Determining Key The Performance Indicators -Myassignmenthelp.Com

Question: Discuss About The Determining Key The Performance Indicators? Answer: Introducation A balanced score card is a toll that is used to identify and improve different internal functions as well as their effects to the external environment, basically, it is a strategic performance management tool (De Geuser et al, 2009). The score card in the LFR Limited basically focuses on ensuring that the customer is treated with the best care and is comfortable. The procedures and activities carried out to ensure that are those that are mentioned in the score card. The businesss aim is to be able to attract new customers as well as maintain its current customers. Therefore, the management team of the business focuses on ensuring that all of the above business functionalities are performed to their optimum and achieved the results intended. Objective Measure In Form Of Kpi Financial Perspective Objective Comments KPI Comments Increase in revenue Should increase the number of product sales Extend the market share and segment by creating new customers and markets Measure the revenue percentage received from the new products Measure both product and customer profitability Measure the percentage of customer increase As long as the activities leading to change in business financial position are kept in check, the KPI will be easily identified and achieved. Customer Value towards loyal customers Reward and special treatment accordingly Gold or silver privilege cards provided for use Increase in the number of customers with the cards and given such treatment When the number increases then the objective has already been achieved Effective and efficient customer experience Employees entertain and help the customers when shopping Increase in the number of customers shopping in the business When the number increases, the objective is said to be attained Close customer relationships Forming professional friendship relationships with customers The more the customers trust and enjoy shopping from the business the more the customers become comfortable the more the objective achievement The internal perspective measures implemented in an organizational level cannot be implemented in an individual store mainly because of: The individual stores may not afford to employ as many employees as an organizational store. And therefore will lack the effective and efficient customer experience An individual store may not afford to employ the number of managers needed to implement the measures or strategies which may lead to poor judgment and decision making processes In most private or individual businesses, the employees should not be seen forming any relationship which reduces the chances of the customer engaging in a close relationship with the employees In most individual businesses, the business operations are run from debts, or rather its funds are mostly received from loans and debts. Therefore, the opportunity to offer some special treatment to the customers becomes an additional expense hence it is not done. KPIs Necessary in Individual Businesses a) Operational KPIs These relate to business operational efficiency. In most businesses, the daily operations include activities like product purchases, customer care and treatment, product sales to name a few. The operational KPIs are used to measure how long a business takes to complete a certain operation and succeed (Velimirovi? et al, 2011). Therefore, in the case of individually owned businesses, this KPI is needed to measure the actual performance of a business operations on a daily basis. These daily measurements can help a business to predict its future or final performance. b) Growth KPIs These relate to overall business growth, whether in terms of increase in customers, increase ofproduct sales volumes or increase in number or employees and business expansion (Carlucci et al, 2010). Apparently, by attracting more employees, a business will certainly attain more revenue and increase its sales volumes. Therefore, according to Eckerson, 2009, individually owned businesses should ensure the implementation of this KPI measure. c) KPIs link to LFRs Strategy b) KPIs Comments Link to LFRs Strategy Operational They indicate the levels at which a business can complete and operation successfully, basically, how effective and efficient their operations are towards achieving he business objective LFR business faces challenges when it comes to purchasing is products from manufacturer. The business should also focus on implementing the operational KPIs in its business Growth Are used to measure a business growth and development rates. When a business is able to attract many customers, then its revenue will increase which means growth. The business is focusing on improving its growth and development rates by ensuring that its customers are treated extremely well which is a special way of trying to attract new customers and retain the current ones References Carlucci, D., Schiuma, G. (2010). Determining key performance indicators: An analytical network approach. De Geuser, F., Psychology, S., Oyon, D. (2009). Does the balanced scorecard add value? Empirical evidence on its effect on performance.European Accounting Review,18(1), 93-122. Eckerson, W. W. (2009). Performance management strategies.Business Intelligence Journal,14(1), 24-27. Velimirovi?, D., Velimirovi?, M., Stankovi?, R. (2011). Role and importance of key performance indicators measurement.Serbian Journal of Management,6(1), 63-72.