Tag: KPI

The success of the airports is dependent on the efforts of the people working on different tasks for the company. One of the people who have the biggest responsibility is the airport operations director or manager. We all know that airports are very crucial when it comes to the air transportation system. This is why there is a need to make sure that the airport is well equipped so that it will be able to provide the needs of the passengers, crews and the aircraft itself. It should include effective taxiways, runways, parking lots, lounge areas, terminal buildings, ram areas, hangars, maintenance shops, appropriate lighting system and if possible, restaurants and other useful facilities. If the airport meets such requirements, it is considered to be a valuable one. The KPI for airport operations director will be a great help that can contribute to the success of the said transportation system.

In general, airports across the globe are managed by the operations director for the benefit of the private owner of the airport or for the local government. It is required that the person in the mentioned position should be of many talents particularly in public relations as well as with the other aspects including economics, civil engineering, business management, labor relations, politics and personnel management. He is greatly involved in making executive business choices and therefore, there is a need for him to make use of suitable KPI for airport operations director. The KPIs are often used for the process of airport performance measurement so that the manager or the director will be able to carry out his duties. Through the key performance indicators, he will be assisted in making and enforcing rules and regulations for the airport, making plans and supervising different programs in both maintenance and safety and in negotiating with tenants regarding the leases.

The KPIs are indeed useful and if they are chosen correctly, the director will benefit from the assistance given to him when it comes to enhancing the operational capability and even in dealing with the customers. This is true for both international and domestic airports. There will always be great challenges for the director particularly when there are expansions and traffics along with the issue process and customer orientation. The KPI that will help in keeping track of the airport performance can be about the key responsibility areas of the manager. For instance since it is the role of the director budget and control, he can use a key performance indicator that can aid him in formulating a business plan and in developing capital expenses. This KPI can be about operational budgets so that he will not find it difficult to ensure discipline when it comes to managing the operations of the airport within the standard budget.

There is no limit in the number of key performance indicators that you can use but it is always recommended that you only pick those that are relevant to your business. This way, you will not be overwhelmed by their numbers and you can only focus on improving and ensuring the efficiency of the airport.

Create Key Performance Indicators an essential enhanced business management method for your business creating KPIs creates internal business efficiency and delivers processed data for financial evaluation and control.

KPIs are also referred to as KSI key success indicator produce metrics for commercial and industrial progress and performance management. To create KPIs many companies group together the in-house teams that are involved in the business and productivity process have a collective brainstorming session to come up with business KPIs that are needed for the company business, making sure that the session moderator records on record all the KPIs which are tabled by, the engineers, the financial controllers, the quality control team, the health and safety regulators, the IT teams, and of course the production line special equipment experts. On completion of the creating KPIs process, the KPIs can then be introduced into the system software application implementation plan. When a single KPI is created there must be a way to measure and record the data necessary to produce KPI data output. Once a KPI parameter is set then if the production line that the KPI is applied to does not change then the KPI value set points must be the same year after year. This is to ensure erroneous data is not delivered say to the financial department, in-accurate data produce in-accurate statistics, this is not acceptable. All data mining extrapolated from the system must be accurate and correct data as per the KPI settings.
One example of a new year initiative from the finance department for example reduce product by 5 per cent. Then the IT teams and the system engineers need to re-calibrate all the KPI set points to ensure that during operation the production line outputs 5 per cent less units. KPI creating and managing is a proven process of control all over the world across a very broad spectrum of industrial and commercial sectors.

A successful KPI creation program is based on an established criteria of benchmarks for example on a production line set say 6 parent KPIs for finance, quality, output, quantity, material usage and equipment run timelines, then attach 5 to 6 KPs to each parent KPI, this will produce a tight packaged productivity control program, the children KPIs can be supervised by financial controllers, quality control engineers, material procurement personnel, equipment specialist experts. Controlled efficiency produces controlled output. Controlled quality produces quality products. Controlled material usage equates to cost expenditure efficiency. Controlling equipment run times produces power consumption efficiency. Set achievable objectives in your business adopt and implement proven computerized efficiency systems be smart set SMART goals – Specific, Measurable, Achievable, Realistic and Time limited. When your business is under control the business owner/operator is in control too.Business management KPI creativity is an affordable solution for all commercial and industrial businesses.Creating KPIs in your business quite simply means creating in-house business efficiency! When a business wants to manage. and measures efficiencies then the solution is to create Key Performance Indicators.Can your business afford not to be efficient? Make a balanced and financially enabled decision and create Key Performance Indicators for your business now.

The idea of a brand is deeply rooted in the psyche of managers as being associated with the delivery of tangible products to consumers but today we are increasingly delivering intangible services rather than goods so is branding still relevant. Traditionally a business has been viewed by senior management as split into discrete divisions, sales and marketing, production, HR, IT, legal and accounting. Some divisions created revenue and b the brand identity was important for customer recognition and action needed to be taken to maximize that while other divisions created cost that reduced the brand value and this needed to be cut. Following this methodology would logically result in increased profits.

This led in practice to highly dysfunctional decision making with, for example, IT staff being cut only for decreased effectiveness across the business producing reducing sales generation and increasing costs in other parts of the business.

Decreased profitability was the result of making otherwise perfectly logical business decisions based on KPI metrics.

The Balanced Business Scorecard seeks to address this dysfunctional approach to business management and looks at how the entire business operates as a cohesive, holistic whole. Viewing all divisions of the business as creating value allows for logical rational business decisions that do lead to increased shareholder value and enhanced profitability.

Is measuring traditional brand metrics still relevant?

The blunt answer is yes, the company brand is perhaps more important than it ever has been but how the brand is being used has probably altered greatly as is how the value of a brand is perceived not just by customers but also by shareholders.

For many listed companies the value ascribed to the company brand accounts for more than a third of the company share value. In many instances, brand value accounts for far more than that. The issue is how do we measure brand value and what metrics are available for us to use as part of a Brand KPI tool.

Using financial metrics for brand performance measurement you will find the following as the primary metrics to monitor and analyze:

– Sales Generation – measures brand as a factor in the purchasing decision
– ROI – measures the ROI using the accounting goodwill value and treating it as any other balance sheet asset
– Transaction Value – looks at the contribution from product lines and product mix and the impact of the brand on that contribution
– Growth Sustainability -this is a measure of how much the brand is contributing to sales rate growth without the business introducing further investment to gain that market share.

Financial value is probably the simplest metric to determine as we can extrapolate “goodwill” valuations using accounting and financial data coupled with share price information. At least with share pricing information we have a set finite value that the market is placing on our business and the financial accounting information can give us a basis for determining how much of the price the market will pay for a share is determined by the valuation of the goodwill.

Measuring brand perception and performance is trickier as we dealing with nebulous concepts that we know have an impact but cannot directly measure. Performing customer awareness surveys will help in providing a measure of how well known the brand is with consumers in a given section of the population or target market segment. All of these can be measured but the metrics that are produced are based upon subjective questioning and even more subjective answers.