ключевые показатели эффективности персонала компании, цели и внедрение, плюсы и минусы, этапы создания системы

Ключевые показатели эффективности – термин, которым в современном менеджменте обозначают показатели деятельности команды (или отдельного подразделения), используемые для достижения определённых бизнес-целей. Для понимания, что такое KPI, достаточно представить подобную структуру в виде модели, позволяющей всесторонне контролировать деловую активность персонала и всей компании в целом. Другими словами можно сказать, что речь идёт о неком наборе инструментов, позволяющих измерять поставленные цели в бизнесе, а также контролировать меры их достижения.

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1. KPI: ключевые показатели эффективности
   1. KPI персонала
      1. KPI компании
         1. KPI: мотивация
            1. Цели KPI
               1. Внедрение KPI
                  1. Плюсы и минусы работы в системе KPI
                     1. Этапы создания системы KPI
                        1. Требования к KPI
                           1. Автоматизация KPI

                              KPI: ключевые показатели эффективности

                              Наиболее распространённый русскоязычный вариант термина KPI– ключевые показатели эффективности (обычно применяется соответствующая аббревиатура). Грамотное использование подобных индексов позволяет руководству компании или предприятия объективно оценить состояние и разработать дальнейшую внутреннюю политику развития. В свою очередь, все существующие КПЭ можно условно разделить на две группы:

                              • опережающие – открывающие широкие возможности для управления на протяжении конкретного отчётного периода;
                              • запаздывающие – демонстрирующие реальные итоги деятельности по истечении отчётного периода (в частности, сюда можно отнести финансовые результаты деятельности).

                              KPI персонала

                              В управлении предприятием существует такое понятие, как KPI персонала. Как становится понятным из названия, им обозначают КПЭ, при помощи которого измеряется и контролируется рабочая и бизнес-активность сотрудников организации. С данным термином тесно связаны другие понятия – в том числе мотивация работников, а также оценка их эффективности. Как правило, реализация такого механизма в бизнесе имеет большую ценность для бизнес-развития, поскольку она помогает наилучшим образом понять, что нужно сделать для повышения общей эффективности команды.

                              KPI компании

                              В свою очередь, KPI компании отражает объективный коэффициент всего предприятия (включая ключевые индексы отдельных подразделений, входящих в его структуру). При этом такая система в большинстве случаев не является для фирмы чем-то новаторским, незнакомым или непривычным: её компоненты входят во многие другие инструменты и технологии менеджмента и активно используются управленцами на практике. Считается, что с помощью КПЭ удобнее всего анализировать деловые процессы на примере организаций, работающих в сфере торговли (в частности розничных продаж в крупных сетях).

                              KPI: мотивация

                              Как уже было сказано, понятия KPI – мотивация неразрывно связаны между собой. Мотивация персонала по КПЭ предусматривает постановку таких стратегических и практических целей, которые в итоге приведут к росту общей эффективности компании. При этом очень важно, чтобы требования были поставлены в ограниченном количестве, чётко разъяснены и привязаны к величине заработной платы и премии. Другими словами говоря, размер дохода сотрудников должен быть привязан и прямо пропорционален степени выполнения поставленных целей (финансовая мотивация). На сегодняшний день существует несколько разных подходов к денежной мотивации: BalancedScorecard, EVA, функциональные КПЭ и пр.

                              Цели KPI

                              Основная цель KPI предприятия заключается в том, чтобы КПЭ каждого отдельного сотрудника соотносилось с суммарными результатами подразделения и всей компании (к последним, в числе прочих, можно отнести капитализацию и рентабельность). Действия работников при этом не должны противоречить друг другу или тормозить рабочий процесс. Обычно программа предусматривает постановку сразу нескольких целей – например, сюда можно отнести выполнение финансового плана, оптимизацию найма на работу персонала, повышение степени удовлетворённости заказчиков, рост эффективности обучения, увеличение лояльности персонала.

