EVALUATION OF BUSINESS TRANSFORMATION CHAPTER 17 EVALUATION OF BUSINESS TRANSFORMATION

Reviewing and evaluating changes using key performance indicators A change is only useful if the business evaluates and reviews it. This is the only way to ensure that the change has been successful, and helps to identify any further changes that need to be made. Businesses should look at the impact of change on a number of levels, including the individual, teams, departments or sections in the business, and in the business as a whole.

Reviewing and evaluating changes using key performance indicators KPIs can be an effective way of assessing change in a business. Comparing relevant KPIs before and after change can give an indication of whether or not the change has had its desired effect. Once implemented, the change should also be reviewed to ensure it is still compatible with the business vision and objectives.

Reviewing and evaluating changes using key performance indicators Business KPIs can be assessed in all aspects of the business, including: Operations Employees Financial performance CSR

Reviewing and evaluating changes using key performance indicators As operations management is a central part of any business, it is crucial that operations KPIs are evaluated. This could mean looking at improvements in productivity, decreases in waste and reductions of workplace accidents.

Reviewing and evaluating changes using key performance indicators KPIs relating to employees can include staff turnover, rates of absenteeism and number of training days per employee. Combined, these can give an indication of the skill of the workforce, as well as their overall job satisfaction. This can also be collected via qualitative surveys.

Reviewing and evaluating changes using key performance indicators Financial performance makes and breaks a business. KPIs include profit, revenue and percentage of market share. It is important that businesses assess financial performance in context. A change may result in a short-term reduction in profit, but lead to longer term gains.

Corporate social responsibility (CSR) There are many benefits of adopting CSR policies. As with any change, these should be monitored and evaluated. CSR-related KPIs can include environmental impact, percentage of materials sourced locally and employee satisfaction. It can also involve measuring how the business is perceived in the community.