Key performance indicators (KPIs for short) are now the heart and soul of any successful performance management improvement programme. The KPI is today’s currency for what has been called goals, targets, achievement levels and probably a range of other designations in the past. It doesn’t matter what you call it as long as senior executives practice setting and monitoring KPIs for their staff. Why? Well almost every study has confirmed that those businesses where KPIs are set for staff, do better than those where no goals are set. Remember the old adage “if you can’t measure it you can’t manage it”.
So if you are not in the KPI business, what should you do? Firstly decide what targets you want to set the business, making sure they are reasonably achievable with effort. Then look at what each department would need to do and achieve in order for the collective effort of all departments to ensure the business as a whole meets its KPIs. This will require sitting down with each member of staff, looking at their input and output requirements needed to enable the department to meet its KPIs. Usually each member of staff would be set between 3 and 5 key KPIs which would be regularly monitored and where necessary corrective action taken to overcome expected shortfall in good time to get back on track.
One of the most useful and successful methods used to set KPIs is known as SMART working. Where ‘S’ stands for specific [the KPI is well defined]; ‘M’ stands for measurable [so that one can determine how close to completing or completed]; ‘A’ stands for attainable [there is agreement between the person being given the goal and his or her manager that the goal can realistically be achieved], ‘R’ stands for relevant [achievement will add value to both individual and corporate performance] and ‘T’ stands for timely [a time limit is set for goal achievement and that time limit is realistic]. Follow this recipe and you should improve the KPIs you set.
A final word of caution – watch out for staff who cheat with the KPIs by manipulating figures, blaming others for holding them back, or after failing on an agreed KPI attempting to explain that another measure is more relevant. You can normally counter this by holding regular reviews and therefore staying on top of things
Dr Hugh Billot, Deputy Chairman
HR GO Group of Recruitment Companies
HR GO Recruitment offers solutions to all your staffing needs, temporary and permanent, please call 0845 130 7000
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