                              Внедрение KPI

                              Эксперты обращают внимание на то, что внедрение KPI на предприятии ни в коем случае не должно быть одномоментным. Процедура осуществляется на протяжении достаточно длительного отрезка времени и включает несколько этапов. Что касается конкретных механизмов внедрения, то их выбор будет зависеть в первую очередь от сферы деятельности, в которой работает (или планирует работать в будущем) такая организация. Среди первостепенных задач – определение целей, сбор фактических данных и построение оптимальных стратегий, в соответствии с которыми будет внедряться в дальнейшем КПЭ-система.

                              Плюсы и минусы работы в системе KPI

                              Анализируя основные плюсы и минусы работы в системе KPI, можно выделить следующие моменты. В числе ключевых достоинств методики – распределение персональной ответственности между работниками, привязка размера денежных бонусов к уровню выполнения индивидуальных показателей, а также наглядная демонстрация вклада, вносимого каждым человеком в достижение общих целей. Есть и некоторые спорные моменты. Так, в числе минусов можно упомянуть иногда включаемые в стратегию недостижимые коэффициенты, способные серьёзно демотивировать участников и уменьшить интерес к работе в таком формате. Кроме того, недоработки одного департамента могут привести к снижению денежных бонусов для всех сотрудников.

                              Этапы создания системы KPI

                              Выделяют несколько этапов разработки и внедрения КПЭ-программы. Основные этапы создания системы KPI выглядят следующим образом.

                              1. Подготовительный (предварительный) этап, включающий работы по планированию и проведение необходимых исследований.
                              2. Разработка методологии (включая создание методической модели и модели управления на основе КПЭ).
                              3. Работа над инфосистемой (разработка техзадания, программирование, обучение, опытное использование).
                              4. Завершающий этап, в который входят окончательное построение и доработка структуры, а также координация действий всех участников.

                              Требования к KPI

                              В числе основных требований к KPI – простота и доступность для каждого участника, реальная достижимость показателей (при этом они не должны достигаться чересчур легко), наличие дополнительной мотивации. Индексы-коэффициенты должны легко исчисляться и рассчитываться. Для каждой группы составляются свои индивидуальные показатели – так, для отдела продаж они будут одними, в то время как для HR, бухгалтерии или производственного отдела – совершенно иными. Каждый коэффициент при этом должен быть определён с максимальной чёткостью, прозрачностью и точностью.

                              Автоматизация KPI

                              Для реализации КПЭ-систем в бизнес-практике используется специализированное программное обеспечение, позволяющее легко рассчитывать показатели. Автоматизация KPI с использованием специального софта даёт возможность автоматически накапливать все необходимые данные, распределять их по отдельным работникам/подразделениям, а также быстро вычислять степень выполнения, размеры премий и прочих денежных бонусов. Как результат – сокращаются трудозатраты на администрирование систем оплаты, а сам процесс отнимает гораздо меньше ресурсов (в т.ч. финансовых и временных).

                              Примеры KPI

                              «Все KPI являются метриками, но не все метрики являются KPI». Это может показаться неоднозначным, но мы объясним, что именно это означает и почему для вашего бизнеса важно, чтобы вы понимали это различие.

                               

                              Для целей этого обсуждения мы просто определим метрику как что-либо в бизнесе, которое можно измерить, набор информации или данных, связанных с элементом, процессом или результатом. Вы можете измерить все, что хотите, в качестве метрики, но произвольное измерение не даст ценной информации о производительности бизнеса, процесса, продукта или человека. Метрика сама по себе – это просто захваченное число, которое представляет информацию о бизнес-функции, ей нужно больше рамок вокруг нее, чтобы она была полезна для инициатив по улучшению.

                               

                              Ключевой показатель эффективности – это показатель с контекстом, то, как показатель применяется конкретно к вашему бизнесу или отрасли, который имеет решающее значение для операций. Например, метрикой могут быть продажи, доход, количество клиентов, дни болезни сотрудников или любые данные, которые, по мнению компании, могут быть полезны при прогнозировании. Следующим шагом является определение того, как выбранная метрика связана с вашим бизнесом, и, если важно отслеживать, именно так простые метрики становятся важными KPI.

