EVEN A GAS STATION CAN USE KPI’S

SOLVING A BUSINESS PROBLEM USING BALANCED SCORECARD METRICS

CUSTOMER SATISFACTION CAN BE TIED TO KPI’s

Managing a gas station can be a cumbersome task, in the absence of any ‘performance tracking mechanism’. So, one of such device that can be incorporated to manage its functioning is a BSC (Balanced Scorecard). Owing to its inherent flexibility, accurate KPIs placed on a BSC can substantially improve the functioning of a gas station.

Internal operations can be measured using the metrics such as ‘average waiting time’, ‘time taken for re-filling’, ‘number of vehicles it caters to, on daily basis’ and ‘number of pumps installed’.

Growth perspective can be quantified using the KPIs like ‘increase in number of cars’, ‘% rise in consumption of fuel’, ‘number of brands that are offered’ and ‘increase in number of additional services offered’.

Some Key characteristics of KPIs as follows:

  • That they are measured frequently e.g. daily or 24/7 (KPIs are not measured monthly as the horse has already bolted by this point)
  • That they are acted upon by the management on a daily basis
  • All staff understand the measure and whatever corrective action is required to fix/improve
  • Responsibility for the KPI can be tied down to an individual or team
  • The KPI has a significant impact on the organization e.g. it impacts on other critical success factors
  • Positive movement of the KPI affects all other performance measures in a positive way

KPI’s are powerful tools in the IT industry and are just one part of the Balance Scorecard.

Balance scorecard can help the whole team work together to reach the goals of the company.

You should ask

Who should design the indicators for your company?  

How many should you use?  

How easy are they to measure so the staff will use them.

These is a complicated issue, read up on them, they can help you with anything in business

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