Activity Based Management
KPI Name: Activity Based Management Balanced Scorecard Metrics
Related KPIs: Activity Based Costing, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance
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Sample reports:
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Description by authors:
Activity Based Management (ABM) provides a window to peep into the way activities in an organization have been taking place. This is turn opens up innumerable opportunities to ‘lower down the costs’ being incurred by way of infusion of resources. In this regard, BSC exists to provide a device for ensuring that the process occurs in ‘expected’ manner.
The various perspectives that can help are- ‘% decrease in consumption of resources’, ‘process cost drop’, ‘% of products meeting the minimum profit level’ and ‘increase in net margins’ for knowing the Financial Standing of the organization.
Customer profitability can be obtained with metrics like ‘successful strategy index’, ‘strategy execution ratio’, ‘fraction of customer base labelled profitable’ and ‘customer base rise ratio’.
Internal Operations can be obtained with metrics like ‘average process efficiency’, ‘process modification index’, ‘number of other management disciplines ABM is associated with’ and ‘number of cost-effective product designs’.
Lastly, Quality and Growth Perspective can be attained with metrics like Training: Revenues ratio’, ‘% rise in successful strategies’, ‘drop experienced in time taken for decision making tasks’ and ‘key activities quality enhancement ratio’.
KPI in Excel – Screenshot:
