Developing and Implementing Successful Key Performance Indicators
Measurement and the following evaluation of
performance represent important part of management. The paper
focuses on indicators as the basic elements of performance
measurement system. It emphasizes a necessity of searching
requirements for quality indicators so that they can become part of
the useful system. It introduces standpoints for a systematic dividing
of indicators so that they have as high as possible informative value
of background sources for searching, analysis, designing and using of
indicators. It draws attention to requirements for indicators' quality
and at the same it deals with some dangers decreasing indicator's
informative value. It submits a draft of questions that should be
answered at the construction of indicator. It is obvious that particular
indicators need to be defined exactly to stimulate the desired
behavior in order to attain expected results. In the enclosure a
concrete example of the defined indicator in the concrete conditions
of a small firm is given. The authors of the paper pay attention to the
fact that a quality indicator makes it possible to get to the basic
causes of the problem and include the established facts into the
company information system. At the same time they emphasize that
developing of a quality indicator is a prerequisite for the utilization
of the system of measurement in management.
[1] Horváth & Partners (Hrsg.) Balanced Scorecard v praxi. 1. vyd. Praha:
Profess Consulting, 2002.
[2] J. Fib├¡rov├í, Reporting, modern├¡ metoda hodnocen├¡ v├¢konnosti uvnitř
firmy. 1. vyd. Praha: Grada Publishing, 2001.
[3] P. Horváthová, TÛmy a tÛmová spolupráce. 1. vyd. Praha: Aspi - Wolters
Kluwer, 2008.
[4] P. S. Pande, R. P. Neuman, R. R. Cavanagh, Zavádíme metodu Six
Sigma. 1. vyd. Brno: TwinsCom, 2002.
[5] P. U─ìeň, Metriky v informatice. Jak objektivn─ø zjistit př├¡nosy
informa─ìn├¡ho systému. 1. vyd. Praha: Grada Publishing, 2001.
[6] R. Eschenbach, Controlling. 1. vydání. Praha: ASPI Publishing, 2000.
[7] R. Simmons, Performance Measurement and Control Systems for
Implementing Strategy. UK: Prentice Hall, 2000.
[8] R. S. Kaplan, D. S. Norton, Balanced scorecard. Strategick├¢ systém
m─øřen├¡ v├¢konnosti podniku. 2. vyd. Praha: Management Press, 2001.
[9] R. S. Kaplan, D. S. Norton, The strategy-focused organization, how
balanced scorecard companies thrive in the new business environment.
Boston: Harvard Business School, 2001.
[10] A. M. Schneiderman, "Metrics for the Order Fulfillment Process. Part
1," Journal of Cost Management, pp. 30-42, Summer 1996.
[11] A. M. Schneiderman, "Metrics for the Order Fulfillment Process. Part
2,"Journal of Cost Management, pp. 36-17, Fall 1996.
[12] A. M. Schneiderman, "Measurement, the Bridge Between the Hard and
Soft Sides," Journal of Strategic Performance Measurement, vol. 2, no.
2, pp. 14-21, April/May 1998.
[13] A. M. Schneiderman, "Are there Limits to TQM?" Strategy + Business,
issue 11, pp. 35-46, second quarter 1998.
[14] A. M. Schneiderman, "Why Balanced Scorecards Fail," Journal of
Strategic Performance Measurement, special ed., pp. 9-11, January
1999.
[15] A. M. Schneiderman, "Time to Unbalanced Your Scorecard," Strategy +
Business, iss. 24, third quarter 2001.
[16] J. Jensen, P. B. Sage, "A system management approach for improvement
of organization performance measurement systems," Information,
Knowledge, Systems Management, no. 2, pp. 33-61, 2000.
[17] A. Neely, C. Adams, P. Crowe, "The Performance Prism in Practice",
Measuring Business Excellence, vol. 5, issue 2, pp. 6-12, 2001.
[18] A. Neely, "Recent Development in Planning and Budgeting",
Performance Measurement Association Newsletter, vol. 1, issue 4, pp.
14-15, 2001.
[19] A. Neely (editor), Business Performance Measurement: Theory and
Practice. First edition. Cambridge University Press, 2002.
[20] J. Porth, R. Kathuria, M. P. Joshi, "Performance impact of the fit
between manufacturing priorities of general managers and
manufacturing managers," The Journal of Business and Economic
studies, vol. 4, issue 1, pp. 13-35. 1998.
[21] P. Stein, "Measurements for business," Quality Progress, vol. 34, issue
2, pp. 29-32, 2001.
[22] D. Lefkowith, "What gets measured gets done turning strategic plans
into real world results," Management Quaterly, vol. 42, issue 2, pp. 20-
24, 2001.
