a SaaS offering mailing
What KPIs you would look at?
33. 33
Before you move on to the solution just a quick info on the flow of
customers in SaaS
Visitor
Freemium / Trial User
Paid User
Engaged Heavy
User
Ambassador
Conversion
35. 35
Just as a reminder you are responsible for managing a SaaS offering mailing
What KPIs you would look at?
36. 36
Let’s see what KPIs you should look at
# of customers
Average revenue
per customer
Gross Margin
x
% Fee of customer
buying Plan A….
Average price per
Plan A….
# of customers in
the previous period
Net change of
customers
x
-
Total Costs
Total profit
-
Rent
People
Cost of acquiring
customers
+
Development
Customers lost
New customers
Churn rate
CAC per 1 customer
x
-
38. 38
Imagine that you have to define KPIs for a salad fast food restaurant chain
100 location in Easter
Europe
Fast food for salads
Each and every restaurant
is roughly the same size
40. 40
Let’s first look how we could model 1 restaurant
# Guests
Average Purchase
per Guest
Average revenue
per restaurant
Total restaurant
costs
x
Average EBITDA per
restaurant
Average Purchase
per Guest of basic
purchase
Average Purchase
per Guest of
additional purchases
# available seats
per day
% Utilization
Rent
People
# of People
Average wages
+
x
x
Others
+
# of sq. m
Fee per sq. m x
% Gross Margin on
food & drinks
Average Gross Margin
per restaurant
x -
41. 41
Now let’s model the whole chain
EBITDA on
restaurant’s level
Rent
People
# of People
Average wages
x
Others
+
# of sq. m
Fee per sq. m x
Head Office Costs
Total EBITDA
-
# of restaurants
Average EBITDA per
restaurant
x
43. 43
Imagine that you have to define KPIs for a salad fast food restaurant chain
100 location in Easter
Europe
Fast food for salads
Each and every restaurant
is roughly the same size
44. 44
Now lets’ look at drivers and pick the best KPIs
# of Guests % Utilization
Average Purchase
per Guest
% Gross Margin
(1+ LFL / same store
growth)
Net change in the #
of restaurants
# of Guests in
thousands
% Utilization = # of
Guests / Available
Seats
Average Purchase
per Guest
% Gross Margin
LFL growth to last year
/ previous period
Net change in the # of
restaurants
% change in # of
guest to last year or
previous period
Change in percentage
points in % utilization
% change in Average
Purchas to last year /
previous period
Change in percentage
points in % Gross
Margin to last year
Net change in
revenues
Change in percentage
points in % Gross
Margin to Plan
45. 45
Now lets’ look at drivers and pick the best KPIs
Cost position level
Cost position to
sales
% increase in cost
level vs last year /
previous period
% increase in cost
level to % increase
in sales
Food inventory
level
Food inventory in
Days of Sales
% of food thrown
away
Profitability
% EBITDA
% Gross Margin
% EBITDA on
restaurant level
47. 47
Imagine that you are working for a retailer based in Easter Europe
The market is growing organically
The retailer is opening a lot of new
stores
The have e-commerce
49. 49
Let’s first look how we could model 1 store
# Transactions
Average Value
Transaction
Total store revenue Total store costs
x
Store EBITDA
Average Value
Transaction of basic
purchase
Average Value
Transaction of
additional purchase
# of Visitors % Conversion
Rent
People
# of People
Average wages
+
x
x
Others
+
# of sq. m
Fee per sq. m x
% Gross Margin
Gross Margin generated
by the store
x -
51. 51
Now let’s model the whole retail chain
# of stores –
current period
Average Sales per 1
store – current
period
Total Revenues Total store costs
x
EBITDA on stores level
Average Sales per 1
store – previous
period
(1+ LFL / same store
growth)
# of stores –
previous period
Net change in the
number of stores
Rent
People
# of People
Average wages
x
+
x
Others
+
# of sq. m
Fee per sq. m x
% Gross Margin
Gross Margin generated
by the store
x -
52. 52
Now let’s model the whole retail chain
EBITDA on stores
level
Rent
People
# of People
Average wages
x
Others
+
# of sq. m
Fee per sq. m x
Head Office Costs
Total EBITDA
-
53. 53
Now lets’ look at drivers and pick the best KPIs
# of Visitors % Conversion
Average
Transaction Value
% Gross Margin
(1+ LFL / same store
growth)
Net change in the
number of stores
# of Visitors in
thousands
% Conversion
Average
Transaction Value
% Gross Margin
LFL growth to last
year / previous
period
Net change in the
number of stores
% change in # of
visitors to last year
or previous period
Change in
percentage points
in % conversion
% change in ATV to
last year / previous
period
Change in
percentage points
in % Gross Margin
Net change in
revenues
54. 54
Now lets’ look at drivers and pick the best KPIs
Cost position level
Cost position to
sales
% increase in cost
level vs last year /
previous period
% increase in cost
level to % increase
in sales
Inventory Level
Inventory level in
Days of Sales
Average sell-
through ratop at
first price
Dead weight stock
as % of sales
Profitability
% Gross Margin
% EBITDA on store
level
% EBITDA
Cash Generation
EBITDA to debt
ratio
Cash generated to
EBITDA
Dead weight stock
as % of all
inventory stock
56. 56
Imagine that you have to define the KPIs for a mid-size consulting firm
It’s a partnership structure
They charge customer by the hour
sold
They have fixed number of
consultants
58. 58
Consulting is a service business. The typical model of a service
model can be presented using the following logic
% Utilization# hours
available
# of billable
hours
Revenues
Gross
Margin
Operational
Profit
Net Profit
Hourly fee
HQ costs Bonuses
Interest
% Gross
Margin
Wages
60. 60
Just as a reminder you have to define the KPIs for a mid-size consulting
firm
It’s a partnership structure
They charge customer by the hour
sold
They have fixed number of
consultants
61. 61
Below the main drivers for the consulting business model
# of billable hours
Average fee per
hour
Total Revenues Total Costs
x
Basic fee per hour Surcharge
Hours available % utilization
Rent
People
# of People
Average wages
x
x
x
Others
+
# of sq. m
Price per sq. m x
Operating profit
-
62. 62
Now lets’ look at drivers and pick the best KPIs
Hours available % utilization
Average fee per
hour
Pipeline New customers New products
Man-hours in
thousands
% utilization
Average fee per
hour
Value of potential
projects
Man-hours in
thousands from new
customers
Man-hours in
thousands from new
products
# of consultants
Change in
percentage points
in % utilization
% increase to basic
fee per hour
# of potential
billable hours from
potential projects
Net change in
revenues
Revenues from new
customers
Revenues from new
customers as % of all
revenues
64. 64
Imagine that you have to define KPIs for a cosmetics producers.
