...Selecting KPIs Selecting the right metric is an art more than a science (Eckerson, 2005). The essential objective in selecting KPIs is to identify the measure that best communicates the meaning of a strategy (Kaplan & Norton, 1996). Each KPI measures the achievement of a certain strategic objective; and therefore managers should (1) understand very well the strategic objective and (2) select the KPI carefully to translate the achievement of this particular strategic objective. If managers do not understand the strategy or fail to select the right measure, management of the company may be misled by not measuring what needs to be measured. As Kaplan and Norton (1996) indicated, the art of defining the KPIs rests in the performance drivers (leading indicators) that enable the outcome KPIs (lagging indicators) to be achieved. Leading indicators are useful to have as they give the time to influence the outcomes KPI (Eckerson, 2005). There is a third type of KPI that can be selected which is the diagnostic indicator. The diagnostic indicators are not leading or lagging indicators; they measure the health of the operations just like measuring the human temperature that should always be under a certain level. While selecting the leading indicators for a certain outcome KPI, managers should do a brainstorm session to understand what drives the performance of this specific outcome KPI (lagging indicator). Good mix of KPIs should be (1) linked and aligned with strategic objectives...
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...homework and due diligence before giving over part of your business to a third-party. Here are six things to consider before you choose a business right partner. 1. Understand your core competencies and limitations. “Outsource functions that are time-consuming and can easily be performed by someone outside the organization,” says Sara Slettebo, president, ReMilNet, which helps businesses improve efficiency and effectiveness. For example, “ReMilNet has outsourced its HR functions (payroll, w-2, taxes, benefits, etc.) since 2008. With employees working in several states, it is more cost effective to have an external staff available to prepare process and file our state documentation than manage it internally,” she says. “As a result, our filings are compliant and submitted on time, we stay abreast of new policies that impact our employees in each state and all our records are available online in a secure environment. This has been the most beneficial outsourcing decision we have made.” 2. Define goals/metrics upfront. “Clearly define the outsourcing goals: cost savings, quality improvement, efficiency, augmenting skills,” says Adrienne Johnson, corporate communications manager, CorpInfo, which provides cloud, consulting, infrastructure and managed services. “Clarifying goals, needs and expected outcomes aids in selecting the right partner and outsourcing agreement.” “Set performance...
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...Friar Tucker International (FTI) is a hospitality service chain whose vision is” to be among the top 10 hospitality service providers in the family entertainment business, based on their superior service levels and innovative monitoring” (University of Phoenix, 2011, para. 2 ). FTI’s mission is “to attract more visitors and customers through food and entertainment facilities, and ensure a great family experience” (University of Phoenix, 2011, para. 2 ). Over the next three business years, FTI’s key focus areas are to establish their presence in the entertainment hospitality segment, consolidate their presence in the cuisine business by expanding into specialty cuisine establishments, and expand into the corporate entertainment segment (University of Phoenix, 2011). FTI is making significant progress toward meeting the organizations goals as the company manages 35 entertainment and cuisine establishments, employs 1,200 individuals and generates revenue of more than $300 million (University of Phoenix, 2011). Under the astute leadership of CEO Richard Bellini, FTI has entered agreements which several hotel chains will be managing the company’s establishments and executing diverse projects that fell in the realm of FTI’s core business. FTI was convinced by it clients to accept some projects for which they would do subcontract work; however, these projects did not directly align with the company’s strategic objectives. Ricardo intends to change the random nature of how projects...
