What Are Metrics of Company Success? Essay

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Introduction

Given that society is currently living in a world full of sudden changes and unforeseen financial turbulences, a good vice president should be concerned about logistics issues. Transportation of goods is one of the conditions for the well-coordinated work of the organization as a whole. That is why it is necessary to look for ways that would ensure the most standardized dispatch and delivery of goods, which would guarantee a stable income and minimize costs. Monitoring of drivers and vehicles, combined with effective employee motivation and sound planning, can perfect the management of financial and labor costs.

Improving Transportation of Goods

One of the best ways to save excessive costs when transporting goods within the company’s activities is to optimize routes, that is, adjust them to calculations that correspond to the logic of the supply chain. Unbalanced resource mobilization can lead to supply errors of all sorts. This ranges from empty trucks without enough goods, to trucks overloaded with required goods with an inadequate number of transport unloading points. Within the framework of this imperfection, it makes sense not only to work out the route in detail but also to use automation through special computer software. Route planners are usually good at automatically plotting the most convenient route from one point to another, taking into account weather and traffic patterns (M’hand et al., 2019). A driver equipped with a map and GPS navigation with real-time updated route recommendations strengthens the supply chain, making it more secure against accidental unforeseen delays.

The use of real-time monitoring of drivers and vehicles has already proven itself as positively functional. For example, the work of air terminals in work with luggage, even being called a full-fledged monitoring architecture (M’hand et al., 2019). Moreover, some route planners can take into account the loading capacity of the machine and its power and maximum speed about the weight required for delivery. It also minimizes the possibility of errors in planning and sticking to the schedule.

A frequent problem that can disrupt the supply chain and significantly affect the balance of the company’s activities are related to vehicle breakdowns. The problem is not only that the repair turns out to be financially costly, but also that idle time is fraught with additional loss of income. Preventive maintenance of vehicles that make up the supply chain will avoid such factors that suddenly complicate the activities of the organization’s transport sector.

Of course, automation is an important way to ensure the reliability of deliveries, but at the same time, productivity and loyalty must be demanded from drivers involved in the delivery of goods. Explanatory conversations with the transport team must be maintained regularly, as the corporate ethics of a successful organization says that inclusiveness should be its main quality. It is difficult to achieve a full-fledged result from employees who do not fully understand why they should be interested in the quality of the work they perform (Suprapti et al., 2020). The employees must grasp the relationship between money, goods, and newly formed resources. It is precisely when employees will understand how important they are in a company that is ready to encourage their responsible participation in its activities.

Thus, to ensure the smoothest possible supply chain, the vice president should be concerned about the technical equipment of vehicles. GPS navigation and advanced route planning applications with constant online support will allow one to create the most accurate schedules. For drivers to adhere to the necessary timing, it is necessary not only to monitor their performance but also to carry out motivating work with them that would make them feel like an important unit of the company.

Management within any organization is an activity consisting of several interrelated components. The vice president needs to maintain relevant management policies and keep them updated to keep them up to date with market demands in line with the financial landscape within the organization. To get rid of the possible feeling of inaccuracy or uncertainty about the future of the organization, more accurate ways to measure the effectiveness of the company’s activities are required. For a truly indicative assessment of the organization’s performance, several measurement practices and metrics should be introduced that will allow one to understand how the project led by the vice president meets the assigned goals. The success of a company is recorded not only by its growing financial performance but also by how satisfied the company’s employees themselves are.

Return on Investment is a special measurement function that allows you to evaluate exactly how much money was earned relative to the money invested in organizational activities. To calculate this equation, it is required to take into account network income and expenses, that is, to affect each unit of the company’s activities, remembering that they are in a single financial stream. Profits earned by an organization may include not only direct earnings from sales, but also financial savings, economic improvements, and money generated by innovatively economical product enhancements. This total is compared to the company’s costs, consisting of resource purchases, employee compensation, and additional costs such as necessary training and cultural integration of company employees. This amount is divided by the amount of money spent to get a percentage of profit, which is equal to the Return on Investment.

If one ignores financial indicators as the only principle for assessing the success of a company, it makes sense to pay attention to such a metric as the Employee Satisfaction Scale. This data is collected as a result of a survey conducted in the organization, the results of which can give a clear assessment of the success of a managed project. For example, quantitative and qualitative research conducted with the involvement of one hundred employees showed the impact of employee satisfaction on affective loyalty with maintaining the quality of work for a long time (Faisal-E-Alam & Nahar, 2022). It is proved that maintaining a high index of employee satisfaction has a positive effect on all levels of the organization.

It should be noted that the motivation to retain employees and improve the quality of their working environment must also be maintained because it is quite expensive to maintain a constant turnover of employees. It is in this connection that the gratitude of employees and their voiced satisfaction with their work are quite significant indicators of the effective operation of the organization. To assess employee morale, the Gallup Q12 is a specialized test fine-tuned to collect employee data (Strenitzerova & Achimsky, 2019). It uses the collected data to compile an Employee Satisfaction Index from them, which digitizes the results obtained.

Conclusion

Thus, the financial aspect is an extremely important factor for evaluating the effectiveness of the company. Mechanisms such as Return on Investment allow one to calculate the percentage of the success of the company’s financial activities. However, to assess the morale of the organization and prevent possible tensions in the team, it is necessary to monitor employee satisfaction. The future of the company, including the financial one, depends directly on each member of the organization, so the vice president can assess the real haste of the company by how happy its employees are with the work.

References

Faisal-E-Alam, M., & Nahar, A. A. (2022). Employee satisfaction and its’ impact on organizational commitment: A resource based approach. International Journal on Recent Trends in Business and Tourism 6(2), 1-16.

M’hand, M. A., Boulmakoul, A., Badir, H., & Lbath, A. (2019). A scalable real-time tracking and monitoring architecture for logistics and transport in RoRo terminals. Procedia Computer Science 151, 218-225. Web.

Strenitzerova, M., & Achimsky, K. (2019). Employee satisfaction and loyalty as a part of sustainable human resource management in postal sector. Sustainability 11(17), 4591. Web.

Suprapti, S., Astuti, J. P., Sa’adah, N., Rahmawati, S. D., Astuti, R. Y., & Sudargini, Y. (2020). The effect of work motivation, work environment, work discipline on employee satisfaction and public health center performance. Journal of Industrial Engineering & Management Research 1(2), 153-172. Web.

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IvyPanda. (2023, April 25). What Are Metrics of Company Success? https://ivypanda.com/essays/what-are-metrics-of-company-success/

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IvyPanda. (2023) 'What Are Metrics of Company Success'. 25 April.

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IvyPanda. 2023. "What Are Metrics of Company Success?" April 25, 2023. https://ivypanda.com/essays/what-are-metrics-of-company-success/.

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