2 brands. 1 stong in Poland
the other in Romania.
No e-commerce.
Penetration in some regions
is stronger than in others.
66. 66
The FMCG business model is driven by some basic KPIs
# sold
Unit production
cost
Gross Margin Head office
Operational profit
Fixed Cost /
Quantity produced
Unit variable cost
+
Cost of sales &
marketing
Net Margin
-
-
Average price
Unit Gross Margin
-
x
Market share Market size
68. 68
Imagine that you have to define KPIs for a cosmetics producers.
2 brands. 1 stong in Poland
the other in Romania.
No e-commerce.
Penetration in some regions
is stronger than in others.
69. 69
Now lets’ look at drivers and pick the best KPIs
# sold Unit Gross Margin
Cost of sales &
marketing
Brand awareness New products Reach
# of pieces sold
Gross Margin per
piece sold
Cost of sales &
marketing as % of
Sales
Top of the mind
brand awareness
% of sales generated
by new products
Weighted
distribution
% Market share % Gross Margin % Net Margin
Supported brand
awareness
Numeric distribution
Average price sold
% Discount given to
retail chains
NPS score
% of Net Margin
generated by new
products
70. 70
Now lets’ look at drivers and pick the best KPIs
Cost position level
Cost position to
sales
% increase in cost
level vs last year /
previous period
% increase in cost
level to % increase
in sales
Working capital
Level
Inventory level in
Days of Sales
Receivables level in
Day of Sales
Payables in Days of
Production
Profitability
% Gross Margin
% Net Margin
% EBITDA
Cash Generation
EBITDA to debt
ratio
Operational cash
flow to EBITDA
Dead weight stock
as % of all
inventory stock
Dead weight stock
as % of sales
Capex to EBITDA
72. 72
Imagine that have to define KPIs for a smartphone producer
He operates in Easter Europe
Products are sold to mobile phone
operators and end customers
His customer use the product for 2
years on average
74. 74
The SMCG business model is driven by some basic KPIs
# sold
Unit production
cost
Gross Margin Head office
Operational profit
Fixed Cost /
Quantity produced
Unit variable cost
+
Cost of sales &
marketing
Net Margin
-
-
Average price
Unit Gross Margin
-
x
Market share Market size
76. 76
Imagine that have to define KPIs for a smartphone producer
He operates in Easter Europe
Products are sold to mobile phone
operators and end customers
His customer use the product for 2
years on average
77. 77
Now lets’ look at drivers and pick the best KPIs
# sold Unit Gross Margin
Cost of sales &
marketing
Brand awareness New products Reach
# of smartphones
sold
Gross Margin per
piece sold
Cost of sales &
marketing as % of
Sales
Top of the mind
brand awareness
% of sales generated
by new products
Weighted
distribution
% Market share % Gross Margin % Net Margin
Supported brand
awareness
Numeric distribution
Average price sold
% Discount given to
retail chains
NPS score
% of Net Margin
generated by new
products
78. 78
Now lets’ look at drivers and pick the best KPIs
Loyalty base
End-customer
share
# of registered
customers
% share of
revenues generated
by end-customers
% of registered
customer that re-
bought phone
% share of Net
Margin generated
by end-customers
% of phones sold
directly to end-
users
Cost position level
Cost position to
sales
% increase in cost
level vs last year /
previous period
% increase in cost
level to % increase
in sales
Working capital
Level
Inventory level in
Days of Sales
Receivables level in
Day of Sales
Payables in Days of
Production
Profitability
% Gross Margin
% Net Margin
% EBITDA
Cash Generation
EBITDA to debt
ratio
Operational cash
flow to EBITDA
Dead weight stock
as % of all
inventory stock
Dead weight stock
as % of sales
Capex to EBITDA
82. 82
The commodity business model is driven by some basic KPIs
# sold
Unit production
cost
Gross Margin Head office
Operational profit
Fixed Cost /
Quantity produced
Unit variable cost
+
Cost of sales &
marketing
Net Margin
-
-
Average price
Unit Gross Margin
-
x
Customer
catchment area
Supplier
Catchment
Area
84. 84
Imagine that you have to define KPIs for a plywood producer
3 plants
Wood supplies done by
independent suppliers
Sales done via
wholesalers
85. 85
Now lets’ look at drivers and pick the best KPIs
# sold Unit Gross Margin
Cost of sales &
marketing
New products
Added value
products
# of m3 sold
Gross Margin per
piece sold
Cost of sales &
marketing as % of
Sales
% of sales generated
by new products
% of sales generated
by added value
products
% Utilization of
production
capacity
% Gross Margin % Net Margin
% of Net Margin
generated by added
value products
Average price sold
% Discount given to
retail chains
% of Net Margin
generated by new
products
Pipeline
# of months for
which we have sold
the production
# of m3 booked for
the next months
86. 86
Now lets’ look at drivers and pick the best KPIs
Cost position level
Cost position to
sales
% increase in cost
level vs last year /
previous period
% increase in cost
level to % increase
in sales
Working capital
Level
Inventory level in
Days of Sales
Receivables level in
Day of Sales
Payables in Days of
Production
Profitability
% Gross Margin
% Net Margin
% EBITDA
Cash Generation
EBITDA to debt
ratio
Operational cash
flow to EBITDA
Dead weight stock
as % of all
inventory stock
Dead weight stock
as % of sales
Capex to EBITDA
90. 90
The e-commerce business model is driven by some basic KPIs
# Transactions
Average Value
Transaction
Total revenues
Selling, General &
Administrative costs
x
EBITDA from e-
commerce
Average Value
Transaction of basic
purchase
Average Value
Transaction of
additional purchase
# of Visit % Conversion
Cost of Acquiring Traffic
Logistics costs
# of delivered parcels
Cost per 1 parcels
+
x
x
Others
+
# of paid visits
Cost per 1000 visits x
% Gross Margin
Gross Margin generated
by e-commerce
x -
People in the Head -
office & Development
92. 92
Imagine that you have to define KPIs for a e-commerce player selling mainly
fashion products
3 e-commerce stores
6 markets
No physical stores
93. 93
KPIs for Management Consultants and
Business Analysts
$190
$19
For more details and content check my online course where you can find case
studies showing analyses along with detailed calculations in Excel
Click here to check my course
96. 96
