KPI (key performance indicators) is a measure of the productivity (efficiency and effectiveness) of company, structural unit, employees, project.
How does it work?
A formula is created that contains, in the form of variables, the basic components necessary for the normal functioning of the department, employee, or the entire business. Each component is assigned a weight (in percentage or in the form of points). Depending on the degree of execution, the variables take the form corresponding to the numbers. As a result, performance is calculated.
KPIs are developed for:
- provision of management control
- monitoring and further planning of activities
- analysis of the degree of execution of tasks, the process of their implementation, literacy in their formulation
- designing motivation systems, assessing the performance of employees
KPI is partially standardized reporting in operational management.
When formulating KPI, we always learn the desired result, take into account the specifics of the organizational structure and management methods, the features of the industry and the company's size. After development, our specialists train the performance managers of the client to work with KPI. We can also take part in the implementation of KPI and analysis of the data obtained with their help.