Do you return damaged goods to suppliers? Does your team understand the cost of each line item? Have you established an innovation incentive program to reduce the cost of goods? Overhead Do you routinely review your fixed cost ratios? Are your policies and procedures documented? Have you considered outsourcing any administrative or functions? How do you allocate administrative expenses to each department-by % of revenues or by actual activity cost? Do you cross-train your people? Have you measured your cost of hiring and training? What is your employee turnover rate? How many of your people have advanced within your company? How would you rate the effectiveness of your management team? Do you have incentives in place to reduce expenses? Net Profit Is there a profit sharing program in your company? Are your people involved in making capital investment decisions? Does your team understand how their performance impacts the bottom line? Are bonuses paid on gross or net profit? Does each department have a budget?
Do you return damaged goods to suppliers? Does your team understand the cost of each line item? Have you established an innovation incentive program to reduce the cost of goods? Overhead Do you routinely review your fixed cost ratios? Are your policies and procedures documented? Have you considered outsourcing any administrative or functions? How do you allocate administrative expenses to each department-by % of revenues or by actual activity cost? Do you cross-train your people? Have you measured your cost of hiring and training? What is your employee turnover rate? How many of your people have advanced within your company? How would you rate the effectiveness of your management team? Do you have incentives in place to reduce expenses? Net Profit Is there a profit sharing program in your company? Are your people involved in making capital investment decisions? Does your team understand how their performance impacts the bottom line? Are bonuses paid on gross or net profit? Does each department have a budget?
performance_measurement_list.docx