[23] A. Neely, C. Adams, M. Kennerley, The Performance Prism. The
Scorecard for Measuring and Managing Business Success. London:
Prentice Hall, 2002.
[24] M. Mikusova. "Metrics: Business Performance Measurement System
Elements, " in Proc. of the 11th Int. Conf. of SGBED. Striving for
Competitive Advantage and Sustainability. New Challenges of
Globalization, Bratislava, 2009, pp. 1317-1323.
[25] P. Miko┼íka, P. Bri┼í, "┼ÿ├¡zen├¡ kontroly kvality v obchodn├¡m řet─øzci v
kontextu sou─ìasného glob├íln├¡ho tržn├¡ho prostřed├¡," Znalostn├¡
ekonomika, trendy rozvoje vzd─øl├ív├ín├¡, v─ødy a praxe, pp. 13-21. 2007.
[26] D. Vokounová, "Globálna solidarita - vnímanie študentov z vybranÛch
krajín EÚ", Veda a vÛskum pre prax, pp. 93-103, 2008.
[27] I. Vozň├íkov├í, K. Janovsk├í, "Jak m─øřit ekonomické v├¢sledky?" MMPr┼»myslové
spektrum, no. 8, 9/2009, p. 97, 2009.
[28] A. Mateiciuc, "K pojet├¡ lidského potenci├ílu organizace", V├¢sledky
v─ødecké pr├íce student┼» doktorského studia MEKON 2004, pp. 36-45,
2004.
[29] A. Mateiciuc, N├ívrh systému hodnocen├¡ rizik při strategickém
manažerském rozhodov├ín├¡. Dissertation thesis, 2005.
[30] L. Borbás, "Regional connections and export orientation of SMEs after
EU accession", EU Working Papers, vol. 2008/1, pp. 93-10, 2008.
[31] M. Mikušová, "Knowledge in Enterprise: The Role and Performance
Measurement, ," Lex et Scientia, vol. 2/2008, no. XV, 2008, pp. 283-
291.
[32] P. Horváthová, "The Use of Operations Management Procedures in
Order to Increase Organizations Competitiveness Under the Condition of
Growing Pressures of Globalization," Global Business and Management
Research, vol. 2, no. 1, 2010, pp. on-line.
[1] Horváth & Partners (Hrsg.) Balanced Scorecard v praxi. 1. vyd. Praha:
Profess Consulting, 2002.
[2] J. Fib├¡rov├í, Reporting, modern├¡ metoda hodnocen├¡ v├¢konnosti uvnitř
firmy. 1. vyd. Praha: Grada Publishing, 2001.
[3] P. Horváthová, TÛmy a tÛmová spolupráce. 1. vyd. Praha: Aspi - Wolters
Kluwer, 2008.
[4] P. S. Pande, R. P. Neuman, R. R. Cavanagh, Zavádíme metodu Six
Sigma. 1. vyd. Brno: TwinsCom, 2002.
[5] P. U─ìeň, Metriky v informatice. Jak objektivn─ø zjistit př├¡nosy
informa─ìn├¡ho systému. 1. vyd. Praha: Grada Publishing, 2001.
[6] R. Eschenbach, Controlling. 1. vydání. Praha: ASPI Publishing, 2000.
[7] R. Simmons, Performance Measurement and Control Systems for
Implementing Strategy. UK: Prentice Hall, 2000.
[8] R. S. Kaplan, D. S. Norton, Balanced scorecard. Strategick├¢ systém
m─øřen├¡ v├¢konnosti podniku. 2. vyd. Praha: Management Press, 2001.
[9] R. S. Kaplan, D. S. Norton, The strategy-focused organization, how
balanced scorecard companies thrive in the new business environment.
Boston: Harvard Business School, 2001.
[10] A. M. Schneiderman, "Metrics for the Order Fulfillment Process. Part
1," Journal of Cost Management, pp. 30-42, Summer 1996.
[11] A. M. Schneiderman, "Metrics for the Order Fulfillment Process. Part
2,"Journal of Cost Management, pp. 36-17, Fall 1996.
[12] A. M. Schneiderman, "Measurement, the Bridge Between the Hard and
Soft Sides," Journal of Strategic Performance Measurement, vol. 2, no.
2, pp. 14-21, April/May 1998.
[13] A. M. Schneiderman, "Are there Limits to TQM?" Strategy + Business,
issue 11, pp. 35-46, second quarter 1998.
[14] A. M. Schneiderman, "Why Balanced Scorecards Fail," Journal of
Strategic Performance Measurement, special ed., pp. 9-11, January
1999.
[15] A. M. Schneiderman, "Time to Unbalanced Your Scorecard," Strategy +
Business, iss. 24, third quarter 2001.
