As the truism goes, you can't manage what you don't measure.
While the collision industry tends to put a lot of focus on operational metrics, such as cycle time, financial metrics don't always get their time in the limelight.
In a recent blog, Brad Mewes discusses the importance of measuring financial metrics, specfically Return on Invested Capital (ROIC) and Return on Assets (ROA). Mewes explains, "ROA tells us how efficiently a business uses its exisiting assets to generate profits. ROIC tells us how effective a business is in re-investing itself."
Click here to read Mewe's blog on ROA and ROIC and why they are so important to measure.
| FREE WHITEPAPER on Standard Operating Procedures (SOPs) | |
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Meeting your Key Performance Indicators (KPIs) obviously is important to you as a repair or collision shop owner or manager. But do your employees recognize the importance? Download our free whitepaper on Standard Operating Procedures. |
