This video tutorial focuses on developing the first key performance indicator (KPI) for a trucking company. Professor Kay Stice explains the process of developing the KPI, driver turnover and retention. He also offers some strategies for leading measures for retention strategies.
- [Voiceover] So, we're at the daily 8 AM meeting…of the CEO and top executives of XYZ Trucking.…We're going to look at four Key Performance Indicators…or KPIs, these are four numbers that are going…to dramatically influence the way people behave…and how they spend their time on a daily basis.…The first measure, driver turnover.…Specifically, this is the number of drivers…who quit the company yesterday.…Remember that driver compensation is by far…the largest operating cost for XYZ Trucking.…I am told that driver turnover is a major concern…for all trucking companies.…
I have heard of one trucking company…for which the goal of annual turnover…is 72% for the drivers.…I am told that this company is always above…100% turnover for the year…and this is normal for a trucking company.…I spoke to another trucking company executive,…for some reason I know lots of people…involved with trucking,…who confirmed that his company is always…over 100% driver turnover per year.…Now, I have mentioned this 100% turnover…to people in other businesses, they can't conceive…
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