End of the year KPIs: Profit structure

KPI name: Profit structure

Definition: The structure of your profit sources (in % and value) is actually, in many cases, far more important than your turnover structure.

Variation and related KPI’s:

%/value of profit per store/ division/ type of services/ sales channel

%/value of profit per type of customers

%/value of profit per geographical aspect (this is relevant when logistic has high impact on costs)

%/value of profit per customers in B2B/ time frames

Focus and targets: Usually with higher relevance for mature businesses, which are not in the phase of new investments, new divisions, new stores, etc. It is also not relevant for companies dependent on a weak cash flow, where turnover is sometimes more important than the profit for a limited period of time and when hopes and efforts are aimed towards cash flow improvement.

Create your own relevant sectors, in order to make sure you know your priorities, then plan and control the activity according to expected performances.

Best regards,

Adrian Abrudan, Head of Strategy & Research