Using the example of an optometrist's office that is facing a lot of competition, accounting professor Kay Stice explores how a key performance indicator impacts employees. In this video tutorial, he explains how KPIs and new measurements can impact employees, and customers.
- Now back to our optometrist office example.…As a reminder, here's the new mission statement.…Provide lifetime, high quality eyecare…to individuals and families, with an emphasis…on courteous, flexible service…and respectful disclosure and consultation…in terms of options and cost.…Well, let's take a moment to determine…whether this is a good mission statement.…I think it is, because it tells us…what the optometrist is and is not going to do.…Notice the emphasis on quality service…and lifetime relationships.…This mission statement makes clear…that the optometrist is not going to try…to compete with the low cost providers,…the supermarkets and the online sellers.…
Instead, the optometrist is going to focus on service…and developing long term relationships with customers.…And what does a mission statement have to do…with accounting, balanced scorecards and KPIs?…A mission statement defines what actions…an organization views as being important.…It is then the job of the accounting system…to measure and reward those actions.…
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