Question

Design a useful key performance indicator (KPI) for a distress company

Answer 1

Generally we see two types of useful key performance indicators for a distress company.

1. Financial indicators which show the growth rate of company, return on investments made by company, net profit earned by company, etc. Mainly companies focus solely on profits but these companies also face innovation and creative problems within the company.
2. Customer indicators- which shows the level of customer’s satisfaction. Some customer related indicators are customer retention, number of loyal customers, customer support services, etc. If company only focuses on these then financial instability can also occurs and sometimes innovation and creativity problem do not solve.

The third key indicator is very useful and should also include it for better growth, customer satisfaction and innovation. The third key indicator is employees. These indicators include employee satisfaction, employee loyalty, engagement and turnover. If employees are satisfied with the company then they can easily satisfy the customers. If employee engagement is high then output of performance of the company also increases. Now companies started focusing on employees also for measuring performance of the company.

It is most important for Distress Company to use all these 3 key performance indicators and make company successful.