Planning and Measuring Performance
February 27, 2013
Organizational evaluation or assessment measures, compares, and analyze the coherence between results and specific objectives. Evaluating goals of a global operation with a unified approach is challenging, and demands for identifying significant factors in the performance and growth of the company. These factors are carefully thought and practiced before they become critical contributors in an organizational performance. Contemporary organizations follow diversified growth parameters for success. These have varied degrees of significance in individual market segments. There are ...view middle of the document...
While evaluating these independent areas, management still looks for the most significant performance factor in the organization, which helps them in pursuing the objective defined at the planning stage. Each area has varied degree of influence in the company work sheet. Identification of its relative importance and allocating resources is a defining principle of balancing scorecard.
Another strategic goal for FedEx is to grow profitable revenues and increase dividends for its shareholders. Corporate governance provides a system that governs organizations while protecting the interests of shareholders and also providing them candid financial audit results. FedEx Corporation has a board of directors that looks after the financial and operational performance of the organization while keeping the financial goals of the company in perspective.
Having a formal and structured budgeting process is the foundation for good business management, growth and development. Similar to our personal finances, planning and organizing resources through budgeting is cornerstone of any business development. Budgeting is a financial standard of performance, which allocates funds in across the operational span of an organization. This is designed and formulated based on the needs of growth and control. Financial figures are evaluated against the budgeting standards and then reviewed for future planning.
Working on performance standards and evaluation, balance scorecard module provides the most useful tool for comparing and taking managerial actions. FedEx Corporation is following this approach in pursuing long term goals and implementing operational plans. Their growth plan covers all four areas explained in the module.
1. Achieving $1.7 billion annual profit per year by the year ending in 2016
2. 10% or plus operating margin per year
1. Customer requirement will be met in the highest quality manner appropriate to each market segment served.
1. Introducing cost reduction measures in improving human resource and process efficiency
2. Human resource training in developing FedEx into more learning organization
People / Innovation / Growth
1. Long term investment plans in fleet modernization for lowering operational cost globally for making growth more affordable
2. Long term acquisition plan in the growing markets and markets which have lower FedEx share
The other effective tool for FedEx would be corporate governance. FedEx Corporation has a board of directors that protects the rights of all the stakeholders and ensures transparency in all financial affairs of the company. Shareholders should have trust in the financial strength and operations. Corporate governance is a tool to ensure their trust and the ability of the company to keep all interests in line with the organizational growth plan for the company. Measuring standards and tools are applied for effective...