Performance Management: Does Your Process Serve Your Strategy?

Week 3 DiscussionCOLLAPSE

Measuring What Matters

There is an adage in business that says, “You get what you measure.” This suggests that we must introduce performance tracking metrics if we want to improve business results like increasing productivity, mitigating costs, or improving employee engagement.

• What is an important performance tracking metric that your company uses, and what is the likely business result they are trying to influence (such as increasing revenue, lowering costs, managing risks, etc.)?
• Briefly describe how your company calculates and communicates this metric, and share your opinion on the extent to which this performance tracking is helping to improve business results.
• Share your ideas on how else the company could improve this performance tracking process.

Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates’ initial posts by Sunday, midnight of your time zone.​

 

• The CFO Guidebook, Chapter 5: Performance Management
• Read 10-K Reports, Item 1A Risk Factors, for Assignment 1 in Assignment Resources
• Read Morningstar Analyst Reports in Assignment Resources
• Visit www.Morningstar.com

Additional Resources

• LinkedIn Learning: Running a Profitable Business: Understanding Financial Ratios
• Performance Management: Does Your Process Serve Your Strategy?
• Performance Management: How CFOs Can Help Take It to a New Level
• 29 Popular Financial KPIs for Your Financial KPI Dashboard

1st person to respond to

Keaton,

 

• What is an important performance tracking metric that your company uses, and what is the likely business result they are trying to influence (such as increasing revenue, lowering costs, managing risks, etc.)?

One of the most important performance tracking metrics we use at Wolf Creek is First Aids and OSHA Recordable injuries. Safety is the number one concern at our site and that includes plant, personnel, and public safety. The reason we track these things is so that we can see how well we are performing against ourselves and other plants. The safer we are, the less injuries and the more likely we are managing risk in other areas.

• Briefly describe how your company calculates and communicates this metric, and share your opinion on the extent to which this performance tracking is helping to improve business results.

A weekly safety summary is sent out and a daily tracker is provided on the front page of our Operational Focus sheets that we go over every morning. Bringing safety to the front of the discussion every day in our morning meetings helps improve our work by keeping us engaged in a safety mindset. If we always have safety at the front of our minds, then the more likely we will stop when unsure and manage risk when performing daily tasks. Safety in the workplace reduces the risk of employee fatalities and injuries, as well as increase productivity (1).

• Share your ideas on how else the company could improve this performance tracking process.

The company already does a very good job with the performance tracking process. However, I think that the safety program could benefit from some incentive programs to help further engagement in the safety mentality.

Thanks for reading,

-Keaton

Reference:

1. Get HPPY. 2022.  Workplace Safety Is Important! Here Are Top 8 Reasons Why! (gethppy.com