It is worth considering that KPI is not just a tool for assessing work efficiency. Let's consider some other functions of the system:
Process optimization
The KPI system displays the business processes occurring within the company and those responsible for performing various tasks.
Identifies weaknesses and potential for growth
This method allows you to quickly identify which areas need improvement. This helps the company's management adjust processes, saving time and resources.
Staff motivation
With the help of the KPI system, the ukraine email list manager can set priorities and determine which tasks are most important at the moment. This helps employees better understand their responsibilities, which in turn helps them achieve their goals faster.
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What is the difference between a KPI and a regular plan? The difference lies in what goals and objectives the manager puts into the system. If simple quantitative indicators are set, then this will be a regular plan. If it is necessary to designate qualitative achievements, then this can already be called a KPI.
It is also worth noting that the classic system of key performance indicators is closely linked to employee motivation. For example, the task of "increasing income from one lead by 10 rubles in February" is a plan. But if you add motivation in the form of a promise of a bonus for achieving the set goal, then this is already a KPI.
Another important nuance that distinguishes key indicators from a plan is the connection with the company's strategic goals. For example, a manager sets the sales department a KPI of "sell 200 units of goods." This is consistent with the global goal of earning 2 million rubles in a month. If employees are unable to sell the specified volume, this goal will not be achieved.
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Principles of building a KPI system for managers
When developing KPIs for managers, it is important to consider the following aspects:
Alignment with strategy
Each company has its own strategic goals for a certain period of time, which are broken down into specific tasks. The latter serve as a guide for the manager.
For example, if a company is aiming to take a leading position in the market, it will need to increase sales, expand the customer base, and adjust the marketing strategy. These goals will be taken into account when developing the manager's KPI.
Limited number of metrics
As a rule, an employee can effectively monitor no more than seven indicators at a time. This applies not only to personnel, but also to the manager.