                               

                              Ниже приведены две метрики, которые мы обсудим и превратим в ключевые показатели эффективности:

                              1. Количество Карандашей
                              2. Количество банковских счетов

                              Метрики могут показаться очень простыми, но с небольшим изменением даже самый незначительный показатель может стать критическим. Давайте рассмотрим, как KPI отличается от метрики, а затем преобразуем вышеуказанные метрики в KPI. Но сначала давайте углубимся в детали о KPI.

                               

                              Ключевой показатель эффективности имеет много отличительных черт по сравнению с одним показателем. Одним из примеров является то, что KPI, как правило, представляют собой комбинацию из двух или более измерений, таких как «доход за квартал», которые освещают конкретные результаты с целью оценки этих показателей с течением времени. Различия между показателями и KPI не ограничиваются этим: показатели не имеют фокуса, сроков и не имеют приоритетов.

                               

                              Другие определяющие характеристики KPI включают в себя:

                              1. KPI является обязательным и имеет ключевое значение для основной бизнес-стратегии
                              2. KPI является предметом бизнес-проблемы, которая требует внимания, исправления или корректировки.
                              3. KPI – это сочетание показателей
                              4. KPI основан на времени, например, ежедневно, ежемесячно или ежегодно
                              5. KPI является «ключевым» и имеет приоритет над другими измерениями
                              6. KPI, которые компания выбирает для измерения, могут со временем меняться по мере изменения потребностей бизнеса

                              Основные показатели эффективности помогают этому простому метрику помочь в принятии решений, давая вам знать, прогрессируете ли вы в достижении ваших заранее определенных целей или нет, и в какой степени. Метрики, подобные двум перечисленным выше, могут превратиться в ключевые показатели эффективности, как только вы поместите их в контекст вашей отрасли, организации, отделов и т. Д. И добавите знаменатель. Вот почему KPI часто представлены в процентах и ​​соотношениях, используя знаменатель, чтобы нормализовать и внести контекст в то, насколько хорошо что-то или кто-то выполняет.

                               

                              Теперь давайте рассмотрим наши предыдущие два примера метрик, добавим некоторый контекст и знаменатель, чтобы показать, как сделать KPI из базовых метрик.

