Measure What Matters to Customers: Using Key Predictive Indicators (KPIs) / Edition 1

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Overview

Learn why the most important activities that actually matter in your business are those that impact your customers.

One hundred years ago, the traditional accounting measures of costs, activities, efforts, and inputs met the needs of that era's businesses. But today, these internal metrics are narrow in their focus and have become less meaningful in the knowledge economy, with little effect, in the long run, on an organization's bottom line. Compelling and bold, Measure What Matters to Customers lays out an exciting, new road map for measuring customer value and successfully raising profits.

With proven methods, Ron Baker—renowned forward-thinker in the professional services firm field—shows you how to capitalize on Key Predictive Indicators (KPIs), innovative measures that define the success of your enterprise as your customers do. These are specific, identifiable details that customers value in the products and services they receive—details such as a preference to be contacted by phone instead of by e-mail, or a desire for rapid turnaround time on returned calls. Easy-to-read and relevant to your organization's bottom line, this groundbreaking book shows you how to use KPIs to, for example, effectively track marketing data to determine which customers respond well to things such as cross-selling or to find out how receptive other customers are to entirely new offerings from the firm. It also shows you how to employ KPIs to enable your firm to react appropriately to your customer's needs and increase the value they perceive, leading to higher profits. Topics covered include:

  • Why the traditional metrics are no longer relevant to measuring the effectiveness of knowledge workers
  • The new tectonic shift taking place in the economy—the transition from manual and service workers to knowledge workers and why that difference is critical to the future of your business
  • How what you measure affects the value you provide to your customers
  • How to increase the effectiveness of knowledge workers
  • Developing KPIs for your company
  • Increasing knowledge worker effectiveness

Seismic in the strategies it presents, Measure What Matters to Customers reveals how to regain a competitive advantage in the marketplace and allow your company to develop the measures that matter to your customers. Applicable to manufacturing and service businesses of all sizes, this important book will challenge managers' and executives' theories about which measures are important in their businesses. If you want to increase your company's profits by working smarter, this is the book for you.

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Product Details

  • ISBN-13: 9780471752943
  • Publisher: Wiley
  • Publication date: 10/6/2006
  • Edition number: 1
  • Pages: 208
  • Sales rank: 1,037,193
  • Product dimensions: 6.40 (w) x 9.07 (h) x 0.78 (d)

Meet the Author

RONALD J. BAKER, CPA, is the author of The Firm of the Future and Pricing on Purpose, both from Wiley, and Professional's Guide to Value Pricing, Sixth Edition. He is founder of VeraSage Institute, a think tank dedicated to teaching value pricing to professionals around the world. Baker is a frequent speaker and consultant to professional service firms on implementing Total Quality Service and Value Pricing. He has been appointed to the AICPA's Group of One Hundred, a think tank of leaders addressing the future of the CPA profession, and was named to Accounting Today's 2001, 2002, 2003, 2004, and 2005 Top 100 Most Influential People in the profession.

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Table of Contents

Foreword.

Preface.

Acknowledgments.

About the Author.

1 The Canary in the Coal Mine.

2 The Economy of Mind.

3 The Old Business Equation.

4 The New Business Equation.

5 Pantometrists: Counting for the Sake of Counting.

6 The Gospel of Efficiency.

7 All Learning Starts with Theory.

8 Constructing a Theory.

9 Pantometry versus Theory.

10 Measures that Matter.

11 Developing KPIs for Your Company.

12 Increasing Knowledge Worker Effectiveness.

13 Managing by Results versus Managing by Means.

14 Human Capital, Not Cattle.

15 The Moral Hazards of Measurements.

16 The Dreamers versus the Pantometrists.

Bibliography.

Suggested Reading.

Index.

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