Very often, the problem arises when you need to define how to measure the goals to be achieved. Second problem its how to monitor the progress of the actions taken, and whether the company is heading in the right direction. Working with KPIs (Key Performance Indicators) is no longer just the domain of corporations. Indicators dedicated to their needs can be created in every company, and their role is often underestimated. A fundamental question arises here – to measure KPIs or not to measure them?
KPI what is it?
Key performance indicators are fundamental tools that support and are important for decision-making by managers at all levels. They objectively inform whether their department, line, factory, and therefore the entire company, is moving smoothly in the right direction. Moreover whether the set goals are not blurred. A properly matched set of indicators allows you to determine the level of effectiveness of the areas covered by the analysis. Simultaneously they indicate those that require support and optimization.
It is important that the indicators are not just points for which you can receive a bonus or lose it. This approach clearly shows that the organization has not learned its lesson in building its DNA. Making bonuses solely dependent on results can not only lead to an unhealthy atmosphere in the organization. Also to the creation of silos, lack of communication and failure to solve problems. As a consequence, costs increase in all areas.
Measure KPIs – how to do it?
The selection of indicators should result from the Mission, Vision and Strategic Goals of the Organization. High levels confirm that the company is coherent, knows and understands perfectly what its goal is and where it is heading. Employees who properly understand the need to monitor processes are willing to cooperate and solve problems.
It is not a problem to describe several dozen designs on paper and submit them for reporting. The questions you need to ask yourself are:
➡️What will this give us?
➡️What added value will I have if I know the value of a given measure?
➡️How often do I need to measure something?
➡️Are my processes adapted to perform such measurements?
➡️Do employees understand the purpose of the changes?
And many others which, if we ask ourselves correctly and respond to them, will be a signpost allowing us to prepare the organization for changes. This, in turn, will translate into proper implementation, maintenance and improvement of KPIs.