Key Performance Indicators (KPIs) Strategic management

13 במרץ 2024 | מאת: | מאמרים בקטגוריה מדע

Strategic management is a critical component of organizational success, involving the alignment of business objectives with operational activities to achieve sustainable competitive advantage. Key Performance Indicators (KPIs) are essential in strategic management as they provide measurable metrics to assess performance and progress towards strategic goals (Bendoly et al., 2007). These metrics are crucial for monitoring various aspects of business operations, including financial performance and customer satisfaction (Zahay & Griffin, 2010). In strategic management, KPIs are utilized across different domains such as marketing, supply chain management, and human resource management. For example, in marketing, KPIs are instrumental in evaluating the effectiveness of marketing strategies and measuring customer-based brand equity, which is vital for gaining a competitive edge Tong & Hawley (2009) and improving customer relationships (Payne & Frow, 2005). Similarly, in supply chain management, performance measures and metrics are necessary for evaluating partnership effectiveness and ensuring operational efficiency (Gunasekaran et al., 2001; Kumar et al., 2013). Furthermore, in human resource management, KPIs are employed to measure employee engagement, workforce performance, and the impact of HR practices on organizational success (Saad et al., 2021; Habidin & Yusof, 2013). Effective utilization of HR metrics and analytics helps in aligning HR strategies with business objectives and enhancing overall organizational performance (Ragimol et al., 2021). Strategic management also involves incorporating performance measurement systems like the Balanced Scorecard (BSC) to comprehensively evaluate organizational performance (Homburg et al., 2012; Dahal et al., 2022). The BSC framework enables organizations to balance financial and non-financial metrics, aligning them with strategic objectives to foster innovation and competitiveness (Dahal et al., 2022). Moreover, the growing emphasis on environmental, social, and ethical considerations has led to the development of Sustainability Balanced Scorecards (SBSC) to integrate sustainability goals into strategic planning and performance assessment (Hansen & Schaltegger, 2017). This shift towards sustainable practices reflects the evolving landscape of strategic management to encompass broader societal and environmental concerns. In conclusion, the effective use of KPIs and performance measurement systems is fundamental in strategic management, enabling organizations to monitor progress, make informed decisions, and drive continuous improvement towards long-term success and sustainability. References: Bendoly, E., Rosenzweig, E., & Stratman, J. (2007). Performance metric portfolios: a framework and empirical analysis. Production and Operations Management, 16(2), 257-276. https://doi.org/10.1111/j.1937-5956.2007.tb00179.x Dahal, R., Ghimire, B., & Rai, B. (2022). A balanced scorecard approach for evaluating organizational performance of nepal telecom. Management Dynamics, 25(1), 63-73. https://doi.org/10.3126/md.v25i1.53288 Gunasekaran, A., Patel, C., & Tırtıroğlu, E. (2001). Performance measures and metrics in a supply chain environment. International Journal of Operations & Production Management, 21(1/2), 71-87. https://doi.org/10.1108/01443570110358468 Habidin, N. and Yusof, S. (2013). Critical success factors of lean six sigma for the malaysian automotive industry. International Journal of Lean Six Sigma, 4(1), 60-82. https://doi.org/10.1108/20401461311310526 Hansen, E. and Schaltegger, S. (2017). Sustainability balanced scorecards and their architectures: irrelevant or misunderstood?. Journal of Business Ethics, 150(4), 937-952. https://doi.org/10.1007/s10551-017-3531-5 Homburg, C., Artz, M., & Wieseke, J. (2012). Marketing performance measurement systems: does comprehensiveness really improve performance?. Journal of Marketing, 76(3), 56-77. https://doi.org/10.1509/jm.09.0487 Kumar, V., Chattaraman, V., Neghina, C., Skiera, B., Aksoy, L., Buoye, A., … & Henseler, J. (2013). Data‐driven services marketing in a connected world. Journal of Service Management, 24(3), 330-352. https://doi.org/10.1108/09564231311327021 Payne, A. and Frow, P. (2005). A strategic framework for customer relationship management. Journal of Marketing, 69(4), 167-176. https://doi.org/10.1509/jmkg.2005.69.4.167 Saad, M., Gaber, H., & Labib, A. (2021). Investigating the impact of human resource management practices on employee engagement, and the moderating role of strategy implementation in egypt. Sa Journal of Human Resource Management, 19. https://doi.org/10.4102/sajhrm.v19i0.1412 Sudha, A. and Peterkumar, F. (2021). Effective workforce management using hr analytics. International Research Journal on Advanced Science Hub, 3(Special Issue 6S), 82-86. https://doi.org/10.47392/irjash.2021.171 Tong, X. and Hawley, J. (2009). Measuring customer‐based brand equity: empirical evidence from the sportswear market in china. Journal of Product & Brand Management, 18(4), 262-271. https://doi.org/10.1108/10610420910972783 Zahay, D. and Griffin, A. (2010). Marketing strategy selection, marketing metrics, and firm performance. Journal of Business and Industrial Marketing, 25(2), 84-93. https://doi.org/10.1108/08858621011017714

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