5L Flashcards
What do reviewing KPI’s do(Don’t worry about these points=DONT REMEMBER=its just here)
• analysing the size and extent of its change.
• identifying whether the change has successfully achieved its objectives.
• identifying whether the change has negatively impacted another area of performance.
• determining whether more effort and time are required for the change to achieve desired objectives.
• considering alternative management strategies to achieve the desired result or improve areas that were negatively impacted by the change.
The 5 steps in a circle = not important AT ALLL DON”T EVEN BOTHER REMEMBERING= that contribute to a business change
1)Assess source of data
2)Consider driving and restraining forces, strategic position, and new opportunities
3)Consider management strategies to respond to KPIs or take advantage of new opportunities
4)Implement management strategy/strategies considering Lewin’s Three-step
Change model
5)Review KPIs to evaluate effectiveness of business transformation
WHY is reviewing KPI’s Important points=
-Importance of Kpis=it allows the business to objectively determine whether the transformation successfully achieved set objectives.
-Importance of Kpis= it may identify that the change has negatively affected another area of business performance. Therefore, this indicates to the business that the change must be more carefully considered so the business is able to achieve its objectives.
-Importance of Kpis=KPIs can enable a business to determine its future course of action as the KPI’s quantifiable data can provide a holistic understanding of each area of business performance.
Reviewing key performance indicators to evaluate
the effectiveness of business transformation
KPI’s importance for determining effectiveness of business transformation= determine whether change is= desirable/undesirable?
KPI’s importance for determining effectiveness of business transformation= the change impacting on stakeholders 5J?
KPI’s importance for determining effectiveness of business transformation= Does the business change have effect on CSR 5k(SUCH AS EMPLOYEES OR GENERAL COMMUNITY OR ENVIRONMENT)
KPI’s importance for determining effectiveness of business transformation= Did the change impact on other KPIs (positive or negative ways)?
ANSWER THE QUESTION STRUCTURE=
Explain the importance of reviewing KPIs to evaluate the effectiveness of business transformation.[4 marks]
My way=
-Define Kpi
-One important point
-Another important point
-Another important point
ANSWER THE QUESTION STRUCTURE=
Wendy owns Bob’s Builders, a construction business that builds and renovates houses. Last year, Bob’s Builders wanted to decrease its number of workplace accidents by 25% and continue improving employee morale. To do so, Wendy implemented annual safety training workshops, whilst also holding monthly celebrations to recognise employee achievements.
Explain the importance for Bob’s Builders of reviewing KPIs when evaluating the effectiveness of business transformation.[4 marks]
My way=
-Define Kpi
-One important point relating to point in the case.(how celebration have impacted all areas of her business’s performance.)
-Another important point relating to point in the case.(KPI’s allow her to objectively determine whether objectives were successfully achieved.)
-Another important point relating to point in the case.(Allows the business to determine its future course of actions and determine what areas to invest in and analyse what areas to improve in next).
Answer the question structure=
Explain the importance of reviewing KPIs to evaluate the effectiveness of business transformation.[4 marks]
My way=
-Define Kpi
-Importance of Kpis=
-Another important point of KPI’s
-Another important point of KPI’s
ANSWER THE QUESTION STRUCTURE=
Established in 2005, Lace ‘Em Up is a footwear store that sells a variety of casual shoes for men and women. The owner, Trent, decided to rebrand the business last year to refresh Lace ‘Em Up’s style and better meet customer needs, aiming to increase its market share and improve profits by 10%. Trent recently announced to employees that Lace ‘Em Up is now the market leader in the footwear industry and experienced a profit increase of 16% from the previous year.
Outline the importance of reviewing KPIs and analyse whether the change was effective at Lace ‘Em Up.[7 marks]
My way=
-Define Kpi
-Importance of KPI
-Importance of KPI
-Refer to KPI data from the change
-Explain whether change produced desirable or undesirable KPI Data, and what effect this has on the business, and its performance(e.g. Financial performance, efficiency or other business objectives.)
-Refer to KPI data from the change
-Explain whether change produced desirable or undesirable KPI Data, and what effect this has on the business, and its performance(e.g. Financial performance, efficiency or other business objectives.)
(THIS STRUCTURE MIGHT BE WRONG, BUT MR ALDOUS COOL FOR NOW JUST REVIEW AFTER)
ANSWER THE QUESTION STRUCTURE=
Boi & Mied is a Melbourne-based ice cream truck that sells a selected range of uniquely-flavoured gelato. In 2021, the business experienced multiple customer complaints regarding its gelatoflavours. At the beginning of 2022, the owner, Lauren, decided to set a new objective to improve customer satisfaction. Lauren changed to a new Italian supplier of gelato ingredients to achieve this objective. At the end of 2022, Lauren reviewed various key performance indicators to evaluate whether the change was successful.
Describe the importance of Boi & Mied reviewing its KPIs and analyse whether the change in suppliers improved its business performance.
THERE IS A PICTURE OF KPI’S DATA HERE
NUMBER OF CUSTOMER COMPLAINTS=
=2021:89
=2022:27
NUMBER OF SALES=
=2021:10,000
=2022:50,000
[7 marks]
My way=
-Define Kpi
-Importance of KPI
-Importance of KPI
-Refer to KPI data from the change
-Explain whether change produced desirable or undesirable KPI Data, and what effect this has on the business, and its performance(e.g. Financial performance, efficiency or other business objectives.)
-Refer to KPI data from the change
-Explain whether change produced desirable or undesirable KPI Data, and what effect this has on the business, and its performance(e.g. Financial performance, efficiency or other business objectives.)
(THIS STRUCTURE MIGHT BE WRONG, BUT MR ALDOUS COOL FOR NOW JUST REVIEW AFTER)
Q10
4 marks
Explain the importance of reviewing KPIs to evaluate the effectiveness of business transformation.
EXAMPLE Answer
THIS IS REALLY LONG, AND YOU ARE NOT EXPECTED TO WRITE THIS MUCH, BUT JUST NOTE DOWN THE POINTS PRESENTED HERE.
Key performance indicators (KPIs) are criteria that measure a business’s efficiency and effectiveness in achieving its different objectives.1
Following a business change, one reason why it is important for a business to review its KPIs is that it allows the business to objectively determine whether the transformation successfully achieved set objectives.2
Furthermore, another reason why reviewing KPIs after a change is important for a business is that it may identify that the change has negatively affected another area of business performance. Therefore, this indicates to the business that the change must be more carefully considered so the business is able to achieve its objectives.3
Finally, a third reason why reviewing KPIs is important is that whether the business change is successful or not, KPIs can enable a business to determine its future course of action as the quantifiable data can provide a holistic understanding of each area of business performance. Thus, a business can identify both strengths and weaknesses in its performance and establish objectives for the future.4
Key Performance indicators=
Level of staff turnover=
:2021-2022=5%
:2022-2023=25%
Level of waste=
:2021-2022=2%
:2022-2023=10%
Number of customer complaints=
:2021-2022=100m
:2022-2023=400m
Explain the need for Subway senior management to review each Key performance indicator stated above to evaluate the effectiveness of business transformation. In your response, refer to the KPI’s stated in the data table above.
-def level of staff turnover
-State whether level of staff turnover is desirable or undesirable( you don’t have to refer to numbers) and state the need(Important points) of reviewing this KPI.
-def level of wastage
-State whether level of wastage is desirable or undesirable( you don’t have to refer to numbers) and state the need(Important points) of reviewing this KPI.
-define number of customer complaints
-State whether number of customer complaints is desirable or undesirable( you don’t have to refer to numbers) and state the need(Important points) of reviewing this KPI.
