Corporate Strategies and Key Performance Indicator (KPI)

Introduction

Key Performance Indicators at every level

  • Shop floor activities
  • Workshops
  • Projects
  • KAI
  • KMI&KPI
  • Master Plan
  • Financial Outcomes

The most critical input of managers at all levels is performance reports.

Where there is no knowledge, predictions and prejudices dominate and it becomes difficult to improve quality of management.

It is also about the scope of a report. The reports should cover all aspects of corporate performance and the results should be presented in comparison with the targets. Resources should be allocated for the determination of "key performance indicators" and for the establishment of their measurement systems.

In the performance report increases the value of the report which is a holistic and balanced  all the issues that stakeholders will take advantage of reports.

In order to make good decisions, it is necessary to focus on the important issues and be able to access the right analysis of the right data.

The Purpose and the Scope

One of the most important elements that provides to become prominent of successful companies is that they have a sound measurement, monitoring and corporate auditing system.

The audit is the primary task of the board of executive. The boards of executive should set up multiple indicators during the audit phase to manage the trust of all stakeholders, the value of the enterprise, the correct use of resources and its performance.

Strategic goals, targets and criteria should be defined and managed in the following 5 aspects.

Financial Aspect (Target and Indicators)

Aspect of Customer (Target and Indicators)

Aspect of Processes (Target and Indicators)

Aspect of employee and development (Target and Indicators)

Aspect of Environment and Maintainability (Target and Indicators)

Corporate Performance Indicators are numerical values ​​that show the success of organizations in achieving their goals and business results.

It will help to make right decisions identifying and systematically measuring the performance indicators of each business process.

Different levels of each level of the organization must be identified and measured in accordance with their own Dynamics

Institutional Performance Indicators in each aspect should be addressed in two classes:

Leading Indicators:

It is indicators that the effect is not much noticeable for current situation  but  are expected to affect future business results.

Results Indicators:

Measurement of business results of current activities.

The Scope and Implementation Phases

Strategical Goals

  • Vision
  • Value Gap
    • What is the long-term vision/goal of corporations ?
    • What basic indications help us understand that we have achieved in our vision?
    • What is the difference between our goal and the current situation?

Strategy and Policies

  • Key areas
  • Strategy map
    • What are the key areas of importance in achieving our goals in the next period?
    • What is "our game plan" that will achieve us to our vision?

Performance Indicators

  • Criterias(KPIs)
  • Achievement levels
    • What are the criteria (KPIs) that indicate to achieve of our strategic goals?
    • What should be the long-term achievement level (least 3-year targets)?

Implementation

  • Actions
    • What are the projects and programs we need in order to achieve our strategic targets and the determined level of financial performance?

 

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