Distinguished from other metrics, key performance indicators (KPIs) are those metrics most critical to gauging progress toward objectives. KPIs are metrics that are: tied to an objective; have at least one defined time-sensitive target value; and have explicit thresholds which grade the gap between the actual value and the target.
2. What is Benchmarking?
The comparison of similar processes across organizations and industries to measure progress, identify best practices, and set improvement targets. Results may serve as potential targets for key performance indicators.
3. What is Business Performance Management?
A type of performance management that includes finance, covering compliance issues, competition, risk and profitability and human resources performance management encompassing employee performance appraisals and incentive compensation and other types of performance management include operational performance management and IT performance management.
4. What do you mean by Cause and Effect in a business model?
The way perspectives, objectives, and/or measures interact in a series of cause-and-effect relationships demonstrate the impact of achieving an outcome. For example, organizations may hypothesize that the right employee training (Employee, Learning and Growth Perspective) will lead to increased innovation (Internal Process Perspective), which will in turn lead to greater customer satisfaction (Customer Perspective) and drive increased revenue (Financial Perspective).
5. What is Operational Performance Management?
A type of performance management that addresses the growing pressure to increase revenue while managing costs, while meeting ever-evolving and expanding customer demands. Other types of performance management include business performance management and IT performance management.
6. What do you mean by Performance Driver and Performance Gap?
Performance Driver – Measures that indicate progress against a process or behaviour. These measures are helpful in predicting the future outcome of an objective.
Performance Gap – The “difference” between actual and target, the trend of the performance or target gap shows an organization’s momentum.
7. What do you mean by Value Proposition?
It describes how an organization intends to differentiate itself in the marketplace and what particular value it will deliver to customers. Many organizations choose one of three value disciplines operational excellence, product leadership, or customer intimacy.
8. What are the strategies of production for MSMEs to consider?
MSMEs can consider two following strategies for the production:
a. Differentiation: to compete in areas other than the price that are valued by the customers and sell the price to certain customers at a higher price.
b. Cost leadership: produce large quantities of products (economies of scale) and sell the product at lowest cost in the market.