Vodafone Business Performance

Only available on StudyMode
  • Download(s) : 202
  • Published : October 4, 2012
Open Document
Text Preview
Running Head: Business Performance Measures in Vodafone Group

Business Performance Measures in Vodafone Group

Toru Sekiguchi

August 8th, 2010

i

Table of Contents Title Page…………………………………………………………………………………............ i Table of Contents…………………………………………………………………….................. ii Abstract…………………………………………………………………………….................... iii 1. Introduction…………………………………………………………………………………. 1 2. Building a coherent set of performance measures………………………………………... 2 2.1 Performance Measures………………………………………………………….... 2 2.2 Balanced Scorecard………………………………………………………………. 2 2.3 Key Performance Indicators……………………………………………………... 3 3 Application of measures of performance………………………………………………….. 5 3.1 Balanced Scorecard Approach in Vodafone Group ………………… ………….. 5 3.2 The application of the Balanced Scorecard to Vodafone Group ………………... 5 3.3 Customer Perspective…………………………………………………………….. 7 3.4 Financial Perspective…………………………………………………………….. 8 3.5 Learning and Growth Perspective…………………………………………………9 3.6 Business Process Perspective………………..…………………………………… 9 Analyzing and Interpreting results………………………………………………………. 11 4.1 Balanced Scorecard Analysis………………………………………………….... 11 4.2 An Actual Value versus a Target Value …………..………………....………… 11 4.3 An Actual Value versus a Series of the Previous Values of the same KPI…….. 13 4.4 The Actual Values versus Industry Norms……………………………………... 13 4.5 Regression analysis……………………………………………………………... 14 Building a monitoring system…………………………………………………………….. 18 Continuously improving organizational performance………………………………….. 21 Conclusions……………………………………………………………………………….... 23 Bibliography………………………………………………………………………….......... 24

4

5 6 7 8

ii

Abstract A business performance measure is a critical function that provides strategic, steering, and operational management with business intelligence in order to make better decision. It can also help an organization to immediately find and address critical issues on the important business aspects. While business performance measure is widely perceived as a key lever for each organization to achieve the vision and strategy, the implementation steps definitely vary from company to company. Vodafone Group has already implemented the business scorecard approach to manage both financial and non-financial perspectives due to the inevitable increase in complexity of systems and organizational structures and continuously changing external factors while rapidly expanding its business globally through acquisitions, joint-ventures, and partnerships. Its key four strategies are clearly developed in line with the vision and its own environments, and they are definitely decomposed into each of strategic objectives. Relevant KPIs have been subsequently defined and reported both internally and externally. However, most of measures are associated with the financial perspective and also the absolute values and some other KPIs like ratios should be developed as proposed in this research. In addition, most of strategic KPIs are strongly aligned with global and company-wide strategies and Vodafone should clearly define the level of local stakeholder involvement in the performance measurement. For example, strategic KPIs are only aligned with global and company-wide strategies but tactical KPIs that strategic KPIs can be translated into should be developed in line with local specific business environments. The best practice of Vodafone‟s performance measures is a comprehensive performance management system, Global Supply Chain Management System. The system has been developed and implemented by fully leveraging global scale and scope. All internal and external stakeholders in the SCM community have high visibility to the end-to-end supply chain management process, and Vodafone Group can find, analyze and optimize performance degradation immediately with all stakeholders beyond Vodafone Group.

iii

1. Introduction A business performance measure is a critical function...
tracking img