Key Performance Indicators (KPIs) are essential because they come directly from the company's goals. As a rule, KPIs are unique for every company, specific and do not depend on industry averages or KPIs of your competitors.
KPI Main Parameters:
1. Depends on Goals
Setting KPIs that connected tight with your company goals is more productive than relying on your industry standard ones. Let's compare two goals: "plan team building meetings" and "offer more training programs". Both come from inner culture needs, they are both targeted to employees. But, as an example, KPIs of the first would compare data from teamleaders' reports and HR surveys, and training programs' KPIs would include the amount programs offered and taken.
2. Must Be Measurable
Analyzing KPIs over time will allow you to make changes to enhance website performance, reevaluate it and track the progress. As objectives come from goals, as goals come from the overall vision, KPIs have to be measurable, otherwise it wouldn't let you to track "performance".
Let's "slice" one example, how organizational and individual KPIs can be attached organizational strategy:
Company vision - To be recognizable for our great client service and satisfaction.
Company objective - To decrease the number of dissatisfied clients by 25%.
Overall KPI - The amount of client complaints that left unsolved at the end of a week.
Employee objective - To improve the number of complaint resolutions by 18%.
Every employee goal should have at least one related KPI. How can you understand, on a weekly basis, whether this employee is meeting his job-related objectives, or not?
So, employee KPI – The weekly % difference in complaints managed that improved clients satisfaction.
3. Ongoing Process
KPIs are ongoing metrics created to help with strategic planning. It's also important to have targeted goals to achieve success. But be aware that if something can be measured, it doesn't mean it's a Key Performance Indicator. So, you have to determine your KPIs and track them continuously. Only in this case you will see the real progress and real numbers.
4. Accepted by Management
Having the acceptance and readiness of all your managers is important, because heads of different departments will set KPIs together. If your KPIs are coming from your company objectives, then it's important for all levels of your company to stick to the plan. Make sure that everyone knows company's KPIs, and takes an individual part in reaching them.
Do you set KPIs in your company? Do you know your KPIs as an employee?