Using the case study of the Volkswagen emissions testing scandal, accounting professor Kay Stice emphasizes that you must be careful of what you measure and then monitor the measurement process carefully. This directly impacts the type of key performance indicators you choose and how you measure them.
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- In the fall of 2015,…we learned that Volkswagen engineers had designed software…that would allow Volkswagen diesel engines…to pass emissions tests.…The engines did not lower actual emissions,…but they did pass a test.…Here's some details about this Volkswagen…emissions testing scandal.…Now, to understand why Volkswagen did this,…I refer to an article by John Voelcker…at greencarreports.com.…Volkswagen has historically produced a much larger fraction…of cars with diesel engines…than have other major automobile manufacturers.…
Diesel cars are more common in Europe…than they are in the United States.…In 2008, the emissions rules for diesel cars…operated in the United States were substantially tightened.…No corresponding tightening happened in Europe until 2015.…So, someone at Volkswagen, we don't know who yet,…decided that rather than change the Volkswagen engines…to meet the tougher emission standards,…they would instead change…the Volkswagen software programming…to enable the diesel engines to pass the tougher tests.…
In this course, accounting professors Jim and Kay Stice explain what KPIs your business should consider in a balanced scorecard, from financial goals to employee and customer satisfaction. They describe how to craft a clear mission statement that complements your KPIs, and how to tie performance to incentives. Plus, get a look at KPIs in action, as Jim and Kay break down a case study examining a trucking company's balanced scorecard.
- The importance of KPIs and measuring performance
- Financial goals and measure
- Customer needs and satisfaction
- Employee growth
- Creating an effective mission statement
- Linking measurements and rewards
- Examining a KPI case study