The backlog comprises all unfinished orders, requirements or tasks that have accumulated in a system or process. It serves as an overview of the outstanding workload and is an important control instrument in production, project management or IT. A well-maintained backlog enables prioritisation, capacity planning and transparent reporting.
The payback period indicates how long it takes for an investment to be covered by the cash flows generated from it. It is calculated by accumulating the annual cash flows until they reach the initial investment. A shorter amortisation period is considered less risky.
Lead time refers to the time that elapses between the order being placed and the final delivery of a product or service. It includes all steps along the value chain - from procurement to production to delivery. Short lead times improve efficiency and customer satisfaction.
The profitability index (PI) is an economic indicator that shows the relationship between the capital value of an investment and the costs incurred. A value greater than 1 indicates that an investment is economically viable. The PI helps to objectively compare different projects - especially when resources are limited.
The Employee Value Proposition (EVP) describes a company's overall promise to its employees - i.e. the mix of remuneration, development opportunities, corporate culture, meaningfulness and benefits. A strong EVP helps to attract, motivate and retain talent in the long term by clearly communicating what employees can expect.
Laggards are the last group in the diffusion model of innovations. They adopt new products or technologies very late - often due to scepticism, a lack of benefits or limited access to information. They typically make up around 16 % of the total population. Laggards are difficult for companies to reach, but are important for full market penetration.
A turnaround refers to the successful reversal of an economically critical situation in a company. The aim is to return to profitability through targeted measures such as cost reduction, restructuring or repositioning. Turnaround strategies require quick decisions, clear analyses and consistent implementation.
Shared value describes a corporate concept in which economic success and social benefit are created simultaneously. Companies develop strategies, products or business models that address social or environmental challenges while also strengthening their own competitiveness. This creates added value for everyone involved - the company, society and the environment.
Zero-based budgeting is a budgeting method in which every expenditure has to be justified from scratch - regardless of the previous year's figures. Instead of simply updating existing budgets, the planning process starts from scratch. The aim is to utilise resources more efficiently and avoid unnecessary costs.