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...In recent time, many companies/organisations have starting focusing on non-financial factors which include customer and employee satisfaction, work atmosphere, etc. which are not financial but in long process increase profitability of the organization. Further, right Amalgamation of both financial and non-financial measures can provide key executives with the glimpse of company’s progress well before a financial verdict is made. This paper concentrates on comparing financial and non-financial metrics used in traditional and lean enterprise. Traditional financial measures were first introduced 1900’s and have been used since then to size financial performance of the organization. The following are basic financial measures implemented in traditional organization: Liquidity Metrics: One of the many reasons organization fail is poor cash management, therefore liquidity management play an important role. Doing so, organization can limit and control cash flow problem and induce profitability. One of the most common liquidity ratio applied is current ratio, which is the ratio of current asset to current liability. Current ratio directs the ability of the organization to pay bills. If the ratio is less than one that means the organization is under liability or debt. The ratio of greater than provides safety cushion to the organization. Solvency: For the company to fulfil long term commitments, stay in business and continue making profit require common solvency ratio that is...
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...------------------------------------------------- Department of Electrical, Computer & Communications Engineering ------------------------------------------------- MSc Project Final Project Report ------------------------------------------------- Title: Secured infrastructure development for educational university using servers, firewalls and biometric devices ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Author: Azhar ur Rehman ------------------------------------------------- ------------------------------------------------- Academic Session: 2008-2009 ------------------------------------------------- Supervisor: Mr.Manoj Pongubhati Course Title: Msc computer systems and networking Mode of Study: Full Time ACKNOWLEDGEMENT First and foremost I would like to dedicate my thesis to my parents and want to thank Prof. Mr. Manoj pongubhati, my research dissertation supervisor, for giving me an opportunity to work on the dissertation of my interest and encouraging me throughout my work. His support and patience helped me overcome many difficult times during my dissertation research. I am also deeply grateful to Mr Ali Ahmed, a good friend and guardian who is working as an Assistant Manager with Dynamic Associates Info Pvt Ltd was actively involved with my research. The day I started working under the professional guidance of Dynamic...
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... management, employees, government, and the community). The corporate governance framework consists of explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards, procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances. The field of corporate governance is at a crossroads. Our knowledge of what we know about the efficacy of corporate governance mechanisms is rivalled by what we do not know. Good corporate governance helps to prevent corporate scandals, fraud, and potential civil and criminal liability of the organization. It is also good business. A good corporate governance image enhances the reputation of the organization and makes it more attractive to customers, investors, suppliers and in the case of non-profit organization contributors. The best practices of corporate governance are in the structure of the board of directors, the operation of the board of directors and the other corporate governance practices. When it comes to the structure of the board of directors, the best practice includes selecting completely independent directors and these directors should preferably constitute a majority of all directors, with the possible exception of privately held companies. This means to select directors who are willing...
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...Introduction The nomination and election of a board of directors is a critical event for an organization. Selecting the right individuals to comprise the board that will provide adequate oversight and ensure alignment of management to that of shareholders and stakeholders best interests is vital to the success of the company. This paper explores how boards are formed, how individuals become part of boards, the type of individuals that should comprise a board, CEO duality and the advantages and disadvantages of having non-executive board members. How Boards are formed When forming a board of directors the c-suite should see the board and its members as a strategic partner rather than as a necessary requirement a corporation must have. The initial question that must be answered when considering forming a board of directors is what type of board does your organization need and select appropriate board leadership that meets the needs of your organization. In forming a board of directors many things must be taken into consideration such as the composition of the board, the number of board members, committee structure, roles and responsibilities, evaluation metrics for board performance and meeting frequency. Each of these elements will lead to the success of the board creating a strong platform for corporate governance. How do individuals become part of the Board of directors (Methods / Process)? In Canada upon incorporation of a company the incorporator...
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...Best Snacks Problem Solution Course/Number Date Andre Boyer Best Snacks Problem Solution Best Snacks encounters many challenges that affect the creativity and innovation practices. This ranges source from individual and organizational learning, management practices and technology in creativity and innovation. Jones (2004) states, “Each design challenge has implications for how an organization as a whole and the people in the organization behave and perform.” (p. 115). This means that each area influences the direction of the organization and some of the difficulties that stifle a creative environment that lends itself to an innovative organization. Further, successfully overcoming challenges associated with a void in creativity consists of implementing a plan that address concerns highlighted by employees in the recent organizational survey. Creating a plan may source at the leadership level but the input sources from the employees because this is the identified area where creativity does not exist in the desired way. Leadership teams must recognize that the survey indicates employees do not feel they have the freedom to provide creative input therefore; leadership team members become part of the problem. Mat and Razak (2011) state, “Identification of success or failure of innovation can be done through implementation phase” (p. 217). As a result, the problem itself lies within the leadership team members rather than the employees of Best Snacks. Based...
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...6.1) Key performance indicators (KPIs) are used to measure the progress of a business reaching their goals. The success of the business and its activities should be measured to identify problems or possible improvements. I have identified a number of KPIs specific to departments in the supply chain as well as the supply chain as a whole. KPIs which can be introduced across the sales department are: • Lost sales to keep a record of which customer orders are not fulfilled. • Turnover generated by each product in order to make comparisons between the different adhesive and grout types. • Sales target in order to have a goal to work towards. • Sales growth measurement, which is important to determine if the product sales are increasing to be able to supply the growing demand. KPIs which can be introduced across the marketing department are: • Return on investment in order to determine the revenue that a marketing campaign is making in comparison with the costs to run that campaign. • Incremental sales which demonstrate the effect that the marketing campaign has on increasing sales. KPIs which can be introduced across the procurement department are: • Deliveries which compares the actual delivery date to the promised delivery date of raw materials. Delivery accuracy can then be measured. • Lead times, which should be monitored to determine delivery dates of raw materials. • Total cost savings, which measures the amount of money saved on an order by purchasing...
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...Metrics That Matter: The Most Effective KPIs to Transform Your Business By: Jon Snow, Senior Manager, Business Consulting Services An Epicor® White Paper WHITE PAPER Table of Contents Financial and Transactional KPIs: A KISS Approach Operational Area: Sales Gross Margin Sales per Employee Operational Area: Purchasing Inventory Turns Service Level Operational Area: Fulfillment, Inventory Control or Warehouse Operational Area: Finance DSO (Days Sales Outstanding), Average Collection Period DPO (Days Payables Outstanding), Average Payables Period Cash Conversion Cycle About Epicor 1 3 3 4 5 5 5 6 7 7 7 7 9 Metrics That Matter: The Most Effective KPIs to Transform Your Business i WHITE PAPER Businesses thrive or fail based on their ability to identify, define, track, and act upon Key Performance Indicators (KPIs). The faster and more accurately KPIs can be accessed, reviewed, analyzed, and acted upon, the better the chance an organization has for success. Beyond the shareholder value that KPI improvement programs generate, KPI improvement initiatives position organizations for growth, financial performance and service differentiation. Sophisticated Enterprise Resource Planning (ERP) and Business Intelligence tools have made it possible to quickly calculate and report Key Performance Indicators and metrics. In previous white papers and articles, Epicor has emphasized the benefits of creating a KPI improvement program, and how that program should resonate with...
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...Chapter 1--Introduction to Purchasing and Supply Chain ManagementChapter 1--Introduction to Purchasing and Supply Chain Management Student: ___________________________________________________________________________ 1. The development of progressive purchasing approaches and strategies can only help a company maintain its competitive position. True False 2. Global sourcing is no longer a requirement and is a luxury for most firms. True False 3. Sophisticated customers, both industrial and consumer, no longer talk about price increases; they demand price reductions. True False 4. An abundance of competitors and choices have conditioned customers to want higher quality, faster delivery, and products and services tailored to their individual needs albeit at a higher total cost. True False 5. The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring. True False 6. Competition today is no longer between firms; it is between the supply chains of those firms. True False 7. In the manufacturing sector, the percentage of purchases to sales averages 55%. True False 8. The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovate ideas that continually add value to a firm's products and services. True False 9. Virtually all of...
