KPI for the Evaluation of Growth Scenarios for the Strategic Organizational Development

Authors

  • Felix Budde Fraunhofer IPK
  • Ronald Orth Fraunhofer IPK
  • Lars Förster Förster Leadership

DOI:

https://doi.org/10.34190/ecrm.21.1.307

Keywords:

Strategic Organizational Development, KPI Model, Methodology Validation, Innovation-driven Technology Company, Sustainable Leadership

Abstract

Today's world faces constant change and increasing complexity. This also influences companies in their actions. In order to ensure growth and resilience, technology companies must innovate and strive for internal adaptability within the organization. A field of tension can be observed between the values of effectiveness and efficiency. Effective actions lead to the company and its products becoming better by doing the right things. Efficient actions allow the company and its products to become less costly by doing the things right. The expression of these values in the field of tension changes over the life cycle of a company. Strategic organizational development can thus only take place sustainably in balancing effective and efficient values.

Based on these ideas, a performance indicator model was developed to promote value balance by assigning concrete parameter to several perspectives. Balance is not a static condition, but the basis for healthy and above all sustainable growth. Without balance, too much of a good thing is done and destructive exaggerations are the result. The model takes a holistic, systemic and balancing position.

The main aim of this paper is therefore to describe the development, application and critical evaluation of this key performance indicator model to validate the underlying research methodology. The key performance indicator model is to be understood as a thought model, with the help of which the alignment of a company and its employees is to be achieved. The model is used to evaluate growth scenarios. As part of a case study, the organization, culture and environment of an exemplary company were examined with the help of representative workshops and expert interviews. The results of the status quo analysis were able to confirm the basic principles and logic of the key performance indicator system. Based on the information about the environment and organization gathered in the workshops and interviews, the KPI model was applied as an example to evaluate growth scenarios of an exemplary company.

Finally, interviews were conducted with top managers with many years of management experience to evaluate the KPI system and examine its general validity. The applicability of the KPI model could be conclusively determined for innovation-driven technology companies in the transition between the growth and maturity phase.

Author Biographies

Felix Budde, Fraunhofer IPK

Department Business Excellence Methods, Division Corporate Management

Ronald Orth, Fraunhofer IPK

Head of Department Busines Excellence Methods, Division Corporate Management

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Published

2022-05-23