In one sentenceA limited number of numerical measures chosen by management to track progress toward its important goals, such as average invoice value, collection rate, and profit margin.
Simply put
You cannot track every number in the business. Choose a few indicators tied directly to your goals, and set a target, an owner, and a review date for each.
A good indicator is clearly calculated, can be measured regularly from reliable data, and leads to a decision. An indicator that changes nothing in your work does not deserve its place.
Worked example
A perfume store tracks “average invoice value” as a key indicator. Last month it made sales of 300,000 SAR from 2,000 invoices, and its target is 170 SAR.
Sales300,000 SAR
Number of invoices2,000 invoices
Target170 SAR
Average invoice = 300,000 ÷ 2,000150 SAR (below target)
Formula: Total sales ÷ number of invoices
in FullScreen ERP
The analytics dashboard in the cloud version of the system: indicators and charts for sales activity and portfolios. Reports and AI