Join Jim Stice for an in-depth discussion in this video Stay focused on what is important, part of Balanced Scorecard and Key Performance Indicators.
- Well, we've learned a lot about balance score cards and key performance indicators. Have you found any way to use this information to help you in your personal life? - Yes, I have. - How? - Well it's right here. See this? This is my personal balance score card. - You have a personal balance score card? - Absolutely, this is where I keep track of a few key measurements every day to make sure I'm doing the most important things in my life. - Give me an example. - Okay, I'll give you an example right here. Right here, I write down my weight every morning.
- You just weigh yourself and write it down? - Yeah, I write it right here. Knowing I'm going to weigh myself and write it down the next morning causes me to think twice today about grabbing donuts or potato chips and shoving them into my mouth. - What else? - Well right here I make a little mark each day so see if I've read a story with my daughters. See, I have two daughters, 14-years-old. - How does that influence your behavior? - All right, well when it's getting late at night there's always lots of things I could be doing around the house. I could be reading a book myself, I could be answering emails, I could be looking at sports scores on the internet.
However, because of my balance score card here reading with my daughters goes to the top of the list because that's something I decided I wanted to track every single day. - So are you saying that you read with your daughters just so you can make a little mark on that card? That sounds weird. - It does sound weird, and I admit that sometimes I do read with them just to keep my accounting record looking good, and at those times when I do it for that reason, I'm a bad dad, but when I sat down at the start of the year and made this card and I made a commitment by myself to read to my daughters every day and I decided to measure my performance every day, in that moment when I made my balance score card, I was a good dad.
- So are you saying that accounting measurements like the balance score card can help a company, a charitable organization, even a dad, focus on those things that are most important? - Yes, a personal balance score card containing your personal key performance indicators can be pretty powerful stuff. I find that it works for me.
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