Find answers, ask questions, and connect with our
community around the world.

About Forums Financial Planning & Analysis Performance analysis methods Reply To: Performance analysis methods

  • Benoit

    Administrator
    April 19, 2021 at 9:57 pm

    Hi,

    Activity Based Costing works in theory but at my level I always struggled to implement it. Also happy to get feedback on this one. For what types of companies is it fit?

    Balanced Scorecard I believe is closer to what I have seen working. In manufacturing environments. KPIs that I have been tracking for manufacturing companies are:

    Internal – days of inventory based on prospective sales, quality inspection issues

    Customer – backlog of orders, customer returns, customer satisfaction (eg. online star ratings, CS tickets), market share

    Shareholder: Cash, Working Capital, Gross Margin, Net Profit

    Found this article, a bit dated but clear and detailled: https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2

    Cheers.