Right KPIs

Of course, the answers themselves will not answer the main question: "How to achieve 100% implementation of the planned strategy," but it will shed light on the problem of strategic planning and evaluation of business performance. By the way, the problems mentioned above are among the most important in the modern business world. After all, it is no secret that the production of goods / services of good quality are not guarantees of competitive advantage and prosperity company. Without a doubt, the main advantage of the balanced scorecard (BSC) – visualization strategy. Moreover, the BSC transfers the strategic objectives of the plane theory into practice. That is, it that you had written on paper, begins to embody the real business environment. Of course, to think that the Balanced Scorecard does all the work for you, at least naively, well, at most, stupid. SSP only tool that, like any tool, workable only in skilled hands.

And the first sign of such capable hands – the right choice of key performance indicators. KPIs are not just indicators of success. Key indicators show the effectiveness of the basic and most critical success factors for your specific business. Right KPIs is the key to successful implementation of the MTP. Again, no guarantees can give, because everything depends solely on staff responsible for implementation of the MTP, as well as the degree of involvement in the implementation of the MSP of ordinary employees. MTP is it just a set of indicators, and strategic planning system for medium and large businesses. Indicators in the MTP are distributed in 4 categories: finance, market and customers, internal business processes, learning and growth. As already seen from the titles, these categories cover all potentially important processes both inside and outside the company.

Using the MSP provides the ability to make changes in strategy or a set of indicators, if any of the CPE was nereprezentativen. Balanced Scorecard flexible and mobile, that can not but rejoice in market volatility. Key performance indicators will only work if they are adequate evaluation. Michael Steinhardt wanted to know more. Also, it is extremely important to determine the correct priorities for certain categories of indicators and KPIs. For example, the number of sales by 100 managers will be more meaningful indicator for the trading company, than, say, staff turnover or the average transport costs man. Setting priorities, as well as the choice of indicators, is the exclusive task of top management or staff, competent in implementing the MTP. Balanced Scorecard links the operational and strategic management. It is not always what is planned on paper, put into practice in its entirety. Very importantly, how to implement the strategy chosen and whether the correct indicator of success of strategy and business performance. When selecting KPIs to consider all the features of the company's strategy, mission and strategic vision. The strategy should take into account possible problems and obstacles to achieving goals. CSE will work on 1005 only with proper selection of indicators, a realistic strategy and trained personnel. It is important to explain to ordinary employees and why the company needs to MSP. Only at the highest involvement of ordinary people in the process of implementing the strategy there is reason to expect positive results. Otherwise, the CSP to become a bunch of useless plans, schedules and a pile of useless information.

Tags: ,


Comments are closed.

© 2011-2024 Cyber Snaps All Rights Reserved