Posts in Research

TKI Interviews Dr. Keith Clinkscale: How the Hospitality, Travel, and Tourism Industry Survives Post-pandemic Challenges

October 5th, 2022 Posted by Press release, Research 0 thoughts on “TKI Interviews Dr. Keith Clinkscale: How the Hospitality, Travel, and Tourism Industry Survives Post-pandemic Challenges”

The KPI Institute recently interviewed Dr. Keith A. Clinkscale, the Strategic Planning and Performance Management Director at Palm Beach County, Florida, USA, to find out how the hospitality, travel, and tourism industry has been recovering from drought during the COVID-19 pandemic.

Here is an excerpt of the interview, which will be published in the next issue of Performance Magazine – Print Edition.

TKI: Can you share any “legacy” management practices that have lost their relevance in recent years? 

Dr. Clinkscale: Our recognition of operating in “silos” is driving more team collaboration. Some of the legacy practices in government were about “staying in your lane.” Many departments and organizations develop vertical expertise. Sometimes, they do it without input or knowledge of what is happening to their left or right. The trend is to move forward, collaborate, team up across disciplines, and generate more creative solutions through diverse and different perspectives.

TKI: What are your major challenges in managing performance? 

Dr. Clinkscale: One of the major challenges in managing performance is busy people. Sometimes people think they are too busy to manage performance. However, they are too busy not to measure performance. Taking a deep breath and looking at the data can position organizations to do the right thing based on data. Repeatedly convincing them of this can be a challenge.

TKI: What does the corporate performance management system of the future look like in the hospitality, travel, and/or tourism industry? 

Dr. Clinkscale: In the hospitality, travel, and tourism industry, the future of corporate performance management systems will make tracking trends over five years faster and easier.

We need to see how people respond to travel, hotel stays, and vacation activities. It is essential for us to understand what people value, and we need this information quickly, easy to decipher, and frequently as things change every day.


Keep an eye out for Performance Magazine – Print Edition No. 23 to be released on Amazon and TKI Marketplace this October, to dive more into our conversation.  For further updates. visit and follow The KPI Institute’s LinkedIn page.

The Key to Developing a Powerful Data Strategy [Excerpt]

September 12th, 2022 Posted by Research 0 thoughts on “The Key to Developing a Powerful Data Strategy [Excerpt]”

Editor’s Note: Below is an excerpt of an article written by Islam Salahuddin, a Business Research Analyst at The KPI Institute. “The Key to Developing a Powerful Data Strategy” is originally published in the 22nd PERFORMANCE Magazine – Printed Edition.

Amidst the buzzing world of data, companies may find themselves directly diving into analytics due to the fear of falling short and missing out. However, many resources can be spent on catching up on the race but end up with no real results.

That happened to 60-85% of big data projects, which IBM reported to have failed because they focused solely on technology. IBM added that the projects did not have a data strategy and a data-centric culture supporting  business objectives. 

Meanwhile, the Massachusetts Institute of Technology’s MIT Technology Review Insights survey of 357 business leaders and decision-makers in July 2021 has revealed that only 20% are implementing a data strategy. While 30% of the respondents have a data strategy in place, they believe it still has gaps.

What Makes Executing a Data Strategy at Scale Difficult

According to 42% of MIT’s respondents, the main challenge for implementing a data strategy is access to “more sources of data, including demographics, competitor, and geospatial information.” Thirty-four percent admit they need help with extracting meaningful insights from their data, while some believe they need “better tools and infrastructure for data storage and analytics.”

In the survey’s report, “in unpredictable times, a data strategy is key ,” says Ishit Vachhrajani, Enterprise Strategist at Amazon Web Services,  emphasizing that all the challenges mentioned by the respondents can be blamed on “cultural obstacles” within their organizations.

“We talk a lot about technology, but one problem we hear from leaders is overly centralized, HIPPO-based decision-making that stands in the way,” Vachhrajani said. He also blames the challenges to governance structures that are no longer effective in bridging people who understand and work with data and frontline employees involved in decision-making and customer interaction.

