Discuss the following statement: Measuring performance is integral to successful business operations. After your contribution, comment on the posts of at least two (2) of your peers.

Responses from 2 pairs:

Response 1:

Hello colleagues, I certainly agree that measuring performance is integral to successful business and as potential entrepreneurs we must be mindful that even though a business may have had a successful start and is seemingly continuing along that path this may be an illusion since we cannot measure success accurately without a formal analysis of specific categories of the business. According to Kappel (2017) business is unpredictable; the only certainty is that everything continuously changes. Therefore entrepreneurs must constantly measure the performance of their business in order to know what is successful and what is not. Info Entrepreneur (n.d.) proposes that the benefit of having a good performance measurement system in place is that it will allow entrepreneurs and/ or managers to examine the triggers for any changes in performance, which puts them in a better position to manage their performance proactively. In measuring performance for business success I would propose that entrepreneurs use a Balanced Scorecard (BSC) which is a strategic planning and management system used to align business activities to the vision statement of an organization (Khozein, 2012, p.38). The elements of the Balanced Scorecard are: Financial perspective tracking financial performance Customer perspective tracking customer satisfaction, attitudes, and market share goals Internal process perspective covers internal operational goals needed to meet customer objectives Learning and growth/innovation perspective intangible drivers for future success such as human capital, organizational capital, training, informational systems, etc. (Pacific Crest Group, n.d.) If entrepreneurs are not convinced that measuring performance is important perhaps they should consider the strategies employed by successful companies. One such company is our very own GraceKennedy Limited, the Caribbeans leading food manufacturer and distributor. The company states that its Executive Committee utilises the Balanced Scorecard tool to evaluate and monitor Group performance (GraceKennedy Group, 2016). Saddiqui (2015) points out that the importance of performance measurement rests in the fact that it not only improves performance, but also the productivity of a business by reducing costs. He further notes that it is a great way to understand, manage and improve the overall functioning state of a business and if done effectively and efficiently drives success in business.

Response 2:

Good evening everyone, Please view my contribution below;

There is an old saying that goes, 'What does not get measured, doesn't get done!' In my own words this means, If theres no attention given, it will be lost in the noise.

I do believe that measuring performance is an essential to the success of business operations. The Balanced Scorecard Institute (BCI) state; A performance measurement system such as the Balanced Scorecard allows an agency to align its strategic activities to the strategic plan. This speaks to determining the areas that are actually having a positive or negative effect on the business, measuring it against targets so that the areas that require improvement can be easily identified.

I will now consider the steps for measuring performance, while at the same time using my own experience, to show how practical measuring performance is. I am currently employed with a communications and technology company, directly linked to the Customer Experience Department.

According to our text the steps to measuring performance are;

Establish the process, selecting Key Performance Indicators (KPIs), that is tied with the overall strategy of the business.

Business Strategies change based on changes in the environment and the position of the company in the business life cycle.

Once performance measurement is established, the business strategy and even the way performance is measured could be changed (UWI, 2018).

One of the overall strategies of the business I work with, is to ensure customers are satisfied. Why? Because satisfied customers pay their bills, thus generate revenue for the business. Two of our Key Performance Indicators are Mean Time to Repair (MTTR) and Mean Time to Install (MTTI). Each KPI is measured against a service charter of one (1) and two (2) days respectively. When the mean of each indicator is considered for the week and it is above one or two days, strategies are put in place to address this, because it means we are performing above expected target and therefore not meeting the expectation of the customer.

Key Performance Indicators are a quantifiable measure a company uses to determine how well it's meeting it's operational and strategic goal (Lake, 2018). They help the business to know what to pay attention to and when; and by extension directly drives the operations of the business.

Can you please respond to these 2 responses for me?