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Full-Text Articles in Business
Racing To Success By Identifying Key Performance Drivers, Kathy Paulson Gjerde, Susan B. Hughes
Racing To Success By Identifying Key Performance Drivers, Kathy Paulson Gjerde, Susan B. Hughes
Scholarship and Professional Work - Business
This article focuses on ways to identify key performance drivers (KPDs) and key performance indicators (KPIs). Unfortunately, lists of KPIs published in the past often focus on one industry and assume a generic business strategy. In addition, an overemphasis on financial measures will mean that KPIs will reflect past activities rather than signaling future performance. Managers need to develop meaningful metrics for their own businesses, not use generic KPIs. This is particularly important in small and medium-sized enterprises. How adept are you at this task? Do you know what drives net income for your organization?
Tracking Performance: When Less Is More, Kathy Paulson Gjerde, Susan B. Hughes
Tracking Performance: When Less Is More, Kathy Paulson Gjerde, Susan B. Hughes
Scholarship and Professional Work - Business
With or without a balanced scorecard, it is easy for managers to become inundated with metrics and measures. In this article, we first highlight the differences between lagging and leading measures. Second, we illustrate the importance of differentiating the strategic leading indicators-the key leading measures-from those that may improve operational efficiency without significant improvements in profitability. Third, we use a business simulation to demonstrate that focusing on and improving the key leading measures has the greatest impact on profitability, but getting lost in the secondary measures dilutes the effect. Combined, the results illustrate that less may be more when it …