Identification of Key Performance Gaps

Adams, William, Liran Einav, and Jonathan Levin (2009), “Liquidity Constraints and Imperfect Information in Subprime Lending,” The American Economic Review 99(1), 49–84.

Measuring performance means when a business will measure the quality of the activities that are passing and the quality of the services provided to the customers by employees. It involves creating a simple, but effective, system for determining whether organizations meet objectives. It’s also a process of collecting and reporting information regarding the performance of an individual, group or organizations. It can

Performance Analysis - Is there a performance gap? This analysis assists in showing whether the employees are performing at the company’s standard and through training are the employees able to improve their performance. When utilizing a performance analysis, you have the ability to identify who needs training where.

Strategic / Executive Dashboards Strategic dashboards will typically provide the KPIs (Key Performance Indicators) that a companies executive team track on a periodic (daily, weekly or monthly basis). A strategic dashboard should provide the executive team with a high-level overview of the state of the business together with the opportunities the business faces.

Establish Key Performance Indicator Dashboards: the first step for improving the revenue cycle is to establish the right key performance indicators (KPIs) for each department and track it. A gap between current and targeted outcomes directs an opportunity for development.

Healthcare organizations (HCOs) are in the business of providing quality care, while reducing cost and meeting various guidelines and regulations. Therefore, it is necessary that HCOs monitor, measure, and evaluate the performance of their organization. Balanced scorecards is a tool that is used in healthcare to monitor organization performance by focusing on indicators that affect performance. A balanced scorecard was created and implemented at a clinic at the Oregon Health and Science University Family Medicine. The article “Performance Enhancement Using a Balanced Scorecard in a Patient-centered Medical Home” discusses how the balanced scorecard was developed, how it was used, and how it improved performance.

The Key Performance Indicator focus on the objectives and goals of a company’s performance, it is a way for the company to determine if they are on the right track toward their goal and objective. This is a way for managers and leaders to have a better understanding if they company is on track to success or not (Pirlog, R., & Balint, A. O.,2016,p.175).There are four main areas that use the KPI, which is revenue improvement, cost reduction, process cycle-time improvement, and increased customer satisfaction. However Charlotte Russe does employ the Key Performance Indicator which uses many different KPIs to measure the customer service strategy. Some of the KPIs that are used to measure the strategy are overall satisfaction, conversion rate,

KPIs make objectives quantifiable, providing visibility into the performance of individuals, teams, departments and organizations and enabling decision makers to take action in achieving the desired outcomes. Typically, KPIs are monitored and distributed in dashboards, scorecards and other forms of performance reports.

Performance reviews have often been considered a necessary evil of working in the corporate world. They provide a set of standards by which employees can be measured, for use in deciding who gets promoted, who gets the bonus, and who gets put on the dreaded performance improvement plan. Employee evaluations have been used for centuries, across all business sectors…but are they truly improving performance? In the article, The Push Against Performance Reviews, Vauhini Vara posits that performance reviews have outlived their usefulness.

The second key indicator of performance is motivation or “want to” (Nassar, 2007, p. 4.4). Ultimately, motivation is measured and created by both internal and external factors (Bethel, 2015). Thus, internal factors include the personal drive one has to compete, exceed, or perform such as moral values, ethics, integrity, and commitment (Thompson, 2014). Notably, a strong internal desire, also known as heart, is far more valuable than any other internal or external factor (Crowley, 2015). Further, external factors are those things outside of the person that motivate performance such as money, recognition, and incentives (Nassar, 2007). However, it is important to note that too many extrinsic rewards reduces the amount and level of intrinsic motivation (Cherry, n.d.).

Key Performance Indicators Must Be Quantifiable: If a Key Performance Indicator is going to be of any value, there must be a way to accurately define and measure it. "Generate More Repeat Customers" is useless as a KPI without some way to distinguish between new and repeat customers. "Be The Most Popular Company" won't work as a KPI because there is no way to measure the company's popularity or compare it to others.

The performance map is a valuable tool used for diagnosing performance issues, whether it be used to resolve a problem or respond to an opportunity. The performance map is divided into four quadrants which are: structure, motivation, environment, and learning. The structure focuses on the foundation of the organization. The structure asks the question what are the foundations of the organization. What are the strategies, mission, goals, function, organization design, and so forth of the organization? The next quadrant is the motivation, which focuses on the “why” do employees want to or not want to perfrom their job? Motivation addresses the emotions, and psychological needs that incite action. Why do we act or do what we do, in response

At the same time, these financial institutions may loosen their credit standards in order to get higher loan market share. As a consequence, their lending decisions were based more on collateral requirements rather than cash-flow analysis. In order to accelerate credit-check procedures for loan approval, many banks transferred the responsibility for loan-risk evaluation from their credit-investigation bureaus to less independent monitoring bureaus reporting directly to the banks’ sales divisions.

Under the private information case, borrowers cannot distinguish if the other is of their own type – safe or risky. As such borrowers will form groups based on randomly selection cemented by their need for a loan. In such instances the group will be formed of both risky and safe borrowers. Due to joint liability safe borrowers can therefore repay defaulted loans on behalf of risky borrowers and in turn joint liability will reduce the interest rates which attract safe borrowers back into the market. Rates under such group lending will be reduced due to a frequent and stable rate of repayment. (Aghion and Gollier, 2000). Sometimes referred as negative assertive matching, this ensures that the proportion of safe borrowers

Credit risk is the possibility that the actual return on an investment or loan extended will deviate from that, which was expected (Conford, 2000). Coyle (2000) defines credit risk as losses from the refusal or inability of credit customers to pay what is owed in full and on time. The main sources of credit risk include, limited institutional capacity, inappropriate credit policies, volatile interest rates, poor management, inappropriate laws, low capital and liquidity levels, directed lending, massive licensing of banks, poor loan underwriting, reckless lending, poor credit assessment., no non-executive directors, poor loan underwriting, laxity in credit assessment, poor lending practices, government interference and inadequate supervision by the central bank. To minimize these risks, it is necessary for the