For every sales organization it is important to understand how their business is running in order to manage it. The management needs significant data in order to pursue their targets and take the right decisions. Appropriate controlling methods in order to better understand running businesses are the issues of KPIs and KPI systems. The thesis picks up the issue of KPI systems in order to develop a KPI system which is tailored on the economic reality by illustrating basic comprehension about KPI systems as well as by introducing a sales-related KPI system.
Table of Contents
1. Introduction
2. Key performance indicator system as a management tool
2.1 Meaning and targets of a KPI system
2.2 The essential component of key figures
2.2.1 Forms and tasks of key figures
2.2.2 Quality criteria for measurement parameter
2.2.3 Multidimensionality of measures
2.3 Development of key performance indicator systems
2.4 Integration of benchmarking
3. Key performance indicator system for sales organizations of an industrial company
3.1 Determination of targets
3.2. Financial key performance indicators
3.3 Modular sales controlling
3.3.1 Internal analysis
3.3.2 External analysis
3.4 Cause-effect chains within the system
Objectives & Core Themes
The primary goal of this publication is to develop a comprehensive Key Performance Indicator (KPI) system specifically tailored to the economic realities and operational requirements of sales organizations within industrial companies. By integrating theoretical foundations with practical controlling methods, the work provides a framework to measure, analyze, and improve sales performance effectively.
- Theoretical foundation of KPI systems and performance measurement.
- Methodological development of modular sales controlling.
- Operationalization of strategic sales targets into financial and non-financial KPIs.
- Application of cause-effect chains to ensure management controllability.
- Integration of benchmarking as a tool for strategic performance enhancement.
Excerpt from the Book
3.3.1 Internal analysis
Internal influences are directly issued by the sales organization. In the following, the internal influences, i.e. the organization, processes and products are going to be discussed, followed by the derivation of implications for the KPI system out of the mentioned influences.
Organizational structure: A sales organization can have different forms of structures. Sales organizations can be structured after products, regions, sales channels or customers. The organizational structure is not always organized in just one of these four aspects. Commonly, sales organizations adapt mixed forms.
An area manager responsible for Europe is not interested in the development of the sales channel e-Commerce compared to Retail, but rather interested in how the sales channel e-Commerce Europe developed in contrast to Retail Europe. Analyses must be adapted to the organizational structure so that each department has individual analyses in terms of sales, contribution margins and cost of sales. In the following, a catalogue of characteristics will be introduced which are included as analyses into the KPI system:
Summary of Chapters
1. Introduction: Outlines the necessity of data-driven management and introduces the scope of developing a KPI system tailored for sales organizations.
2. Key performance indicator system as a management tool: Defines the theoretical framework of KPI systems, discussing forms, quality criteria, and development processes, including the integration of benchmarking.
3. Key performance indicator system for sales organizations of an industrial company: Operationalizes strategic targets into a modular system, focusing on internal and external analysis, financial KPIs, and the construction of cause-effect chains.
Keywords
Key Performance Indicators, KPI System, Sales Controlling, Performance Measurement, Benchmarking, Strategic Sales Targets, Financial KPIs, Modular Sales Controlling, Internal Analysis, External Analysis, Cause-Effect Chains, Profitability Analysis, Sales Organization, Management Tool, Effectiveness.
Frequently Asked Questions
What is the core focus of this work?
The book focuses on the conceptual design and implementation of a KPI system specifically created to measure and manage the performance of sales organizations within industrial settings.
What are the primary thematic fields covered?
The work covers KPI theory, modular sales controlling, target determination through policy deployment, financial performance metrics, and the integration of benchmarking to drive operational improvements.
What is the primary goal of the proposed KPI system?
The goal is to provide decision-makers with a compressed, reliable system of information that enables them to analyze past performance and implement measures to improve future outcomes based on established economic coherences.
Which scientific methodology is utilized?
The author employs a modular approach to sales controlling, deriving analytical requirements from the organizational structure and internal processes, supported by mathematical P&L logic and cause-effect modeling.
What is addressed in the main body of the text?
The main body details the development of individual KPI modules, including internal analysis of organizational structures and processes, external analysis of market forces, and the visualization of these metrics through cause-effect chains.
Which keywords best characterize this publication?
Key terms include KPI system, sales controlling, performance measurement, benchmarking, strategic targets, and cause-effect chains.
How are internal and external influences integrated?
Internal influences such as organizational structure and product life cycles are balanced with external market factors, competition, and customer behavior to ensure a holistic view of the sales unit.
What role does the 'Statement of Controllability' play?
It ensures that the KPI system is structured so that specific units or individuals can be held responsible for the metrics they are able to influence, thus facilitating effective management intervention.
How does the book address product portfolio management?
It uses product life-cycle analysis to evaluate the health of the portfolio, ensuring that products are properly allocated across different life-cycle phases to compensate for sales and cost fluctuations.
Why is the differentiation between 'lagging' and 'leading' key figures important?
Lagging figures provide a retrospective view of performance, while leading figures function as an early-warning system, giving management the foresight needed for future strategic adjustments.
- Arbeit zitieren
- Luigi Bossio (Autor:in), 2013, Development of a key performance indicator system for sales organizations, München, GRIN Verlag, https://www.grin.com/document/214465
