By Brian E. Ravencraft, CPA, CGMA is a Principal with Holbrook & Manter, CPAs
In a constantly changing business environment, what works for your business today may not necessarily work tomorrow. To ensure that your business continues to grow and thrive for years to come, you need to be monitoring and measuring your business in order to manage it. One way to monitor and measure the health of the business is through Key Performance Indicators (KPIs).
KPIs are financial and non-financial measures of activity outcomes that indicate how a business, or a process within a business, is performing. The first step is to determine and develop KPIs that are vital to the growth and success of your business. In agribusiness, there are a number of KPI categories that your business may want to measure. For example, here are some categories of KPIs and some specific examples of ratios to track within each category:
- Productivity: Estimated production potential, fertilizers per output, chemicals per output, yield per acre.