Decisions can have a short- or long-term impact; they can be strategic or operational. Measuring strategic or operational performance might require a different set of key performance indicators (KPIs). You need both: Operational KPIs help to measure the short term performance of an organization, strategic KPIs help to measure the implementation of a long term strategy.
This new podcast episode #13 explains the differences, using the picture of driving a car.
The operating expenses of a company have a high impact, not only on the company’s result, but also on other parameters, like profit per costs and minimum order income to be achieved. Even the same operating result and profitability of two companies could be of a different quality, because of different relations in fixed and variable expenses. In this presentation two performance indicators will be developed to monitor these important differences.
You might subscribe to the podcast with this latest video episode here
Here you find information and links to my collection of videos about business performance management and other topics.
You might subscribe to BPMSG’s video podcast using iTunes or Feedburner. This Podcast will give you video presentations about the concepts, methods and tools in business performance management. Episodes published (June 2013):
#001 Business Performance Management Introduction (see #16)