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...Quarterly Newsletter of he T Volume 4 Issue 3, 3rd Quarter 2002 Integrators of Logistics & Distribution Systems Distribution Metrics: How Healthy Are You? By Phil Godden, Fortna, Inc. Most people today know two numbers relating to their health: their blood pressure and their cholesterol level. These are two indicators out of the hundreds available to our doctors that give insight into the state of our internal systems. These metrics let us know if adjustments are needed to maintain a healthy, vital existence. Many distribution professionals are not so lucky - they do not have enough data points to fully diagnose issues and opportunities deep within their operations. A good metric program is an indispensable tool for logistical improvement. In this article, we will discuss what makes a good metric, how to get started, what to measure, and what to do with the data once you have collected it. Objectives of Metrics We will refer to a metric as a piece of data that represents some aspect of a process. This data is methodically collected and reported in a fashion that gives managers insight into their operations. Good metrics have several basic objectives, including: · To measure business progress and performance · To measure key activities within processes and subprocesses · To improve business results Why Are Metrics Needed? Metrics are needed for a variety of reasons but perhaps the most important is reflected in this quote: “That which is not measured is most assuredly...
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...specific task b. recruiting prospective employees c. training and developing employees d. developing rules and procedures e. all of the above (d; moderate; p. 2) 5. Celeste spends most of her time at work setting goals and standards and developing rules and procedures. Which function of management does Celeste specialize in? a. planning b. organizing c. motivating d. leading e. staffing (a; easy; p. 2) 6. Which basic function of management includes delegating authority to subordinates and establishing channels of communication? a. planning b. organizing c. motivating d. leading e. staffing (b; easy; p. 2) 7. When managers use metrics to assess performance and then develop strategies for corrective action, they are performing the ___________ function of management. a. planning b. leading c. staffing d. controlling e. organizing (d; difficult; p. 2) 8. What specific activities listed...
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...1 McKinsey Global Survey Results McKinsey Global Survey Results: Assessing innovation metrics Assessing innovation metrics A recent McKinsey Global Survey shows that companies are satisfied, overall, with their use of metrics to assess innovation portfolios—though many findings suggest that they shouldn’t be. The companies that get the highest returns from innovation do use metrics well; these organizations tend to assess innovation more comprehensively than the others. Even in the current economic turmoil, innovation remains a high strategic priority for most companies, and many see it as a strong contributor to growth. Yet many also struggle to measure the performance of their innovation portfolios. In a recent McKinsey Global Survey,1 we asked senior executives which types of innovations their companies pursue, which ones they measure and with what metrics, what goals they have in using metrics, and how satisfied they are with the metrics they choose. Companies reporting the highest contribution to growth from their innovation projects tend to be more interested in pursuing and measuring their innovations as a portfolio and therefore use metrics across the whole innovation process. In the end, they are more satisfied than others with the ability of such metrics to help their organizations do everything from aligning individual performance incentives to improving innovation performance to communicating with investors. 1 Conducted in October 2008, the survey had...
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...integration or a virtual company which I will explain later is the strategy of a Keiretsu Network. It was founded by Japanese manufactures in which its part of a collaboration and part purchasing from suppliers and its also part vertical integration. The manufactures are major financial supporters of the suppliers through their ownership or loans. The suppliers become a major part of the company's coalition called Keiretsu. Any members of this network are assured long term relationships and are expected to to behave as partners and provide their expertise on quality production to the manufacture. Members can also have Keiretsu father down the supply chain which makes second and even third suppliers apart of this coalition. Finding the right strategy for our company will be the start of our supply chain strategy. The main three are the Keiretsu network, virtual company, vertical integration. All three have their advantages and disadvantages. An example of a Keiretsu network would be our company working closely with a supplier, such as a motor manufacturer but not necessarily owing their company. A virtual company is network of independent companies—suppliers, customers, competitors, linked by information technology to share skills, costs, and access to one another's markets. Such organizations are usually formed on the basis of a cooperative agreement with little or no hierarchy or vertical integration. This flexible structure minimizes the impact of the agreement on the participants'...
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