From the course: Balanced Scorecard and Key Performance Indicators

Factors for organizational growth and success

From the course: Balanced Scorecard and Key Performance Indicators

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Factors for organizational growth and success

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- Hi, I'm Kay Stice. I'm a Professor of Accounting at Brigham Young University and this is my brother Jim. - I'm also a Professor of Accounting at Brigham Young University. - In this course, we discuss the balance scorecard as a way for a company to organize its key performance indicators, or KPIs. - Now, people usually mistakenly think that accounting involves only measurements of assets, such as cash or land, and measurement of expenses, such as rent or electricity. - Now, those are certainly important measurements. But organizations choose many additional numbers as they monitor performance on a daily basis. - For example, a retail store chain carefully tracks its sales per square foot. A higher number means that the company is using its buildings more efficiently to generate sales. - [Kay] A high-tech company might track its overall research and development spending as well as the amount it spends on R&D per employee. - [Jim] A trucking company probably measures the percentage of its orders that are delivered on time. - [Kay] And it makes sense for all businesses to measure and monitor customer and employee satisfaction. - [Jim] Now, in this course, we will talk about these kinds of key performance indicators, or KPIs. - Now, before taking this balance scorecard course, you might consider taking our Accounting Fundamentals course. Among other things, that course introduces you to the basics of all three types of accounting, managerial, financial, and income taxes. - But with that said, we have designed this balance scorecard course to be self-contained. And we carefully explain any terminology that we use. - In short, this is an introductory course with no prior accounting knowledge necessary. - So let's get started in our discussion of the balance scorecard and key performance indicators.

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