In this section we will talk about the following issues
The definition of a good KPI Vanity Metrics SMART KPIs
Alignement of KPIs Cascading KPIs Leading vs Lagging KPIs
Input KPIs vs Output KPIs Proxy KPIs
How to set the value for
KPIs
98. 98
A good KPIs has certain characteristics
It’s not vanity metric
It’s SMART
Assigned to specific person
or a team
You use it to manage /
motivate and take
decisions
KPIs are alligned in the
organization with main
business goals
You report and analyze it
on regular basis
Influence your bonus
The person knows the KPI
and can influence it
100. 100
Vanity metrics are extremely dangeours for your business
Metrics designed to be impressive yet not
actionable or relevant to the goal of the business.
Can be easily manipulated
Don’t move your business into the right direction /
you are wasting your effort on the wrong things
Vanity metrics =
101. 101
Let’s have a look at 2 examples
Vanity
Metrics
# of followers
Facebook page
# of total customers
SaaS business
Better
Metrics
Engagemnet Level i.e. Counted as a sum of
likes, comments, shares, other reaction
Engagement rate = Engagement level / # of
followers
Net gained customers for a given period (# of
customers gained - # of customer lost)
% Growth of net customers = Net gained
customers / # of customers at the begining of
the period
103. 103
As we said the KPIs have to be S.M.A.R.T. We will explain what it means
in practice in the next lectures
SMART goals
How to apply SMART
methodology to KPIs –
general rules
How to apply SMART
methodology to KPIs –
example
105. 105
S
M
A
R
T
Specific – target a specific area for improvement
Measurable – it has to be quantifiable; you have to have a way of measuring it
Assignable – it says who will do it
Realistic – it can be delivered
Time-related – it says when it has do be delivered / by which dates
The SMAR formula translates to 5 rules you should use when
defining the goals
106. 106
Goals for ordinary tasks Goals for skills
Avoid vague tasks
Always for projects set deliverables, dates and
responsible persons
Merge the task with the goal on the to-do list and set
the right pace to a achieve the goal within the defined
time
Set goals for improving your skills
Set goals for learning new things
Set goals for making the repetitive things faster and
better
SMART goals should be set for the task but also for skills
107. 107
Imagine that you want to write a book. Let’s translate it into
task with SMART goals
Imagine that you
want to write a book
Define the size
of the book and
deadline
Divided into
small tasks
Make the tasks
SMART
Set the pace and
execute
200 pages
1 page = 800
characters
Time= 1 year
Write pages Write 1 page
every day
Measure every
week completion
rate against the
target (1
page/day=7
pages/week)
If necessary act
to keep the pace
108. 108
By comparing your results and benchmarks you can decide
what to improve, work on
Internal
Learn
Spanish
Speed of
typing
Area Unit
Current
result
Level
words/
minute
0
40
n/a
39
External
Intermediate
80
Sing-in the course
Listen to Spanish TV 30 minutes
every day
Enroll into a on-line course
Devote 15 minutes every day to
training
Target
Intermediate
in 2 years
Achieve 60
words/minute
In 3 months
Actions
109. 109
Map your skills, experience, skills and set goals where you
want to be
Sales projects
Experience
1
# of projects
Current Target
4
Industry
Current Target
Marketing projects 2 6
Supply chain projects 2 2
Production projects 3 3
HR projects 0 1
Excel
Skills Lowest Level Highest level
Negotiation
English
Optimizing production
Setting up on-line
marketing campaigns
111. 111
S
M
A
R
T
Specific – target a specific area for improvement
Measurable – it has to be quantifiable; you have to have a way of measuring it
Assignable – it says who will do it
Realistic – it can be delivered
Time-related – it says when it has do be delivered / by which dates
As we previously said the SMART rule is not only great for goals
setting but also for defining KPIs
112. 112
S
M
A
R
T
Specific – targets a specific area, is well defined (by some formula), we know what is the
source of data for calculation and who will calculate it. We specify the units and dimensions
of KPI
Measurable – it has to be quantifiable; you have to have a way of measuring it preferably
described with a mathematical formula
Assignable – it says who is responsible for delivering the results that the KPI describes. This
person / team can impact the level of KPIs – has the power and resources to do that
Realistic – it can be delivered
Relevant – it is linked to the main goals of the business
Time-related – it says for which period it is calculated, when it has do be calculated/ by
which dates
Let’s first modify a little bit the definition
114. 114
S
M
A
R
T
Specific
Measurable
Assignable
Realistic
Relevant
Time-related
Let’s first modify a little bit the definition
Churn Rate
Churn rate on revenues, calculated by Baremetrics using our financial data at the
end of every month
Calculated in percentage in reference to the revenues from the previous period
Expressed in percentage
(Net revenue from new customers+ Net additional revenue from current
customers i.e. from upgrades – Net revenue lost due to the loss of customer)
Net revenue from the previous period
Responsible for the level of the churn rate is the Growth Team that is responsible
not only for acquisition but also retention
The main goal of the firm is the EBITDA that heavily depends on churn rate. The
smaller the churn rate the bigger the EBITDA
The churn rate can be calculated automatically on daily basis
116. 116
Alignment is extremely important. Here we will discuss what it is
Alignment is arrangement in a straight line, or in correct
relative positions
For business it means that the goals are connected in the
proper manner and actions are coordinated
For a KPI it means that it is aligned with strategy /
strategic goals. Such a KPI shows you whether you are
closer to archiving those goals
KPIs should be also aligned between each other
Alignment of KPIs =
117. 117
Let’s imagine that you wanted to check whether there is an alignment
between business goals and KPIs given to board members
Market Capitalization
Operational Cash flow
Low Debt Level
118. 118
