Develop Personal KPI and Some Examples - 0 views

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  #1 Eduardo Ewing on 24 May 12

   

  Thirdly, it has KPIs that monitor the results of critically important steps in the business process, the in-process drivers of its outputs.
  
  If Earnings is a strategic KPI for an organisation, then the invoicing process has a big impact. A process output associated with invoicing that impacts Earnings is timely payment of invoices, which might be scored by Debtor Days or even Percentage Invoices Paid On time. A critical step inside invoicing process that impacts on-time payment is itemising your invoice. If that's not necessarily done accurately, the invoice likely won't receive cash. So an in-process KPI could be Percentage Invoices With Errors.
  
  The third type of alignment may be to Business Units...
  
  Enterprises that don't yet know very well what its business processes are not ready to align KPIs together with performance measures to techniques. So instead they'll format their KPIs to sections, or the departments or even functional areas demarcated by way of the organisational structure.
  
  When KPIs are aligned to sections, it's similar to aligning these phones processes: the business unit offers KPIs that monitor the most important performance results that it exists to obtain, as well as KPIs that will monitor its greatest influence to get the results the organisation exists to achieve.
  
  If it's the Recruiting department, their performance outcomes might include fast recruitment associated with staff into vacant postures, staff have all the skills required of their roles, and - given a strategic priority to boost organisational culture - staff are fully engaged along with the organisation's purpose. If the HR department's KPIs and performance measures are designed to monitor those performance results - and any other results that support these - then their KPIs are generally aligned.
  
  But there are a few things NOT to align KPIs with...
  
  All too often people will look for KPIs before they figure out what the performance results are that matter. Measures for measurement's sake can be a waste of time and effort and attention. If your rationale with regard to deciding to measure something is you've got some available data, or an industry benchmarking report, or a list of KPIs related to your functional area you downloaded from a KPI database, hit the brakes.
  
  The common underlying theme for any sort of KPI alignment is you align your KPIs with deliberately chosen performance outcomes. Spend time working out the performance results to align KPIs with, before you worry about what the KPIs themselves are going to be.
  
  The power of getting KPIs, and the power of getting those KPIs aligned along with the organisation's strategic direction, is that it pulls everyone and every process within the organisation together, so you spend the least amount of time and effort to achieve its goals and complete its purpose.
  
  TAKE ACTION: The tool I use with my clients to make it tonnes easier to help align KPIs to strategy and business processes or business units is the PuMP Outcomes Mapping tool. Its power is in the manner it puts a waffly weasely tactic into plain English end result statements, and shows the position of these results from top to bottom. Then, when you pattern measures or KPIs for these results, your actions are automatically aligned as well.
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  The Japanese people have taught businessmen a lot of things including the kaizen philosophy. key performance indicator

   

  <div class="cArrow"> </div><div class="cContentInner">Thirdly, it has KPIs that monitor the results of critically important steps in the business process, the in-process drivers of its outputs. <br /> <br /> If Earnings is a strategic KPI for an organisation, then the invoicing process has a big impact. A process output associated with invoicing that impacts Earnings is timely payment of invoices, which might be scored by Debtor Days or even Percentage Invoices Paid On time. A critical step inside invoicing process that impacts on-time payment is itemising your invoice. If that's not necessarily done accurately, the invoice likely won't receive cash. So an in-process KPI could be Percentage Invoices With Errors. <br /> <br /> <strong> The third type of alignment may be to Business Units... </strong> <br /> <br /> Enterprises that don't yet know very well what its business processes are not ready to align KPIs together with performance measures to techniques. So instead they'll format their KPIs to sections, or the departments or even functional areas demarcated by way of the organisational structure. <br /> <br /> When KPIs are aligned to sections, it's similar to aligning these phones processes: the business unit offers KPIs that monitor the most important performance results that it exists to obtain, as well as KPIs that will monitor its greatest influence to get the results the organisation exists to achieve. <br /> <br /> If it's the Recruiting department, their performance outcomes might include fast recruitment associated with staff into vacant postures, staff have all the skills required of their roles, and - given a strategic priority to boost organisational culture - staff are fully engaged along with the organisation's purpose. If the HR department's KPIs and performance measures are designed to monitor those performance results - and any other results that support these - then their KPIs are generally aligned. <br /> <br /> <strong> But there are a few things NOT to align KPIs with... </strong> <br /> <br /> All too often people will look for KPIs before they figure out what the performance results are that matter. Measures for measurement's sake can be a waste of time and effort and attention. If your rationale with regard to deciding to measure something is you've got some available data, or an industry benchmarking report, or a list of KPIs related to your functional area you downloaded from a KPI database, hit the brakes. <br /> <br /> The common underlying theme for any sort of KPI alignment is you align your KPIs with deliberately chosen performance outcomes. Spend time working out the performance results to align KPIs with, before you worry about what the KPIs themselves are going to be. <br /> <br /> The power of getting KPIs, and the power of getting those KPIs aligned along with the organisation's strategic direction, is that it pulls everyone and every process within the organisation together, so you spend the least amount of time and effort to achieve its goals and complete its purpose. <br /> <br /> <strong> TAKE ACTION: </strong> The tool I use with my clients to make it tonnes easier to help align KPIs to strategy and business processes or business units is the PuMP Outcomes Mapping tool. Its power is in the manner it puts a waffly weasely tactic into plain English end result statements, and shows the position of these results from top to bottom. Then, when you pattern measures or KPIs for these results, your actions are automatically aligned as well. <br />.<br />The Japanese people have taught businessmen a lot of things including the kaizen philosophy. <a rel="nofollow" href="http://kpistandard.com/">key performance indicator</a></div>

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