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BSBMGT617 DEVELOP AND IMPLEMENT A BUSINESS PLAN

ASSESSMENT 2: MONITOR PERFORMANCE
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Report – Selection and implementation of performance management system

Executive summary
In this report, the performance management system selected for the measurement of both
financial and non-financial performance objectives are analyzed. Furthermore, to test the
financial objectives, the financial plan is developed. Balance scorecard is used to measure the
performance.

Introduction
Fast Track Courier has a good reputation in the marketplace and performs reliability with
the performance that it provides. The company currently plans on mainly targets small and
medium-sized business and this makes 80% of its customer’s base. The retention rate of the
company is admirable to 87% for the existing customers. The company markets through direct
sales, internet listings, and telephone services. The future plans of the company retain the
customer base through the use of new courier patterns that may be helpful and in providing new
and digital use of courier performances.
A performance management system helps HR managers establish clear performance expectations
through which employees can easily understand what is expected of their job. It
allows managers to reinforce on their employees, the individual accountability to meet their
goals and evaluate their own performance.

Analysis
Balance scorecard is used as the strategic performance management system. It make sure that
mission, vision and core values of the organization are well reflected in the objective, initiatives
and measures taken by the employees. It also checks the strategic performance is on the line to
strategic focus areas.   

The balance scorecard is often used:

 To communicate well about what the organization wants to accomplish

 To align the daily work of employees with organizational strategy
 To prioritize on product, project and services level
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 To monitor and measure the progress of organization towards the strategic goals

In order to identify the downfall in the internal function and to improve the performance balance
scorecard is used as a performance metrics. It is very useful to provide feedback to the
employees about their performance and outcomes. The crucial step of balance scorecard is data
collection, the realistic information gathered is further interpreted by executives and managers in
the company to provide a guideline for decision making in the future.

Figure 1: Balanced Scorecard

Measuring Financial and Non-Financial Objectives with Balanced Scorecard

In order to test the performance objectives using balance scorecard, the financial and non-
financial objectives of the company are considered.

Some of the financial objectives are:

 Increase revenue
 Increase profitability and customers
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 Return on assets

Some non-financial objectives are:

 Flexible response
 Information flows
 Time compression

The BSC contains a diverse set of performance measures, a combination of non-financial

measures (leading indicators) and financial measures (lagging indicators) organized according to
four distinct perspectives, namely financial performance, customer relations, internal business
processes, and the organization's learning and growth activities.