In the same report, Jonathan Lutz, Director of Technology at Aquiline Capital Partners, describes the implementation of a successful data strategy as an “all-hands effort.” He recommends strong support from the top and buy-in across the organization.

For Vachhrajani, a successful data strategy is driven by leaders who invest in equipping people with the right skills and adopting technology across the company.

To learn more on how to establish an effective data strategy, read the full article in the latest edition of PERFORMANCE Magazine. The 22nd PERFORMANCE Magazine – Printed Edition caters the role that data plays in transforming organizations as they achieve excellence, growth, and success. Grab your copy in the TKI Marketplace now!

Four Business Intelligence Trends in 2022

August 11th, 2022 Posted by Certification, Courses, Research 0 thoughts on “Four Business Intelligence Trends in 2022”

Editor’s Note: “Four Business Intelligence Trends in 2022” is an article written by The KPI Institute’s Research Analyst, Brian Kiprop. This piece is originally published in the 22nd Performance Magazine – Printed Edition.

As the year progresses, entrepreneurs and managers are developing growth strategies as they establish data-driven cultures in their companies. Business intelligence assists in making data-driven decisions by utilizing data infrastructure, tools, and best practice benchmarks. Many businesses can identify new opportunities by having a wide view and utilization of data. This could spark change, eradicate inefficiencies, and adjust to market changes.

To determine the trending scientific business intelligence concepts for 2022, we conducted secondary research by collecting recent publications from the Scopus engine, the largest database of highly influential scientific publications. In 2022, there are 45 documents from a range of disciplines; computer science (28), Engineering (22), Decision Sciences (11), Social Sciences (11), Mathematics (6), Business and Management (5), Energy (2), Materials Science (2), and Biochemistry and Molecular Biology (1). 

Since all 45 documents have been published this year in well-recognized journals like Springer and Emerald, we exported the data for analysis to the latest version of Voss viewer software released this year. Voss viewer software is a data visualization tool developed at the Center for Science and Technology Science at Leiden University. 

Our results from a keyword analysis show four keywords (concepts) predominant in up-to-date publications of business intelligence by researchers in 2022. They include business intelligence, information analysis, artificial intelligence, and decision making. 

Business Intelligence

As a standalone concept and the most occurring keyword (32 instances) in our research, business intelligence is an attractive area of interest for businesses and researchers. Business intelligence enables companies to make fast decisions by understanding historical and current data in a business context. These will promote better performance, assess customer behavior patterns, analyze competitors, and identify market opportunities. 

When designing business intelligence tools, IBM suggests that companies adopt an easy-to-operate business intelligence analytical solution, integrating data sources from different platforms and understanding capabilities like artificial intelligence and machine learning before implementation. 

Microsoft uncovers four stages that business intelligence undergoes, from raw data to reports and insights. Step 1 involves data collection, followed by spotting patterns in the data. The third step focuses on visualizing the data, while the last step concerns taking action on findings in real time. 

Information Analysis

The information analysis concept has 16 occurrences across our literature review. Information analysis is known to be part and parcel of intelligence gathering to influence firm decisions. After gathering the business data, assessing data sets to provide insights is crucial for deciding the actions to take from them. Data can then be processed using a different range of tools, and some of the major software are Microsoft Power BI and Tableau. 

The tools for data analysis usually consisted of dashboards, visualizations, data mining, Extract Transfer Load, reporting, and Online Analytical Processing. However, the most popular among users are visualizations and dashboards.

Artificial Intelligence 

Artificial intelligence refers to systems and machines that draw knowledge from previous experiences, adapt fresh inputs, and conduct human-like activities. In our study, we found artificial intelligence to have four keyword occurrences. 

According to Harvard Business Review, three types of Artificial Intelligence relate to solving business needs. The first one, process automation, enables administrative tasks like data transfer through emails to be updated in the recording system. The second is cognitive insight, which utilizes algorithms to determine patterns in large amounts of data and generate insights. Lastly, cognitive engagement comprises intelligent agents and chatbots that respond to customer inquiries. 

