Business Change and The KPI's

Question 1

Define Business Change

Answer 1

The planned or unplanned change to a business in response to internal or external pressures

Question 2

What are the words for small and large changes

Answer 2

Small: Incremental
Large: Significant

Question 3

Define Proactive Change

Answer 3

The planning of change to either avoid a threat or capitalise on an opportunity

Question 4

Define Reactive Change

Answer 4

When a business makes changes to respond to either a threat or an opportunity that has occurred

Question 5

Define Key Performance Indicators

Answer 5

KPI’s are criteria used by the business to assess the performance of the business in achieving their objectives

Question 6

Define Benchmarking

Answer 6

Benchmarking is the process of comparing the businesses performance to the best business in the industry

Question 7

Why use Benchmarking

Answer 7

Benchmarking is used to allow the business to evaluate their performance when compared to competitors and will allow for corrective action to be taken if required

Question 8

Define Market Share Percentage and is a higher number better for the business

Answer 8

Higher percentage is better. Market share percentage measures the businesses share of total industry sales when compared to its competitors

Question 9

Define Number of Workplace Accidents and is a higher number better for the business

Answer 9

Lower number better is better. The number of workplace accidents measure the number of unplanned events which result in injured employees or damaged property

Question 10

Define Rate of Productivity Growth and is a higher number better for the business

Answer 10

Higher number is better. Productivity is the ratio of outputs produced compared to the inputs used to achieve the number of outputs. The productivity growth relates to the change in productivity from year to year,.

Question 11

Define Productivity

Answer 11

Business productivity is data that highlights the ratio of outputs produced against the inputs that were required to produce them

Question 12

Define Staff Absenteeism and is a higher number better for the business

Answer 12

Lower percentage is better. The staff absenteeism measures the number of employees who don’t show up to work when they are scheduled to

Question 13

Define Quantity of Sales and is a higher number better for the business

Answer 13

Higher number of sales is better. The number of sales measures the number of goods or services sold over a period of time

Question 14

Define Level of Staff Turnover and is a higher number better for the business

Answer 14

Lower percentage is better. The level of staff turnover measures the number of employees who leave the business and must be replaced.

Question 15

Define Customer Complaints and is a higher number better for the business

Answer 15

Lower number of complaints is better. The customer complaints measures the number of customers who have expressed their displeasure to the business

Question 16

Define Net Profit Figures and is a higher number better for the business

Answer 16

Higher number is better. The net profit figure is a measure of the amount of money left to the owner after deducting expenses from revenue

Question 17

Define Level of Wastage and is a higher number better for the business

Answer 17

Lower number is better. The level of wastage is a set of data that measures the number of resources that have been discarded during the production process.