Strategic Goals and KPIs for TransGlobal Airlines Performance

Memo: Performance Evaluation 1 Memo: Performance Evaluation Southern New Hampshire University MBA620 Measuring Success in an Organization Prof. Tomoiaga Oct. 1, 2023 TransGlobal Airlines Leadership Team Memo Date: September 30, 2023

2 To: TransGlobal Airlines Leadership Team From: Stacey Buggs Subject: Strategic Goals and Key Performance Indicators (KPIs) I am writing to highlight and summarize our strategic goals and key performance indicators (KPIs) as part of our continuing efforts to gage and improve the performance of TransGlobal Airlines. It is critical that we align our objectives with a balanced scorecard approach, which contains internal process, financial goals, customer satisfaction, and learning and development perspectives. This is a set of measures that gives top managers a fast but comprehensive view of their business (Kaplan & Norton, 2005). Therefore, setting SMART goals will allow individuals to track their progress by checking off achievements. This tangible evidence of advancement may in turn boost motivation (Campbell, 2012). Financial Goals (SMART Criteria)  Goal: Achieve a 10% increase in annual revenue by the end of the fiscal year 2024.  Rationale : This goal aligns with our financial perspective and will help ensure our long- term growth and sustainability. A 10% increase in revenue will provide the necessary resources to invest in our technology, operations, and services.  KPI: Annual Revenue Growth Rate (%) – To track progress toward this goal. Internal Process Goals (SMART Criteria)  Goal: Streamline our aircraft maintenance and servicing process, reducing downtime by 15% within the next 12 months.

3  Rationale: Enhancing our internal processes will lead to cost reduction, increased operational efficiency, and improved customer satisfaction through less flight disruptions.  KPI: Aircraft Downtime Reduction (%)- Measuring the reduction in aircraft downtime due to streamlined processes. Customer Goals (SMART Criteria)  Goal: Attain a Net Promoter Score (NPS) of 75 or higher in the next two years.  Rationale: Satisfied customers are more prone to be loyal and will refer our services to others (Marr, 2012). A high NPS score exhibits our commitment to exceptional customer experiences.  KPI: Net Promoter Score (NPS)—A measure of customer loyalty and satisfaction (Marr, 2012). Learning and Development Goals (SMART Criteria)  Goal: Raise the average training hours per employee by 20% over the next 18 months (about 1 and a half years).  Rationale: Providing continuous learning and development to the workforce will lead to a more adaptable and skilled team, eventually improving our overall performance.  KPI: Average Training Hours per Employee—To track increased training hours per employee. Determining KPIs

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4 The mixture of KPIs was guided by the SMART goals outline and aligning them with our strategic goals:  The KPIs are specific objectives which are directly related to the individual SMART goal (Campbell, 2022).  They are measurable because they allow us to quantitatively assess our progress.  They are achievable within the specified timeframes.  They are relevant to the strategic goals and show which areas need improvement.  They are time-bound and provide clear deadlines for achievement. Developing a plan to meet a goal is akin to having a map and directions for a journey. Specific objectives must be well defined (Campbell, 2022). These KPIs serve as critical metrics for monitoring our performance and safeguarding that our efforts continue to focus on achieving our strategic goals. Thank you in advance for your attention and commitment to our shared vision. Sincerely, Stacey Buggs References

5 Campbell, J. (2022). SMART Criteria. Salem Press Encyclopedia Retrieved from: https://www.ed-s-ebschost-com.ezproxy.snhu.edu/eds/detail Kaplan, S.R., & Norton, D. P., (2005). The Balanced Scorecard: Measures That Drive Performance Retrieved from: https://www.hbr.org/2005/07/the-balanced-scorecard-measures-that-drive- performance Marr, B. (2012). Key Performance Indicators. The 75 Measures Every Manager Needs to Know

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