Cycle time in days to perform financial evaluation of new customers

This measure calculates the number of calendar days (including weekends) it takes to assess an investment for its profitability using cash flow methods or equivalent analysis of new customers. It is part of a set of Cycle Time measures that help companies analyze the duration of the process "evaluate and manage financial performance" from beginning to end.

Benchmark Data

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Measure Category:
Cycle Time
Measure ID:
100616
Total Sample Size:
535 All Companies
Performers:
25th Median 75th
- 3.0 -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are days.

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Key Terms

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Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Measure Scope

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Cross Industry (8.0)

  • 9.1.5.1 - Assess customer and product profitability (10782) - Studying product demand and targeted customer preferences. Study customers' demands or preferences after deducting the cost of delivering the final product.
  • 9.1.5.2 - Evaluate new products (10783) - Checking demand about a specific product by a customer segment. Conduct a detailed study--or research a customer behavior or preference for a product--in order to determine its production and profitability in a specific market.
  • 9.1.5.3 - Perform life cycle costing (10784) - Determining the cost of delivering an end product at different stages of production. Study the total life cycle of a product/process to determine how much revenue and production cost will be incurred at every stage in order to make strategic decisions.
  • 9.1.5.4 - Optimize customer and product mix (10785) - Creating the best fit between a product and the end user. Maximize the customer base by providing different products in the market.
  • 9.1.5.5 - Track performance of new-customer and product strategies (10786) - Observing the behavior of a new set of customers for different products. Prepare strategies to improve sales and profits.
  • 9.1.5.6 - Prepare activity-based performance measures (10787) - Evaluating performance based on different sets of activities created by management to measure performance.
  • 9.1.5.7 - Manage continuous cost improvement (10788) - Conducting activities to improve cost distribution regularly. Follow or adopt different ways of reducing costs.