To understand the financial health of a business, you need to be able to calculate key performance indicators and then compare them to budgets, previous financial year's performance and other businesses.
This paper is an introduction to key performance indicators as it affects SMEs. It covers the following headings:
- What Are Key Performance Indicators? (KPIs)
- Definitions
- Understanding The "Financial State Of Health" Of The Business
- Why Measure?
- The Balance Scorecard (Kaplan & Norton)
- Focus On Long Term Economic Value And Strategic Benefits To The Organisation
