As a business manager you’re responsible for ensuring your staff maximise their work capacity, ensuring jobs are undertaken with efficiency. There’s an old adage ‘If you can’t measure it, you can’t manage it’ but what are the indicators for measuring good performance?
KPI’s – Key Performance Indicators
The most commonly used indicators are Job KPIs or Key Performance Indicators.
KPI’s are a metric used to evaluate success in each organisation, and they will be different for many businesses.
What can KPI’s measure?
There can be a range of measurements for each business – these could be based around financial performance such as revenue for the period, or improvement in profit margins - perhaps linking to improvement in efficiency from the team.
It can also measure softer issues that revolve around customer satisfaction or employee engagement or other factors important to the success of your business.
So how do KPIs help the staff?
KPI’s help each staff member understand their role and what’s required of them. By having KPI’s for each team member linking back to the KPI’s of your broader organisation, each staff member understands how their achievements fit within the organisation and contribute to its success.
Measurement of KPIs should be done regularly, as this will help keep the team on track and allow you to adjust KPI’s as needed for both individual team members and your company as a whole.
PJT has developed several KPI tools which we’re happy to share and work through with you. If you need help in developing effective KPI metrics that contribute towards your success, contact your business adviser at PJT today.