8167.0 - Selected Characteristics of Australian Business, 2005-06  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 01/02/2008  First Issue
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BUSINESS PERFORMANCE


Business performance assessment

Businesses were provided with a list of business performance assessment measures and asked the extent of focus given to each of these when assessing overall business performance during the year ended 30 June 2006.

Business performance assessment, 2005-06(a)(b), by type of measure, by extent of focus

Extent of focus
Not at all
A small extent
A moderate extent
A major extent
%
%
%
%

Type of measure
Financial (e.g. profits, sales growth, return on investment)
16.0
15.3
31.8
36.9
Cost (e.g. budget, cost per unit of output, inventory cost)
20.7
19.3
31.8
28.3
Operational (e.g. asset utilisation, on-time delivery)
28.4
20.6
29.2
22.0
Quality (e.g. customer satisfaction, defect rates)
17.5
12.2
26.8
43.7
Innovation (e.g. process innovations, new value added products)
34.0
27.1
25.0
14.0
Human resources (e.g. job satisfaction, skills development)
24.3
22.7
32.8
20.3

(a) Proportions are of all businesses.
(b) Businesses were asked to indicate to what extent the business focussed on the listed performance measures when assessing performance.


The most commonly reported measure that was focused on to a major extent was quality measures (44%), followed by financial measures (37%). The measures focused on least by businesses were innovation followed by operational measures, with 34% and 28% of businesses respectively reporting that these were not focused on at all.



Changes in business performance and selected activities

Businesses were provided with a list of activities and performance measures and were asked to self-assess whether any of these had decreased, stayed the same, or increased compared to the previous year. An additional option of not applicable was also provided.

Changes in business performance and selected activities, compared to previous year, 2005-06(a)(b)

Decreased
since last year
Stayed the
same since
last year
Increased
since last
year
Not
applicable
%
%
%
%

Performance measures and activities(c)
Income from sales of goods or services
22.8
20.7
45.7
11.2
Profitability
24.1
29.4
36.1
10.8
Productivity
11.1
38.8
32.3
17.9
Range of products or services offered
5.6
51.3
25.2
18.0
Export markets targeted
2.7
6.9
2.8
87.7
Contracting out work/activities or outsourcing
5.0
17.4
11.3
66.4
Amount of structured/formal training for employees(d)
3.1
36.0
15.9
45.0
Expenditure on Information Technology (IT)
3.9
32.6
25.5
38.2

(a) Proportions are of all businesses.
(b) Businesses were asked to indicate if there had been a change in any of the items listed compared to the previous year. No attempt was made to cross check this self-assessment with other information.
(c) The sum of component items for each type of performance measure or activity may not equal 100.0% due to rounding and/or provision of multiple responses when only a single response was required.
(d) Includes attendance at external training, workshops and seminars.


The most commonly reported measures or activities that businesses identified as having either increased or decreased were the same, namely income from sales of goods or services and profitability. Relative to the previous year, 46% and 36% of businesses respectively reported increases in these measures. Decreases in the sales of goods or services was reported by 23% of businesses, while 24% of businesses reported decreases in profitability.