Reference no: EM133490557

READING:

Every business wants to track the health of their company. This can include tracking items such as cash flow and expenses, but money isn't the only thing to follow. Key Performance Indicators (KPI) should also track the performance of the employees and their effectiveness. This can include order fulfillment and perfect order fulfillment. While one is tracking the total number of orders, the other is tracking the number of orders that are fulfilled with properly with all documentation. According to Guiding Metrics, "Higher accuracy can result in lower production costs and more repeat orders (2022)." At the end of the day, KPIs will help keep a company healthy, allowing more focus on their product and customer relations.

Though we should everything about our company, we don't need to track everything. According to an Info Entrepreneurs article, the KPIs should be identified by the business's key drivers (2009). These drivers will differ from business to business and be based on their foundations. They will track the most valuable aspects of the business to ensure that each sector is meeting the goals that are aligned with the company. The metric will support the SMART targets the company has set. The article uses customer service as one KPI that may be the focus of one company while not being the best KPI for another. It all depends on the goals of the organization.

For McKean Design Machine and Shifted Paradigm, we will be focusing on client acquisition and retention as two of our main KPIs, with retentions being the more important aspect. In order to keep our retention high, we will need to track project completion and perfect order fulfillment. Ensuring that our clients and customers are receiving their orders promptly, correctly, and are happy with it, will be keys to our success and growth. Another area that we will be watching is the supply-chain flexibility. We have to understand the time it takes for supplies to shipped so we can fulfill our orders. Like all businesses, we will be tracking our cash flow and sales rates. These two will be directly related to the financial stability of the companies.

QUESTION 1: What did you find interesting about the reading and why?

QUESTION 2: What would you add to the reading to increase the knowledge on the subject matter?