Page 5: Measuring performance
The benefit of setting SMART objectives is that they provide a way for a business to measure its performance. Measuring performance makes it possible to identify a business’s strengths and weaknesses. It provides a firm basis for planning to improve performance.
These are some of the measures that Zurich uses to measure performance:
- Sales growth – Zurich aims for growth at or above the average rate in the overall insurance market. This is a useful measure of the popularity of Zurich.
- Customer satisfaction – Zurich aims to be in the top quartile for customer satisfaction as measured by independent researchers.
- Dividends – Dividends are the annual payments made to shareholders. Zurich seeks to grow the dividend it pays out year on year.
Total shareholder returns – Shareholders seek not just dividends but increase in the share price. Zurich seeks to be in the top quartile for total shareholder returns.
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- Staff retention rates – seeks to retain good staff with the company for a long period.
- Zurich measures engagement scores – Employee satisfaction surveys show what percentage of staff enjoy working for the company and feel that they are provided with rewarding careers.
By establishing a set of metrics for measuring performance, Zurich is able to monitor and review performance continually. It can compare actual performance against its strategic and tactical plans. As a result, changes can be made on a regular basis to enable the company to progress towards its aims.