Managing Sustainable Profit

Represented research was performed as a single case study on the performance measurement system (PMS) of the Ydria Motors LL Company (YM), which is engaged in manufacturing. The company is a competence centre of the ebmpapst group and focuses on the prototypes of new products and manufacturing machines. Its vision is to become the leading manufacturing and development location within the group in the field of Alternating Current (AC) motors and Electronically Commutated (EC) motors, pumps, fans and components for home appliances. In the Slovenian region, the company is an important manufacturer of electric motors and fans, which exports as much as 95% of its production for large and important manufacturers of upmarket white goods and household appliances such as Miele, Bosch-Siemens, Gorenje, Electrolux and AEG. In their endeavour to increase profits, companies usually become aware that this is predominantly the result of employee competence and satisfaction, processes excellence and customer’s satisfaction. Based on that assertion, companies integrate different managerial tools in the PMS and therefore in their management system. One of the most dominant managerial tools is the Kaplan and Norton’s balanced scorecard (BSC). Within our survey we have closely examined the development of a performance measurement model which supports the decision making process in real time. Our main finding relates to the fact that we empirically confirmed the error correction models (ECMs) which are supporting the cause and effect relations between the strategic goals (e.g. stake holder’s long term value-monthly profit). In this context the company has identified opportunities for improvement in the field of performance measurement.

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