BSC Toolkit for Crisis Management » KPIs

Key Performance Indicators Explained

crisiskpi — Tue, 25 Oct 2011 12:03:58 +0000

There has been a lot of talk about Key Performance Indicators (KPI) in the business world, however, many businesses are not able to effectively identify and use their KPI’s resulting in a possible loss that they may not know about. It’s time to understand and make KPI’s work to the company’s advantage.

Key Performance Indicators

Before understanding how to identify and use KPI’s, it is important to understand what they are. Essentially, a KPI is an economic or non-economic measurement tool that is used to quantify various processes within an organization.

Keep in mind that KPI’s differ from organization to organization as not all organizations have the same needs, goals and objectives.

How to Identify KPI’s

In an organization, KPI’s are essentially everything that the business can monitor and review in order to ensure that it is making a profit or if it is meeting its goals and objectives. Keep in mind that when identifying KPI’s, it is important to consider the non-financial indicators as well. Below are some of the factors that should be considered when a company is identifying its KPI’s:

The identified KPI should represent some sort of a business process
The process must be labelled with a clear goal or performance requirement
The process must be quantifiable and should be comparable with past and future results
There must a method to identify and manage any processes that change during business operation

Examples of KPI’s

While there are literally hundreds of KPI’s that can be used in a business, the most commonly used key performance indicators are mentioned below:

Gross profit indicator
Overhead indicator
Liability and debtor indicator
Customer survey index
% of customers lost and converted
% of labour at work
Cost of supplies
Delivery status and times
Employee satisfaction index

How Are the KPI’s Used in an Organization?

The KPI’s of a business are basically used as a benchmark. They provide a sense of direction for the organization. They are the goals and targets that the company must work towards. With the help of a KPI, a business can focus on where it is lacking and therefore improve the overall profitability and success of the business.

Suppose a business objective is to “improve the customer satisfaction index by 20% by the end of 2011”. The company can use the customer satisfaction index KPI along with other customer related KPI’s to help achieve this goal and measure its progress along the way.

Key Performance Indicators are an essential part of any business organization. They help measure and track performance and provide a direction to a company so that it is able to reach its organization goals and objectives.

Gearing Recession KPIs to Improve Recruitment and Selection

expert_rwt — Mon, 11 Jan 2010 04:59:59 +0000

Staffing and assortment play a critical role when it comes to the success of any business organization. Therefore recession key performance indicators have to be regularly used to improve recruitment and selection.

This is absolutely an adverse reality that the world is coping with economic meltdown at this moment in time. Now it becomes more complicated to handle when it comes to enrollment and assortment. Much attention will have to be given on recruitment and selection as this is the foremost step towards taking into service the right and deserving people for your business enterprise. Therefore if you are going to develop recession KPIs, then these ought to be geared towards staffing and assortment.

Bear in mind that any implemented metrics system will not be sufficient enough regarding your organizational fulfillment. Many business organizations think that as long as they have used key performance indicators, this would indicate certain enhancement in spite of the consequences of the recession. Therefore you would need to make the necessary changing and development regarding your recession key performance indicators. This way, your recession KPIs will be more helpful and effective towards the recruitment and selection. Here are some metrics that you should include in your scorecard.

Cost per Hire

Firstly you will have to bear in mind that cost per hire metrics is fairly unbalanced. That’s why not too many human resources organizations are keen about using cost per hire. You should use cost per hire metrics when it comes to your budget plan or review of corporate performance.

Offer to Hire

This metric actually refers to all of the offers made by the business organization in an attempt to fill up different job posts. The evaluation here ought to be done in accordance with sub-groups, across groups, departments, divisions, and requisitions.

Interview to Offer

This metric would therefore refer to the overall number of interviews conducted by sub-groups in order to generate a variety of jobs in market.

