Revising personnel management mechanisms and assessing labor productivity requires a lot of time and effort. It is best to start implementing KPIs from scratch immediately after opening a company or department, so that the team follows these principles from the very beginning.
However, what should an existing company do? In this case, it is necessary to gradually implement the KPI system at the enterprise, initially limited to one department. This process should be carried out in compliance with important principles:
Partnership. The management, personnel, and structural units of the company must join forces to achieve all the intended goals with the help of KPI.
Control and management. The head of the department must ensure that subordinates fulfill the plan, for which it is necessary to provide funds and determine the work order.
Correspondence of KPI indicators namibia email list to the adopted strategy. It is necessary that each employee understands the main goals of the business and takes responsibility for their achievement.
Sufficiency and balance. Indicators are introduced primarily to control the activities of employees and divisions of the company, and therefore should cover various areas. Assess the level of customer service, the duration of production stages, cash receipts.
Address affiliation. Make sure that the value of the selected indicator directly depends on the employee's actions, for example, the volume of sales depends on the efficiency of the sales manager, but the quality of the product does not.
Ease of measurement. Each indicator should have a clear and distinct definition and be expressed in numbers or percentages, such as the number of new customers.
Openness to change. Be prepared to make adjustments once you have analyzed the KPIs and drawn conclusions.
Objectivity and comparability. When comparing, you need to take completely similar indicators, for example, you cannot compare several stores that are similar in assortment, but are located in rural areas and in the city.
Employees are usually not interested in innovations. This should be taken into account and gradually convince the team of the need to use the KPI system. Tell them how it will benefit ordinary employees, and they will stop worrying and start working harder.