In this video tutorial, accounting professor Kay Stice explains how internal processes measures in the balanced scorecard framework help a company monitor how the business is actually working. He focuses on three key areas of internal process measures, including innovation, operations and the service-after-sale.
- The internal processes measures…in the balanced scorecard framework…help managers monitor how the business is actually working.…Let's organize these internal processes measures…into three groups, innovation measures,…operations measures, and service-after-sale measures.…Innovation process measures reflect the process…of identifying and creating new products.…For many companies, innovation is where…much of a company's competitive edge is created.…It is important to the ultimate financial success…of the organization that the critical effort…to identify and develop new products and services…is effectively managed.…
For example, for companies operating in rapidly…evolving markets, a discipline of spending money…on research and development is crucial.…So, one innovation process measure might be…the percentage of revenue spent on R and D.…For many companies, this percentage is remarkably…stable from year to year, reflecting a company…decision to keep plowing money back into R and D.…For example, I happen to have this measure…
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