                              90000 What is a Key Performance Indicator (KPI)? 90001 90002 Key Performance Indicators (KPIs) 90003 are the critical (key) indicators of progress toward an intended result. KPIs provides a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. As Peter Drucker famously said, «What gets measured gets done.» 90004 Managing with the use of KPIs includes setting 90002 targets 90003 (the desired level of performance) and tracking progress against that target.Managing with KPIs often means working to improve 90002 leading indicators 90003 that will later drive lagging benefits. Leading indicators are precursors of future success; 90002 lagging indicators 90003 show how successful the organization was at achieving results in the past. 90011 90012 Good KPIs: 90013 90014 90015 90016 Provide objective evidence of progress towards achieving a desired result 90017 90015 90016 Measure what is intended to be measured to help inform better decision making 90017 90015 90016 Offer a comparison that gauges the degree of performance change over time 90017 90015 90016 Can track efficiency, effectiveness, quality, timeliness, governance, compliance, behaviors, economics, project performance, personnel performance or resource utilization 90017 90015 90016 Are balanced between leading and lagging indicators 90017 90030 90004 90002 Terminology Example: 90003 Let’s say someone wants to use KPIs to help them lose weight.Their actual weight is a 90002 lagging indicator, 90003 as it indicates past success, 90002 90003 and the number of calories they eat per day is a 90002 leading indicator, 90003 as it predicts future success. If the person weighs 250 lbs / 113 kg (a historical trend is called a 90002 baseline 90003), and a person they would like to emulate is 185 lbs / 84 kg (comparison research is called 90002 benchmarking 90003), they might set an 1,700 calorie-per-day 90002 target 90003 (desired level of performance) 90002 90003 for the leading KPI in order to reach their lagging KPI target of 185 lbs / 84 kg by the end of a year.90011 90004 The relative business intelligence value of a set of measurements is greatly improved when the organization understands how various metrics are used and how different types of measures contribute to the picture of how the organization is doing. KPIs can be categorized into several different types: 90011 90004 90011 90014 90015 90002 Inputs 90003 measure attributes (amount, type, quality) of resources consumed in processes that produce outputs 90017 90015 90002 Process 90003 or activity measures focus on how the efficiency, quality, or consistency of specific processes used to produce a specific output; they can also measure controls on that process, such as the tools / equipment used or process training 90017 90015 90002 Outputs 90003 are result measures that indicate how much work is done and define what is produced 90017 90015 90002 Outcomes 90003 focus on accomplishments or impacts, and are classified as Intermediate Outcomes, such as customer brand awareness (a direct result of, say, marketing or communications outputs), or End Outcomes, such as customer retention or sales (that are driven by the increased brand awareness) 90017 90015 90002 Project 90003 measures answer questions about the status of deliverables and milestone progress related to important projects or initiatives 90017 90030 90004 90002 Terminology Example: 90003 Let’s say my business provides coffee for catered events.Some 90002 inputs 90003 include the coffee (suppliers, quality, storage, etc.), the water, and time (in hours or employee costs) that my business invests. My 90002 process 90003 measures could relate to coffee making procedure or equipment efficiency or consistency. 90002 Outputs 90003 would focus on the coffee itself (taste, temperature, strength, style, presentation, accessories, etc.). And desired 90002 outcomes 90003 would likely focus on customer satisfaction and sales. 90002 Project 90003 measures would focus on the deliverables from any major improvement projects or initiatives, such as a new marketing campaign.90011 .90000 What is a KPI? Definition, Best-Practices, and Examples 90001 90002 6. Using KPIs as part of your performance management frameworks 90003 90004 The most common elements between most 90005 performance management frameworks 90006 are setting objectives, measuring performance, and managing all related activities. 90007 90004 According to classic old adage, Goodhart’s Law, «any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.»90007 90004 Charles Goodhart was an economist in 1975 whose research was used in helping criticize government decision making processes, specifically with regards to monetary policy. This concept was then made mainstream by Marilyn Strathern, «when a measure becomes a target, it ceases to be a good measure.» 90007 90004 A performance indicator or key performance indicator is just one type of performance measurement. There are many performance management frameworks that are both similar yet different.Each of these frameworks brings forward elements that can be pulled together to help drive success backed by data. Let’s dig in. 90007 90014 Step 1: Aligning Business Strategy 90015 90004 A popular theme in startups these days is the One Metric That Matters (OMTM). The key takeaway from this simple, yet extremely powerful tool is that you have to have a thorough understanding of your business model in order to hone in on that metrics and get the entire organization aligned. 