In this video tutorial, accounting professors Jim and Kay Stice offer an overview of a case study to determine the four key performance indicators that would make up part of a trucking company's balanced scorecard. These KPIs are figures the CEO and team would review every morning to determine how the trucking business is doing.
- [Voiceover] We are going to do a case study…of the impact of key performance indicators…or KPIs in the trucking business.…- [Voiceover] This little case for a hypothetical company,…XYZ Trucking, is adapted from some information…and measures of a real trucking company.…- We thank our colleague Professor Don Livingstone…for providing some of the information…we have used in constructing this little case.…- [Voiceover] So here's the case.…XYZ Trucking is based in the United States.…It focuses on short to medium length trips.…The average length of a trip, about 540 miles.…
- [Voiceover] XYZ targets service sensitive customers.…It's not focused on price competition.…The company accepts only full trailer loads.…So it drives to a customer location,…the customer loads whatever it wants into the trailer,…and then the XYZ trailer takes that load…to the designated location.…- [Voiceover] No detours for picking up other loads,…no splitting of the trips among several customers,…very simple.…The shipping fee is negotiated for each job…
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