Tie your company's mission directly to real metrics. Find out how to use key performance indicators and a balanced scorecard to quantify business performance over time.
- Hi, I'm Kay Stice. I'm a professor of accounting at Brigham Young University, and this is brother Jim. - I'm also a professor of accounting at Brigham Young University. - In this course, we discuss the balance score card as a way for a company to organize its key performance indicators, or KPIs. - Now people usually mistakenly think that accounting involves only measurements of assets, such as cash or land, and measurement of expenses, such as rent or electricity. - Now those are certainly important measurements, but organizations use many additional numbers as they monitor performance on a daily basis.
- For example, a retail store chain carefully tracks its sales per square foot. A higher number means that the company is using its buildings more efficiently to generate sales. - [Kay] A high tech company might track its overall research and development spending, as well as the amount it spends on R and D per employee. - [Jim] A trucking company probably measures the percentage of its orders that are delivered on time. - [Kay] And it makes sense for all businesses to measure and monitor customer and employee satisfaction. - [Jim] Now, in this course, we will talk about these kinds of Key Performance Indicators, or KPIs.
- Now before taking this Balance Scorecard course, you might consider taking our Accounting Fundamentals course. Among other things, that course introduces you to the basics of all three types of accounting: managerial, financial, and income taxes. - But with that said, we have designed this Balanced Scorecard course to be self-contained, and we carefully explain any terminology that we use. - In short, this is an introductory course with no prior accounting knowledge necessary. - So, let's get started in our discussion of the balance scorecard and key performance indicators.
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