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KPI Presentation-Final - For Distribution

The document discusses key performance indicators (KPIs) and goal setting for organizations. It provides examples of KPIs for different roles like HR manager, finance, IT, and at the organizational level. It explains what KPIs are and why organizations need them. Different types of KPIs are described based on the area of function, measurement type, contribution type and balanced scorecard perspectives. Guidelines are given for developing KPIs, creating a KPI culture, deciding on a framework, analyzing and reporting. The document also discusses goals and creating SMART goals. It provides a template for creating a KPI table for an HR manager with key result areas, KPIs, weights, targets, actual results and a

Uploaded by

Rakib Hossain
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© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
455 views

KPI Presentation-Final - For Distribution

The document discusses key performance indicators (KPIs) and goal setting for organizations. It provides examples of KPIs for different roles like HR manager, finance, IT, and at the organizational level. It explains what KPIs are and why organizations need them. Different types of KPIs are described based on the area of function, measurement type, contribution type and balanced scorecard perspectives. Guidelines are given for developing KPIs, creating a KPI culture, deciding on a framework, analyzing and reporting. The document also discusses goals and creating SMART goals. It provides a template for creating a KPI table for an HR manager with key result areas, KPIs, weights, targets, actual results and a

Uploaded by

Rakib Hossain
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 13

1/3/2016

Sharing Session on
Designing JD, KPI & GOAL
Job Description: Insights & In-depth

Facilitated by
WARD

Job Description: Insights


What is the Role
What you need to do

Job Description: Insights


What are the hazards
What is the reporting relationship

What are the challenges


In which environment you will work
What tools/ machines you need to operate

What are the KPIs


What is the status of authority and responsibility

1/3/2016

Job Description: In-depth


Level of Importance of tasks
Time [yearly average] spending for every tasks
Identification of Strategic/ Operational/ Supportive

Relation with KBO/ KRA


Functional Standard
Assessment Methods

Concept & Practice: Indicator

Why every org need KPI

Means: Measurement factor/ areas


Time factor: within this month/ this week/ year etc
Quality / quantity standard: 10/15/ 0% error/ 1 % error/ 1 crore etc
Cost
Profitability
Sales Volume
Retention
Engagement
Learning

1/3/2016

Making KPIs work in your org

Making KPIs work in your organization

KPIs development should consider the correct balance of the three


stakeholders

Create KPI
culture

Decide on
the right
KPI
Framework

Develop
Right KPIs

Types of KPI

Types of KPI

As per contribution type:

As per Area / stage of function:

Strategic
Operational

Analyze
and Report

Process
Input
Output
Lagging
Leading
Outcome

1/3/2016

Types of KPI
Process KPIs - measure the efficiency or productivity
of a business process.
Examples - Days to deliver an order.

Output KPIs measure the financial and


nonfinancial results of business activities.
Examples - Revenues, Number of new customers
acquired.

Input KPIs - measure assets and resources invested in


or used to generate business results.
Examples - Dollars spent on research and development,
Funding for employee training, Quality of raw materials.

Leading KPI measure activities that have a


significant effect on future performance.
Drive the performance of the outcome measure,
being predictor of success or failure.

Lagging KPI is a type of indicator that reflect the


success or failure after an event has been consumed.
Such as most financial KPIs, measure the output of past
activity.
Outcome KPI - Reflects overall results or impact of the
business activity in terms of generated benefits, as a
quantification of performance.
Examples are customer retention, brand awareness.

Types of KPI
As per measurement type:
Qualitative
Quantitative

1/3/2016

Qualitative KPI - A descriptive characteristic, an


opinion, a property or a trait.
Examples are employee satisfaction through surveys
which gives a qualitative report.
Quantitative KPI - A measurable characteristic,
resulted by counting, adding, or averaging numbers.
Quantitative data is most common in measurement and
therefore forms the backbone of most KPIs.
Examples are Units per man-hour.

Types of KPI
As per Function [based on Balanced Scorecard:
Financial
Internal Business Process/ Operational
Customer
Learning & Growth

Initiatives

Targets

Initiatives

Targets

Measuring and
understanding your
financial performance

Initiatives

C an w e
c o n t in u e to
im p r o v e a n d
c r e a t e v a lu e ?

Measures

L E A R N IN G a nd
GROW TH

Targets

W h at m u s t
w e e x c e l a t?

Measures

V is io n
and
S tra te g y

Objective

IN T E R N A L B U S I N E S S
PRO CESS

Objective

Initiatives

Targets

Measures

H ow do ou r
c u s to m e r s
see us?

Objective

CUSTOM ER

Measures

F IN A N C I A L
H ow do w e
lo o k t o
s h a r e h o ld e r s ?