Decision Making

In our findings, decision-making had a keyword occurrence of five across all 45 papers. Decision-making is an essential outcome of collecting business intelligence. Many companies want to make better decisions concerning their strengths, weaknesses, opportunities, and threats within their business environment. 

In Minggao Yang’s paper on the influence of business intelligence on the financial performance of innovative companies, the author finds a direct correlation between business intelligence and business performance, thereby confirming that data-driven choices influence business profitability positively.

Managers and founders looking into expanding business intelligence capabilities to identify and act on sustainable and profitable opportunities could benefit from understanding the four emerging concepts in business intelligence. As collecting business intelligence requires basic skills in analyzing data, one can consider taking The KPI Institute’s Certification in Data Analysis to build or upgrade their data analysis skills.

New Courses, New Publications: TKI Research Division’s Semiannual Report

July 22nd, 2022 Posted by Certification, Research 0 thoughts on “New Courses, New Publications: TKI Research Division’s Semiannual Report”

Since the beginning of 2022, the TKI Research Division has been relentless in its commitment to generate genuine forward-thinking ideas to address modern business challenges while promoting best practices and structural and strategic approaches for organizations. From new courses to new publications, the team continues to shine as a leading expert in strategy and performance management.

The TKI Research Division, the unit at The KPI Institute dedicated to producing high-quality, leading-edge research, provides practical frameworks, tools, and modern education programs for business leaders and professionals as they develop their knowledge, expand their capabilities, and provide strategic direction to their organizations.

Below are some of the division’s accomplishments in the first half of the year.

Publications

  • Top 25 Property Transaction KPIs – The report compiles the most popular 25 KPIs used by Real Estate Transactions function and provides quantifiable measurement of the main components that lead to a successful strategy implementation.
  • Top 10 Property Management Key Performance Indicators – This is a collection of posters that brings together an overview of how KPIs are measured in practice nowadays — by combining input from the smartKPIs.com community with research and analysis from The KPI Institute`s editorial team.
  • Top 10 Real Estate Transactions Key Performance Indicators – The list includes % Capitalization rate, # Apartment size, # Real estate demand, and # Days on market.
  • Top 10 Real Estate/Property Key Performance Indicators – Some of the KPIs featured in this report are % Cash-on-Cash Return (CCR), % Net Rentable Area to Gross Floor Area, % Vacancy rate, and # Real estate demand.
  • KPI of the Month – January to June 2022 (English & Arabic) – Each KPI of the Month Infographic sheds light on a specific KPI by clarifying its terminology and addressing the most challenging aspects of using it in terms of profile, calculation, Balance Scorecard focus, data profile, targets, and in-practice recommendations.
  • Performance Magazine Printed Edition Issue No. 21 – The 21st issue of PERFORMANCE Magazine dives deep into the state of strategy and performance management as organizations worldwide recover from the pandemic and face uncertainties.
  • Primary Research Study: State of Strategy Management Practice Report 2022 – This is an international primary research study conducted by The KPI Institute from November to December 2022. The report identifies the latest issues, trends, and challenges impacting the field of strategic planning, KPI usage, and strategy execution.

Training

Client Projects

Moving Forward

For the rest of the year, the TKI Research Division will focus on strengthening its internal capabilities, optimizing its training portfolio, updating its course materials, marketing its products and services, and introducing learning reinforcement programs.

The team aims to develop the body of knowledge for its Center for Strategy and Business Planning, Center for Organizational Performance, and Center for Data Analysis, Visualization, and Analytics.

Building strong partnerships is also one of the division’s priorities this year. They aim to provide more training options to TKI’s partners and seal new partnerships with key organizations, such as universities, professionals, and associations.

For more details and inquiries, contact Cristina Mihăiloaie, Business Unit Manager – Research Division:  [email protected], +61 (390) 282 223 or +40 (749) 424 517.

