Key Performance Indicators and Performance of the Road Transport Companies in Rwanda.

Abstract

The purpose of this paper aimed at identifying the KPIs which can guide improvement in the road passenger transport companies, the ways in which information is availed to passengers, ways in which companies measure employees’ performance and level of profitability. The findings of the study found that various KPIs are used by the different passenger road transport companies and were categorized into indicators for overall business performance, vehicle performance, operational costs, employee performance and how companies measure overall profit. About ways in which information is availed to passengers, the findings revealed that there are a variety of ways through which information is availed to the public including bus stops, company internet, transit shops, and notice boards at the company office premises and on-board the buses among others. Companies measure their employees’ performance using performance contracts in relation to set targets, Input - output ratios were other ways in which companies measure the performance of their companies, include: time, vehicles, labor (human resources) and finances while outputs include: services, wastes, income collections, while individual’s contribution is measured to assess how much each one plays in the achievement of the overall company performance. The most reported measure of road transport company profitability was gross profit and net profit, profitability ratios, total costs and losses, analysis of cash flows and production efficiency and effectiveness