Advanced Management Accounting: WealthWise Insurance KPI Report

This report analyzes the key performance indicators (KPIs) of WealthWise Insurance, focusing on financial, economic, social, and environmental indicators. The financial indicators include net profit, gross insurance premiums, and return on investment, highlighting the need to improve insurance business performance. Economic indicators involve local staffing, public benefit projects, and spending on local suppliers, with suppliers identified as a leading indicator. Social indicators emphasize employee satisfaction surveys, diversity in managerial positions, motivational techniques, ethical insurance practices, and customer feedback. Environmental indicators focus on paper recycling, electricity usage, fuel consumption, renewable energy purchase, and water usage minimization to enhance the company's brand image and social responsibility. The report suggests that by cascading these goals, WealthWise Insurance can better align its staff with its corporate mission and improve overall performance.

Running head: ADVANCED MANAGEMENT ACCOUNTING
Advanced Management Accounting
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Table of Contents
Requirement 2:.................................................................................................................................2
References:......................................................................................................................................4

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Requirement 2:
Certain indicators are deemed to be observed from the provided case study of
WealthWise Insurance and their roles in accomplishing company mission are enumerated briefly
as follows:
Financial indicators:
As per the provided information, the three financial indicators include net profit, gross
insurance premiums and return on investment. It has been identified that although WealthWise
Insurance has experienced an increase in net profit and return on investment; however, it has
suffered loss in its insurance business. Hence, the management of the organisation need to
undertake adequate measures so that gross insurance premiums could be increased (Bai & Sarkis,
2014). By cascading these goals into WealthWise Insurance, it becomes possible for the
organisation to align all the staffs with its corporate mission.
Economic indicators:
As commented by Campos et al., (2015), economic indicators comprise of economic data
and financial data, which enable evaluation of economic performance and estimation of future
performance. For WealthWise Insurance, the economic indicators mainly include processes for
recruiting local staffs, development projects for public benefit along with practices, policy and
spending on local suppliers. With the help of these economic indicators, the managers of the
organisation could consider trades in the economic event context and thus, price actions could be
understood during these events. In case of Wealthwise, the leading indicator is that of the
suppliers, as it changes before the economy initiates following a trend. The other two could be
identified as the lagging indicators, as they change after the economy already started following
any trend. Therefore, the management could provide detailed information to its managers and

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staffs so that they could understand the overall corporate mission and the ways through which
they fit into the set goals and objectives.
Social indicators:
WealthWise needs to conduct surveys on the employees so that their satisfaction level
could be analysed effectively. Moreover, the nature, gender and background of the individuals
working in the managerial positions would assist the organisation to meet its corporate mission.
However, it needs to come up with new motivational techniques like rewards, incentives and
promotions through which it could eliminate the discontent among the employees of the
organisation (Marr, 2015). Moreover, it is required to adopt ethical practices in its insurance
contracts, as it has tried to minimise its payouts to its Phuket and Langkawi businesses. Finally,
it needs to provide feedback forms to its customers so that they could rate the staffs and
accordingly, appropriate ethical actions would be undertaken by the organisation.
Environmental indicators:
WealthWise Insurance has decided to consider certain environmental indicators like
paper recycling, electricity usage and fuel. The organisation is needed to increase its renewable
energy purchase and minimise the usage of water for its business operations. By adopting these
practices, the organisation could be able to develop positive and favourable brand image in the
eyes of its stakeholders (Parmenter, 2015). Moreover, the minimisation of fuel consumption
would lead to less adverse effects on the community and this would assist in operating in a
socially responsible and environment-friendly manner in the market.

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References:
Bai, C., & Sarkis, J. (2014). Determining and applying sustainable supplier key performance
indicators. Supply Chain Management: An International Journal, 19(3), 275-291.
Campos, L. M., De Melo Heizen, D. A., Verdinelli, M. A., & Miguel, P. A. C. (2015).
Environmental performance indicators: a study on ISO 14001 certified
companies. Journal of Cleaner Production, 99, 286-296.
Marr, B. (2015). Key performance indicators for dummies. John Wiley & Sons.
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using
winning KPIs. John Wiley & Sons.