Business Development: KPIs, Performance Measurement, and Management

This report provides an overview of Key Performance Indicators (KPIs) and their role in performance measurement and management within a business context. It begins by differentiating between performance measurement, which focuses on tracking progress using quantitative indicators, and performance management, which aims to ensure that activities align with organizational goals. The report introduces KPIs with examples, like the turnover rate, and benchmarking. It then delves into the characteristics of effective KPIs, including being simple, measurable, relevant, aligned with business objectives, and actionable. The report discusses the effectiveness of KPI implementation, emphasizing the importance of strategic planning and effective communication. Finally, the report references academic sources, such as Ngo et al. (2020), Ratten et al. (2020), Radovanović et al. (2020), and Deshmukh and Hiremath (2020), to support its analysis of KPIs and performance management.

Business Analytics
TASK -3

Performance measurement vs Performance
management
• Performance measurement :
• It refers to quantitative indicator which help to track the progress
against the strategy.
• This includes financial, customer, process and people measures.
• This also includes the essential feedback to improve decision making
in the firm at all level such that strategic, operational and individual
level.
Self-
assessmen
t
Continuou
s
improvem
entManagem
ent
assessmen
t

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• Performance management
• It is the process which help to ensure that all the activities and outputs are meet an
organization’s goals in order to attain the define aim and objectives.
• It also focus in the performance of company in place to manage the particular
task.
• This is also run under the three stages such that coaching, corrective action and
termination

Introduction of Key Performance Indicators
(KPIs) for the employees of Cincinnati Zoo
• KPI is type of performance measurement which help to understand the organization is performing
well with the help of employee’s performance.
• Turnover rate
• Benchmarking
KPI
Turnover
rate
Benchmar
king

The characteristics of KPIs
• Simple: It must be simple and straight forwarded because if the goal
is clear then it is easy for the company to meet the define aim.
• Relevant: It help to make sure that right decision makers are
responsible for the measuring specific KPI that help to increase
outcomes.
• Aligned: It must be align to the business objectives or strategy. As a
result, it help to meet the define aim and satisfy the customers as
well.
Simple
Relevant
Aligned
Actionab
le
Measura
ble

Continue…
• Actionable: It refers to employees should be able to meet the define aim and thus, a more realistic
KPI will help the team of a firm to attain goal.
• Measurable: It must be avoid generalize goal and KPI must be measurable such tat the best way is
to measure the BI solution.

Effectiveness of KPI
• Developing a strategy for formulating KPI, team must be understand how to start and learn the things.
• Through effective KPI, company is able to meet the define goal and improve the employee
performance as well.
• Through effective communication, company should also manage KPI in order to meet the define action
as well.
•

REFERENCES
• Ngo, J., Hwang, B.G. and Zhang, C., 2020. Factor-based big data and predictive analytics
capability assessment tool for the construction industry. Automation in Construction. 110.
p.103042.
• Ratten, V., Ferreira, J.J. and Fernandes, C., 2020. High-Performance Management Work
Systems. In Sport Entrepreneurship and Public Policy (pp. 171-196). Springer, Cham.
• Radovanović, D. and et.al., 2020. Digital literacy key performance indicators for sustainable
development. Social Inclusion. 8(2). pp.151-167.
• Deshmukh, R.A. and Hiremath, R., 2020. Analyzing the Key Performance Indicators of
Advanced Sustainable Manufacturing System Using AHP Approach. In Techno-Societal
2018 (pp. 745-750). Springer, Cham.