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How to get your whole operating plan on 1 page.
Widely used by top strategy consultants, this powerful tool helps organizations navigate change and improve effectiveness by examining how seven key elements interact and align.
The framework enables leaders to identify gaps and implement changes more efficiently.
The 7 interconnected elements:
Structure: The organization’s hierarchy and reporting systems that drive accountability and ownership.
Strategy: The company’s approach to achieving goals and maintaining a competitive edge, aligned with its mission and market realities.
Systems: Operational processes that support daily activities and decision-making.
Shared Values: Core principles that unite the organization and shape its culture, crucial for driving meaningful change.
Skills: The expertise within the organization, ensuring employees are equipped to perform effectively.
Style: Leadership and management approaches that shape workplace culture and influence team performance.
Staff: Talent acquisition, development, and motivation strategies to build a capable workforce.
These elements are deeply interconnected—changes in one can ripple through the others.
Shared values lie at the heart of the model, emphasizing their critical role in fostering cohesion and driving sustainable transformation.
Download the free PPT to explore this framework in detail!
Follow Tim Vipond, FMVA®, for more insights.
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CEO vs CFO vs COO: Key Performance Indicators (KPIs)
Are the KPIs correctly attributed?
Would you have done it differently?
Here’s a quick breakdown of the key metrics for CEOs, CFOs, and COOs:
CEO KPIs
1. Revenue Growth
(Current period revenue – Previous period revenue) / Previous period revenue
2. Gross Profit Margin
(Revenue – Cost of Goods Sold) / Revenue
3. Net Profit Margin
Net Income / Revenue
4. Return on Investment (ROI)
Net Income / Investment Cost
5. Earnings per Share (EPS)
(Net Income – Preferred Dividends) / Average Outstanding Shares
6. Customer Acquisition Cost (CAC)
(Marketing + Sales Costs) / New Customers Acquired
7. Customer Lifetime Value (CLV)
(Average Revenue per Customer × Average Customer Lifespan) / CAC
8. Employee Engagement
Measures employee satisfaction and engagement using surveys or performance reviews
9. Employee Turnover
Number of Employees Who Left During the Period / Average Number of Employees
10. Net Promoter Score (NPS)
% Promoters – % Detractors
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CFO KPIs
1. EBITDA
Net Income + Interest + Taxes + Depreciation + Amortization
2. Return on Equity (ROE)
Net Income / Shareholders’ Equity
3. Working Capital Ratio
Current Assets / Current Liabilities
4. Debt-to-Equity Ratio
Total Debt / Total Equity
5. Cash Conversion Cycle (CCC)
Days Sales Outstanding + Days Inventory
Outstanding – Days Payable Outstanding
6. Debt Service Coverage Ratio
Net Operating Income / Total Debt Service
7. Return on Assets (ROA)
Net Income / Total Assets
8. Inventory Turnover
Cost of Goods Sold / Average Inventory
9. Quick Ratio
(Current Assets – Inventories) / Current Liabilities
10. Cash Flow
Operating Cash Flow + Investing Cash Flow + Financing Cash Flow
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COO KPIs
1. Project Efficiency
Actual Project Cost / Planned Project Cost
2. Productivity of Staff
Total Output (unit or value) / Total Number of Employees
3. Order Fulfillment Cycle Time
Σ (Order Completion Date – Order Received Date) / Total Number of Orders
4. Overall Equipment Effectiveness (OEE)
Availability × Performance × Quality
5. Operational Efficiency
Total Output / Total Input
6. Customer Satisfaction
Number of Satisfied Customers / Total Number of Customers
7. Time to Market
Number of Orders Delivered on or Before Promised Delivery Date / Total Number of Orders
8. Quality Index
Defects / Total Units Produced
9. Capacity Utilization
Actual Output / Potential Output
10. Safety Incident Rate
(Number of Incidents × 200,000) / Total Hours Worked
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