World Academy of Science, Engineering and Technology
Published June 27, 2010 | Version 9148
Journal article Open

Developing and Implementing Successful Key Performance Indicators

Description

Measurement and the following evaluation of performance represent important part of management. The paper focuses on indicators as the basic elements of performance measurement system. It emphasizes a necessity of searching requirements for quality indicators so that they can become part of the useful system. It introduces standpoints for a systematic dividing of indicators so that they have as high as possible informative value of background sources for searching, analysis, designing and using of indicators. It draws attention to requirements for indicators' quality and at the same it deals with some dangers decreasing indicator's informative value. It submits a draft of questions that should be answered at the construction of indicator. It is obvious that particular indicators need to be defined exactly to stimulate the desired behavior in order to attain expected results. In the enclosure a concrete example of the defined indicator in the concrete conditions of a small firm is given. The authors of the paper pay attention to the fact that a quality indicator makes it possible to get to the basic causes of the problem and include the established facts into the company information system. At the same time they emphasize that developing of a quality indicator is a prerequisite for the utilization of the system of measurement in management.

Files

9148.pdf

Files (362.3 kB)

Name Size
md5:4fca6467b9592ad9e2b90582a64d3f1a
362.3 kB Preview Download

Additional details

References

  • Horv├íth & Partners (Hrsg.) Balanced Scorecard v praxi. 1. vyd. Praha: Profess Consulting, 2002.
  • J. Fib├¡rov├í, Reporting, modern├¡ metoda hodnocen├¡ v├¢konnosti uvnitř firmy. 1. vyd. Praha: Grada Publishing, 2001.
  • P. Horváthová, TÛmy a tÛmová spolupráce. 1. vyd. Praha: Aspi - Wolters Kluwer, 2008.
  • P. S. Pande, R. P. Neuman, R. R. Cavanagh, Zav├íd├¡me metodu Six Sigma. 1. vyd. Brno: TwinsCom, 2002.
  • P. U─ìeň, Metriky v informatice. Jak objektivn─ø zjistit př├¡nosy informa─ìn├¡ho systému. 1. vyd. Praha: Grada Publishing, 2001.
  • R. Eschenbach, Controlling. 1. vyd├ín├¡. Praha: ASPI Publishing, 2000.
  • R. Simmons, Performance Measurement and Control Systems for Implementing Strategy. UK: Prentice Hall, 2000.
  • R. S. Kaplan, D. S. Norton, Balanced scorecard. Strategick├¢ systém m─øřen├¡ v├¢konnosti podniku. 2. vyd. Praha: Management Press, 2001.
  • R. S. Kaplan, D. S. Norton, The strategy-focused organization, how balanced scorecard companies thrive in the new business environment. Boston: Harvard Business School, 2001. [10] A. M. Schneiderman, "Metrics for the Order Fulfillment Process. Part 1," Journal of Cost Management, pp. 30-42, Summer 1996. [11] A. M. Schneiderman, "Metrics for the Order Fulfillment Process. Part 2,"Journal of Cost Management, pp. 36-17, Fall 1996. [12] A. M. Schneiderman, "Measurement, the Bridge Between the Hard and Soft Sides," Journal of Strategic Performance Measurement, vol. 2, no. 2, pp. 14-21, April/May 1998. [13] A. M. Schneiderman, "Are there Limits to TQM?" Strategy + Business, issue 11, pp. 35-46, second quarter 1998. [14] A. M. Schneiderman, "Why Balanced Scorecards Fail," Journal of Strategic Performance Measurement, special ed., pp. 9-11, January 1999. [15] A. M. Schneiderman, "Time to Unbalanced Your Scorecard," Strategy + Business, iss. 24, third quarter 2001. [16] J. Jensen, P. B. Sage, "A system management approach for improvement of organization performance measurement systems," Information, Knowledge, Systems Management, no. 2, pp. 33-61, 2000. [17] A. Neely, C. Adams, P. Crowe, "The Performance Prism in Practice", Measuring Business Excellence, vol. 5, issue 2, pp. 6-12, 2001. [18] A. Neely, "Recent Development in Planning and Budgeting", Performance Measurement Association Newsletter, vol. 1, issue 4, pp. 14-15, 2001. [19] A. Neely (editor), Business Performance Measurement: Theory and Practice. First edition. Cambridge University Press, 2002. [20] J. Porth, R. Kathuria, M. P. Joshi, "Performance impact of the fit between manufacturing priorities of general managers and manufacturing managers," The Journal of Business and Economic studies, vol. 4, issue 1, pp. 13-35. 1998. [21] P. Stein, "Measurements for business," Quality Progress, vol. 34, issue 2, pp. 29-32, 2001. [22] D. Lefkowith, "What gets measured gets done turning strategic plans into real world results," Management Quaterly, vol. 42, issue 2, pp. 20- 24, 2001. [23] A. Neely, C. Adams, M. Kennerley, The Performance Prism. The Scorecard for Measuring and Managing Business Success. London: Prentice Hall, 2002. [24] M. Mikusova. "Metrics: Business Performance Measurement System Elements, " in Proc. of the 11th Int. Conf. of SGBED. Striving for Competitive Advantage and Sustainability. New Challenges of Globalization, Bratislava, 2009, pp. 1317-1323. [25] P. Miko┼íka, P. Bri┼í, "┼ÿ├¡zen├¡ kontroly kvality v obchodn├¡m řet─øzci v kontextu sou─ìasného glob├íln├¡ho tržn├¡ho prostřed├¡," Znalostn├¡ ekonomika, trendy rozvoje vzd─øl├ív├ín├¡, v─ødy a praxe, pp. 13-21. 2007. [26] D. Vokounová, "Globálna solidarita - vnímanie študentov z vybranÛch krajín EÚ", Veda a vÛskum pre prax, pp. 93-103, 2008. [27] I. Vozň├íkov├í, K. Janovsk├í, "Jak m─øřit ekonomické v├¢sledky?" MMPr┼»myslové spektrum, no. 8, 9/2009, p. 97, 2009. [28] A. Mateiciuc, "K pojet├¡ lidského potenci├ílu organizace", V├¢sledky v─ødecké pr├íce student┼» doktorského studia MEKON 2004, pp. 36-45, 2004. [29] A. Mateiciuc, N├ívrh systému hodnocen├¡ rizik při strategickém manažerském rozhodov├ín├¡. Dissertation thesis, 2005. [30] L. Borb├ís, "Regional connections and export orientation of SMEs after EU accession", EU Working Papers, vol. 2008/1, pp. 93-10, 2008. [31] M. Miku┼íov├í, "Knowledge in Enterprise: The Role and Performance Measurement, ," Lex et Scientia, vol. 2/2008, no. XV, 2008, pp. 283- 291. [32] P. Horv├íthov├í, "The Use of Operations Management Procedures in Order to Increase Organizations Competitiveness Under the Condition of Growing Pressures of Globalization," Global Business and Management Research, vol. 2, no. 1, 2010, pp. on-line.