Here we try to demonstrate how any business can come-up with its own customized index and track that index on a daily/weekly basis. It is even possible to link every employee or department in the company to the index and attribute index performance to an employee or department. Most of the custom indices have the following four properties.
1) Measurable; typically on a scale of 0 to 100 2) Specified in advance; does not change over a duration and traceable 3) Appropriate; connects every goal of the firm to the index 4) Attributable; every person or division contributes to the index
In this example, Nirvana Bagels Inc., an imaginary firm that makes best tasting bagels in California, wants to track it's performance. The firms' stated goals are happy customers, employees and shareholders. Nirvana believes that if these three goals are achieved, sales and profits are destined to increase. After interviewing the firm's leaders, Kubera creates the Nirvana Index and displays it prominently around the firm. The composition of Nirvana Index, which is computed daily based on the stated goals of the company is given below.
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