Let’s see at KPIs for the board of Directors
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
Sales Value Sales Value
Market Share
# of products introduced Cost per unit
Market Capitalization
120. 120
Just as reminder you were to check whether there is an alignment
between business goals and KPIs given to board members
Market Capitalization
Operational Cash flow
Low Debt Level
121. 121
Let’s see at KPIs for the board of Directors
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
Sales Value Sales Value
Market Share
# of products introduced Cost per unit
Market Capitalization
122. 122
Let’s see whether we can define more aligned KPIs for Board Members
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
EBITDA
% Gross Margin
Receivables in Days of Sales
Inventory in Days of Sales
EBITDA
Market Share
Brand Awareness
NPS on our brand
EBITDA created by new
products (for the last 3
years)
% growth of sales on new
products
EBITDA on products created
in our own factories
Inventory in Days of Sales
Payables in Days of
Production
% EBITDA
Market Capitalization
EBITDA
Debt to Equity
Operational Cash flow to
EBITDA
Market Capitalization
Operational Cash flow
Low Debt Level
124. 124
When you look at the structure you have delegation of work and
cascading of responsibility. In the same way you have to define KPIs
Director
CEO
DirectorDirector Director
Manager ManagerManager Manager
Specialist SpecialistSpecialist Specialist
KPI A
Business
Goal
KPI CKPI B KPI D
KPI B.1. KPI B.3KPI B.2. KPI B.4.
KPI B.3.1. KPI B.3.3.KPI B.3.2. KPI B.3.4.
125. 125
Imagine now that you were to define the KPIs for the Operations
department
You have the KPIs for
Board of directors
You have to define the
KPIs for Directors
126. 126
Previously we have defined the following KPIs for Board Members
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
EBITDA
% Gross Margin
Receivables in Days of Sales
Inventory in Days of Sales
EBITDA
Market Share
Brand Awareness
NPS on our brand
EBITDA created by new
products (for the last 3
years)
% growth of sales on new
products
EBITDA on products created
in our own factories
Inventory in Days of Sales
Payables in Days of
Production
% EBITDA
Market Capitalization
EBITDA
Debt to Equity
Operational Cash flow to
EBITDA
127. 127
Now try to define KPIs for lower level directors
Sales 1
CEO
Marketing 1 R&D 1 COO 1
Production Director 1 Logistics Director 1 Purchasing Director 1
Production
Employees
150
Maintenance
Employees
50
Production
Planning
7
Warehouse
Employees
60
Coordination
Center
8
Buyers 15
Purchasing
Planning
7
EBITDA on products created
in our own factories
Inventory in Days of Sales
Payables in Days of
Production
% EBITDA
Market Capitalization
EBITDA
Debt to Equity
Operational Cash flow to
EBITDA
129. 129
Just as a reminder you were to define the KPIs for the Operations
department
You have the KPIs for
Board of directors
You have to define the
KPIs for Directors
130. 130
We were supposed to do it on the bases of KPIs for COO
Sales 1
CEO
Marketing 1 R&D 1 COO 1
Production Director 1 Logistics Director 1 Purchasing Director 1
Production
Employees
150
Maintenance
Employees
50
Production
Planning
7
Warehouse
Employees
60
Coordination
Center
8
Buyers 15
Purchasing
Planning
7
EBITDA on products created
in our own factories
Inventory in Days of Sales
Payables in Days of
Production
% EBITDA
Market Capitalization
EBITDA
Debt to Equity
Operational Cash flow to
EBITDA
131. 131
Let’s see how the answer could look like
CEO
COO
EBITDA on products created in our own factories
Inventory in Days of Sales
Payables in Days of Production
% EBITDA
Market Capitalization
EBITDA
Debt to Equity
Operational Cash flow to EBITDA
Production Director
EBITDA on products created the factory
Work in Progress in Days of Production
% of orders executed according to plan (right quality, right quantity, right time)
% EBITDA on factory production
Logistics Director
% of orders delivered according to plan (right quality, right quantity, right time)
Cost of logistics & warehousing as % of Sales
Average lead time
Purchasing Director
% EBITDA
Inventory of Raw Materials in Days of Production
Payables in Days of Production
133. 133
Lagging KPIs Leading KPIs
Based on historical data Uses early signs to estimate the direction of certain
phenomena ahead of time
When it comes to the ability to act upon KPIs we can divide
them into 2 groups:
Can be exactly calculated Only allows for rough estimation
Quite often you use so called proxy metrics / KPIs – you
cannot measure something ahead of time so you look
for things link to the main phenomena or causing /
predicting the phenomena
If the KPIs is falling below the target you notice it only
after some times – you react after the damage has been
done
Leading KPIs enable you to “predict” potential future
and act immediately – part of the damage can be
reverted
Gives you warning and time to react
134. 134
Lagging KPIs Leading KPIs
Churn rate in SaaS – percentage of people not renewing
their contract with us
Engagement Rate – how often he uses the SaaS, how
many minutes he uses the product
Let’s look at some examples
Money earned by the movie in the first month Early screening results – it can be for example NPS of
people who saw the movie during early screening or
average rating give by them or probability of them going
to see the movie for the second time
Money earned by a new product Results from presale
Number of people that signed for the waiting list
136. 136
Input KPIsOutput KPIs
Measures the effort that drives the result / output Measures the output and does not take into account the
effort. The output may be a result of random things outside
of the control of the person responsible for the KPI
You can divide KPIs also into 2 other groups: Output KPIs and
Input KPIs
Since it measure effort it is more actionable. You know
what to do
Gives you suggestion whether you should act or not but
does not tell you in what way. You know that there is a
problem but you don’t know how to solve it
Usually Leading KPI Lagging KPI
137. 137
Output KPIs Input KPIs
Sales achieved – how much specific person or team
sold during specific period
# of customer approached – how many potential
customer you have contacted
