Royal Dutch Shell: KPIs, Performance Management and Strategy Report

This report delves into the significance of Key Performance Indicators (KPIs) in performance management, using Royal Dutch Shell, a major company in the Netherlands, as a primary example. The report addresses the importance of KPIs in evaluating both internal stakeholders and the overall organizational performance, highlighting how they enable managers to measure employee effectiveness and efficiency. It provides specific examples of KPIs used by Royal Dutch Shell, such as handling customer complaints in the customer service department and maintaining financial leadership in the finance department. Furthermore, the report explores the use of KPIs in the marketing and branding department, focusing on the author's role as an outdoor marketing executive. It discusses the alignment of individual KPIs, such as increasing brand identity and sales revenue, with departmental and organizational KPIs, demonstrating how these metrics contribute to the company's overall strategic goals, including market share and revenue targets. The report emphasizes the interconnectedness of KPIs at different levels within the organization and their contribution to effective performance measurement.

Running head: KEY PERFORMANCE INDICATORS
Key performance indicators
Name of the student
Name of the university
Author note

1KEY PERFORMANCE INDICATORS
Question: 1
Key performance indicators are being used in evaluating and gauging the performance of
the internal stakeholders as well as measuring the performance of the entire organization. Key
performance indicators are important in the performance management due to the reason that it is
difficult for the managers to measure the effectiveness and efficiency of the employees in the
organizations (Masood, Jehanzaib and Akhtar 2013). Thus, with the help of the Key performance
indicators, the employees are being given specific targets and after the pre-determined time
period, it is being checked if the target is being properly fulfilled or not. In addition, it is also to
be noted that fulfillment of the target may not be considered as effective performance. In this
case also, Key performance indicators play the role of having different parameters from different
perspectives. This will enable the managers to gauge the performance of the employees from
different parameters (Bhatti, Awan and Razaq 2014). For instance, gauging the performance of
the employees from the perspective of the satisfaction level of the customers will help to
measure the overall performance of the employees.
Royal Dutch Shell is the largest company in Netherlands and they are operating in the oil
and gas sector. One of the major metrics of Key performance indicators being used by them for
their employees is handling the customer complaints. Employees in the customer service
department are being evaluated on the basis of set target of clearing customer complaints per
quarter. At the end of each quarters, the performance of the employees are being measured based
on the percentage of the customer complaint being cleared by them and how effectively the
complaints are being cleared (Katsikas et al. 2016). Another Key performance indicator being
used by Royal Dutch Shell for their employees is maintaining the financial leadership of the
organization. This Key performance indicator is mainly used in the finance department

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employees. The employees in the finance department are being gauged on the basis of
maintaining the financial statements along with meeting all the requirement and criterion in
working with the accounting standards.
Question: 2
In Royal Dutch Shell, I worked in the marketing and branding department and there are
number of Key performance indicators being used to measure the performance of the employees.
In the marketing and branding department, i worked as outdoor marketing executive. My job
responsibility includes looking after the outdoor marketing and branding initiatives of the
company. I was also assigned the task of identifying the potential locations for conducting the
branding activities. Thus, I went through diverse and different Key performance indicators
similar to the diverse work responsibilities of mine.
One of the Key performance indicators used with me is the degree to which the brand
identify is increasing among the new customer segments. This Key performance indicator is
targeted at identifying the effectiveness of the branding activities in the newer locations. In
addition, this particular Key performance indicator also includes determining the knowledge
gained by the targeted customers from the initiated marketing and branding activities. This Key
performance indicator is effectively being linked with the Key performance indicator of the
department of enhancing the brand identity and exposure of the company (Kocmanova and
Simberova 2014). Thus, the more will be the score of my Key performance indicator, the more
will be the score of the Key performance indicator of the entire department. Furthermore, the
Key performance indicator of the entire organization of increasing the market share is also
effectively linked with this individual Key performance indicator of mine. This is due to the

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reason that the more will the score of the Key performance indicator of mine, the more will be
probability of gaining market share by the company.
Another Key performance indicator used in the marketing and branding department is
increase in the sales revenue and sales volume. This refers to the concept of how many the sales
increases with the initiation of the branding and marketing activities. This key performance
indicator is lined with the annual revenue target of the entire department. This is due to the fact
that the entire department is having the target of attaining the given benchmark. In addition, the
more will be the score in the individual key performance indicator of mine, the more will be the
departmental revenue and it will lead to the increase in the sales and revenue for the entire
organization. Thus, it can be concluded that the individual key performance indicators in Royal
Dutch Shell are effectively and properly aligned with that of the departmental and organizational
key performance indicators.

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Reference
Bhatti, M.I., Awan, H.M. and Razaq, Z., 2014. The key performance indicators (KPIs) and their
impact on overall organizational performance. Quality & Quantity, 48(6), pp.3127-3143.
Katsikeas, C.S., Morgan, N.A., Leonidou, L.C. and Hult, G.T.M., 2016. Assessing performance
outcomes in marketing. Journal of Marketing, 80(2), pp.1-20.
Kocmanová, A. and Šimberová, I., 2014. Determination of environmental, social and corporate
governance indicators: framework in the measurement of sustainable performance. Journal of
Business Economics and Management, 15(5), pp.1017-1033.
Masood, S.A., Jahanzaib, M. and Akhtar, K., 2013. Key performance indicators prioritization in
whole business process: A Case of Manufacturing Industry. Life Science Journal, 10(4s), pp.195-
201.