What Strengthens and Weakens a Performance Management System [Excerpt]

July 10th, 2022 Posted by Employees, Research 0 thoughts on “What Strengthens and Weakens a Performance Management System [Excerpt]”

Editor’s Note: Below is an excerpt of Performance Magazine’s (PM) interview with Fadi Al-Jafari, a Senior Management Consultant, Leader of Data Analysis and Visualization Center, and Project Manager at The KPI Institute. 

For Fadi Al-Jafari, one of TKI’s performance management experts, having a clear vision for your organization and being aware of its external environment to prevent threats and capture opportunities is the core of strategic thinking. He expounded on this and more in an interview with Performance Magazine.

PM: What will be the major challenges in managing performance in the future, and how should organizations prepare for them?

Fadi: The major challenges would be how to measure the individual’s performance right and without any biases, use the data to predict future the individual’s performance, and benefit from the data they have to improve the individual’s performance. One solution is to use digital PMS that collects data regularly and measures individual performance based on the tasks they work on and then use data analytics tools to draw conclusions and predictions based on the analysis.

PM: While navigating through these challenging times, what would you consider a best practice in Performance Management?

Fadi: To start with an organizational architecture framework of the PMS, ensure that cascading and alignments are conducted properly. This also enables organizations to develop a governance framework, processes, and procedures to efficiently run the system and avoid internal silos.

PM: What key competencies would make a Strategy and Performance Manager succeed nowadays?

Fadi: An important one is strategic thinking — to be able to analyze different situations that the organization may face and to have a proactive personality that would allow them to capture changes in the market before they arise. It is crucial to identify the opportunities, capture them before the competitors do, and determine any threats to prepare the organization to deal with them.

To read the complete interview with Fadi, stay tuned for the release of Performance Magazine – Print Edition July 2022. Get updates from the LinkedIn page of The KPI Institute.

TKI’s Interview with Google’s Chief Analytics Evangelist: Building a Data-driven Culture

June 20th, 2022 Posted by Press release, Research 0 thoughts on “TKI’s Interview with Google’s Chief Analytics Evangelist: Building a Data-driven Culture”

The KPI Institute (TKI) recently caught up with Kevin Hartman, Google’s Chief Analytics Evangelist, to discuss how data is changing the way organizations develop their strategy and improve their performance.

Below is an excerpt of the interview, which will be published in the next issue of Performance Magazine – Print Edition.

TKI: How important is data today to businesses and organizations?

Hartman: It’s really at the center of everything now, and not just [in] business, but also private life and public sector life and everything in between. It’s data [that] should play a role in every decision that an organization is making — to make them more effective, more efficient… Data and [the] collection of data should play a role in any organization’s operations. It is really at the center of everything that companies are doing today, at least those that are successful.

TKI: What do you think are the challenges that organizations are facing in terms of using data or maybe attempting to use data?

Hartman: Ohh, there are many. You know, from organizations who just don’t have the digital and data maturity — meaning they lack the people, the processes, the technologies to really collect and utilize data. We see that as an enormous challenge. [There are] organizations [that] just haven’t made the investment necessary either because they don’t believe in the return. They don’t want to spend the resources, whatever that is.

But that presents an enormous challenge. Another is just the idea of organizations lacking the kind of leadership that is required to get that organization invested in data and its use, and moving the organization behind a mindset that says data is going to be important to us and we’re going to use data to drive decisions.

…I’d like to say measurement — today getting that right is a leadership challenge, not a technological one. The technology is there. [What matters is] how the organization [will] embrace that challenge and lead from a position of data being a strength.

TKI: Are there times when you’re able to apply what you do at work to your personal life? For example, are there practices at work that you think that people who are not really in the data world professionally can actually adopt at home or for their day-to-day activities?

