PERFORMANCE INDICATOR

Performance indicator are a measurable way of defining and monitoring goals.

The performance indicator help to make goals tangible. Two types are performance indicator: Financial indicator and Non financial indicator Defining indicator: What has happened in the organization ? Why it has happened?

Is it the trend?
How it effect on the trend? Understanding indicator helps to generate idea.

PERFORMANCE INDICATOR
While defining a indicator we should look on cost, time and accuracy.
operation : productivity, utilization Sales and marketing: sales per region , sales per model, marketing cost

People: labor turnover, overtime, absenteeism

Research and development: expenditure, failure rate, lead time

Most of these indicator measure the impact that product , process or service innovation has had on organization operation

PERFORMANCE INDICATOR
Performance chart: What has measure it past, what is measure today and what should target value is represent in chart. It shows progress toward goal Balance scorecard: The balance scorecard divides strategic objective, performance measure and any associated development into four perspectives Financial perspectives Customer perspectives Learning and growth perspectives Internal processing perspectives

PERFORMANCE INDICATOR
Conclusion: The stated goal and objective should be translate into measurable indicator. Performance indicator foster improvement and innovation. It gives immediate feedback on what is happening and generate a information where the action is leading. It determines the necessary step to take in order to ensure the organization will achieve their goal at stated time with high quality.