90007 90004 Many will argue that sales is the most important metric when it comes to measuring the success of a business.The challenge with this metric is the measured outcome. 90007 90004 Ask yourself: What is the one metric that would help drive more sales? 90007 90004 One answer to this question could be tracking the number of customers who have integrated your product with 3 other applications. This measure would be indicative of level of engagement, and their probability of churning would likely be reduced. 90007 90004 The reason being that once customers are locked in, they churn less which then creates the right unit economics for the company to grow.So in this case instead of looking at sales numbers, we would only count a customer if, and only if, they connected with 3 apps. 90007 90004 This is merely an example, and does not mean that there is only one metric you should care about! This framework helps with keeping everyone focused on the one thing they should care about 90005 90028 most 90029 90006. 90007 90014 Step 2: Cover all of your bases 90015 90004 With business comes trade offs. 90007 90004 You have probably heard the saying, «You can have cheap, good, or fast.But you can only pick 2 «. 90007 Let’s start with a classic framework that helps to navigate these trade offs. The Balanced Scorecard (BSC) helps you break down the key areas of your business (perspectives) where activities need to be monitored. 90004 The four perspectives that need to be in balance are: 90007 90040 90041 Financial Perspective 90042 90041 Customer Perspective 90042 90041 Internal Business Process Perspective 90042 90041 Learning and Growth Perspective 90042 90049 90004 These four key areas of your business are intertwined and all must be aligned.When one is impacted, there is impact on another, in other words, there will be a trade off. 90007 90014 Step 3: Putting your BSC strategy framework into action with OKRs 90015 90004 The Balanced Scorecard (BSC) strategy suggests that for each perspective you develop objectives, measures (KPIs), set targets (goals), and initiatives (actions). A more recent framework that is getting popularized is the OKR Framework. Popularized by its use at Google, the OKR (objectives and key results) framework is used to define and track objectives and their outcomes.Many would argue that this framework sits in between a KPI strategy and the Balanced Scorecard approach. 90007 90004 OKRs are used as a performance tool that sets, communicates, and monitors goals in an organization so that all employees are focused in the same direction. The system encourages employee success through clear work objectives and desired key results. The beauty of the system is that it provides a simple, practical, and straightforward framework for defining, tracking, and measuring goals, both as something to aspire to and as something that can be measured.90007 90014 Step 4: Monitoring with a KPI Dashboard 90015 90004 A KPI dashboard provides you with an at-a-glance view of your business performance in real-time so you can get a better picture on how the entire organization is doing. 90007 90004 Common terms found in these frameworks that are worth understanding include: 90007 90004 90005 Key risk indicator (KRI) 90006: a measure used in management to indicate how risky an activity is. Key risk indicators are metrics monitored by organizations to provide an early warning of increasing risk exposures in various areas of the business.90007 90004 90005 Critical success factor (CSF) 90006: is a management term for an element that is necessary for an organization to achieve its mission. Critical success factors should not be confused with success criteria. Success criteria is most commonly used in project management to determine if the project was a success or not. Success criteria are defined with the objectives and can be quantified by using KPIs. 90007 90004 90005 Performance metrics 90006: measure an organization’s behavior, activities, and performance at the individual level and not organizational level.For example, an individual who works in a call centre may have performance metrics such as Number of Calls Answered, Average Wait Time, Number of Successful Calls Processed, and Average Length of Call. 90007 90076 Creating good KPIs for your organization is an iterative process. 90077 90014 10 criterion to consider when designing key performance measures 90015 90004 Consider this list of criteria when building out your 90005 key business performance measurement systems: 90006 90007 90040 90041 Be based on quantities that can be influenced, or controlled, by the user alone or in cooperation with others 90042 90041 Be objective and not based on opinion 90042 90041 Be derived from strategy and focus on improvement 90042 90041 Be clearly defined and simple to understand 90042 90041 Be relevant with an explicit purpose 90042 90041 Be consistent (in that they maintain their significance as time goes by) 90042 90041 Be specific and relate to specific goals / targets 90042 90041 Be precise — be exact about what is being measured 90042 90041 Provide timely and accurate feedback 90042 90041 Reflect the «business process» — i.e. both the supplier and customer should be involved in the definition of the measure 90042 90049 90014 Let’s use Tesla as an example 90015 90004 90005 Step 1 90006: Tesla’s One Metric that Matters is number of new cars delivered per quarter. This is a hot topic for investors to measure their success. 