In this video tutorial, accounting professor Kay Stice focuses on developing the third key performance indicator (KPI) for a trucking company used in this case study. He explains the process of developing the KPI days pickup to cash. He also explains how to assign this KPI to three different team members to ensure the KPI of cash collection is monitored.
- We're at the daily 8am meeting,…looking at our four key performance indicators, our KPIs.…First measure, Driver turnover.…The second measure is Billable miles per tractor per day,…the third measure is Days pickup to cash.…This number is the sum of the number of days…to complete the following three actions.…Time from pickup to delivery.…Time from delivery to billing.…And then finally, Time from billing to cash collection.…Our goal is to have every trip billed and collected…within 30 days from pickup.…
Now, whose performance should be evaluated…based on this measure?…Well, there are three very different sets of people…involved in this important number.…The Scheduler, the Billing clerk,…and the Accounts receivable clerk.…First, there's the Scheduler, who's responsible…for getting the loads delivered quickly.…The computerized scheduling programs…used by trucking companies are quite sophisticated,…and these programs…make the trucking business increasingly competitive.…Some customer companies are reducing their reliance…
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