Planning and Measuring Essay

Planning and Measuring Performance MGT 521/Management March 18, 2013 Planning and Measuring Performance All organizations need appropriate standards to measure organizational performance. Those standards are usually determined based on goals set by the company or industry principles. Some of the goals for Kellogg are to strengthen its brand through advertising and consumer promotion and to increase revenue to an estimated $15 billion annually with Pringles business. Standards to evaluate these goals would include annual sales results, number of coupons redeemed, and a comparison between advertising expenses and revenues. It is important for managers to know which measures will give them the information needed regarding organizational performance. Productivity, effectiveness, and rankings are three common measures used to determine performance. These measures are used to figure out the accumulated results of all of a company’s work related activities. The goal of all organizations is to be productive. Productivity varies from business to business and the standards for measuring productivity also differ. Effectiveness considers organizational goals and how well those goals are being met. Rankings are used to show how companies compare to other companies in specific categories. Kellogg could benefit from using both the balanced scorecard approach and benchmarking as tools for measuring its organizational performance. The four areas of focus for the balanced scorecard measuring tool are: financial, customer, internal processes, and people/innovation/growth assets. This tool would help the company gain insight on how their advertising strategies are increasing sales. Once the standard is added to the scorecard, the results of advertising can be compared to what was expected. Those results then could be used to create recommendations based on any gaps between actual performance and expected performance. Benchmarking would also be an appropriate measuring tool for Kellogg. There are several major competitors in the same industry that have experienced success over the years. Taking a look at some of the internal  processes of competitors would force Kellogg to do self-evaluations to ensure that their performance gives them competitive advantages. Internal benchmarking to identify departments within the organization that are functioning well will provide motivation to other departments as well as give valuable knowledge about possible changes. Measuring organizational performance requires a functioning system of checks and balances within the organization. Information that leads to continued success depends on unbiased and untainted results that are based on accumulated work activity. Practices within the organization need to be based on strategies and goals. Organizations need to plan in order to identify the best practices for reaching those goals. From there, rewards and recognitions for maintaining the culture should be designed. Best practices should be not only identified but also communicated throughout the organization. Those practices also need to be nurtured in all areas of the company.