Operations Managers Metric - Assignment Example

The metric helps in measuring profits. This makes it hard to integrate the three accounts, and therefore they have to be considered differently. The triple bottom line metric helps a business to improve its finances by ensuring that all the stakeholders in it work together as a team with one goal of ensuring that the company is producing. A manager is measured on how his unit performs towards the success of the entire business. By understanding, this metric operational managers can improve the performance of the company financially through the application of economic value integration embodied in the company`s policy of sustainable environmental practices.

Through its application, the company will be able to improve its long-term strategy towards financial performance improvement, (de Leeuw & van den Berg, 2011). For this metric to be successful data such as gross income and the costs incurred for environmental control come in handy. The overall data for the company, on the other hand, would help to promote the sufficient qualities of the metrics. Customer satisfaction score is another metric that operational managers need to keep their eyes on.

It is used in measuring customer satisfaction levels for every product unit and certain divisions within the business. Operational managers would be able to know the level of customer satisfaction internally and externally. Apart from this analysis, this score would help the operational manager know the functions that need improvement. This metric will help the company improve its financial performance in acquiring and maintaining customers through meeting their demands, (Kumar et al., 2013).

Through meeting customer demands, the company sales increase due to customer satisfaction levels. Through feedback from clients and an increase in revenues, a company can make better quality products. Another metric that operational managers need to pay close attention to is employee satisfaction score. This metric will help an operational manager are happy with the organization and working as per the organization culture so requires. The metric will also help an operational manager to understand the mood of the employees and factors affecting their mood as per the information collected in employee satisfaction surveys.

Through this, understanding, operational managers can motivate their employees. Through motivated staff, a company can improve its financial performance since each employee's performance will also improve, (Hill, 2012). The fourth important metric to an operational manager is cash-flow. This metric seeks to understand cash coming into the company and the one leaving. This is an important financial aspect of any business. Under this metric, the operational manager will consider two sets of sales data which include, Days sales outstanding and Days payables outstanding.

Through this analysis, the manager will be able to evaluate operational inefficiencies. The cash flow analysis metric is important to the financial performance of the business in ensuring that the business is cost-efficient and does not waste cash. The data collected in the DSO and DPO is important in improving the quality of cash flow within the business. Data analytics is important to support the previously mentioned metrics as they involve breaking down data from the source. Through data analytics, a manager can understand the raw data by creating relevant data visualization.

A good example is a comparison between employee satisfaction score and customer satisfaction score to clearly determine the best employees for promotion, (Brown et al., 2013). Another example is the use of data analytics in the triple bottom line metrics to analyze data to help improve analysis. Based on data analytics one can create reports and queries that help in the examination of the raw data thereby helping the company to enhance financial performance and productivity.