Key Performance Indicators (KPIs) have become the standard term that organisations use to define goals and objectives that ensure employees are achieving. Analysts describe KPIs as the business metrics that drive a business forward. But what does that men to individuals and how
do you know if you’re on target?
When starting a new job, it’s vital to get your KPIs down on paper, especially if the success of your probation period is dependant on achieving them.
What are KPI’s?
Many of you will know where you want to be in one, two, five or more years. You may want to move into management, become the head of department or set up your own business, for example. And you may already have a plan in place to help you achieve your goal so that you know what you need to do and how to get there.
Businesses are exactly the same.
A business will also have short, mid and long-term objectives and will put measures, or KPIs, in place to achieve these goals. Therefore, as part of the company, the meaures that you are given as an employee are designed to reflect the organisation’s overall goals, to help them get to where they want to go.
For example, they may want to be viewed as one of the best call centres in their region. So your individual KPI may be to reduce call-waiting times by 20 per cent by answering 80 per cent of all telephone calls within the first 30 seconds.
To make them effective, each KPIs should be SMART:
Specific – a well defined goal that is clearly understood by everyone.
Measurable – can you track your progress towards the goal?
Agreed - both employer and employee must agree on what the goals are.
Realistic - can you achieve the goal with the resources provided?
Time related - will there be enough time to complete the task?
How do you know if you are on target? This form of management by objectives is popular with many business leaders because it enables organisations to measure results in terms of sales, profits, margins and productivity.
Once you and your manager have agreed what you will try to achieve in the period ahead, regular one-to-one discussions should follow whereby you will both review your performance and ensure that you are on course for achieving your objective on time.
This will involve comparing your previous performance to your current level and taking steps to keep you on track.
Love them or hate them, KPI’s are here to stay. And, because your KPI’s are
aligned to the goals of your company, there is the sense of responsibility and ownership that you are an influencing factor in the fortunes of your organisation.
When starting a new job, it’s vital to get your KPIs down on paper, especially if the success of your probation period is dependant on achieving them.
What are KPI’s?
Many of you will know where you want to be in one, two, five or more years. You may want to move into management, become the head of department or set up your own business, for example. And you may already have a plan in place to help you achieve your goal so that you know what you need to do and how to get there.
Businesses are exactly the same.
A business will also have short, mid and long-term objectives and will put measures, or KPIs, in place to achieve these goals. Therefore, as part of the company, the meaures that you are given as an employee are designed to reflect the organisation’s overall goals, to help them get to where they want to go.
For example, they may want to be viewed as one of the best call centres in their region. So your individual KPI may be to reduce call-waiting times by 20 per cent by answering 80 per cent of all telephone calls within the first 30 seconds.
To make them effective, each KPIs should be SMART:
Specific – a well defined goal that is clearly understood by everyone.
Measurable – can you track your progress towards the goal?
Agreed - both employer and employee must agree on what the goals are.
Realistic - can you achieve the goal with the resources provided?
Time related - will there be enough time to complete the task?
How do you know if you are on target? This form of management by objectives is popular with many business leaders because it enables organisations to measure results in terms of sales, profits, margins and productivity.
Once you and your manager have agreed what you will try to achieve in the period ahead, regular one-to-one discussions should follow whereby you will both review your performance and ensure that you are on course for achieving your objective on time.
This will involve comparing your previous performance to your current level and taking steps to keep you on track.
Love them or hate them, KPI’s are here to stay. And, because your KPI’s are
aligned to the goals of your company, there is the sense of responsibility and ownership that you are an influencing factor in the fortunes of your organisation.
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