Objective

A Balanced Scorecard Perspective on Performance

1/3/2016

Assessing Your Financial KPIs


Revenue
& profit
Liquidity
& cash
flow
Share
holder
Value

Measuring and
understanding your
operational
performance

Financial
efficiency

Assessing Your Operational KPIs

Efficiency &
quality

Measuring and
Understanding Your
Customers

1/3/2016

Assessing Your Customer KPIs

Customer
satisfaction
& loyalty

Market Share

Measuring and
understanding your
employees

Assessing Your Employee KPIs


Employee
engagement
Talent
retention

Measuring and
understanding your
internal processes

1/3/2016

KPI Example: Organizations KPI


Quality Index
Process Downtime
Process completion time

KPI Example: Finance & Accounts


Application of Budget and Budgetery Control
Lapses of Lead time for different support service
Initiatives for risk mitigation
% of Cost Reduction
% of Skill development of departmental employees
Meeting Reporting Deadline for different authority

EPS
Amount of Profit/ % of increasing Profit
% of Cost Reduction
Level of Job satisfaction
Level of Customer Service
% of reduction of Cost of Fund
% of reduction of NPL
% Increase of Market Share

KPI Example: IT
% of Automation of Core Fnctions
Lapses of Lead time for different support service
% of failure of Data Recovery
% of failure to meet the compliance of regulatory requirement
Awarness of employees regarding IT risk issues
Initiatives for risk mitigation
Development program for employees regarding IT uses
% of Cost Reduction
% of Skill development of departmental employees
Meeting Reporting Deadline for different authority

1/3/2016

KPI Example: HR
1. Goal and goal setting
Lead time for KPI design, Goal Setting for every employees
Lead time for Recruitment & Placement
Timely submission of Quarterly KPI acheivement report
Training duration per year for every employee
Launching Automation for HR & Admin function
No of Policies reviewed as per Industry Practice and Competitiveness
Lapses of Lead time for different support service
Employee Retention Rate
% of Cost Reduction
% of Skill development of departmental employees
Meeting Reporting Deadline for different authority
% of accident regarding Health & Safety

Goals: Insights

A good Goal must be

Goals can be set as:


Absolute: Such as increase by seven
Proportional or percentage: Such as increase by 4%

Goals should be defined:


Relative to internal benchmarks: Such as Exceed last
years results
Relative to external benchmarks: Such as Exceed
competitor X
Relative to global best practice: Such as Become as
good as X

(Specific)

(Measurable)

(Achievable)

(Relevant)

(Time phased)

1/3/2016

Examples of SMART Goals


Goal
The production team will achieve a 10%
reduction in re-work within 6 months
comparing to last year.
We will achieve market share growth.
Reduce transport costs
Increase our market share in 2008 by 3% over
2007 level.

SMART (Y/N)?
Yes

No
No
Yes

Let us utilize the learning

Job Description

Job Description

Conduct Selection interview


Ensure the right person for the right position at
right time
Ensure the proper orientation and placement
Ensure regular guidance
Conduct Training for the employees
Execute proper performance management
system in the organization

Ensure employee retention


Ensure proper output from every employee
Assist (if required) to execute compensation
program
Maintain employee database
Analyze attendance report
Maintain leave record

10

1/3/2016

Template : KPI Table for HR Manager

Template : KPI Table for HR Manager


Key result areas are the main goals
that HR manager needs to
accomplish. In this sample, we have
four key result areas.

Template : KPI Table for HR Manager

Template : KPI Table for HR Manager

Key performance indicators are


measurable indicators used to
evaluate your performance level
Every Key Result Areas must
have at least one KPI.
Total number of KPIs shoud be 8
10 items.

Weight of each KPI should


be defined.
Weight of KPI is
determined based on the
scale of priority. Total
weight should be 100.

11

1/3/2016

Template : KPI Table for HR Manager

Template : KPI Table for HR Manager


Targets are defined
based on historical
data and future
expectations.
Targets can be
percentage,
number, or score
depending on the
type of KPIs.

Template : KPI Table for HR Manager

Actual is the actual results. Or


target achievements.
We should develop reporting
system to capture these results.

Template : KPI Table for HR Manager

Formula to calculate score :


Actual / Target x 100 (for KPI
Maximize, the higher the better)
or
Target / Actual x 100 (KPI
Minimize; the lower the better).

12

1/3/2016

Template : KPI Table for HR Manager

Template : KPI Table for HR Manager

Formula to obtain Final Score


= Score x Weight /100

Template : KPI Table for HR Manager

Thanks for being with US


Final Score is used to determine bonus
allocation, salary increase, and promotion.

13

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