{"id":49,"date":"2019-12-17T12:57:36","date_gmt":"2019-12-17T19:57:36","guid":{"rendered":"https:\/\/articles.thescpgroup.ca\/?p=49"},"modified":"2020-09-07T08:30:02","modified_gmt":"2020-09-07T14:30:02","slug":"the-one-kpi-all-organizations-should-pay-attention-to","status":"publish","type":"post","link":"https:\/\/scpg.ca\/worthreading\/2019\/12\/17\/the-one-kpi-all-organizations-should-pay-attention-to\/","title":{"rendered":"The one KPI all Organizations should pay Attention to."},"content":{"rendered":"\n<h4>The business world is full of Key Performance Indicators&#8230;<\/h4>\n\n\n\n<p>of which all serve a very good purpose for telling a story  about a current element of the business.  There is however one KPI that  all business owners should prepare and pay attention to more than  others.  The \u201cTrailing 12 Months\u201d.  <\/p>\n\n\n\n<p>The \u201cTrailing 12 Month\u201d number refers to the last 12 months for a   selected financial metric within the business.  Here\u2019s an example:  The   Trailing 12 Months\u201d of total revenue.  When constructed in a graph,  each  data point on the graph equals the total past twelve months of  revenue  (June to May).  When viewed this way on a graph you can see the  overall  direction the revenue is trending as a leading indicator and  it smooths  out any seasonal fluctuation.  It\u2019s clean and simple.  If  the line is  going up that\u2019s good, if it\u2019s going down that\u2019s bad. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" src=\"https:\/\/scpg.ca\/worthreading\/wp-content\/uploads\/2020\/01\/trailing-12-graph-example.png\" alt=\"\" class=\"wp-image-164\" width=\"476\" height=\"274\" srcset=\"https:\/\/scpg.ca\/worthreading\/wp-content\/uploads\/2020\/01\/trailing-12-graph-example.png 614w, https:\/\/scpg.ca\/worthreading\/wp-content\/uploads\/2020\/01\/trailing-12-graph-example-300x173.png 300w, https:\/\/scpg.ca\/worthreading\/wp-content\/uploads\/2020\/01\/trailing-12-graph-example-465x268.png 465w\" sizes=\"(max-width: 476px) 100vw, 476px\" \/><\/figure><\/div>\n\n\n\n<p>A dealer in Alberta was using this KPI in 2008 and  was able to spot a softening in the business six months earlier than  its competitors.  This allowed them to get out in front of the used  equipment market and put aggressive sales programs in place for its  sales team and saved thousands of dollars in used value write downs.<\/p>\n\n\n\n<p> This \u201cTrailing 12 Months\u201d KPI can also play a highly valued role in tracking Gross Margin and Cash Flow. <\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>If you\u2019d like to discuss how we can assist you and your business, get in touch with John Higgins, the author of this article, at jhiggins@scpg.ca<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The business world is full of Key Performance Indicators&#8230; of which all serve a very good purpose for telling a story about a current element of the business. There is however one KPI that all business owners should prepare and pay attention to more than others. The \u201cTrailing 12 Months\u201d.<span class=\"more-link\"><a href=\"https:\/\/scpg.ca\/worthreading\/2019\/12\/17\/the-one-kpi-all-organizations-should-pay-attention-to\/\">Continue Reading<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":165,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,4],"tags":[65,67,78,79,87,88,100,104,113,139],"_links":{"self":[{"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/posts\/49"}],"collection":[{"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/comments?post=49"}],"version-history":[{"count":1,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/posts\/49\/revisions"}],"predecessor-version":[{"id":322,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/posts\/49\/revisions\/322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/media\/165"}],"wp:attachment":[{"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/media?parent=49"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/categories?post=49"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scpg.ca\/worthreading\/wp-json\/wp\/v2\/tags?post=49"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}