Route to Interest

This is in fact a ratio that would concern to the number of router CVs and the number of CVs of interest forwarded to the organization’s hiring human resources managers. Resumes of interest will have definitely some diversions. Some of them will be pre-screened by the senior human resources managers. Others will be immediately phone-screened, but would still go through interviews with the senior HR managers. Phone-screening is often performed in order to set interview measures at once.

Despite the recessions key performance indicators, the hiring authority could easily implement some other types of metrics and scorecards for improving their organizational efficacy i.e. HR scorecard metrics, training evaluation metrics, balanced scorecard designer, CRM scorecard, credit risk measurement and crisis management scorecard.

Data Loss Key Performance Indicators

expert_rwt — Mon, 11 Jan 2010 04:55:25 +0000

An efficient management tool is that which actually empowers the managing directors of a business organization especially during the times of crisis. Therefore nothing will be better than “Balanced Scorecard Designer”. All types of crisis and predicaments are distinctive and cause new perils to the business organizations thus it becomes absolutely necessary to keep a track of the effects and consequences. This way, an active business organization can make use of balanced scorecards for discovering and measuring the events, methods, tasks, performances, and assigned activities in a fair manner while heading towards the set goals and objectives.

Loss of data can be absolutely toxic and dangerous to any business organization. This is one of the most fatal and costliest assets to loose for any organization. Hence key performance indicators would help in initiating measures to considerably avert and control the data loss costs by recognizing and quantifying the most pivotal areas.

The data loss key performance indicators are therefore divided into four groups: data loss issues, human initiatives, technological initiatives, and data and system management initiatives. The data loss issues and concerns are further identified with indicators known as human errors, technological failures, natural disasters, and data and system management failures. This viewpoint would represent the proportion of data loss from different aspects in a business organization.

Human initiatives are the measures adopted by the organization to capably prevent data loss errors of the human resources. It comprises of technological training sessions, motivational programs, percentage employees, authorized access, number of supervisory checks. The technological initiatives would refer to proceedings related to enhancing data protection and management. It then consists of backup programs, encryption, virus, spy ware detection, and automated alert technology systems. Finally, the data and system management initiatives would involve data integration, secondary storage, average time period for up gradation of systems, and percentage of systems with verification password.

The critical situations within a business enterprise can be the consequence of copious causes. Data within a business organization can be lost on the basis of premeditated deletion of the programs, files categorized as ‘intentional data loss’ and misplacement called as the ‘unintentional data loss’ and because of some disaster ranging from flood, fire to seismic activity etc. Data can also be lost due to corruption of files and software systems etc. which is named as ‘data loss due to failure’ and lastly the burglary or crime data loss.

The cause to prevent data loss is the convenience of the data to the business and the maltreatment of that data by the rivals in the industry. Then it would involve the costs in recreating the data and managing devoid of it. Balanced scorecard designer would provide the suitable solutions that can be fully utilized by any business organization for mitigating the risks of data loss.

Use custom formulas in crisis KPIs and scorecards

admin — Tue, 20 Oct 2009 07:20:07 +0000

The new version of BSC Designer PRO released, now it is possible to customize formulas used to calculate the performance of the KPI. It is possible now to use not only linear formulas, but actually any dependency, including binary function, where you can specify the value of the performance for certain intervals.

The PRO version also suggests powerful Strategy Maps feature, which allows automatically export data from KPI into nice-looking strategy maps with all necessary diagrams and arrows.

Right now:

Download fully-functional 30-day trial of BSC Designer
Check the difference between Standard and Professional versions
Check screenshots of BSC Designer

Crisis Scorecard

expert_rwt — Thu, 01 Oct 2009 14:11:55 +0000

We have been hearing the news that world is passing through the worse ever economic recession. With so many organization (which include even financial institutions) already closed there are still others that are trying hard to keep operating even at break even point. All economies are in a state of crisis regardless of the type of industry. There are organizations that are failing to pay their debts off and there are others that are seeking downsizing as an option to save their drowning boat. Still there are others that are moving to other markets in order to lower the cost of manufacturing with many others that consider merger as the surviving mechanism in these worse times of crises. As a matter of fact almost every business is so overwhelmed with overcoming these crises that it has given rise to a whole new discipline – the crisis management.

