Managing Retail and Wholesale Business by Performance Indicators
Performance indicators are essential tools for the effective management and the efficient steering of business in retail companies. The selection of the right set and the correct use of performance indicators can help to foster the success of a business and to reduce the effort of managing a company. To ensure the positive effect of management by performance indicators, the chosen set of figures has to reflect the individual business model and has to be aligned with the steering logic of the company.
This contribution provides an overview on how to develop and apply the right set of performance indicators in retail business, as illustrated by an example of the METRO. The focus of the example is on the effective management of the brick-and-mortar business on the operational level by use of performance indicators. In this regard, the given example describes how to guarantee the comparability of performance indicators by respecting store, sales lines, and country-specific characteristics and by laying the basis for benchmarking and profound business decisions.
KeywordsOperational management Performance driver tree Performance indicators METRO System of key figures Wholesale business
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