1. Organisation Control KPI’s & an industry Review
Dr. Clive Vlieland-Boddy

3. Cross-sectional analysis
Comparison with other companies in the same industry for the same year
Differences in company characteristics should always be accounted for in interpretation
Comparison with industry averages
Multi-product companies
Definition and size of industry groupings

4. Organizational Control
Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals
Keeping an organization on track, anticipating events, changing the organization to respond to opportunities and threats

5. Organizational Control
Managers must monitor and evaluate:
Is the firm efficiently converting inputs into outputs?
Are units of inputs and outputs measured accurately?
Is product quality improving?
Is the firm’s quality competitive with other firms?
Are employees responsive to customers?
Are customers satisfied with the services offered?
Are our managers innovative in outlook?
Does the control system encourage risk-taking?

6. Control Systems Control Systems establish
Target-setting
Monitoring
Evaluation and
Feedback systems
It provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.

7. Control Systems A good control system should:
be flexible so managers can respond as needed.
provide accurate information about the organization.
provide information in a timely manner.

8. Types of Control Feedforward Controls
Used to anticipate problems before they arise so that problems do not occur later during the conversion process
Giving stringent product specifications to suppliers in advance
IT can be used to keep in contact with suppliers and to monitor their progress

9. Types of Control Concurrent Controls
Give managers immediate feedback on how efficiently inputs are being transformed into outputs
Allows managers to correct problems as they arise

10. Types of Control Feedback Controls
Used to provide information at the output stage about customers’ reactions to goods and services so that corrective action can be taken if necessary

11. The Control Process - Benchmarking
Establish standards of performance, goals, or targets against which performance is to be evaluated.
Managers at each organizational level need to set their own standards.
Goals should be set appropriately so that managers are motivated to accomplish them. They should be achievable will some additional level of effort.

12. The Control Process Measurement
Measure actual performance
Managers can measure outputs resulting from worker behavior or they can measure the behavior themselves.
The more non-routine the task, the harder it is to measure behavior or outputs

13. The Control Process - Evaluation
Evaluate result and initiate corrective action if the standard is not being achieved
If managers decide that the level of performance is unacceptable, they must try to change the way work activities are performed to solve the problem

14. Information Management
If you don’t measure results, you can’t tell success from failure
If you can’t see success, you can’t reward it – and if you can’t reward success, you are probably rewarding failure
If you can’t recognize failure, you can’t correct it

15. Benefits of Information Management
Understand customers and customer satisfaction
Provide feedback to workers
Establish a basis for reward/recognition
Assess progress and the need for corrective action
Reduce costs through better planning

16. Leading Practices (1 of 2)
Develop a set of performance indicators that reflect customer requirements and key business drivers
Use comparative information and data to improve overall performance and competitive position
Continually refine information sources and their uses within the organization

17. Leading Practices (2 of 2)
Involve everyone in measurement activities and ensure that information is widely visible
Ensure that data are accurate, reliable, timely, secure, and confidential
Systematically manage organizational knowledge and identify and share best practices

18. Key objective
To make effective decisions companies need good data and information about:
Customers and markets
Human resource effectiveness
Supplier performance
Product and service quality

19. Non Financial Tools The Balanced Score Card

20. Key Objective
A good balanced scorecard contains both leading and lagging measures and indicators.
Lagging measures (outcomes) tell what has happened
leading measures (performance drivers) predict what will happen.

23. Learning & Growth
'learning' is more than 'training'; it also includes things like mentors and tutors within the organization, as well as that ease of communication among workers that allows them to readily get help on a problem when it is needed.

24. Business Perspective
Allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission)

25. Customer Perspective
If customers are not satisfied, they will eventually find other suppliers that will meet their needs.

26. Financial Perspective
Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it.

28. I’m ready for some leisure time.
Bye for now!
I’m ready for some leisure time.
Please ensure you
Prepare for next session 28

29. The End