The best way to get somebody to do something is to measure and reward that what it is you want them to do. In this video tutorial, accounting professor Kay Stice explains the connections between measures and rewards, which directly impact key performance indicators.
- I give out lots of grades.…In fact, my estimate is that in my academic career,…I've assigned between 20 and 25,000 grades.…I'm a grading expert.…This past fall, I taught a course at Nazarbayev University…in Astana Kazakhstan.…At the start of the course,…I told the students that their final grades would be based…on the following four things:…online pre-reading assessments to be completed…before the beginning of the course,…daily online quizzes,…daily class participation,…and comprehensive final exam.…
Now, if my sole objective…were to assign the final course grades,…I could save everyone, including myself, a lot of work…just by basing the entire grade on the final exam score.…Student behavior would be predictable.…With the entire measurement system focused…on this final exam and only the final exam,…many students would choose not to come to class.…Now, this would be shortsighted and incorrect,…but because class participation…and daily review of the material would not be rewarded,…they would often choose not to come to class.…
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