Mapping Out Key Performance Indicators in a State-Owned Entity: A South African Example

Abstract

In South Africa, state-owned entities are part of a dynamic environment that offers consumers increasing power in demanding higher quality products, lower prices, and better services. This trend has underscored the need to construct appropriate and measurable indicators of corporate performance, which are then subjected to rigorous shareholder and stakeholder review at the end of each fiscal year. This paper examines the recent efforts of one of such institutions-the Trans-Caledon Tunnel Authority-to map out its key performance indicators in a strategic manner that enables it to move beyond a mere collection of indicators grouped in the four traditional dimensions. In pursuit of breakthrough performance, the organization uses the scorecard to align and focus business activities, adopting strategy mapping to articulate how it creates value for its clients and stakeholders. With a strategy map reflecting the organization's three strategic themes of thought leadership, operational excellence, and livelihoods transformation and sustainability, the emergent performance indicators focus on those aspects of corporate performance that are most critical for competitive success into the future.