90007 90004 90005 Step 2 90006: To build as many cars as possible, while still maintaining quality, Tesla needs to balance their core assets from their balance scorecard.90007 90004 Financially: They may make the decision that delivery of cars is more important than profit in cars. 90007 90004 Customers: Customers have submitted their orders and are waiting for their delivery, the longer it takes the less excited and more likely they will cancel. So keeping customers happy is extremely important. 90007 90004 90005 Step 3 90006: Now that we have set some objectives with KPIs we need to set key results 90007 90004 One KR for customers that is a standard measure in supply chains could be: Deliver performance (DP) is set at 90% measured as the fulfillment of a customer promised delivery date.90007 90004 90005 Step 4 90006: Using a KPI Dashboard to monitor key results 90007 90004 Dashboards often provide at-a-glance views of KPIs relevant to a particular objective or business process. 90007 .90000 What is a Key Performance Indicator (KPI)? Explanation and Examples 90001 90002 Deploying KPI Templates 90003 90004 Templates can provide a good starting point when beginning to implement KPIs. As they show a collection of working examples they offer inspiration and a base on which to build, customize and deploy. Here are some examples of some commonly used templates: 90005 90006 Manufacturing Template 90007 90004 A set of 18 KPIs aimed at the manufacturing and engineering industries.These Manufacturing KPIs help track and monitor performance such as production costs, Labor costs, production losses and cycle times. These KPIs offer a best practice approach to manufacturing process tracking. 90005 90010 90011 Actual Production Cost 90012 90011 Actual Production Time 90012 90011 Availability OEE 90012 90011 Average cycle time — ACT 90012 90011 Cycle Time Ratio — CTR 90012 90011 Labor cost per unit 90012 90011 Labor Costs 90012 90011 Number of Days 90012 90011 Number of units unfinished 90012 90011 Potential Production Time 90012 90031 90004 Explore this Manufacturing KPI Template 90005 90006 Financial Template 90007 90004 A selection of 11 financially focused KPIs.This template is designed to track financial KPIs such as Disputed Invoices, Net Profit Margin, EBIT, Revenue and working capital. This template offers a base set of financial metrics and KPIs commonly used in organizations to help with the bottom line and drive sales growth. 90005 90010 90011 Cost of goods / Services 90012 90011 Disputed Invoices 90012 90011 EBIT 90012 90011 Gross Profit Margin 90012 90011 Net Profit 90012 90011 Net Profit Margin 90012 90011 Number of Employees 90012 90011 Overdue Invoices 90012 90011 Revenue 90012 90011 Revenue per employee 90012 90031 90004 Explore this Financial KPI Template 90005 90006 Human Resources Template 90007 90004 16 Human Resource focused KPIs designed to assist with various aspects of managing employees such as Cost per hire, Health Care Costs and HR Expenses.90005 90010 90011 Absence Rate 90012 90011 Agency Fees 90012 90011 Average number of employees this month. 90012 90011 Days taken to hire 90012 90011 HR Advertising Costs 90012 90011 HR Expense Factor 90012 90011 HR Expenses 90012 90011 Number of days absent in a month 90012 90011 Number of Hires 90012 90011 Number of Workdays 90012 90031 90004 Explore this Human Resources KPI Template 90005 90006 Retail Template 90007 90004 16 Retail focused KPIs to help all facets of retail outlet performance across multiple industries.This template assists in monitoring Retail KPIs and business metrics such as cost of goods, Gross Margin, Retail Price and Net Sales. 90005 90010 90011 Average Basket Spend 90012 90011 Average Shopping Time 90012 90011 Cost of Goods 90012 90011 Customer Retention 90012 90011 Fixed Cost Per period 90012 90011 Gross Margin 90012 90011 Gross Sales 90012 90011 Net Sales 90012 90011 Offline Sales 90012 90011 Online Purchases 90012 90031 90004 Explore this Retail KPI Template 90005 90004 Discover 10 more KPI Templates 90005 .90000 How to Define and Track your Key Performance Indicators (KPIs) 90001 90002 Key Performance Indicators are one of the 90003 most important tools a business has at its disposal 90004. While the premise has existed for a long time, it is only with the advent of the Internet that its full potential has been realized. This is particularly the case in measuring online engagements, such as sales or customer acquisition. From free tools, such as Google Analytics, to highly complex software, there are 90003 many different types of KPIs measuring immensely diverse metrics.90004 90007 90008 What Are Key Performance Indicators (KPI)? 90009 90002 KPI, or Key Performance Indicators, are performance metrics that measure specific goals for businesses across all sectors. Sometimes referred to as KSI (Key Success Indicators), when designed and implemented properly they can define the direction of a business, provide essential feedback and help organize individuals, teams, projects or entire businesses to optimize performance. 