Analyzing KPIs and Budgetary Management in the Orion Health Case

This report delves into the crucial relationship between Key Performance Indicators (KPIs) and budgetary management, using Orion Health, a New Zealand-based healthcare software company, as a case study. The report begins by highlighting the importance of planning and the role of KPIs in effective financial control, providing insights into the various types of KPIs, including quantitative, directional, and actionable indicators. It analyzes how Orion Health utilizes KPIs to manage costs and align expenses with budgeted figures. Furthermore, the report examines the importance of efficient reporting and interventions in achieving project success, emphasizing the significance of communication, regular feedback, and peer reviews. The case study underscores the impact of KPIs on financial health and budgetary management, ensuring project plans align with financial targets, and enabling efficient financial planning and execution. This report provides a comprehensive understanding of how strategic KPI implementation contributes to organizational success.

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Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

INTRODUCTION
Planning is an important aspect for each and every corporation functioning within the
confines of an economy. Within the health care sector also, it plays a crucial role in ensuring that
the management and recording of patient’s data is done in an effective manner so that the same
can be used in future context. The present project is based on the case study of Orion Health
which has been acknowledged as a New Zealand based international software corporation which
is engaged in delivery and sale of health care software. The project is divided into two tasks. The
first task is concerned with techniques of planning to launch a project. The second task shows the
importance and link of KPI in budgetary management.
ASSESTMENT 2
Link between KPI and Budget
Performance indicator or also referred to as Key Performance Indicator (KPI) can be defined
as a method of performance measurement used by a large number of companies across the global
periphery. This method is widely put to use for the purpose of monitoring operations or for
measurement of focus in alignment with organizational performance which are regarded as the
most crucial aspects for the success of a company in present as well as future context. Key
Performance Indicators are put to use by a company for the assessment of performance of an
organization in terms of their division, staff, department, operational unit, department etc. They
tend to provide evidence regarding the achievement or non achievement of results and lay down
foundation for the attainment of intended output. Also, Key Performance Indicators tend to
render aid in perceiving the difference, improvement or development that has its association with
a targeted change within a specific context. Further, Key Performance Indicators also encompass
data which reflects the alterations like variables or factors. This is an important part of budgetary
management and provides assistance to an enterprise in doing financial planning in a manner
such that budget is not exceeded. Orion Health is seen to be making use of KPIs for effective
budgetary management in the case study. With this, the entity has been able to control its costs
and ensure that the expenses and other aspects are in accordance with the budgeted figures.
There are several types of Key Performance Indicators within the confines of an entity
having their own description as well as characteristics. These are identified as being the non
financial measures which cannot be stated in money terms. Across the globe, many companies

make use of Key Performance Indicators for specific business activities which are carried out by
the key customers and tend to lead to generation of maximum or total proportion of their profits.
Key Performance Indicators are measured on a frequent basis. It is generally seen that
companies monitor and report KPIs 24*7, regularly or weekly. It does not suit the measurement
every month category. They encompass the future or present measure as against the past
measure. It is seen that many companies measure past indicators, implying that they do
measurement of events that had already occurred a month or a quarter ago. Such monthly
measures can not be referred to as KPIs.
KPIs must be made clear of the action that is required so that it can be easily comprehended
by the employees pertaining to a company. Generally, it is seen that Key Performance Indicators
are acted upon by the top management of a company along with the CEO. Further, it can be
analysed that good KPI tend to create remarkable difference for a CEO for consistent attention in
terms of daily calling to important staff members of the entity. In addition to this, it can be said
that Key Performance Indicators tend to have a substantial influence upon an entity. Generally,
such indicators affect the CSFs (Critical Success Factors). In simple terms, it can be stated that
whereby the CEO of a corporation tends to put due emphasis upon the Key Performance
Indicators and staff strives to follow the same, the company achieves goal in all contexts.
As per the study conducted over KPIs, it has been determined that there are mainly 3
different types of Key Performance Indicators. These are acknowledged to be directional,
actionable and quantitative indicators. Such types of sub divisions of Key Performance
Indicators tend to act as an immensely valuable tool for the corporation during the measurement
as well as analysis of its business performance.
With reference to quantitative indicators, it has been identified that they are put to use for
the measurement of quantity or expression in terms of numeric terms. Dependent over the data
utilised and engaged, such indicators can be expressed in several ways. This can be in terms of
decimal, ratio, fraction, percentage, monetary value, whole number and many more. Such kind of
indicator is easily usable and comparable. It benefits the organisation when it comes to doing
comparison of data. For instance: A company can make use of the data for doing comparison of
a scientific indicator all through a time period for the purpose of understanding the trends of a
business or the positioning of a firm as opposed to its rival. The examples of quantitative
indicators in professional context can be identified as the quantum of invoice processed,