Hartman: Well, data is a part of everyone’s life… You don’t have to be the chief analytics evangelist at Google for data to affect you. And so I think there’s a lot of crossover, particularly because people are awakening to the existence of data that they are generating online that others are holding and using. And so I think that there’s great opportunity for consumers to just become more savvy in how that data is used, who’s using it, and why.

And it’s no longer a secret should not be because of regulation. And so it — in that way — can become a bigger part of consumers’ lives.

For me personally, I’m in it all the time. I’m either in my work. In the environment and role. Or I teach at a number of institutions and programs, analytics, and so I am fully immersed in this idea of data and the data field all the time.

And it’s really the ability that I have or the opportunity that I have to be that practitioner and see what’s happening in the public sector and private sector, and then stand in front of a classroom of students with the expectation they have that I can explain that to them and make it accessible is really challenging and it keeps me kind of using both of those roles to strengthen how I perform in each area, right? Like my practitioner role at Google makes me a better teacher. My teaching role makes me a better practitioner at Google. So it’s a very symbiotic relationship for me.

*****

To dive deeper into our conversation with Hartman, stay tuned for the release of Performance Magazine – Print Edition No. July 2022. Get updates from the LinkedIn page of The KPI Institute.

What’s Inside “State of Strategy Management Practice Report – 2022”?

May 24th, 2022 Posted by Research 0 thoughts on “What’s Inside “State of Strategy Management Practice Report – 2022”?”

“State of Strategy Management Practice Report – 2022” is an international research study that explores the latest issues, trends, and best practices impacting the field of strategic planning, KPI usage, and strategy execution.

Developed and published by The KPI Institute, the report presents the results of a survey held from November to December 2021. The survey questions were formulated by forming a focus group of internal subject matter experts and aggregating the feedback of thousands of professionals and practitioners in The KPI Institute’s community.

The report covers the major areas affecting organizations today, from target setting to performance measurement and from the role of communication in strategic planning to the common pitfalls in strategy execution.

The data captured in the study reflects the insights of 500 professionals (27% are Executives, and another 34% occupy managerial positions), and nearly half of them are either directly involved in strategy planning or responsible for the design and maintenance of the strategy and performance management system. The survey has addressed 26 topic-related items.

Inside the report, readers would find:

Report overview

  • Introduction
  • Methodology
  • Executive summary

Key Findings

Strategic Planning

  • Highlights
  • Strategy formulation process
  • Strategy alignment
  • Strategy tools
  • Key success factors
  • Strategy communication

Performance Measurement

  • Highlights
  • KPI usage
  • Target setting
  • Technology

Strategy Execution

  • Highlights
  • Overview
  • Initiative Management
  • Agility

Demographics

Conclusions and Implications for Practice

  • Conclusions
  • Implications for practice

Get your free copy of “State of Strategy Management Practice Report – 2022” today! For inquiries regarding the report, contact Cristina Mihăiloaie, Business Unit Manager – Research Division:  [email protected], +61 (390) 282 223 or +40 (749) 424 517.

#greatresignation on TikTok: What Can HR Do? Read Top Reports

April 29th, 2022 Posted by Employees, KPIs, Research 0 thoughts on “#greatresignation on TikTok: What Can HR Do? Read Top Reports”

The Great Resignation made front-page news in 2021 and remains a labor market talking point this year. According to the Job Openings and Labor Turnover Survey (JOLTS), the Great Resignation in the United States continued in February 2022, with more than 4.3 million people quitting their jobs after a series high of 4.5 million in November 2021. 

While Willis Towers Watson’s 2022 Global Benefits Attitudes Survey estimates that only 11% planned to look for a job in the first quarter of 2022 out of 44% job seekers, employees quitting their jobs continues to become a trend in the second quarter and even went viral on TikTok. 

The hashtag #greatresignation gained over 163.5 million views on the popular video-sharing mobile application, followed by #quittingmyjob with over 123.6 million views. TikTok users share their working conditions that urged them to quit. 

