5.3 Management strategies to respond to KPI and seek new business opportunities

Understanding strategies

Staff training

• Is the process of improving an employees level of skill and knowledge, training can be facilitated either on or off job

KPIS that could be affected positively by staff training

• Number of sales

• Number of customer complaints

• Level of staff turnover

example of how staff training can affect staff turnover

Level of staff turnover measures the number of staff that leave a business and need to be replaced over a

period of time (good practice to include a definition of your chosen KPI). Implementing staff training is a suitable strategy to reduce staff turnover as it is a proven method for increasing staff engagement and motivation. Meaning employees are less likely to leave and need to be replaced in the business.

Staff motivation

Businesses ability to encourage a employee to expend effort over a sustained period of time, can be achieved through

performance related pay

offering non financial rewards

setting goals for employee

KPIS that can be affected positively by staff motivation

Change in management styles and skills

Change in management style and adoption of different management skils when dealing with employees is done for the purpose of improving employee performance

KPIS that can be affected

Increased investment in technology

increased investment in technology refers to purchasing of new or improving on existing software, ahrdware, robotics or machinery

KPIS that can be affected

Improving quality in production

Improving quality in production refers to implementation of quality assurance techniques or embracing principles of Total Quality Management to improve degree of excellence in a business good or services

KPIS that can be affected

Cost cutting

Involves reducing the expenses of a business, such as sourcing cheaper supplies, reducing employee number, changing power providers in order to boost business profitability

KPIS that can be affected

Initiating lean production techniques

Initiating lean production techniques involves a business indentifying any areas of waste and seeking ways to minimise their impact on the business eg, JIT inventory control

KPIS that can be affected

Redeployment of resources (natural, labour and capital)

Redeployment of resources involves rearranging assets of a business so they work at a greater capacity

involves

redeploying employees(labour) to a different role within the company

redeploying natural resources so they are stored transported and distributed in a way that enables business to operate more efficiently and effectively

redeploying capital resources involves moving items like equipment and machinery to another department, site, or even country to improve a business ability to operate

KPIS

Innovation

Process of improving on a already existing product, service, or process within a business to better meet the needs and wants of customers

KPIS

Global sourcing of inputs

refers to a business seeking the inputs they need from overseas location often because of greater availability, quality and affordability

Overseas manufacturing

refers to a business producing its products outside its country of origin, often a business will do this to reduce business expenditure through lower wage costs to establish a stretegic business locatoin closer to customers or to gain access to greater levels of manufacturing expertise

Global outsourcing

refers to when a business hires external organisations located overseas to complete non core business activities