Performance measures
can be used to evaluate the efficiency of an individual, a group, or even an entire organization using data collection and
... [Show More] analytics.
Critical Success Factors
The important things an entity must do to be successful, such as quality measures, customer service, or efficiency.
The goals a company must reach in order to consider itself successful
Key Performance Indicator (KPI)
- is a performance measurement that organizations use to quantify their level of success.
- follow "SMART" criteria, which is an acronym for specific, measurable, attainable, relevant, and time-bound
- Organizations will spend considerable management time and attention on monitoring
performance dashboard
DISPLAYs key performance indicators using VISUAL REPRESENTATION such as charts and graphs
- can show trends between KPIs that represent how an organization has performed historically.
- allow managers and decision makers to easily SEE WEATHER the organization is MEETING GOALS or IMPROVING in many different areas.
- are especially useful when it is necessary to display the specific charts, graphs, and data that are integral to making a certain decision.
Advantage of KPIs
- Educate management on company performance
- Can be used as a TOOL ACROSS an ENTIRE ORGANIZATION
-DATA driven results make it easier to QUANTIFY PERFORMANCE
- If used over time, can create an INTERNAL BENCHMARKING system
KPI- DISADVANTAGE
-can be EXPENSIVE and TIME-CONSUMING to set up and use
-REQUIRES FREQUENT, even ON-GOING, MAINTENANCE and MONITORING
-small changes in KPIs may be viewed as meaningful, but may not be statistically significant
- Results are often only rough guide rather than a concrete measurement
-ONCE DESIGNED and SET UP, DIFFICULT to CHANGE
BALANCED SCORECARD
An approach using multiple measures to evaluate performance, including financial measures, and the non-financial measures of customers, internal business processes, and learning and growth.
- purpose is to include in a company's goals some objectives that may not affect the company's current financial performance but do affect the company's long-term performance.
- useful for organizations to determine how successful they are in various categories
- successful balanced scorecard should REFLECT the COMPANY's STRATEGY
ADVANTAGES of balanced scorecard
- Improves ORGANIZATION ALIGNMENT
- IMPROVEs internal and external COMMUNICATION
- LINKS company operations with its STRATEGY
- Emphasizes strategy and organizational results
DISADVANTAGES of balanced scorecard
- Requires time and effort to establish a meaningful scorecard
- Does NOT ILLUSTRATE a FULL PICTURE of the COMPANY PERFORMANCE, particularly financial data
- Sometimes DIFFICULT to MAINTAIN MOMENTUM
- REQUIRES a WIDE CROSS-SECTION of the organization DEPARTMENTS in DEVELOPING the SYSTEM
- May not encourage desired behavior changes [Show Less]