Performance Measurement of Handmade Carpet Industry through Innovation, Empowerment and Exploration of Socio-Economic Potentiality

Abstract

The sustainability and survival of any organization invariably depend on performance. Performance measurement and management in right and dynamic way are the essential steps for survival, which is sustainable real success. The traditional practice involves conventional thinking about performance metrics measuring financial performances like Net Profit. Literature survey reveals there is a scope and need to go beyond such traditional measurement and management. Therefore scope for using innovative technique and empowerment has been explored for the socio-economic potential sector in particular.

The present work is in that direction to develop, exhibit and demonstrate a new technique called as Business Performance Evaluation Technique to come out with Performance Index. To start with, through survey a bank of key factor to success was created. Thereafter, Stake Holders in 360 degree manner had the option to group them in four perspectives [1.Continuation Desired, 2.Improvement Needed, 3.Experimentation Sought and 4.Challenges for Sustainability], then fixing of success indicator, weightage and target value for all factors. Validation was done involving 10 Stake Holders who could work out Performance Index for each perspective and in totality. Correlation amongst gap in % Net Profit & Performance Index in said four perspectives also studied and reported to assess the relevancy of the model.

Next exercise was carried out where in metrics have been grouped in another four perspectives [1. Financial, 2. Customer, 3. Learning & Growth and 4. International Business Process] as per balanced scorecard concept. Gap in Performance Index in said four perspectives found out and similar correlation with gap in % Net Profit studied and reported for the similar purpose as well to compare amongst two way grouped perspectives. The study and analysis reveals how the new concepts can supplement traditional financial measures and enable companies/ intending one to track performance, monitor progress and manage intangible assets needed for future growth. The reported research is: (i) an innovation in performance measurement as evident from applications of novel technique, (ii) an empowerment in management where grass root level Stake Holder like artisans could participate and (iii) an approach to explore a sector which is socio-economic potential.