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Increasing the profitability of your business or service is generally the # 1 goal for business owners and managers. The best way to do this is to focus on increasing productivity.
This is because the usual key financial indicators that measure the health of a business do not provide enough information about what is really happening before it happens. Microstrategy Consultant in Saudi Arabia help you to get success in business is understanding.
Here are the three areas to measure if you are serious about growing your business:
Productivity Base Line: This is measured by income per employee.
- It may vary from one industry to another, but must meet the standards of your industry
- $ 150,000 / employee is a good target for small business services
- This should increase with business growth because of the abundance, maturity and productivity increases
- The higher the number, the more time you lose
Sales Efficiency: Measured by sales expenses at gross margin
- In simple terms, it’s a measure of sales force and efficiency
- The lower the percentage, BI Consultant in Saudi Arabia helps you to grow your business and the greater the investment in sales.
- If this ratio increases, it may be time to increase prices, lose operational efficiency or be in an ideal 20% or less emulsion market in service companies.
Operational Efficiency: Measured by the ratio of operating expenses
- How effective is your organization in day-to-day business or “business management”?
- It is a major measure of operational efficiency and maturity
- As incomes rise, the downward trend must be reversed until business becomes scalable
- Should be reduced with appropriate strategies to increase productivity and efficiency.
Once you have the right data to measure productivity, sales efficiency and operational efficiency, you have the information you need to make smart technology decisions for your business. Microstrategy Consulting services in Saudi Arabia we found that measuring these metrics quickly shows which area (s) of work can be improved.
For example: The sales force with the old tools and access methods will affect your sales efficiency metrics. Instead, the back office with manual operations and low automation will reveal an opportunity to improve operational efficiency.
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