One of them shared that employees have to report to work even if they tested positive for COVID-19. According to @saygracee23 in her #quittingmyjob video that has over 1.2 million views, employees avoid being late or absent to get eligible for bonuses. Since they are understaffed, her employer pledged a 100 USD bonus per paycheck if an employee has no call-outs.

Another user named @annamsutter, who claims she is an “achiever since birth,” decided to quit her job due to struggles at work. She said, “no job should make you compromise your mental health, physical health, your well-being, personal relationship, and your personal life in general.” Her #greatresignation video has 1.7 million views.

What HR Managers Can Do

Reevaluate work setup. Mark Lobosco, Vice President of Talent Solutions at LinkedIn, mentioned in his article on LinkedIn that employees, as well as job hunters. now prefer a good work-life balance career over competitive benefits and compensation. 

Employees also desire flexibility. They want to be able to work from anywhere, at any time, and in whatever way they can. Results of a Flexjobs survey revealed that work flexibility has a “huge” or “positive” impact on employees’ quality of life. If companies allow people to enjoy flexibility, HR managers should ensure that policies and programs regarding work arrangements meet the needs of employees and are also aligned with business goals.

Welcome diversity in the workplace. Culture is one of the factors that compel employees to leave. The organization must foster an environment in which it is safe for their employees to be themselves. HR managers must promote diversity consistently in different areas, starting from how employees are recruited and interviewed to their access to programs that promote growth and inclusion. HR managers must ensure that policies affecting diversity should lead to inclusion in the workplace.

Employees are more comfortable in organizations where diversity, equity, and inclusion are being promoted. Reversely, employees felt an aversion towards experiences of disrespect and unethical behavior within the company,” Manoj Dubey, a consultant at The KPI Institute, wrote in his article on Performance Magazine titled “The Great Resignation and the Requirement of a Data-driven Approach from HR.”

Use the right metrics and KPIs. Human resource professionals are rethinking their roles, culture, and values in response to the Great Resignation. Recruiting and retaining talent has become a challenge for them due to the changing preferences in the job market. Data can help HR predict trends and problems, determine what needs to be done or improve in different areas, and understand what employees need from their workplace. 

One of the things they should pay attention to and explore further is the use of key performance indicators (KPIs). The KPI Institute released The Top 25 Human Resources KPIs – 2020 Extended Edition report, which compiles the most popular 25 KPIs used by Human Resources divisions throughout 2016 and 2020. The 25 Human Resources KPIs identified are categorized into seven divisions:

  • Compensation and Benefits capabilities capitalize on the value of effectual reward systems.
  • Efficiency and Effectiveness divisions are concerned with the measurement of productivity achievement.
  • Recruitment teams monitor the overall effectiveness of the recruitment process.
  • Retention focuses on employee satisfaction, engagement, and turnover.
  • Talent Development refers to brandishing human capital potential in a manner that maximizes its contribution to the overall performance of the organization.
  • Working Environment focuses on the consolidation of a productive working environment that harnesses workforce performance.
  • Workforce references job stratification and employee distribution as part of an integrated performance management system.

Learn more about the 25 most popular human resources KPIs today and read about the best practices in KPI selection and documentation. Download The Top 25 Human Resources KPIs – 2020 Extended Edition now!

What’s the Best Way to Measure Employee Performance?

April 8th, 2022 Posted by Courses, Research 0 thoughts on “What’s the Best Way to Measure Employee Performance?”

This piece is originally published in the latest edition of Performance Magazine. Here is the response of Alina Miertou, a Senior Management Consultant at The KPI Institute, to the question “What’s the Best Way to Measure Employee Performance?”

I wouldn’t say there is a “best way to measure employee performance management given that performance management practices should be customized for the context they’re being implemented. 

However, we can still see the traditional approach in employee performance management based on bi-annually appraisals of the KPIs, behaviors and skills, and competencies in numerous organizations. Clearly, there has been a trend developed in the past few years, and this is abandoning the traditional performance appraisals in favor of recurrent feedback and more informal check-ins. 

