Organizational Performance Metrics
Organizational Performance Metrics
Organizations in today’s worldwide competitive environment, must be able to evaluate their objectives such as unit cost, profit, subjective (e.g. quality, satisfaction) performances and setup appropriate strategies to reach their goals. A business process is a set of activities performed in order to reach common goals based on well-defined company objectives (Hammer & Champy, 1994; Keung & Kawalek, 1997). These processes contribute towards the achievement of aims and necessary objectives. Magretta and Stone (2002) stated that indicators and performance measurement were critical elements in translating an organization’s mission or strategy, into reality. Indicators and strategy are tightly and inevitably linked to each other. Strategy without indicators is useless and also indicators without a strategy are meaningless. Edwards and Thomas (2005) argued that KPIs were compilations of information used to measure an assess performance. In addition, they indicate the final mark of a company’s efficiency and effectiveness. Vucomanovic et al. (2010) stated that KPIs represent the basis for measuring business and project success. They enable the measurements of performance within firms, industry, and to initiate benchmarking. In addition, KPIs are implemented as a means of communication within stakeholders to inform them about improvement of endeavors