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, staff, 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 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.
Usually, employees do not show interest 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.
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Preparing for KPI implementation
Start by setting a goal – how the paytm data package introduction of key indicators can positively affect the results of your activities. Then choose the best option for switching to the KPI system. To do this, you can either turn to experts or use your own resources.
In the first case, your costs increase, but the implementation of indicators is faster. Independent experts support management, inform staff and find ways to increase motivation.
When implementing KPIs independently, the manager is directly responsible for the results obtained. To solve this problem, it is important to draw up a detailed plan for the transition to a new system for evaluating labor efficiency.
You also need to meet certain requirements:
Select responsible persons. An external project coordinator or department heads are suitable for this role.
Notify senior management. The KPI system must be supported by everyone, otherwise the rank and file will not appreciate its importance.
Identify success factors. When developing a KPI system, focus on the key objectives of your enterprise.
Form a project group. Involve specialists from different fields in the process.
Maintain the old methods. The procedure for assessing business efficiency should not be subject to radical changes at once. Organize a smooth transition to KPIs, even if it takes several months.
Provide access to production indicators. It is important for process participants to understand the goals they face and see current results. Create a database or connect a CRM system to work with clients.
Know how to work with reporting. The final indicators should be carefully studied. Problems with plan implementation do not always indicate poor training or low staff efficiency. Probably, the KPI system itself needs to be improved.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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