KPIs and Performance Evaluation

• Compilation of KPIs and the measurement against industry standards and world’s best is a highly complex analysis. 

• The gearing ratio is calculated by dividing the total liabilities by the shareholders’ funds (after deducting intangibles).

• What is an acceptable gearing ratio? This varies from industry to industry but say it is 3:1 ($3 of liabilities to $1 of shareholders’ funds).

• If the gearing ratio reaches 10:1, this means that either the shareholders’ funds have been depleted by operating losses or the company has taken on too much debt with little return sending off the alarm for the bank as the covenants may have been broken.

• The bank will review your trading results with a special look at performance ratios such as gross profit percentage (GP%) , stock turns, days sales outstanding (DSO), current ratio, gearing ratio etc.

• A lack of understanding of the way performance ratios work, is just one of the areas where directors get themselves into trouble.

• Con Livissianis (Exemplar MD) should know, having built a reputation in corporate doctoring by training non-financial executives in financial literacy.  As a CPA and CEO with a lifetime at the coal face of cost projection and analysis, Livissianis has seen it all, from the punctilious to the perfidious.  His rolodex lists: Berg, Goldberg, Kaldor, Kahlbetzer, Strauss and Weiss as proof.

“Whilst I was consulting, I saw the possibilities for the Exemplar Performance Advantage Skills Tools.  I had used a rudimentary model when training executives and then had the opportunity to refine it and put it on-line.”

Con Livissianis, Managing Director, Exemplar Performance Advantage

Solutions

1. Skills testing

2. Skills training

3. Consulting

Consulting

By utilising the professional services of our team of consultants at Exemplar Performance Advantage, you can be rest assured that you will be receiving a totally tailored approach to your specific requirements.  Not something that you can purchase off the shelf.  Some of the areas we look at when analysing your specific KPIs are as follows:

• Do you understand the KPIs that are being utilised by your firm?

• Do they make sense? 

• What are the benchmarks for your industry?

• Does everyone on the board understand how and why the existing KPIs are being utilised?

• Were they developed 10 years ago, thereby making them redundant?

• Is it time you had a review?

Depending on your budget Exemplar will fully analyse your financials, identify your appropriate industry segment and provide an ideal benchmark based on historical evidence and current economic conditions.  Once the KPIs are agreed by the board, we can then train the users accordingly.  All directors should be in a position to question the results at board meetings.