90007 90002 KPI, or Key Performance Indicators, are performance metrics that measure specific goals for businesses across all sectors.90007 90002 A common theme throughout this article will be pointing out 90003 how KPIs differ vastly in how they are designed and what they measure. 90004 This is crucial to understanding their effectiveness and how they should be implemented and read. For example, high indicators might measure the overall performance of an E-commerce business (profits), while low indicators might measure sales of a specific product or output of a specific department. 90007 90002 In other words, KPIs can be helpful for departments, employees, managers, processes and even customer support teams.90007 90002 Common things Key Performance Indicators might track are: 90007 90022 90023 90003 Revenue 90004 (including average profits, total revenue, and new customers) 90026 90023 90003 Employment statistics 90004 (Including employee turnover, employee performance, and vacancies) 90026 90023 90003 Customer service 90004 (Including average call time, efficiency and customer satisfaction) 90026 90023 90003 Marketing 90004 (Including sales generation and overall effectiveness) 90026 90023 90003 Efficiency 90004 (Including overall efficiency, departmental processes and individual efficiency) 90026 90043 90008 How Do You Calculate a KPI? 90009 90002 Knowing how to measure a KPI is a matter of 90003 defining specific goals from the outset 90004.A startup is likely to be more interested in tracking how many new customers are being brought to the business than an established public company, who might be more focused on tracking share price and profit. 90007 90002 The most common tool for tracking KPIs is web analytics. 90003 Google Analytics is able to track a myriad of data 90004, from website performance to new subscribers, to sales. The issue with such hard data, however, is that sometimes the metric that requires tracking is often somewhat intangible, or at least a lot more open to individual interpretation.This may also become harder to measure when dealing with aspects of customer satisfaction. Typically, these types of metrics will require more than one Key Performance Indicator, but it is important not to get carried away, as too much data can confuse things. As ever, 90003 focusing on the right KPI is vital 90004, typically by designing them with a narrower scope. 90007 90002 One of the most important ways of tracking metrics through KPIs is related to presentation. Google Analytics is a perfect example of how to present, what can be quite complex data, in a clear way.Visualizations that can provide deep insights, for example, are a far better way of getting across the important data than dense presentations that provides no interactivity. 90003 This becomes particularly important when dealing with multiple KPIs. 90004 90007 90002 Visualizations that can provide deep insights are a far better way of getting across the important data than dense presentations. 90007 90002 It should be noted that KPIs require constant evaluation to ensure they remain relevant and focused on the important parts of the business that need tracking.90007 90008 How Do You Define a KPI? 90009 90002 So what makes a KPI effective? How do you define a KPI and cultivate metrics that provide insightful and easily acted upon information? While it is true that KPIs differ from sector to sector, in fact 90003, competitors with many of the same needs might differ wildly in their use of KPIs depending on philosophy and strategy 90004, a good place to start would be common use within a specific industry. 90007 90002 From here it is essential to define your goals, where you might need to increase efficiency for example, before delving into the specifics of a KPI.This may take some time, but the better the research, the more likely the KPI will harvest insightful results. 90007 90002 90003 It is also very important to set goals that are achievable. 90004 KPIs are about focused data, not setting ambitious targets that can skew performance away from cohesive strategies. 90007 90002 One of the most effective ways of evaluating the effectiveness and appropriateness of a KPI is the SMART criteria. 90003 SMART stands for Specific, Measurable, Attainable, Relevant, Time-Bound: 90004 90007 90022 90023 How SPECIFIC is the goal? 90026 90023 Is it clearly MEASURABLE? 90026 90023 How ATTAINABLE is it?> 90026 90023 Is it RELEVANT to the business? 90026 90023 What Is the TIME Frame to achieve the objective? 90026 90043 90092 Source 90002 Once all these criteria have been met, a KPI can be properly designed and implemented with confidence.However, it will need monitoring and some tinkering may be necessary once the KPI has been fully integrated. 90007 90008 The Types Of KPI 90009 90002 As KPIs can be employed to measure deeply diverse metrics across a myriad of sectors and processes, types of KPI differ wildly in how they are designed and implemented. The core purpose might remain the same, to provide concise data on various aspects of a business, but the similarities often end there. 