Monitoring and evaluating projects and businesses plays a major role in their success, sustainability and achievement of their objectives. Recent Parallel Profits studies have found that among the reasons for the failure of the projects is the lack of sufficient knowledge from managers on what the evaluation process is and what it means, and even more not knowing how to do it in practice.
There are many financial and non-financial indicators that the project owner or manager should monitor. We’ll try to highlight the most important indicators to keep in mind when managing a business:
1. Sales number:
This is to monitor sales consistently and compare them with days, months and years, focusing on two main things:
Seasonal sales: that is, monitoring the months of high sales in the season and the months that fall in the same season.
Comparison of a store with a store: For example, a library has 4 branches and its sales increased by 50% compared to last season, where it had only two branches. Here we have to focus on comparing the sales of 4 branches in 4 branches and not 4 branches in two branches.
You have to focus on profit instead of focusing on selling only without making high profits, such as focusing on selling many products and making a weak profit. It has to be the opposite.
Among the figures to focus on are the expenses of all operating and non-operating classifications, in which the various expenses, such as the cost of rents and salaries, are to be compared as a sum and as a percentage.
A – Rentals: vary from branch to branch but the total rents clear and constant, which requires you to compare the percentage of sales as the amount of rent does not exceed 10 per cent of sales each year. Then the return on the square meter: This section is reflected in the knowledge of income and divide it on square meters to see how much the return of the square meter.
This is not a problem. What is most important is how much the percentage of salaries represents sales. For example, this year the salary ratio represented 20 per cent of the sales and the quality of the project you invest in is what determines what If this ratio is low or high. There are some companies that use an additional index to calculate the cost of employees and come in annual total sales divided by the number of employees to determine the proportion of contribution per employee in the annual income and find out whether the employee contributed to raise the proportion of income of the company or not.
A – The number of customers: The follow-up number of customers should be more important than follow-up sales, it may increase the number of customers and sales or vice versa, knowing the number of customers contributes to determine the percentage of sales and price.
B – The amount of customer purchases: reflected in the number and price of purchases of customers have increased or decreased.
C. New customer ratio means that each project has a number of new customers and permanent customers. If you have only permanent customers, this indicates that you are not acquiring new customers. If all your customers are new, here is the problem, indicating that your product does not like. Customers make them not come back to you again.
The cost of getting a customer: For example, downloading an ad on a phone application at $1000 and 1000 people downloading this application means that the price per customer is one Dollars or $100,000 and 10,000 people downloaded it means that the cost of the customer is $10, This process makes it easier for you to find out how much it cost to get a customer.
C – Satisfaction of customers on the service: and by asking them directly about the service and compare the current answers to the answers related to months and years past, and then focus on the means of social reach varied to observe the satisfaction of customers about the product.
5. Employee indicators:
This is reflected in the continuity of employees who are considered to be very important. The duration of the employee is to be monitored. If it is short, it indicates that there is no suitable environment for him or his work. , Assuming staff of customer satisfaction.
6. Return on investment ROI
And is reflected in the amount approved in the investment and also in the rate of return of this investment.
7. R & D expenditure:
This indicator is dependent on the big companies such as the pharmaceutical sector, which requires development and research on a continuous basis, which determines that this institution is able to invest and competition in the future or not and the turnout by investors.
There is a very important point to note: one of these indicators is not enough to judge the Parallel Profits company and determine whether a company is successful or not.
We tried to recall the most important indicators of monitoring and evaluating the performance of projects with a simplified explanation. If there is any indication that we have not noticed it and see it as important and help monitor the performance of our business, we will be happy to share your comments.