turnaround time, quantum of payment posted, quantum of reconciliation executed, quantum of
journal entry posed, yearly sales, yearly expenditure and many more.
The second category of KPIs are directional indicators which are put to use by companies
for the provision of necessity data for an entity for the purpose of getting a pulse around the fact
that they wish to enhance its position, sustain the same or fail. It provides assistance to an
enterprise in identification of improvements or progress in terms of comparison of last and
present month’s sales figures. These render aid to an entity in identifying those areas which are
not performing in an effective or efficient manner. Also, it provides assistance in tracking and
thereby taking corrective measures. Also, the directional indicators tend to be mean difference
between a company’s success and failure.
The third category of Key Performance Indicators is actionable indicator. This provides
assistance to an entity in identifying areas that can be altered in an effective manner by
undertaking actions. A remarkable example of this can be seen in terms of a company doing
better by conducting the outsourcing procedures to third party. Hereby, the benefits can be felt
whereby an entity does analysis of the indicators in place and undertake corrective measures.
The performance of an entity gets boosted as a result of application of this tool. It provides
assistance to an entity in attaining an edge over the rival firms functioning within the same
sector. If this indicator is put to use to its fullest, it implies a remarkable difference for a
company and may even mark the transition of a firm barely maintaining its existence in market
place to a company which is immensely successful and prosperous.
Another type of indictor which has not been included by MarLynn Zahn named the
qualitative indicator. With reference to qualitative indicator, it can be said that it does not show
the numeric measures but depicts the status of something which is in more qualitative terms. This
indicator is not appealing however there are certain aspects in this indicator which are relatively
better than quantitative indicator. For instance: The extent to which a poor community is
empowered cannot be expressed in quantitative terms but can exhibit on the basis of qualitative
findings. Further, whether a cooperative body or project is functioning in an effective manner or
not can be expressed in qualitative terms but not in quantitative figures.
Thus, it can be seen that KPIs are quite useful in measuring the financial health of an
organisation. Also, it helps to ensure that the budgetary management of a company gets executed
in an effective manner so that the planning of the project of an entity can be executed as per the

targets. KPIs act as budgetary control elements for a company which help in ensuring that the
financial planning of the entity and the actual execution of expenditure are aligned with each
other.
Efficient reporting and appropriate interventions towards the success of Orion Health care
project
On the basis of the information received from the case study, it has been clearly seen that
employees working in the company works so hard for attaining success within the industry. The
information has also clearly revealed that budget of the Orion health care project was developed
in such a manner that has ultimately smoothen future functioning of this organisation in best
way. It has also been analysed that formulation of budget was not the only thing that results in
the success of the respected company but at the same time it has been later analysed that
execution of the work especially reporting towards the developed budget is equivalent important
as it ensures that work is performed in expected manner within the finalised budget only. In
addition to this, it has been further analysed that budgetary head of the Orion Health care project
emphasizes on ensuring that each and every activity that is performed within the center must be
executed according o the developed plan and allocated budget only so that it does not create any
problem in the near future.
Along with this, project head of Orion Health care project also makes few of the
important interventions like efficient and effective which supports them in attaining the success
in the quicker manner. The first and foremost intervention adopted by this company is related to
their usage of effective communication within the finance department as well as other
departments to whom they have allotted the finances according to their core requirements. Usage
of communication plan support Orion Health care project in developing knowledge of the each
department that what the organisation is expecting from them by issuing the funds, what are their
goals and objectives towards the same. This simply results in the execution of the work in the
predetermined manner. The next intervention that has been adopted by the project head is to take
regular based feedback from the employees working for this project so that it can be easily
acknowledged by the project head that what are the main consequences that have been faced by

the employees. It can be said that if the project head has actual knowledge about the employees
then related to the developed in terms of whether it is not satisfactory for them according to their
respective department or it is more for them. This will ultimately help project lead in revising
their formulated budget accordingly.
Along with this, it can be said that by taking feedback project head of Orion Health care
can also develop soft relations with their employees that will build up positive kind of openness
among them. As a result, employees will work more freely within the company. Also, it will
enhance satisfaction level of the employees that could be seen in their improved performance.
Apart from this, the next intervention that would contribute in the success of Orion Health care
project is the peer review. This is determined as the effective intervention which belongs to the
performance management approach that supports project lead in reviewing performance of
employees based reviews given by their employees. One of the common examples of reviewing
performance of employees is 360 degree review. The same method has been adopted by project
head of Orion Health care project who believes in knowing more about their employees by
taking reviews from their colleagues, managers, superiors and many other people. According to
the project this is the best method of developing knowledge on the employee’s performance as
they are able to approach co-workers to share how well particular employee is performing, what
are their positive aspects as well as point out where improvements can be made. Overall this
intervention simply helps the project manager in knowing about the employees’ performance and
also helps them out in taking required action towards the needed areas. The last and the most
important intervention taken by project head of Orion Health care project is to conduct meeting
at regular basis within the organisation. In these meeting session’s employees gets opportunity to
communicate with their team members at workplace so that they can easily have discussion on
the main points. Here, it can be further said that project leader also gets chance to share their
views perception, predetermined aims, objectives and others with the employees. Along with
this, manager can also ask for the actual expected efforts as well as support from the employees
which ultimately leads to the attainment of success as employees are more focused towards the
work that makes them achieve it in quicker manner.
CONCLUSION
From the overall analysis it has been analysed planning plays an essential riole in the
growth of the company as it provides guidnace to the involved people about the work and how

they can achieve the predetermined aim and objectives in quicker manner. Also, it has been
analysed that budget plays an essential role in every planning process of the company which
ulrtimatley provides them support in attaining success in lucrative form. Along with this, it has
been analysed that health care system provides is required to acquire centralised system where
they can effectively feed the information of patients related to their medical history and past
records. In addition to this, it further supports the health care sector in saving their time related to
saving the patient’s history when enroling into the hospital premises.

References
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