PERFORMANCE INDICATOR

Performance indicator are a measurable way of defining and monitoring goals.

The performance indicator help to make goals tangible.

Two types are performance indicator:

Financial indicator and Non financial indicator

Defining indicator:

What has happened in the organization ?

Why it has happened?

Is it the trend?

How it effect on the trend?

Understanding indicator helps to generate idea.

PERFORMANCE INDICATOR

• While defining a indicator we should look on cost, time and accuracy.

• operation : productivity, utilization

• Sales and marketing: sales per region , sales per model, marketing cost

• People: labor turnover, overtime, absenteeism

• Research and development: expenditure, failure rate, lead time

• Most of these indicator measure the impact that product , process or service innovation has had on organization operation

PERFORMANCE INDICATOR

• Performance chart:

• What has measure it past, what is measure today and what should target value is represent in chart.

• It shows progress toward goal

• Balance scorecard:

• The balance scorecard divides strategic objective, performance measure and any associated development into four perspectives

• Financial perspectives

• Customer perspectives

• Learning and growth perspectives

• Internal processing perspectives

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PERFORMANCE INDICATOR

• Conclusion:

• The stated goal and objective should be translate into measurable indicator. Performance indicator foster improvement and innovation. It gives immediate feedback on what is happening and generate a information where the action is leading. It determines the necessary step to take in order to ensure the organization will achieve their goal at stated time with high quality.