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ABC CASE STUDY
Running head: ABC CASE STUDY
Government and organizations have some similarity in that they both exist to provide the customers with either services or products. They thus formulate goals to help them in this journey. To ensure that these goals are achieved, they both have to come up with strategies which will address the functions which are either core to their operations or those that support the core operations and which will establish at the international level as the benchmark for other organizations and governments. It therefore, becomes essential that key indicators of performance be developed which shall be used to measure how well the organization or the government is performing towards achieving their set goal. In this paper, we shall deal with a case study of ABC Company, which is a semi-government organization in the Public Health industry.
Part I
The company’s vision is to be one of the best health providers in the world and has a mission to ensuring accessibility of all health services by all concerned citizens through the development and expanding of innovative ways to deliver health services and by being proactive in meeting the needs and expectations of the citizens. The company has identified eight strategic objectives which shall help it to achieve its vision and mission. In this section, strategic key performance indicator (KPI), a process or initiative to achieve the SKPI suggested and operational KPI are identified for each strategic objective.
Objective 1: Maintain High level of customer satisfaction
It is no secret that every business or organization must realize that customers are the blood to their very existence. Thus any business that wishes to thrive must ensure that its customers are satisfied with whatever they are offering, be it a product or service. Dissatisfied customers mean lost business as the chance that they will come again is at nearly no chance.
Strategic KPI that should be measured is % of customers who are “very” or “extremely” satisfied.
The suggested initiative is to conduct a customer satisfaction survey
The suggested operational KPI is % of customer suggestion implemented(70% by 2020)
Objective 2: Expand medical services reach
ABC Company aims to become a global player and thus must work towards having a global presence. The expansion of the medical services will call for the company expands to other countries around the world.
Strategic KPI to be measured is the % rise in the number of patients served
The suggested initiative is to establish new healthcare centers around the world
The suggested operational KPI is :
Carry out expansion economic feasibility study
Number of new health centers built around the world (60% of the planned by January 2020)
0bjective 3: Optimize Facilities management
Optimizing facilities involves coming up with measures and strategies that ensure that the company is using the available resources efficiently and effectively towards achieving its vision and missions. The resources include human resources, space, technology, etc.
Strategic KPI is reduction in the levels of management
Suggested activity is to carry out management workshops
Suggested operational KPI is % up to which managers understand and perform their roles efficiently.
Objective 4: Improve patient waiting time
Customers especially patients are susceptible regarding the amount of time have to wait before they can be attended. Thus as ABC is striving to be a world class health service provider, it must attempt to keep the waiting time a lowest possible minimum
Strategic KPI to be measured average waiting before the customer is attended (be below 10 min by January 2020)
Suggested activity is to benchmark on best practices to reduce waiting time
Suggested operational KPI is cut waiting by half by January 2020
Objective 5: Nurture engagement, creativity, and innovation
The world in which businesses operate is becoming more and more dynamic which calls for the business to grow innovativeness and be creative in the way they operate. Companies which do not adopt these fundamental changes will soon be edged out of business.
Strategic KPIs to be measured are:
The extent to which employees are encouraged to be creative and innovative
The extent to which management advocates and allows creativity and innovation
Suggested activities are:
Reward creative and innovative employees
Carry out workshops to encourage innovation
Suggested operational KPI is level up to which innovations and creativity improve service delivery.
Objective 6: Develop workforce skills and Competencies
Every organization must realize that employees have career goals which they too seek to achieve and thus they will always seek to work in organizations, companies or government agencies where their skill and competencies will grow towards achieving their career goal.
Strategic KPI to be measured is % of employee turn over
Suggested activities:
Conduct employee training and seminars
Take employees to benchmark in other health facilities that have achieved a world-class standard
Operational KPI is the number of employee training seminars conducted (10 by January 2020)
Objective7: Increase profitability
Profit is a vital part of any business including most government organizations which provide both products and services. Without profits, the business would crumble due to operating costs rising and the inability to meet those costs. Every business must seek to find ways through which it can increase its profits but not at the detriment of the customers.
Strategic KPIs to be measured include:
Gross profit
Net profit margin
Suggested activity is to conduct an analysis of the company’s financial statements
Suggested Operational KPI is % rise in operating profit (30% by January 2020).
Objective8: Maintain financial discipline
In recent times, the business world has witnessed multinational companies failing due to failure to have fiscal discipline in their operations. Thus for ABC to survive and continue to grow, it must establish and maintain financial control.
Strategic KPI to be measured is the extent to which financial decision can be termed as sound
Suggested activity is conduct cost-benefit analysis before every financial decision is taken.
Suggested operational KPI is to keep operating costs at a minimum(less than 20%)
Task II
The criteria for measuring an organization identifies for areas which should be to assess the level of excellence of an organization. The first area is on the comprehensiveness of the scope of indicators covered by the entity and which carries 50% of the score. In the case of ABC Company, only a few indicators were measured that corresponded to the nature of the capabilities of the company. Using the Results Assessment Tool, this description falls between pivots 15-35 which when converted to percentage approximates to around12.2%.
Achieving results is the next criteria measured carrying a weight of 20%. The Company was able to meet most of the strategic targets. However, most of the targets are not adequately set to reflect the company’s ambitious performance hence making them unreasonable. This description has averaged between weights of 15-35 which translates to 5%. The next factor measured is performance improvement carrying an average weight of 20%. The company experienced a positive trend and sustainability for the course of the past four years. This description weighs between 15-35 which translates to an approximate of 5%. In terms of putting the company to lead business position, it did not achieve a lead position in many business areas which weighs at pivot 15-35 which translates to an approximate average 2.5%. Therefore the average ABC company performance is at 24.7%.
According to the Government Excellence model, four key factors drive excellence. These are a focus on innovation and future foresight, focus on efficiency and governance, focus on core business and supporting the national agenda, and focus of service improvement and e-Gov. ABC has strived to achieve a number of these measures of excellence. The company has an objective which seeks to promote creativity and innovativeness and also wants to expand its medical services reach meaning it is focused on the future. Similarly, it has a strategic objective which aims at reducing the waiting time for patients and optimize facilities management showing that it is focused on efficiency and governance. It also aims to maintain high levels of customer satisfaction, increase profitability and maintain financial discipline which is aimed at focusing on the core business of the company. Thus the company can be described as one that is on the paths towards excellence.