One of the reasons for the change we see in employee performance management comes directly from the employees, with the workforce dominated by millennials. The management style is forced to accommodate their expectations, such as participation, flexibility, creativity or focus on creating an impact through their jobs. A study done by PWC in 2011 stated: “Millennials tend to be uncomfortable with rigid corporate structures and turned off by information silos. They expect rapid progression, a varied and interesting career and constant feedback.” 

The second most important reason comes from the business needs. In a world full of information that is changing rapidly and facing a growing employee retention issue (for example, all the organizations I have worked with this year had at least one objective regarding retention and improving their brand as an employer), we can no longer afford to base our employee performance management on punishing or rewarding past behavior or past performance. 

We are challenged to always be on the lookout for ways to improve performance and grow the talent pool available in the organization. A growing number of organizations (around more than a third of US companies) are choosing a less rigid and more frequent performance review rather than a formal appraisal score. 

Alina Miertou facilitates the Certified OKR Professional Live Online Course of The KPI Institute. The course is designed for professionals who want to understand how to deploy and use OKRs. Some of the learning objectives are to distinguish objectives, key results, and initiatives; identify the different types of OKRs; and determine the advantages of stretched goals. Learn more about the course and its schedule in the following months here.

Sustainability Standards and KPIs As Game Changers [Excerpt]

April 8th, 2022 Posted by Research 0 thoughts on “Sustainability Standards and KPIs As Game Changers [Excerpt]”

Editor’s Note: Below is an excerpt from the article “Sustainability Standards and KPIs As Game Changers,” written by Silvana Badita and published in the latest edition of Performance Magazine. It presents trends, solutions, and best practices for strategy and performance management through in-depth articles, first-hand how-to’s, concept presentations, case studies, and expert insights.

Companies can no longer afford to ignore sustainability. It is not just a trend but a major factor that drives where most businesses are headed. According to Globescan’s The State of Sustainable Business 2019, reputational risks, consumer demand, investor interest, operational risk, and employee engagement are some of the catalysts behind the sustainability efforts of most organizations. 

Manufacturing is one of the industries that are pressured to realign their activities with the mounting call for sustainability practices. Sustainable manufacturing refers to developing products with minimal negative environmental impacts and maximum contribution to the conservation of natural resources. These products are expected to be economically sound and safe for employees, communities, and consumers. 

Sustainable manufacturing aims to reduce the intensity of materials use, energy consumption, emissions, and unwanted byproducts while maintaining or improving the value provided for society and organizations. 

Some relevant key performance indicators that are often considered when evaluating the sustainability of manufacturing companies are:

  • Environmental performance KPIs, such as: # Air emissions, % Energy utilization, % Hazardous waste etc.
  • Economic performance KPIs: % Product reliability, % Conformance to specifications, $ Material cost, % Labor cost etc.
  • Social performance KPIs: % Occupational health and safety, % Turnover rate, % Supplier commitment etc.

Sustainability standards are observed to ensure quality, transparency, compliance, and results in terms of making organizations accountable for their economic, environmental, and social performance.

The GRI Standards

Among the internationally renowned frameworks is the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards. The GRI Standards consist of Universal Standards, which apply to all organizations and report on human rights and environmental due diligence, the new Sector Standards for sector-specific impacts, and the Topic Standards that come with the revised Universal Standards and relate to a particular topic.

Their vision is to create a sustainable future enabled by transparency and open dialogue about impacts. In this regard, they are a provider of the world’s most widely used sustainability disclosure standards.

With GRI Standards, companies can publicly present the outcomes of their activities in a structured way. This allows their stakeholders and interested parties to better see their status of how they are responding to calls for sustainability. GRI Standards can be used by any type of organization, whether large or small, public or private, or from any location or industry.

Discover how Daimler, the world’s biggest manufacturer of commercial vehicles, developed its sustainability report using the GRI Standards. Read the rest of the article in the latest edition of Performance Magazine  Download your FREE COPY now!

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