A key to strong financial performance is identifying customer needs and satisfying them. In this video tutorial, accounting professor Kay Stice explores leading measures and outcome measures and the impact they have on customers. Leading measures include the ratio of your selling price versus your competitor's selling price, percent of on-time deliveries, number of returned items, and customer satisfaction surveys. Outcome measures include market share, returning customers, and new customers.
- The first key to strong financial performance…is identifying customer needs and satisfying them.…When companies understand what their customers…want and will pay for, then these companies…can design customer focused performance measures…that lead to growth in market share,…increased revenues and long term profits.…Now with customers, let's think of leading measures…and outcome measures.…Leading measures reflect whether the company is…currently meeting or exceeding its customers expectations.…Outcome measures reflect whether customers are…staying with the company and whether those customers…are recommending the company to others.…
So let's talk about some leading measures.…First, the ratio of my selling prices,…to those of my competitors.…If my prices are higher than are my competitors prices…then my customers are going to be less likely…to stay with me, unless I'm providing them…with some extra value.…Better service, more timely delivery and so forth.…Another measure, number of returned items.…An increase in the number of customers who are returning…
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