A company has key performance factors that it needs to achieve to remain viable. These are specific and measurable and can indicate the success or failure of a company. The Chief Executive Officer (CEO) will be accountable for the following eight factors.
- Achieve its sales targets.
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- Does each department achieve its monthly/quarterly/bi-annually/yearly targets?
- If not, how realistic were these targets taking into consideration the economic climate, its competitors, and the demand for its products/services?
- What needs to be done to improve sales? Run more advertising campaigns, increase business travel, attend more sales conferences etc?
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- Manage its costs
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- Does the company overspend on its fixed costs such as heat, lighting, and rent?
- Does the company honour its credit terms and pay its debtors on time?
- Does the company pay too much overtime?
- Does the company over-hire?
- Does the company overspend on entertainment i.e. taking its clients out to dinner, end of year Christmas parties for its staff etc?
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- Perform well
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- In relation to its competitors where is it in relation to the top ten in its field?
- Compared to last year, has it improved its market position?
- Is the company increasing its market share?
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- Its reputation
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- Are people talking about the company´s products or services?
- What are they saying about it?
- Is it good or bad publicity?
- What is the company doing to improve its reputation?
- What more can the Marketing/Public Relations department do?
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- Socially responsible
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- How involved is the company in the local community?
- Does it support any charity?
- How does it encourage its employees to participate in social causes i.e. looking after the elderly, giving food to the homeless, etc
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- Environmental performance
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- What does the company do to protect the environment?
- Does it have a policy of recycling plastic or cardboard cups/plates/cutlery?
- Does it use recyclable paper for printing?
- Does it have different waste disposal bins for different materials i.e. plastic, glass, paper, aluminium etc?
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- Diversity of its workforce
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- How diverse is its workforce?
- Does it employ all ages, all genders, all sexually orientated people, all races, physically impaired people etc?
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- Safety record
- Do its employees feel safe working there?
- Are the office chairs ergonomic to help avoid back pain?
- Do the computers have Blue Light Blocking Screen Protector to avoid eye strain?
- Are there adequate fire extinguishers and are they regularly checked?
- Are there sufficient fire escape doors?
- Is there a first aid person available?
- Are there regular safety checks in case of a fire?
- Are all cables and carpets firmly and invisibly fixed to the floor without any risk of tripping over?
- Is there a 24-hour service for any malfunctioning lift?
To continually grow, outperform its competitors and increase market share a company needs to review these eight performance factors regularly and modify or rectify whatever is necessary to keep it profitable.