What are the most common mistakes?

[ishanijerin1]

When building a dashboard or even a simple analysis, make sure that everything on the screen, or page, has a clear purpose and that there is nothing extra to distract.

“I would say that the biggest mistake of all is measuring something that does nothing to improve the performance of the company and its employees. What is the point of knowing the market potential if all of your production capacity is sold for the next 12 months?

Another very common mistake is to measure “A” with the hope of “B”. In short, what’s the point of measuring the average ticket if your product doesn’t administration directors email database have any kind of price elasticity? Wouldn’t it be better to examine the sales mix?

But I am sure of one thing: if you don’t measure the important things, you will never know what is going right and what is going wrong”, says the professor from the Commercial Management team at FGV.

As mentioned above, it is a very common mistake when defining indicators or KPIs to create too many evaluation criteria. This can hinder tactical and operational work and, in the end, you cannot do what you really need to do.

Profitability performance
To find out whether your business's profitability is good, the best thing to do is compare it to the average results reported by your sector in the market. If your income is positive but there is no money available, for example, this is a sign that your costs are high and you need to try to resolve this impasse.

By calculating the percentage of profit on revenue, it becomes easier to understand the path the business has followed and what measures can be taken to improve results.