Key Performance Indicators KPIs

13 במרץ 2024 | מאת: | מאמרים בקטגוריה טיפול ביציבה

Strategic management is a crucial component of organizational success, encompassing the development and execution of strategies to achieve long-term goals and objectives. Key Performance Indicators (KPIs) are integral to strategic management as they offer quantifiable metrics for assessing performance and tracking progress towards strategic objectives (Ragimol et al., 2021). These metrics are essential for evaluating the effectiveness of strategies and facilitating data-driven decision-making to propel organizational success. Within the realm of strategic management, the Balanced Scorecard (BSC) framework has emerged as a valuable tool for organizations to align strategic objectives with performance indicators (Dahal et al., 2022). The BSC methodology entails a comprehensive assessment of financial and non-financial metrics to evaluate performance from various perspectives such as customer satisfaction, internal processes, learning and growth, and financial outcomes (Bendoly et al., 2007). Through the adoption of the BSC, organizations can ensure that their performance evaluation systems are in harmony with their strategic priorities and goals. Moreover, the integration of performance measurement systems with strategic objectives is vital for enhancing organizational competitiveness and bolstering capabilities (Rahman & Rahman, 2020). This alignment guarantees that performance metrics are directly correlated with strategic goals, enabling organizations to monitor progress and make informed decisions based on data to drive success. In the context of strategic management, utilizing customer equity as a metric can offer valuable insights into an organization's strategic opportunities (Rust et al., 2004). By concentrating on enhancing the drivers of customer equity, organizations can boost customer retention and advocacy, ultimately leading to enhanced business performance. In conclusion, the effective utilization of performance metrics such as KPIs and the Balanced Scorecard in strategic management is imperative for organizations to monitor progress, make informed decisions, and achieve success in today's competitive business landscape. By aligning performance measurement systems with strategic objectives, organizations can enhance their competitiveness, improve decision-making processes, and attain long-term 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 Rahman, M. and Rahman, A. (2020). Strategic fit strategy formulation: keys to enhancing competitiveness and improving capabilities of a manufacturing unit. Production & Manufacturing Research, 8(1), 59-79. https://doi.org/10.1080/21693277.2020.1742234 Rust, R., Lemon, K., & Zeithaml, V. (2004). Return on marketing: using customer equity to focus marketing strategy. Journal of Marketing, 68(1), 109-127. https://doi.org/10.1509/jmkg.68.1.109.24030 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

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