4. Performance measures: KPIs and balanced scorecards

Question 1

4. What are the usual 5 parts of a performance evaluation system?

Answer 1

Goals and Objectives
KPI's
Targets
Taking action
Performance evaluation & feedback

Question 2

4. When setting out goals and objectives, what does the SMART criteria stand for?

Answer 2

Specific 
Measurable
Action orientated/Attainable
Realistic/Relevant
Timebound

Question 3

4. What are some common pitfalls in developing KPI’s

Answer 3

Trends or variances
% changes (this turns the measure into a trend)
Variances from budgets or other targets
- KPI’s should reflect ACTUAL performance, not changes and comparisons

Question 4

4. What are the four perspectives of the balanced scorecard performance management model?

Answer 4

Financial - outcomes for shareholders
Customer - outcomes for customers
Internal Process - processes that deliver the strategy
Learning and Growth - inputs the deliver the strategy

Question 5

What are the 6 types of remuneration systems?

Answer 5

Merit pay 
Individual incentive pay
Profit-sharing
Ownership
Group incentives and team awards
Skill's based