Computer performance evaluation Evaluating your business is an important task of any business owner or manager. Whether the business is in its infancy or has a long and established history, having a system in place to monitor business performance will help ensure that trends are identified and problems are spotted early. There are several ways business performance is evaluated, but all methods fall into one of the two categories - qualitative or quantitative. When evaluating business performance, it is best to look at performance using a combination of qualitative and quantitative techniques; doing so helps to provide context for the analysis. Qualitative Business Analysis Qualitative means that the qualities of the business or issues are looked at, using interpretations. For example, when you poll job satisfaction, you are examining satisfaction qualitatively. While there is certainly a role for qualitative measures, for example how else could you measure job satisfaction, this category of evaluation is somewhat subjective and, as such, is vulnerable to different perceptions and interpretations. Similarly, depending on your industry measuring customer/client satisfaction ratings are equally crucial. The whole future of your business depends on the degree of satisfaction your customers or clients experience. The benefits of these exercises however, are immeasurable at times. The good "word of mouth" marketing that a satisfied customer circulates into his network and the image he portrays about your business even without your realization at times are the driving factors that generate more leads and opportunities into your business. Quantitative Business Analysis The second category of business performance evaluation methods is referred to as quantitative. Quantitative means that some aspect of performance is measured objectively, such as how many phone calls are received per hour or how many widgets are produced in a day. When financial ratios are calculated for a business, the business's performance is being looked at quantitatively. Likewise, when production is measured, production is being measured quantitatively. This type of analysis has many strengths owing to its objective nature but it requires a point of comparison. This is usually taken in one of two ways - historically or comparatively. In historical quantitative analysis, numeric observations are compared against previous observations. Examples include sales comparisons by year, production by quarter, sales per hour, etc. Comparative quantitative analysis, also called "benchmarking", involves comparing your company's data with another company's or with your industry's standard. The practice of benchmarking should be used with caution. Even between companies with comparable attributes, there are many variables, both tangible and intangible, that can make a company succeed or fail. All too frequently, people will perform a benchmark analysis without a fair conception of what variables are appropriate for this type of analysis. Take for instance a small coffee shop; it is reasonable that a coffee shop compares its rate of customer retention with Starbucks, but not for it to compare its profit margins. Retention is in the small coffee shop's control but it simply cannot look at its profit relative to Starbucks. Aside from the obvious fact that Starbucks has access to economies of scale and scope that a small coffee shop does not, comparing an independent, single location coffee shop with a multi-national does not provide any value. Likewise, it is generally useless to compare benchmark performance between industries; for example, a technology company will have a higher profit margin than a handmade gifts company because fewer materials are required. Taking a similar example, a software company cannot be compared to a computer company. In essence, the key to successful benchmark analysis is to remember the context of the analysis and to pay careful attention to the applicability of variables studied. So, start evaluating your business performance and understand what are the crucial drivers essential to the success of your business. Perform comparisons against your competitors in respect to quantities and qualities. Establish a system, where these drivers are periodically evaluated. http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms for performance appraisal.
Pages to are hidden for
"Computer performance evaluation"Please download to view full document