Improving Convention Center Management Using Business Analytics and Key Performance Indicators, Volume II

CHAPTER 4

Operating Expense Details: Derivatives

KPI: Overhead Expenses per GSF Rented

Owner	Finance Department
Data Sources and Collection	The Finance Department will provide all data.
Reporting Frequency	Semi-annually

Why This KPI Is Useful

This KPI applies particularly to revenue models where most of the earned revenue from services is from in-house business units (utility service, parking, cleaning, and so on). I have read and studied well over 20 annual financial and audited financial reports from major U.S., convention centers and the word “overhead” is absent. This is so because overhead expenses at convention centers are semi-variable. Investopedia explains semi-variable overhead expenses as “the company incurs some portion ...