Get the opportunity to grow your influence by giving your products or services prime exposure with Performance Magazine.
If you are interested in advertising with Performance Magazine, leave your address below.
For some years now, the massive scale of IT based organizations has become a source of inspiration and best practices in driving growth for almost any other type of company around the world. What is specific for the IT&C operating model is the way of driving strategic value by working in a project based system.
Sometimes it can be difficult to predict marketing performance and there are cases when expensive campaigns might not bring the desired results. Hence, marketing research and benchmarking represent important aspects that can help organizations not only measure their performance, but also find ways to predict and improve it.
Nowadays, key performance indicators (KPIs) are common management tools that enable managers to better understand their business and improve performance. Although their terminology may vary from one company to another (performance indicators, performance measures or KPIs), in essence all these terms have the same meaning. According to The KPI Institute, a key performance indicator is a measurable expression for the achievement of a desired level of results in an area relevant to the evaluated entity’s activity.
The field of performance management is a relatively new area, where tools and techniques may not be very well structured and terminology is sometimes ambiguous. Bringing more clarity in regards to key concepts can reveal a more efficient way of using KPIs.
Selecting KPIs is an important step in the process of measuring performance. In order to ensure the right KPIs are chosen for each objective, managers should have a wide understanding on what KPIs are. KPI typologies present various ways to look at performance indicators and create logical clusters. Grouping KPIs on specific criteria provides more clarity in regards to what is measured in relation to the objective assigned.
“We will compensate any violation of our promises to customers automatically. This means that if we do not keep our promise, then the next bill sent to customer is 20 euros less.” This is what Tallinna Vesi, a water services company from Estonia, promises its clients. On its website, there are 10 promises related to delivering accurate and on time services, which refer to supplying water and responding to client inquiries.
The Value Flow Analysis (VFA) represents a Key Performance Indicators (KPIs) selection technique, focused on analyzing the value generated by a system at all stages: Input, Process, Output and Outcome. This technique is mostly used during the KPI selection workshop, in order to properly measure the value generated within each stage. For each objective, KPIs are selected for Input, Process, Output and Outcome. Based on this initial listing, the KPIs that best reflect the achievement of the objective are selected.
Terms of use | Privacy Statement | Cookie Policy | Disclaimer | Online Dispute Resolution (ODR)
Copyright © 2004-2024 The KPI Institute Pty. Ltd. All rights reserved
