Tuesday, April 6, 2010

KPIs



KPI must be key to organizational success. used in the right way, they're a performance management tool that gives everyone in the organization a clear picture of what's important, and what they need to make happen. Use a Performance Challenge and Team Charter tool if required to flush out the mission statement for the team, and goals into objectives and deliverables.

Team leader KPIs are more aligned towards the objectives, while the crew down the ranks can teeter more towards the deliverables. again, they're long term measures not short term wins.

If implemented correctly, KPIs also allows stretch targets placed on individuals (e.g. meeting a specific level of SLA within a timeframe from an overall team) driving change and improving your team. just make sure you map the right KPIs to the right performer (e.g. star performer, workhorse, etc).

KPIs helps an organization define and measure progress towards organizational goals an cascade down with each employee one rung below supporting their superior's KPI. "rolled into one". At the very top, its all revenues and figures, EBITDA and company bottomline.

by setting your overall KPIs to support your boss, we make sure that the overall year strategy or company mission is aligned to the same direction.

And KPIs should be set between 3-5. anymore, and we've lost the employer's attention and focus. In addition, it is important to distinguish that these are not your job descriptions/BAU. they're indicators that measure your progress and success in the overall organizations goals. meaning if good KPIs are drawn, by satisfying the objectives of those indicators you'd have met the critical success factors of the organization.

KPIs are generally:
* long term
* reflect the organizations goals
* quantifiable

On the last point, we need to employ the SMART methodology. Specific, Measurable, Agreed, Realitic and Timely to each KPI.

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