90007 90002 Three of the most common types of KPIs are for: 90007 90101 90003 Companies 90004 90104 90002 Although company KPIs might sound rather broad in its ambitions, they can be, and in fact typically should be, focused on specific areas of company performance.For customer metrics, these can be as diverse as 90003 acquisition, lifetime value of customers, retention and customer loyalty. 90004 90007 90002 On the employee side, KPIs are often used to measure certain business goals, performance (including measuring the strengths of specific employees). 90003 Well-being is increasingly an important issue 90004 and is related 90003 employee retention rates 90004, both of which can also be perfectly gauged with the right tools. 90007 90002 90007 90101 90003 Teams 90004 90104 90002 KPIs for marketing requires vastly different insights than KPIs for sales, as is the case for human resources, or any other department you can think.For this reason, Key Performance Indicators for teams are one of the most varied of all its types. 90007 90002 A financial team will likely be tracking 90003 revenue, expenses, profit, and cash flows 90004. A sales team 90003 customer capture, average deal size or revenue targets 90004. These two departments, of course, have some degree of crossover, but a customer support team, with its customer satisfaction focus, might want to measure the 90003 results of surveys or caller wait times 90004, a very different set of metrics.90007 90002 Marketing groups often require some of the most complex KPIs, with 90003 generated sales and brand awareness at the heart of their focus. 90004 This might include Google Analytic KPIs with its in-depth conversion rate data (the percentage of visitors who have taken the desired action, such as sales or subscriptions). 90007 90002 Human Resources (HR) teams again have a less easily defined set of metrics to measure, such as the previously mentioned 90003 employee happiness and turnover 90004.They may also measure how long it takes to fill a position and the number of responses to a given vacancy. 90007 90002 90140 90007 90101 90003 Projects 90004 90104 90002 Measuring the value of a project is key to understanding how successful it is in a broad sense, which aspects are working well, which aspects are underperforming and how to cultivate fruitful and realistic goals. 90003 The first thing that needs to be defined for a project is its goals, and this will define the KPI from the outset.90004 90007 90002 An E-Commerce KPI might be employed to measure the success of a revamped website, for example, all well presented in a Google Analytics KPI control panel. KPIs for websites are, in fact, the most numerous, with 90003 lead generation, sessions, bounce rates, e-commerce conversion rates, and sales 90004 all concisely presented on the platform. 90007 90002 It should be noted that employing too many KPIs for any aspect of a business can dilute its focus and confuse matters greatly.This is where careful preplanning and clearly defined goals can help. 90007 90008 KPIs vs OKRs 90009 90002 90003 A new variant on KPIs is OKRs (Objectives and Key Results). 90004 In recent years these have become increasingly popular, partly due to Google apparently using them to great effect. There is much overlap between the two, but the main difference is in their ambition. OKRs are not defined as obtainable goals based on previous data, rather they are ambitious goals with clearly defined steps outlined to achieve that goal.They should not be seen as unreachable targets, but motivational ones. 90007 90002 OKRs are not defined as obtainable goals based on previous data, rather they are ambitious goals with clearly defined steps outlined to achieve that goal. They should not be seen as unreachable targets, but motivational ones. 90007 90002 It would be wrong to compare the usefulness of KPIs and OKRs as they are designed with different outlooks on goals, 90003 but a good rule of thumb would be KPIs assess clear goals based on previous data.OKRs, on the other hand, are better implemented for entirely new goals that require a broader vision. 90004 90007 90008 Some KPI Templates 90009 90002 90003 KPIs are only as successful as the template and interface they present. 90004 As previously mentioned, these are typically unique to the types of data they are measuring. 90007 90002 Website KPI examples tend to be well encapsulated by Google Analytics, with its drill-down data on broad, but related, topics such as conversion rates and returning visitors.One of the traps that businesses often fall into is what is often referred to as 90003 vanity metrics 90004. This is where a superficial reading of positive data, such as a growing number of visitors, is seen as success alone. As ever with Google KPI examples, it is essential to drill down further to fully ascertain what these numbers mean. For example, are these visitors the right type of visitor the business is looking for? 90007 90002 90179 90007 90002 Social media KPI examples are also well designed and defined by in-depth on-site analytics.Twitter, for example, has a very effective template that offers the type of drill-down data that Google provides. Combined with other software, these can offer great insights regarding customer reach, acquisition and brand awareness. 90007 90183.