Explain the definition of a Key Performance Indicator (KPI). What makes a useful KPI?
List 9 specific key performance indicators that a CFO might use to evaluate the past results or use to evaluate estimated future performances.
A minimum of 4 of the KPIs must not use only financial data but must include some operational data. For example, the numerator and denominator can be the following:
Both financial data (max 5)
One can be non-financial and the other financial
Both can be non-financial
One KPI does not have to have a numerator or denominator (# of lost customers or EBITDA)
Make sure for each KPI you explain briefly what the KPI measures and why you feel as CFO that this can be a key performance indicator.