Is there any way for an organization that guarantees survival in this tough time? Of course, there is! The only option with which a business is left is to manage the resources in a more careful way and utilize them in the right place to gain maximum output out of them; especially when macro economic factors are hard to influence than ever. Crisis Scorecard is such a great tool that helps an organization to manage and control the financial resources in the best possible way.

Crisis Scorecard is a balanced approach that equips the businesses with a proactive strategy to fight the threats in their internal and external environment. In fact the real issue in managing the crises is identifying the key indicators that should be paid more attention. Unfortunately, many businesses are not clear in their vision; where do they stand and where they want to be in shorter and longer run. Still there are companies that go after short term goals and forget its impact on their long term planning. A scorecard approach not only helps an organization in identifying these key performance indicators that are relevant to a specific business and project but also allow the management to control and evaluate the processes as they pass through various phases of completion. For example, we all know that the ultimate goal of a business is to maximize shareholders’ wealth. To achieve this goal one business should take account of all the risk factors involved before taking some decision about a specific project. A scorecard approach guides the management in highlighting the risk factors involved, their impact on short term and long term organizational goals and thus suggests a balanced strategy to address these risks yet not putting the shareholder’s wealth at stake. Then Crisis Scorecards does not stop at highlighting the best strategy but also let a business evaluate the performance of key players involved which makes an organization learn from its mistakes and implement the change for the best thus, leading to the path of survival and success even in the time of crisis!

Business Crisis Management with the help of Balanced Scorecards

expert_rwt — Thu, 01 Oct 2009 14:01:49 +0000

Balanced scorecards have assumed the stature of a vital business stratagem that helps a lot in scrutinizing and assessing the performance and development of any business organization and firm. These scorecards are meant to add a lot to the overall performance and development besides keeping a record of the set targets and the achieved targets of the organizations. It helps to measure the difference between what should be gained and what has been gained related to the financial development along with the other functional aspects of the organizations. But there is another advantage of these balanced scorecards and this is the convenience of drawing out a strategy, a safe way, a stratagem to fight with the odds if a crisis comes over the organization.

There is no such business in the whole world that can be said absolutely safe from risk factor. Risks are a part of every business and these should be dealt well in order to thrive in this competitive world. In the current situation, where recession is reigning all over the world, these business organizations have become more and more market driven in their nature. And, it has added a lot to the vulnerability factor attached with the nature of different businesses. So, in such prevalent situation, it is no wonder that a crisis comes over any organization. In case of such condition, the organizations need to be well prepared in order to fight with any such unfortunate situation.

Different plans need to be made in order to come out in a crisis. With the help of balanced scorecards, the organizations can make this preparation beforehand. With these scorecards, these firms can set their objectives that should be achieved. Along with these, those targets can also be set that are to be achieved in case if a crisis situation has to be faced. There can be different factors and influences that should be sought in such a situation along with a set of activities, methodologies and procedures. It tends to be very helpful when organizations have to face a difficult situation or crisis. At that situation, these stratagems can be put into action in order to face that situation.

KPI or key performance indicators are an important tool In this regard which come under balanced scorecards. With the help of these, business organizations and firms can plan out their future ventures in advance keeping in view the involvement of certain risks and crisis. Thus, balanced scorecards with other effective tools can really help a lot in fighting with the crisis if unfortunately; these befall over any business organization or entity.