Pipeline value – the value of all potential contracts
Let’s have a look at some examples
# of recruited consultants # of CV gathered
# of meetings set up with potential candidates
# of books sold during first 3 months # of reviews / blog posts / YouTube movies created
on the book before the launch
# of interviews given
# of bloggers / reviewers / YouTubers / journalist
contacted with the information about the book
B2B sales
Consulting
Recruitment
Successful
launch of a
book
139. 139
Proxy KPIs
Net Promoter Score (NPS) – you calculate what percentage of people where happy with
the product (Promoters) and what percentage were not happy (Detractors). NPS = % of
Promoters - % of Detractors
Average review on Yelp / Facebook
Quite often you cannot measure something important. In such cases
you have to look for Proxy KPI
Sales per 1 person from HQ in comparison with competition and previous periods
Overall Labor Efficiency (OLE) – measures what percentage of available time is spent on
works
Place in a ranking of employers from your category
NPS from internal survey among employees
Turnover rate – % of people that left the job during the year
Retention level of “stars”
Happiness of
customers
Efficiency of people in
Head Quarter
How good an
employer you are
141. 141
There are 4 ways in which you can set the value for KPIs
Plan Historical Data
Internal
Benchmark
External
Benchmark
142. 142
Let’s see how we can set KPIs using plans and historical data
Total revenues
from new stores
(Plan)
Average sales per 1
store – historical
data or assumption
# of new stores to
be opened (Plan)÷
143. 143
Let’s see how we can set KPIs using plans and historical data
Last Year sales –
historical data
1+ % growth of the
market size
(Forecast)
This Year sales
(Plan)
1 - % sales
cannibalized (Plan)
1+ % LFL growth
(Plan)
x
144. 144
You can also use internal benchmarks to set the value of KPIs. Below
example of sales for different sales reps.
100
120
140
160
Jon Tom Peter Mike
Current Sales Benchmark / Target
Sales per 1 sales rep
In thousands PLN
145. 145
You can also use internal benchmarks to set the value of KPIs. Below
example of sales for different sales reps.
100
120
140
160
150 150 150
160
Jon Tom Peter Mike
Current Sales Benchmark / Target
Sales per 1 sales rep
In thousands PLN
146. 146
You can also use external benchmarks to set the value of KPIs. Below
example of sales for different sales reps.
2 000
2 200
1 400
1 600
3 000
2 500
1 100
1 500
2 800
Company A Company B Company C Our Company Company E Company F Company G Company H Company I
Sales per 1 person in the Head Office
In thousands PLN
Average = 2 011
80% of Max = 2 400
147. 147
KPIs for Management Consultants and
Business Analysts
$190
$19
For more details and content check my online course where you can find case
studies showing analyses along with detailed calculations in Excel
Click here to check my course
149. 149
How to use KPIs to model the
business in Excel – Introduction
150. 150
It’s a good practice to model your business in Excel. For this you use the drivers
and KPIs you have defined
#
transactions
Average
revenue per
transaction
Total
revenuex
% Fee of the
marketplac
e
Average
transaction
value
Total
searches
% conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of
visitors to
searches
Average cost
of 1 visit
+
x
Development
151. 151
SaaS
E-commerce
Media site
2-sided market
User Generated Content
Mobile Applications
Retail
B2C Service
B2B Service
FMCG
SMCG
Commodity
Since we have different KPIs for different business models also their
model in Excel will look totally differently
153. 153
In this section I will show you how to model the following business
models using KPIs
Restaurant Business Model
E-commerce Business
Model
Consulting Business Model
SaaS Business Model
154. 154
You can see movies for every model by clicking on one of the box
YouTube movie showing
Restaurant Business Model
YouTube movie showing
E-commerce Business
Model
YouTube movie showing
Consulting Business Model
YouTube movie showing
Retail Business Model
155. 155
For every business model we will discuss the main drivers, KPIs, links
between them and later on I will show you how to reflect it in Excel
# transactions
Average
revenue per
transaction
Total revenuex
% Fee of the
marketplace
Average
transaction value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors
to searches
Average cost of 1
visit
+
x
Development
156. 156
KPIs
Main challenges
For the online models apart from the Excel model I will discuss
Examples of businesses
Logic flow of customers
157. 157
As said we will start with Restaurant business model that is a an example of a
B2C business model. So we will first explain this general model
Restaurant Business Model
E-commerce Business
Model
Consulting Business Model
SaaS Business Model
159. 159
We can be talking about 3 different models here
Services performed at specialized
place no production involved
Services performed at customer
place
Services performed at specialized
place with some production
160. 160
Now let’s move on to 2nd group – services with some production
Services performed at specialized
place no production involved
Services performed at customer
place
Services performed at specialized
place with some production
161. 161
The 2nd type of services (restaurant chains) have to face the
following challenges
Location
Minimizing and
Managing Fixed Costs
Optimizing Capex
Seasonality of
Demand
Upsell and cross-sell
Standardization of
services
Queue ManagementPrice Discrimination
Capacity
management
People rotation and
knowledge
management
Growing customer
base despite
infrequent purchases
Utilization of people
163. 163
When you want to set up a restaurant you have to not only face the
monthly recurring costs but also invest a huge amount of money into the
place
164. 164
Have a look what you will spend your money on long before
opening of the restaurant
Purchase of the place
FurnitureDesign
Kitchen equipemt
Domestic
Appliances
Computer, cash
till, POS
Uniforms for
employees
165. 165
There are plenty of monthly costs that have to be paid every
month
Food and
drinks
Utilities (water,
electricity, gas, waste)
Stock
Rental of the place
Services i.e.
book-keeping
Cleaning costs
Personel
167. 167
Let’s have a look at the simple model
Number of meals per
day
Number of days
Restaurant
# of
transactions
Revenues
Gross
Margin
Net Margin
Operating
Profit
ATV - average
Cost of marketing
Franchising Fee
Other Variable costs
Fixed Costs
% Gross
Margin
% Food
ratio
168. 168
Before we go to Excel let’s talk about the logic we used to
build the Excel model
Conversion rate to
consumption at the
restaurant
Conversion rate into
takeaways
Visits
# of
transactions
Revenues
Gross
Margin
Net Margin
Operating
Profit
ATV for both
subgroups
Cost of marketing
Franchising Fee
Other Variable costs
Fixed Costs
% Gross
Margin
% Food
ratio
170. 170
The retail business model is driven by some basic KPIs
# Transactions
Average Value
Transaction
Total store revenue Total store costs
x
Store EBITDA
Average Value
Transaction of basic
purchase
Average Value
Transaction of
additional purchase
# of Visitors % Conversion
Rent
People
# of People
Average wages
+
x
x
Others
+
# of sq. m
Fee per sq. m x
% Gross Margin
Gross Margin generated
by the store
x -
172. 172
In e-commerce you will have 3 types of players depending on
their presence in off-line and their approach to both channels
E-commerce
Pure players
Off-line players with
separate on-line presence
Multichannel /Omni
players
173. 173
Customer behaviors has huge impact on the business model and
on what the e-commerce should concentrate on
Less than 40% of the buyers will buy this year
Focus is on customer acquisition
Loyalty program are not good investment
70% of e-commerce businesses are in this model
Acquisition
mode
Description of the business model Examples
E-commerce selling only 1 type of Slow Moving
Consumer Goods (SMCG) bought infrequently i.e.
vacuum cleaner, scuba diving, furniture
E-commerce for 1-time in the life event: strollers,
40%-60% of the buyers will buy this year
You have a nice mix of new and returning customers
Focus is on customer acquisition as well increasing the
value of the customer (increased frequency and
increased purchase per visit)
Hybrid mode
E-commerce that sells SMCG with relatively big
frequency of purchase(1.0-2.5 times a year ) i.e.
shoes (Zappos)
More than 60% of the buyers will buy this year
Focus is on increasing the value of the customer
(increased frequency and increased purchase per visit)
10% of businesses are in this model
Loyalty mode
Very strong brands with high frequency of
purchase (i.e. Zara, Amazon)
Marketplaces i.e. Udemy, Uber
Source: Lean Analytics: Use Data to Build a Better Startup Faster; A. Croll, B. Yoskovitz
174. 174
Just to remind you some examples of well known e-commerce
businesses
Products sold On-line / Off-line situation
Virtually everything esp.
