Performance Management & KPI


Performance Management & KPI


By Talita Queiroz

In an increasingly competitive market, companies should recognize the importance of measuring their performance, not only to keep them running but also to grow effectively and profitable.

Luckily, companies can count with a multitude of management tools to assist them in this task, where the best approach/tool will depend on how much effort the company is willing to spend in planning, analyzing, and reviewing results. In this piece, we will go over the basics of Key Performance Indications (KPIs), one of the most popular concepts in the corporate environment.

KPIs are nothing more than the establishment of the most relevant indicators to analyze the performance of a company, a project, or even a person, translating strategic goals into measurable results. Also, it enables the company to track results, analyze the historical performance, and link results with facts. There are two levels in which KPIs are applied, organizational level and or individual level.

In the organizational level, companies can apply KPIs to measure, for instance, margin per sales, margin per product, revenue per employee. It could also be used to calculate the viability of specific projects, such as cost per project, return on investment (ROI) and capital gains. At this level, individual contribution is considered to calculate results, but it is not the purpose of the analysis.

At the individual level, KPIs measure people’s performance and their alignment with the organizational objectives, such as sales per salesperson, productivity, number of working hours per employee. The trick here is to ensure that these indicators support the organizational goals.

Let’s assume a company wants to increase its brand awareness. A good organizational KPI could be the number of sales to new clients, and the individual one could be the number of new clients per salesperson, as detailed in Figure 1. Therefore, the individual becomes responsible for the outcome, sharing the same objectives, but on a small scale. If each individual achieves his/her goals, the company will reach the number of sales for new clients.

The main purpose of this exercise is to ensure the strategic goals are unfolded into key indicators, aligning organizational and individual goals. It is important to train people in the process and provide employees with tools to achieve their targets, hence the company targets. Robust KPIs will provide predictability and stability of results.


 Performance Management & KPITalita Queiroz is a business consultant at Fernandez Young LLP and assists clients in improving their performances through KPIs. Due to her training and experience, Talita also works with Strategic Planning, Business Plans, Research, Financial Analysis, and Process Modelling.

The Pacific Alliance – Discussions with Australia

This month, Canada will be having discussions with Australia “to negotiate a free trade agreement with the Pacific Alliance members as a bloc.” Read more from the Canadian TCS.

Great Management comes from Great Business Planning  

leadership2It should go without saying but many business owners fail to see that great management is derived from great business planning.
Planning entails juggling resources and priorities in an orderly fashion, whereas management is a leadership role tied in with the overall productivity of the business. The two are intrinsically linked and cannot be easily separated. You can have some great people in a leadership role to manage your operation, but if you don’t have a road map, what exactly are they going to manage?
So, how does one go about ensuring that there is great management with an even better business plan?
First and foremost you need to have a vision and no, we’re not talking about vision boards and “down the next ten years I want” sort of thing. This strategy needs to be one where you think about what the objectives of your business are and who are the best people to help you reach these objectives. They are little nuances in the daily operation of your business, not vague futuristic ideas. Furthermore this vision needs to be communicated with your employees and other actors in your business (financial, administrative, contractors). Do not keep everything in your head, write it out, sort it out and plan in out: maps work best when you make the picture not envision them.
While you’re creating your map, start to define your long term goals. Remember, be specific, not vague. Set out milestones that you are determined to achieve, keep them realistic but also challenging. Do not just look at being in the black and out of the red, look at presence, memorability and engaging in your business. If you only look at the bottom line you might just lose the bigger picture and miss out on areas of improvement or even surprise areas of success.
Do you see character on your team? People who are shaping up to be real assets and have the potential to enhance your business with their ideas and innovations? If you do then you need to understand how to best utilize them. Let them lead, make sure your team is committed and willing to put in the effort, and if they are passionate about your vision and long term goals they will most definitely be the best option in your businesses long term success. Great management feeds off of a great business plan and in that sense a great business plan looks to have a great team of leaders making the plan into a reality.


Vancouver: A Gateway to Asia

vancouver-duskBrian Hutchinson’s article in the National Post goes in depth to discuss the recent phenomenon of affluent Asians congregating in Vancouver, BC- Canada; bringing with them various changes in the economy and local culture.

Along the Pacific Rim, British Colombia has grown integrated with Asia in terms of investment and immigration received from the continent. Chinese money brings with it support for local businesses and boosting local employment. Gone is the profile of a middle class Chinese immigrant striving to obtain the “North American Dream”, instead these newcomers arrive with ample money in their pocket, and ready to spend it.

From 2005 to 2012 according to Statistics Canada thirty-seven thousand Chinese millionaires have arrived in B.C as permanent residents under the Immigrant Investor Program – a Federal Initiative that acts as a gateway for wealthy immigrants to expedite their entry into Canada via low-interest loans given to the provincial government.

Vancouver, B.C has become an investment hub and a gateway to the Asian market, bridging communities, cultures and most importantly, ample capital.

How to avoid an audit

An audit is an official inspection of an individual or an organization’s accounts via an independent body, which is typically the revenue agency of the country the individual or organization belongs to. There are different avenues countries revenue agencies take when looking into a potential audit:

  • Random selection
  • Project
  • Computer program
  • Secondary files
  • Leads
  • Sector

The best way to avoid an audit is to file all the required information with your returns, file on time, and not claim deductions subject to abuse.

The most commonly audited type of income is business or professional income. Income from property such as rental income is also a target for audits. Employment income and pension income are seldom audited, although certain deductions such as moving expenses, childcare expenses, and employment expenses are often reviewed. Tax shelters such as limited partnerships are often audited as project files.

A simple way to ensure your return is done efficiently and effectively is to have a professional do the work. Stats show that up to 40% of returns done by hand contain arithmetic errors. An accountant significantly reduces the chances of errors and audit triggers such as:

  • Questionable appearing investments.
  • Large variation in income from year to year, or in financial statement ratios of interest to the tax man.
  • Financial statements that are unusual for your industry.
  • Unusual deductions or incorrect expense categories.

The best route is to be prepared and ensure when filing and submitting information to your revenue agency, that it is done correctly and on time. What better way to do that than with a professional?!