Business Analytics: KPIs and Performance Management

This presentation explores the importance of KPIs and performance management in business analytics. It discusses the process of collecting, analyzing, and storing data to improve efficiency and revenue growth. The presentation includes a case study of Cincinnati Zoo and their use of KPIs to measure performance and achieve objectives. References to relevant research articles are provided.

Business Analytics
(TASK 13)

Table of Content
• Introduction
•Performance measurement v/s performance management
• KPI for employees of Cincinnati Zoo
• Characteristics of KPI
• Effectiveness of KPI
• Conclusion
• References

Introduction
Business analytics refers to a process of collecting, analysing
and storing data as well as information that help a business to
improve its efficiency. On the basis of these kind of practices,
an organisation can easily increase its revenue and growth
opportunities. KPIs and performance management are regarded
to be important parts of a business entity.

Performance Measurement v/s
Performance Management
Performance management
It can be referred to as the process of overarching procedure which
is concerned with performance.
Performance measurement
It is a sub procedure pertinent to performance management which
is focussed over the determination, monitoring along with the
communication of outcomes associated with performance via the
usage of performance indicator.

Cont…
• Performance management
denotes improvisation of
performance through which
factors like cost can be
controlled.
• Performance measurement
is liable for measuring
overall performance of
business in terms of whether
profit or loss has been
attained.

KPIs for employees of Cincinnati Zoo
• KPI can be referred to as a method or
way of measuring performance of
employees of a company.
• There are several metrics which are
used for the purpose of tracking
productivity of employees and
managing the teams in a better way,
dependent over nature as well as needs

Cont…
Cincinnati Zoo has opted for
Big Data to overcome the
gaps which exist within
their services so that they
can measure their
performance in context of
objectives they have
formulated. There were
certain problems as there
different 4 outlets were not
aligned.

Cont…
Cincinnati Zoo cannot identify the overall profit or loss which
they bear on annual basis and entire process was manual.
Therefore, it was essential for them to make use of KPI that
will enable within formulation of precise and clear objectives,
measure them and their optimisation. Furthermore, strategies
will be formulated for addressing these aspects through which
performance can be measured and can be evaluated in context
of objectives that are being designed.

Characteristics of KPIs
A Key Performance Indicator is the measurement of performance
of individuals pertinent to an organization in relation to a
specified goal. Now it can be determined that KPIs possess
certain characteristics which are briefly described as follows:-
 Simple
 Measurable
 Actionable
 Timely

Cont..
• KPI must be simple enough so that employees can
acknowledge it and measure their performance with reference
to that.
• It is concise which comprises of measureable attributes.

Effectiveness of KPIs
• Key Performance Indicators (KPIs) are regarded to be
effective as they provide assistance to an organisation in
measuring the overall performance delivered by the base of its
employees.
• This motivates the workforce of a company to give their best
potential for the timey accomplishment of their corporate goal
as well as objectives.

Cont…
The effectiveness of KPI can be understood by certain
questions that are specified below:
• How KPI contributes within attainment of strategic goals?
• Whether is quantifiable or not?
• Is that data available currently and what can be this used for?
• Does KPI enable to define current performance, target values
and benchmarks?
• How it can be utilized like a management tool?
• Is there any kind of continuous improvisation activity?

Cont…
By having answers to questions specified Cincinnati Zoo can
identify the importance of having KPI within their operations.
This will enable them to have performance based
functionalities and clear targets along with objectives that will
contribute within success of zoo.

Conclusion
• It has been identified that a number of companies across the
globe make use of Key Performance Indicators for the
measurement of staff performance and for gaining valuable
insights into the organisation.
• KPIs provide for a qualitative and quantitative measurement of
performance of personnel pertinent to an organisation to identify
the most productive employee.

References
• Duan, Y., Cao, G. and Edwards, J.S., 2020. Understanding the
impact of business analytics on innovation. European Journal
of Operational Research, 281(3), pp.673-686.
• Evtodieva, T.E., Chernova, D.V., Ivanova, N.V. and
Protsenko, O.D., 2020. Business analytics of supply chains in
the digital economy. In Digital Transformation of the Economy:
Challenges, Trends and New Opportunities (pp. 329-336).
Springer, Cham.
• Hofmann, M. and Klinkenberg, R. eds., 2016. RapidMiner:
Data mining use cases and business analytics applications.
CRC Press.

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