books, toys, fashion
Mode
Pure on-line player Loyalty mode
Fashion Multichannel player Loyalty mode
Tickets for events Pure on-line player Acquisition mode
Groceries Multichannel player Hybrid mode
Razors and cosmetics
for men
Pure on-line player Loyalty mode
Fashion Pure on-line player Hybrid mode
175. 175
VISIT
PAID DIRECT SEARCH
To understand the logic of e-commerce business model have a look at the
visualization of how it works
RECO ENGINENAVIGATION
BOUNCED
NOT INTERESTED
ABANDONED
UNSATISFIED
ONE-TIME BUYER UNSOCIAL BUYERCALL TO ACTION
OPEN RATE
SEARCH
CART
ADDITIONS
CONVERSION
LOGISTICS, DELAYS
VIRALRETURNING
CAC PageRank
Bounce rate
Sharing rate
Abandonment,
conversion rates
Ratings, delivery issues
Signups
Mail/RSS/TwitterReturning rate
Customer Lifetime Value Transaction size
Emphasis on repurchase rate,
frequency, click-through rate,
lifetime value
Emphasis on
maximizing cart
value, minimizing
acquisition costs
DELIVERY
SHARINGENROLLMENT
Source: Lean Analytics: Use Data to Build a Better Startup Faster; A. Croll, B. Yoskovitz
177. 177
Before we go to Excel let’s talk about the logic we used to
build the e-commerce Excel model
Conversion rate
Visits
# of
transactions
Revenues
Gross
Margin
Net Margin
Operating
Profit
ATV
Cost of traffic
Cost of logistics
Transaction fees
Fixed Costs
% Gross
Margin
179. 179
Due to margins and integration with you we can divide the
B2B services into 3 groups
Professional service Other external servicesOutsourcing of your process
Lawyer
Auditors
Consultants
Marketers
Production Process
Maintenance Process
Book keeping and reporting
Shared Service Canters run by
external companies
Logistics
IT
Measuring
181. 181
Let’s have a look at the main challenges in B2B services
Utilization of people
People rotation and
knowledge
management
Upsell and cross-sell
Seasonality of
Demand
Optimizing Capex
and Opex
Automation
Standardization of
services
Price Discrimination
Capacity
management
Productization of
services
Growing new
businesses using
customer base
Minimizing and
Managing Fixed Costs
183. 183
Service companies in general are all about converting your
workers time into money
Man-hours
184. 184
There are some general rules that you should follow
Measure man-hours
Measure tasks
Stay productive and
efficient
Make sure supply matches
demand
Forecast and create
demand
Manage supply ahead of
time
Make sure that margins are
OK
186. 186
The typical model of a service model can be presented using
this logic
% Utilization# hours
available
# of billable
hours
Revenues
Gross
Margin
Operational
Profit
Net Profit
Hourly fee
HQ costs Bonuses
Interest
% Gross
Margin
Wages
187. 187
KPIs for Management Consultants and
Business Analysts
$190
$19
For more details and content check my online course where you can find case
studies showing analyses along with detailed calculations in Excel
Click here to check my course
190. 190
Management consultants are brutally efficient
KPIs give you great basis to properly allocate your attention
and money and get the best results from your business
191. 191
In this section I will show you how to manage a business using KPIs.
Before moving to cases I will have to introduce 3 concepts
Backward logic Benchmarks Comparison metrics
193. 193
Imagine that you were supposed to say how much you have to
spend to create a company that has revenue of $ 100 M dollar
Imagine that you were supposed to say how much you have to
spend to create a company that has revenue of $ 100 M dollar
194. 194
You could use for that the so called backward reasoning
CC: Flickr; Cycle Track
195. 195
Imagine that you were supposed to say how much you have to
spend to create a company that has revenue of $ 100 M dollar
Total Costs
$ 400 M
Cost of 1 lead
$ 2 K
# of leads
200 K
÷
% Conversion
10%
x # of customers
20 K
Average revenue
per customer
$ 5 K
Revenues
$ 100 M
x
199. 199
There are 2 types of benchmarks
Internal External
Based on previous execution
Extremely comparable
Very reliable
Detailed – can be put for each and every activity
Based on some external source (i.e. reports)
Not that easily comparable
They to be treated with caution
Only for chosen amount of activities
Can give you food for drastic improvements - by
analyzing them you can find totally different
method of working
200. 200
By comparing your results and benchmarks you can decide
what to improve, work on
Internal
Salary
Speed of typing
Speed of
analyzing Excel
Area Unit
Current
result
K USD
words/ minute
minute
5
40
15
4
39
10
External
7
80
12
Your salary went up in
comparison with your previous
one but you are still below the
market
Your typing speed has improved
slightly yet you are far below the
speed achieved by others
You not only improved your speed
of analyzing but also are better
than others
Makes sense to teach others how
to do it
Conclusions
202. 202
I recommend in comparing yourself to competition to use 5 dimensions
Size
Profitability
Pace of growth
Cash
generation
Debt level
Revenues, market share, quantity sold
% EBITDA, % EBIT, ROA
Growth of revenues, growth of quantity sold, opened new stores
Cash to EBITDA ratio, Cash position, Net Debt
Debt to EBITDA ratio
204. 204
To show you how to manage a business using KPIs I will use 4 case
studies
How to decide how to 10x
your business
Increasing profitability –
retail chain
# of dishwasher and
waitress in a restaurant
How to increase production
and decrease costs –
commodity business
205. 205
To see the case studies check my online course. Below a link to it:
KPIs for Management Consultants and
Business Analysts
$190
$19
Click here to check my course
208. 208
Management consultants are brutally efficient
Managing people is much easier if you set them
targets. The easiest way to do that is via well defined
KPIs that are part of bonus / motivation system
209. 209
There are a few good reasons why using KPIs to motivate people makes
sense
KPIs gives you measurable
target
If you can impact the value
of KPI, the target based on
the KPI gives you clear
guidance what to do
You can compare different
people / teams / business
You can track the KPIs and
the performance of the
person over time
You can link the KPIs to
business goals and in this
way give people impact on
the business
211. 211
There are plenty of places in which you should put KPIs to motivate
people
Bonus / motivation system
Rankings visible to everybody
Online dashboard
Offline dashboard
Mention in written form i.e.
weekly reports send to people
Mention during meetings i.e.
daily or weekly overview
213. 213
In this section I will show you the following case studies regarding
motivation system. For more details check my online course
How to analyze motivation
system of sales force
Sales force motivation
system in juice producer
How bad KPIs in production
can cause troubles
Board of directors
motivation system
Click here to check my course
215. 215
Motivation plan for sales people can be pretty complicated
Region sales plan
realization
80%
Country plan
realization
20%
Sales plan
realization
80%
Qualitative
assessment
20%
Variable part 40%Fixed part 60%
Salary
216. 216
Person A has the following motivation system. What kind of problems
it may cause?
Variable part 10%Fixed part 90%
Salary
217. 217
Person B has the following motivation system. What kind of problems
it may cause?
