Key performance indicators Essay
Key performance indicators
In the financial perspective the cash flows return on investment return on capitals employed and return on equity act as indicators of how a business is performing (Kaplan & Norton, 1993) From a customers perspective the key indicators includes customer satisfaction rate, customers’ retention and delivery performance to customer in terms of quality and timeless (Kaplan & Norton, 2000).
The internal business process key indicators include number of activities willing the organization and opportunity success rates (Espstein & Wisner, 2001 Sunden & Stralton, 2006) learning and growth perspectives employ investment rate brain drain and illness rates of the balanced scorecard. Appropriateness of the balanced scorecard This strategic management approach will enable Intel to translate its visions and missions into actions by clarifying what is required and how it will be achieved. (Warner, 2001). In addition, it will provide Intel with immediate feedback on the internal business processes and outcomes.
This in turn will improve the performance of the organizations as these feedbacks enable continuous modification or improvements of strategic actions. Essentially this happens because the organization will have explicit measures/ targets which will be gauges against performance and outcome (Pray et al, 2003). Any deviation form though ideal should be the weaknesses or barriers to performance hence need be checked (Kirkegaad, 1997). Intel stands to transform its operations from where it is at currently, to the next level by deploying a balanced score card over other financial measures.
The balanced score card is not merely a casual management accounting practices for Intel but rather it is the lifeline or the nerve center of the organization for its survival (Kaplan & Norton, 1996). Intel operates on a global scale and its industry is more of knowledge based and manages or interacts with many intangible assets say, shareholders, customers and employees. The knowledge that they have is crucial for Intel business. In that case the value and living force of Intel lies in these people in terms of innovations, which give competitive edge for Intel against other companies in the league.
The benefit of balanced scorecard is that it gives real time information which act as indicators on how well the organization is performing (Sunden & Stralton, 2006) and provide windows to envisage future performance which facilitate the organization to realign its assets and build new strategies to achieve break through performance (Kallas & Sauaia, 2003). The balanced scorecard will not over haul all other financial measures or strategic plans. On the contrary, balanced scorecards compliment and support the financial measures and strategic plans at Intel.
For instance, where the financial metrics are have report past events, the balanced scoreboards tells a story of what is happening here and now. Notably, decisions made every day by management, whether over long term or short term durations, will be based on both past, anticipated as well as current information. Therefore, the element of support comes out clearly in balanced scorecards will support the strategic plans at Intel by charging the attractively documented plans into workable and practical activities or rather marching orders for the organization.
Balanced scorecards will allow managers to be confident in how they execute the organization strategies since it will be possible to measure performance or even identify what should be measured in the first place. (Young & O’Byrne, 2001, Dickinson, 2003) According to a survey conducted by Bain & Company, in 2004 57% of global corporations had at least partially implemented the balanced score card and reported remarkable benefits. For instance, many organizations purported increased satisfaction with performance and execution of strategic plans.
The report further appraised the appropriateness of balanced score cards to other private sector companies, government agencies and non profit organizations, making this a management system for all and industry. ( Bain & Company, 2002, Stewart, 2000) In brief the appropriateness of balanced score card boils down to the benefits of clarifying defined strategies, and help it avails managers to tracking performance and data on how well or not missions and visions arte achieved. (Dickinson, 2003).
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 17 May 2017
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