[16] J. Jensen, P. B. Sage, "A system management approach for improvement
of organization performance measurement systems," Information,
Knowledge, Systems Management, no. 2, pp. 33-61, 2000.
[17] A. Neely, C. Adams, P. Crowe, "The Performance Prism in Practice",
Measuring Business Excellence, vol. 5, issue 2, pp. 6-12, 2001.
[18] A. Neely, "Recent Development in Planning and Budgeting",
Performance Measurement Association Newsletter, vol. 1, issue 4, pp.
14-15, 2001.
[19] A. Neely (editor), Business Performance Measurement: Theory and
Practice. First edition. Cambridge University Press, 2002.
[20] J. Porth, R. Kathuria, M. P. Joshi, "Performance impact of the fit
between manufacturing priorities of general managers and
manufacturing managers," The Journal of Business and Economic
studies, vol. 4, issue 1, pp. 13-35. 1998.
[21] P. Stein, "Measurements for business," Quality Progress, vol. 34, issue
2, pp. 29-32, 2001.
[22] D. Lefkowith, "What gets measured gets done turning strategic plans
into real world results," Management Quaterly, vol. 42, issue 2, pp. 20-
24, 2001.
[23] A. Neely, C. Adams, M. Kennerley, The Performance Prism. The
Scorecard for Measuring and Managing Business Success. London:
Prentice Hall, 2002.
[24] M. Mikusova. "Metrics: Business Performance Measurement System
Elements, " in Proc. of the 11th Int. Conf. of SGBED. Striving for
Competitive Advantage and Sustainability. New Challenges of
Globalization, Bratislava, 2009, pp. 1317-1323.
[25] P. Miko┼íka, P. Bri┼í, "┼ÿ├¡zen├¡ kontroly kvality v obchodn├¡m řet─øzci v
kontextu sou─ìasného glob├íln├¡ho tržn├¡ho prostřed├¡," Znalostn├¡
ekonomika, trendy rozvoje vzd─øl├ív├ín├¡, v─ødy a praxe, pp. 13-21. 2007.
[26] D. Vokounová, "Globálna solidarita - vnímanie študentov z vybranÛch
krajín EÚ", Veda a vÛskum pre prax, pp. 93-103, 2008.
[27] I. Vozň├íkov├í, K. Janovsk├í, "Jak m─øřit ekonomické v├¢sledky?" MMPr┼»myslové
spektrum, no. 8, 9/2009, p. 97, 2009.
[28] A. Mateiciuc, "K pojet├¡ lidského potenci├ílu organizace", V├¢sledky
v─ødecké pr├íce student┼» doktorského studia MEKON 2004, pp. 36-45,
2004.
[29] A. Mateiciuc, N├ívrh systému hodnocen├¡ rizik při strategickém
manažerském rozhodov├ín├¡. Dissertation thesis, 2005.
[30] L. Borbás, "Regional connections and export orientation of SMEs after
EU accession", EU Working Papers, vol. 2008/1, pp. 93-10, 2008.
[31] M. Mikušová, "Knowledge in Enterprise: The Role and Performance
Measurement, ," Lex et Scientia, vol. 2/2008, no. XV, 2008, pp. 283-
291.
[32] P. Horváthová, "The Use of Operations Management Procedures in
Order to Increase Organizations Competitiveness Under the Condition of
Growing Pressures of Globalization," Global Business and Management
Research, vol. 2, no. 1, 2010, pp. on-line.
@article{"International Journal of Business, Human and Social Sciences:58219", author = "Marie Mikušová and Viktorie Janečková", title = "Developing and Implementing Successful Key Performance Indicators", abstract = "Measurement and the following evaluation of
performance represent important part of management. The paper
focuses on indicators as the basic elements of performance
measurement system. It emphasizes a necessity of searching
requirements for quality indicators so that they can become part of
the useful system. It introduces standpoints for a systematic dividing
of indicators so that they have as high as possible informative value
of background sources for searching, analysis, designing and using of
indicators. It draws attention to requirements for indicators' quality
and at the same it deals with some dangers decreasing indicator's
informative value. It submits a draft of questions that should be
answered at the construction of indicator. It is obvious that particular
indicators need to be defined exactly to stimulate the desired
behavior in order to attain expected results. In the enclosure a
concrete example of the defined indicator in the concrete conditions
of a small firm is given. The authors of the paper pay attention to the
fact that a quality indicator makes it possible to get to the basic
causes of the problem and include the established facts into the
company information system. At the same time they emphasize that
developing of a quality indicator is a prerequisite for the utilization
of the system of measurement in management.", keywords = "performance, measurement, firm, indicator", volume = "4", number = "6", pages = "1127-13", }