Sales value plan
realization
90%
Qualitative
assessment
10%
Variable part 20%Fixed part 80%
Salary
Sales rep can change the price
of the product and give
discounts
218. 218
Person C has the following motivation system. What kind of problems
it may cause?
Sales margin
realization
80%
Qualitative
assessment
20%
Variable part 20%Fixed part 80%
Salary
All costs covered by the sales
rep
219. 219
Person D has the following motivation system. What kind of problems
it may cause?
% of sales n/a
Fixed part =2x
Average salary
n/a
Salary
221. 221
If the Person A has the following motivation system you can have the
following problems
Variable part 10%Fixed part 90%
Salary Problems that may occur
Variable part is too small
The sales rep will not be motivated to drive
the sales and put additional effort
222. 222
If the Person B has the following motivation system you can have the
following problems
Sales value plan
realization
90%
Qualitative
assessment
10%
Variable part 20%Fixed part 80%
Salary
Sales rep can change the price
of the product and give
discounts
Problems that may occur
Majority of the variable part depends on
sales value which is not preferable solution
as this does not drive the margin creation
The sales rep has a control over the price
and discounts so he will be tempted to
increase discounts to get more sales. In this
way he will hurt total margin
223. 223
If the Person C has the following motivation system you can have the
following problems
Sales margin
realization
80%
Qualitative
assessment
20%
Variable part 20%Fixed part 80%
Salary
All costs covered by the sales
rep
Problems that may occur
In this example we have margins instead of sales
value which is much better solution
However, all cost are covered by the sales rep
which may lead the sale rep to minimize his
expenditure rather than to maximize the margin
for the company
224. 224
Person D has the following motivation system. What kind of problems
it may cause?
% of sales n/a
Fixed part =2x
Average salary
n/a
Salary Problems that may occur
The fixed part may be big enough for the sales
rep not to care too much about the sales level
His variable part is just a percentage of sales .
Due to this there is a great probability that he
will not care about the margin
Moreover, there is no plan of sales / margin so
he will work only as much as he needs to cover
his expenses
226. 226
We will now have a look at a company selling branded juice in
Romania that has 2 type of sales force
They sell via wholesalers to
independent stores and
retail chains
Area Managers sell to
wholesalers
Sales reps sell to stores and
retail chains
227. 227
We will now have a look at a company selling branded juice in
Romania that has 2 type of sales force
228. 228
The area managers have the following motivation system
Sales value plan
realization -
wholesale
70%
Qualitative
assessment
10%
Variable part 40%Fixed part 60%
Salary
You have to have at least 80%
of plan realization to get any
bonus
Sales value plan
realization - stores
20%
229. 229
The area managers has the following motivation system
Sales value plan
realization - stores
90%
Qualitative
assessment
10%
Variable part 30%Fixed part 70%
Salary
You have to have at least 80%
of plan realization to get any
bonus
230. 230
How can bad KPIs in production cause
troubles – Problem
231. 231
The aim of the company is to
maximize EBITDA
Production is judged against 1 KPI –
Production cost per unit
Imagine that you are working for a ceramic tiles producer that wants you
to tell them whether new motivation system for production is a good idea
232. 232
How can bad KPIs in production cause
troubles – Solution
233. 233
The aim of the company is to
maximize EBITDA
Production is judged against 1 KPI –
Production cost per unit
Imagine that you are working for a ceramic tiles producer that wants you
to tell them whether new motivation system for production is a good idea
234. 234
Below certain things that you might have noticed with regard to the
proposed motivation system
Low unit production costs has nothing
to do with EBITDA
You are incentivized to produce more
rather than to produce the right things
There is no incentive to produce
difficult things
There is no incentive to produce high
margin products
Cost may be cut by lowering the
quality of the materials used
You may create a big inventory of
finished products
You end-up producing easy things that
maybe are not desired
You are not incentivized to keep WIP
and inventory low
236. 236
Let’s imagine that you were asked to judge the motivation system
created for Board Members of a cosmetics producer
3 Business Goals: market
cap, cash flow, Low debt
5 Board Members
The Supervisory Boards sets
the KPIs & goals
237. 237
Let’s see at KPIs for the board of Directors
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
Sales Value Sales Value
Market Share
# of products introduced Cost per unit
Market Capitalization
239. 239
Just as a reminder you were asked to judge the motivation system
created for Board Members of a cosmetics producer
3 Business Goals: market
cap, cash flow, Low debt
5 Board Members
The Supervisory Boards sets
the KPIs & goals
240. 240
Every board member had different KPIs in his motivation system
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
Sales Value Sales Value
Market Share
# of products introduced Cost per unit
Market Capitalization
241. 241
Below certain things that you might have noticed with regard to the
proposed motivation system
Hardly any alignment
Some business goals not
addressed
Almost every board member is
incentivized to destroy value
KPIs are relatively vague
There are hardly any long-term
KPIs
Board member treated as a
separate entities
242. 242
Now let’s have a look in details what kind of troubles it may cause
Sales Director 1
CEO
Marketing Director 1 R&D Director 1 COO 1
Sales Value Sales Value
Market Share
# of products introduced Cost per unit
Market Capitalization
Market Capitalization
Operational Cash flow
Low Debt Level
243. 243
KPIs for Management Consultants and
Business Analysts
$190
$19
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260. 260
5 examples of business /
financial models in Excel
Practical guide how to check whether the business makes
sense
presentation
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262. 262
What is an issue tree and how
to use it?
Practical guide with examples
presentation
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263. 263
Excel shortcuts for Management
Consultants and Business
Analysts
Practical guide how to work fast in Excel
presentation
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264. 264
Financial Modeling for Business
Analysts and Management
Consultants
Step by step guide
presentation
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