Chapter 4 Flashcards
KPIs management
return on investment
market share
Smart objectives
Specific
Measurable
Attainable
Realistic
Time-bound
(aligned with organization’s mission, vision, values, and designed help organization
achieve its long-term goals)
KPIs human resources
employee turnover rate
employee net promoter (eNPS)
employee net promoter score
0-6 detractors
7-8 passive
9-10 promoters
KPIs Marketing
Customer acquisition cost
Return Ad Spend
Customer Satisfaction score
Social media engagement
KPIs finance
Current ratio
(ability to pay short term debt)
Days Sales Outstanding
(if high then high cash flow, assessing how well a company turns its sales into cash - vital for managing working capital effectively)
KPIs operations
total assets turnover ratio (ability generate sales from assets)
inventory turnover
challenges: new data & techniques to analyse
data mining
machine learning
time series
network analysis
predictive analysis
descriptive analysis
prescriptive analysis
organizational structures
traditional
divisional
matrix
Agile (new)
design of a business model
value proposition
customer segments
customer relations
distribution channels
revenues
key resources
key activities
key partners
cost structure
+ Functional structure
-Resources optimization and cost reduction
-Increased efficiency and control
-Clear career paths within each function
(-) functional structure
- Silos(operate independently) & limited collaboration between speciality areas
- Slower decision-making & difficulty adapting to market changes
- Limited perspective on how the organization creates value for the customers
+ divisional structure
- Clear ownership & focus on specific products or services.
- Resources are dedicated to the division’s goals.
- Enables faster decision making & strategic changes
- Supports a customer centric approach (e.g. each division focuses on specific group of customers)
(-) divisional structure
- Inter division communication issues
- Function duplication - increases costs
- Potential internal competition & politics.
- Limited business-wide perspective, collaboration
+ matrix structure
- Increases collaboration & communication (better quality decisions, more ideas)
- High level of autonomy & employee engagement (motived)
- Flexibility to work across boundaries & achieve common goals.
- Suitable for consulting firms & complex project
(-) matrix structure
- conflict between managers & confusing to have 2 managers
- complxity in coordination
- time consuming to manage
