Business Development Metrics

Legacy financial models diverge from current reality and future KPIs

Traditionally, mobile operators have been judged based on ARPU, churn and cost per gross addition. Fixed operators, including cablecos, have been judged on uptake of broadband, and upsell to premium video packages. All are being measured on bundled offerings, in both penetration of the base and scope of the bundle.
All of these are flawed to some degree, and investors will need to re-think the models they use to measure the performance of operators, for four reasons:

• Firstly, the imperative for operators is to move towards a more “horizontal” structure. These metrics only relate to the retail icing on the platform and pipe cake.
• Secondly, users aren’t behaving themselves any more. They’re juggling multiple SIMs, handsets and accounts to create their own “unbundles” to meet their personal needs.
• Thirdly, these metrics are irrelevant to emerging two-sided business models that seek to make money from upstream partners for services like advert insertion and payment processing.
• Nobody believes the numbers the operators publish anyway.

In 2008, investors will start to demand new and better metrics.

Writing a business plan isn’t optional.  Even if you think of your business as simply a way to bring in a bit of money to pay off debt or save for a vacation.  Your decision to work from home means you now have a home based business. You are a small business owner.

Yes, a written business plan is required to secure finances or investors in your new home business. Starting a home business with your own funds and ideas doesn’t mean you don’t need a business plan.  Trust me - you need a well thought out business plan and you will need to visit it regularly to update it to fit your business mission. (more…)

Penna is a global human capital management consultancy.  http://www.penna.com/

Penna is a global human capital management consultancy. We help organisations to improve business performance through their people.

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We are working with the definition af KPI’s in my department. We find it difficult to find good and well functioning, practical, KPI’s related to inovation and process improvement in banking.

I would include some (or all) of the following: (more…)

What key indicators might you use to stay on top of your business success?

Please tell us about your experience with the use of key indicators

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