- Strategic Management - Process
- Strategic Management - Types
- Strategic Management - Introduction
- Strategic Management - Home
Strategic Leadership
The External Environment
- Mapping Strategic Groups
- Judging the Industry
- Analyzing the External Environment
- Organization & Environment
Organizational Resources
- Company Assets: SWOT Analysis
- Other Performance Measures
- The Value Chain
- Intellectual Property
- The Resource Based Theory
Business Level Strategies
Aiding Business Level Strategies
International Marketing Strategies
- International Markets - Competition
- International Strategies - Types
- Drivers of Success and Failure
- Pros & Cons
Cooperative Level Strategies
- Portfolio Planning
- Downsizing Strategies
- Diversification Strategies
- Vertical Integration Strategies
- Concentration Strategies
Strategy and Organizational Design
- Legal Forms of Business
- Organizational Control Systems
- Creating an Organizational Structure
- Organizational Structure
Strategic HR Management
Strategic Management Resources
- Strategic Management - Discussion
- Strategic Management - Resources
- Strategic Management - Quick Guide
Selected Reading
- Who is Who
- Computer Glossary
- HR Interview Questions
- Effective Resume Writing
- Questions and Answers
- UPSC IAS Exams Notes
Other Performance Measures
There are four types of performance measures −
Key Performance Indicators (KPIs) says what to do to increase performance dramatically.
Key Result Indicators (KRIs) offer an overview of the past performance. They communicate how management has done in a CSF or from a balanced scorecard perspective.
Performance Indicators (PIs) provide an idea to the staff and the management what to do.
Result Indicators (RIs) say about what the staff have done.
Key Performance Indicators (KPIs)
KPIs are a set of measures that focus on the aspects of organizational performance that are most needed for current and future success of the organization. There are a few KPIs in an organization (no more than ten), and they have certain characteristics.
Characteristics of KPIs −
They are non-financial process of measures
They are done frequently
They are introduced by the CEO and the senior management
They are recognizable by the staff
They are an inspaniduals’ responsibipty
They affect the organization significantly
They also have a positive influence on other measures
Key Result Indicators (KRIs)
KRIs are performance measures different from KPIs. KRIs include −
Customer satisfaction
Net profit before tax
Profitabipty of customers
Employee satisfaction
Return on capital employed
Performance Indicators and Result Indicators
About 80 performance measures falpng in between KRIs and KPIs are performance indicators and result indicators (PIs and RIs).
The performance indicators are important but they are not the key to the business. The PIs propel teams to apgn themselves to the organization’s strategy. PIs, in fact, complement the KPIs and they are shown with KPIs on the organization, department and team scorecards.
Following are some PIs −
Percentage increase in sales to the top 10% of customers
Number of employees suggestions implemented in the last 30 days
Customer complaints from key customers
Sales calls organized for the next one to two weeks
Late depveries to key customers
Following are some RIs −
Net profit on key product pnes
Sales made yesterday
Week s sales to key customers
Debtor collections in week
Bed utipzation in week
The 10/80/10 Rule of Performance Measures
An organization should have around 10 KRIs, up to 80 PIs and RIs, and 10 KPIs. No more than these are actually used, but in many cases fewer measures are enough.
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