Key performance indicators in airline industry: A comparison between Turkish Airlines, and its competitors

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: İstanbul Ticaret Üniversitesi, Sosyal Bilimler Enstitüsü, Türkiye

Tezin Onay Tarihi: 2022

Tezin Dili: İngilizce

Öğrenci: ZEYNEP ÖZDEMİR

Danışman: KÜÇÜKÇOLAK RECEP ALİ

Özet:

ABSTRACT Key Performance Indicators (KPIs) find the necessary criteria for the company to reach its strategic targets, and to increase the efficiency of the company by strengthening the company in the competitive environment. When using KPIs, it is important that all parties involved have a good understanding of their key ingredients. Features of KPIs, and how to select the main indicators of the company are important. In this study, KPIs have been investigated by using a balanced scorecard model in the aviation sector with the example of Turkish Airlines. The first part, the Concept of KPIs and Performance Measurement, Elements and Features of KPIs, and Balanced Scorecard Models are discussed. Second Part, Secondary data is used for obtaining information for creating balanced scorecard models for KPIs. Turkish Airlines is a good sample to check KPIs used in the aviation industry. As a result of the analysis of the information obtained, the availability of KPIs in aviation performance measurement has been observed with the example of Turkish Airlines. Consequently, Turkish Airlines has been compared to competitors and forward performance targets have been determined. Keywords: Key Performance Indicators, Performance Measurement, Key Performance Indicators in Aviation Sector ÖZET Anahtar Performans Göstergeleri (KPI), şirketlerin stratejik hedeflerine ulaşması ve rekabet ortamında güçlenerek verimliliğinin artırılması için gerekli kriterleri bulur. Temel performans göstergelerini kullanırken, ilgili tüm tarafların temel bileşenlerini iyi anlamaları önemlidir. Temel performans göstergelerinin özellikleri ve şirketlerin ana göstergelerinin nasıl seçeceği önem arz etmektedir. Bu çalışmada, Türk Hava Yolları örneği ile havacılık sektöründe Dengeli Karne modeli kullanılarak Anahtar Performans Göstergeleri (KPI) incelenmiştir. Birinci bölümde Temel Performans Göstergeleri ve Performans Ölçümü Kavramı, KPI'ların Unsurları ve Özellikleri ve Balanced Scorecard Modelleri tartışılmıştır. İkinci Bölümde, ikincil veriler kullanılarak KPI'lar için dengeli puan kartı modeli oluşturulmuştur. Türk Hava Yolları, havacılık endüstrisinde kullanılan KPI'ları kontrol etmek için iyi bir örnektir. Elde edilen bilgilerin analizi sonucunda havacılık performans ölçümünde KPI'ların kullanılabilirliği Türk Hava Yolları örneği ile gözlemlenmiştir. Sonuç olarak Türk Hava Yolları rakipleri ile karşılaştırılarak ileriye dönük performans hedefleri belirlenmiştir. Anahtar Kelimeler: Anahtar Performans Göstergeleri, Performans Ölçümü, Havacılık Sektöründe Anahtar Performans Göstergeleri TABLE OF CONTENTS Contents ABSTRACT. iii ÖZET . iv ACKNOWLEDGEMENT. v LIST OF TABLES . ix LIST OF FIGURES . x LIST OF ABBREVIATIONS AND ACRONYMS . xii 1. INTRODUCTION. 1 1. 1. Introduction . 1 1. 2. Background . 1 1. 3. Problem Statement . 1 1. 4. General Objective. 1 1. 5. Research Questions. 2 1. 6. Significance of the Study . 2 1. 7. Organization of the Paper. 2 2. LITERATURE REVIEW . 3 2. 1. Performance Measurement. 3 2. 2. KPIs. 6 2. 3. Elements of KPI . 8 2. 3. 1. Strategy. 9 2. 3. 2. Targets. 10 2. 3. 3. Ranges . 11 2. 3. 4. Encodings, and Thresholds. 11 2. 3. 5. Time Frames. 11 2. 3. 6. Benchmarks. 12 2. 4. Features of KPIs. 12 2. 4. 1. Sparse . 13 2. 4. 2. Drillable. 13 2. 4. 3. Simple. 14 2. 4. 4. Actionable. 14 2. 4. 5. Owned. 15 2. 4. 6. Referenced. 15 2. 4. 7. Correlated . 16 2. 4. 8. Balanced . 16 2. 4. 9. Aligned . 17 2. 4. 10. Validated. 17 2. 5. Reading KPIs. 18 2. 6. Types of KPIs . 19 2. 6. 1. Outcomes and Drivers. 19 2. 6. 2. Creating KPIs . 20 2. 6. 3. Operational KPIs . 20 2. 6. 4. Qualitative, and Quantitative KPIs. 20 2. 7. Creating KPIs. 22 2. 7. 1. Beginning of the Project. 22 2. 7. 2. During the Project. 25 2. 7. 3. After the Project. 29 3. BALANCED SCORECARD MODEL. 32 3. 1. Financial Perspective . 37 3. 2. Customer Perspective . 37 3. 3. Internal Business Process Perspective . 38 3. 4. Organizational Learning, and Growth Pespective . 39 4. ANALYZING THY WITH ITS COMPETITORS USING KPIs IN A BALANCED SCORECARD METHOD. 40 4. 1. Information About THY . 40 4. 2. Information About Competitors. 40 4. 2. 1. Deutsche Lufthansa AG. 40 4. 2. 2. Air France-KLM Group. 41 4. 2. 3. Southwest Airlines. 42 4. 2. 4. Research Method . 42 4. 3. Selected KPIs. 43 4. 3. 1. Financial Perspective KPIs. 43 4. 3. 2. Customer Perspective KPIs. 53 4. 3. 3. Internal Business Process Perspective KPIs. 60 4. 3. 4. Organizational Learning, and Growth Perspective. 65 5. CONCLUSION & FINDINGS. 76 5. 1. Limitations . 76 5. 2. Discussion . 77 5. 2. Recommendation. 79 REFERENCES. 84