Crisis management in governmental organizations

admin — Thu, 12 Mar 2009 08:46:28 +0000

KPI Name: Government Crisis Management Balanced Scorecard Metrics

Customers also viewed: Risk Metrics Pack | Financial Metrics Scorecards

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Government Crisis Management Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

Check Overview KPI Report sample.
Check Full HTML Scorecard Report sample.
Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Crisis is an event that means ‘emergency event’. It can occur in any type of organization, be it government or private, and can create problems for the entity. Crisis management aims at avoiding and managing such crisis. This can be done more effectively by identifying the key performance indicators.

In government agencies, KPIs can be categorised into 4 perspectives namely, financial perspective, information and knowledge management perspective, team management and operational efficiency.

Financial perspective includes percentage government aiding, percentage non-government aiding, percentage aiding from public and percentage increase in outlays. It provides the financial overview of the government agencies.

Information and knowledge management perspective includes KPIs such as sources of information, external communication and awareness programmes, knowledge management and percentage increase in informational system reach.

Team management perspective deals with team related activities. It include number of crisis management teams, technical training sessions, percentage experienced members and psychological and motivational training sessions.

Operational efficiency perspective refers to the efficiency of crisis management of government agencies. It includes average time taken, percentage of crisis successfully resolved, number of supervisory committees, coordination.

KPI in Excel – Screenshot:

Managing financial performance during crisis

admin — Thu, 12 Mar 2009 08:42:48 +0000

KPI Name: Financial Crisis Balanced Scorecard Metrics

Customers also viewed: Accounting Metrics | Banking Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Financial Crisis Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

Check Overview KPI Report sample.
Check Full HTML Scorecard Report sample.
Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

When an organization experiences a financial downturn, it has to take into consideration a variety of factors to effectively deal with the situation. The need of the time is to use a standard framework that can help in getting a holistic view of the business. KPIs arranged in a Balanced Scorecard can help the business in managing its performance during a financial crunch.

KPIs in this regard can be broadly grouped under four perspectives- financial, business development, operational and workforce management.

Financial Management consists of KPIs such as % increase in credit days, % decrease in debtor days, liquidity ratio, accuracy of financial risk forecasts and consistency of cash flows.

Business Development Perspective takes into account KPIs like number of new long-term contracts initiated, client oriented products and services introduced, lead generation effectiveness, response level.

Operational Perspective provides an insight of the operations of the business. It comprises of KPIs like % reduction in decision-making and lead time, % decrease in cycle time to resolve adjustments, simplification of lending conditions and identification of negative patterns.

Workforce Management Perspective provides measures to effectively manage the workforce during financial crunch. It includes KPIs such as % decrease in staff turnover rate, training uptake, % decrease in sickness/absence Level, crisis communication and continuity of information and feedback.

KPI in Excel – Screenshot:

KPI for measuring performance of Crisis Management companies

admin — Wed, 11 Mar 2009 21:57:22 +0000

KPI Name: Crisis Management Companies Balanced Scorecard Metrics

Customers also viewed: Risk Metrics Pack

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Crisis Management Companies Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

Check Overview KPI Report sample.
Check Full HTML Scorecard Report sample.
Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Key performance indicators (KPIs) are the yardsticks against which an organization can easily measure its current performance and at the same time, devise methods to control future activities. They protect the companies from deviating and falling into a crisis situation.

Undoubtedly, for a Crisis management company KPIs can be immensely helpful. For such companies, they can be broadly classified into four categories: Financial, Customer, Education and growth and Internal processes.

Financial indicators reflect the performance of the company in financial terms. Revenues generated, profits earned, fee charged etc., can be used as parameters here.
Customer perspective refers to the image of the company among its customers on the basis of its various accomplishments. This can be known by the number of clients, cases resolved, awards and credibility ratings.

A very important aspect for the working of a crisis management company is to ensure that its employees possess the right kind of skills and training to tackle any kind of situation. Therefore, number of technical and psychological training sessions held, counseling provided and compensation play a significant role.

Internal processes perspective is another important dimension to look out for. Efficiency of the company would depend on the time it takes to resolve the issues, number of experienced personals and different services provided across various fields.

KPI in Excel – Screenshot: