Implementation of KPI: principles, preparation, stages
Posted: Sat Feb 01, 2025 7:07 am
Why is it necessary? Implementation of KPI involves the development and implementation of a system of performance indicators for the company's employees. Their activities are assessed according to them and the variable part of the salary is formed.
How to develop? KPIs allow you to increase labor productivity, motivate employees to achieve the organization's goals. To implement the system, collect information about business processes, select the optimal key indicators.
The article explains:
Objectives of KPI implementation
Benefits of implementing KPIs
Key principles of KPI implementation
Preparing for KPI implementation
Stages of implementation of the KPI system
Calculation of wages when implementing KPI
Problems of KPI implementation
6 services for automating KPI implementation
Common Mistakes When Implementing KPIs
Frequently asked questions about KPI implementation
5 Scenarios for Using Neural Networks to Increase Website Profits by 40%
Download for free
Objectives of KPI implementation
KPI (from English key performance namibia email list indicators) are key indicators that can be used to measure the performance of employees and departments of a company. They provide a quantitative assessment of the results of the enterprise's activities. In other words, you get an accurate idea of the results achieved in the work of an employee or department, such as the number of applications accepted, sales volume, etc.
Unlike standard planning, the implementation of KPI is aimed at determining the contribution of each individual employee to the fulfillment of the tasks set for the business. Due to this, it is possible to constantly monitor the state of affairs in the company.
Objectives of KPI implementation
Source: shutterstock.com
How does the development and implementation of KPIs take place? First, the key indicators used are selected in accordance with the company's strategy. A set of metrics is formed for each employee, by which their achievements will be assessed. Depending on whether the employee has fulfilled the plan within the established deadline, he is paid a bonus or a fine is assessed.
A well-established KPI system in an organization contributes to:
Clarification of the salary calculation procedure. The employee has a good idea of the expected salary amount and the results required to receive it. When assigning bonuses, the achievements of employees are always taken into account.
Simplifying control over the activities of departments. Based on the metric values, the manager can immediately determine how effectively subordinates work.
Identifying problem areas of the business. If the staff does not perform their work well, they should be trained to improve their skills.
Streamlining work processes. Evaluation criteria are formed for individual operations. Departments are aware of their functions and role in business development.
It is impossible to implement KPI in one day. In order for the system to bring real benefits, it is necessary to understand the current business processes, define goals and develop a strategy.
How to develop? KPIs allow you to increase labor productivity, motivate employees to achieve the organization's goals. To implement the system, collect information about business processes, select the optimal key indicators.
The article explains:
Objectives of KPI implementation
Benefits of implementing KPIs
Key principles of KPI implementation
Preparing for KPI implementation
Stages of implementation of the KPI system
Calculation of wages when implementing KPI
Problems of KPI implementation
6 services for automating KPI implementation
Common Mistakes When Implementing KPIs
Frequently asked questions about KPI implementation
5 Scenarios for Using Neural Networks to Increase Website Profits by 40%
Download for free
Objectives of KPI implementation
KPI (from English key performance namibia email list indicators) are key indicators that can be used to measure the performance of employees and departments of a company. They provide a quantitative assessment of the results of the enterprise's activities. In other words, you get an accurate idea of the results achieved in the work of an employee or department, such as the number of applications accepted, sales volume, etc.
Unlike standard planning, the implementation of KPI is aimed at determining the contribution of each individual employee to the fulfillment of the tasks set for the business. Due to this, it is possible to constantly monitor the state of affairs in the company.
Objectives of KPI implementation
Source: shutterstock.com
How does the development and implementation of KPIs take place? First, the key indicators used are selected in accordance with the company's strategy. A set of metrics is formed for each employee, by which their achievements will be assessed. Depending on whether the employee has fulfilled the plan within the established deadline, he is paid a bonus or a fine is assessed.
A well-established KPI system in an organization contributes to:
Clarification of the salary calculation procedure. The employee has a good idea of the expected salary amount and the results required to receive it. When assigning bonuses, the achievements of employees are always taken into account.
Simplifying control over the activities of departments. Based on the metric values, the manager can immediately determine how effectively subordinates work.
Identifying problem areas of the business. If the staff does not perform their work well, they should be trained to improve their skills.
Streamlining work processes. Evaluation criteria are formed for individual operations. Departments are aware of their functions and role in business development.
It is impossible to implement KPI in one day. In order for the system to bring real benefits, it is necessary to understand the current business processes, define goals and develop a strategy.