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Key Performance Indicators (KPI) by Bernard Marr

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6

Revenue growth rate

Strategic perspective

Financial perspective

Key performance question this indicator helps to answer

How well are we growing the business?

Why is this indicator important?

It is the basic fact of business that commercial organisations exist to make money. And although there are a number of factors to consider, the primary driver of ‘making money’ is to grow revenues.

Revenue (sometimes referred to as turnover or sales) is simply the income that a company receives from its normal business activities, usually the sale of goods and/or services.

In accounting terms revenue represents the ‘top line’, to denote how it is reported on an income statement (at the very top). The ‘bottom line’ denotes net profit (what is left ...

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