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.