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Ownership Thinking by Brad Hams

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How to Identify Your Key Performance Indicators

At Ownership Thinking, we begin the process of KPI identification with some research involving three forms of data gathering:

1. A five-year financial analysis

2. A survey of employees

3. An analysis of the competition

The purpose of the financial analysis is to identify strengths, weaknesses, trends, and opportunities. Though historical data like these are not the sole determinant of your KPIs, they are an important element.

FIVE-YEAR FINANCIAL ANALYSIS

Table 4.2 is an example of some historical data from a small manufacturing firm, which we will use as a case study in this chapter:

TABLE 4.2

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