Post on 23-Jan-2015
description
EFFECTIVE KPIS: 6 COMMON PROBLEMS IN
TARGET SETTING Based onhttp://www.bscdesigner.com/6-problems-in-target-setting.htm
By Levi Newman
PERFORMANCE MANAGEMENT IS BASED HEAVILY IN KPIS
BSC DESIGNER
PERFORMANCE MANAGEMENT IS BASED HEAVILY IN KPIS
• It’s one of the most difficult tasks for any manager.
BSC DESIGNER
PERFORMANCE MANAGEMENT IS BASED HEAVILY IN KPIS
• It’s one of the most difficult tasks for any manager.
• It’s a key factor in helping a small business grow into a big business.
BSC DESIGNER
PERFORMANCE MANAGEMENT IS BASED HEAVILY IN KPIS
• It’s one of the most difficult tasks for any manager.
• It’s a key factor in helping a small business grow into a big business.
• It helps all businesses maintain structural integrity and efficiency.
CLEAR OBJECTIVES HELP TRACKING POSITIVE CHANGE
BSC DESIGNER
CLEAR OBJECTIVES HELP TRACKING POSITIVE CHANGE
6 problems in target setting
BSC DESIGNER
6 PROBLEMS IN TARGET SETTING
1Goals based on the
wrong performance
measures
BSC DESIGNER
6 PROBLEMS IN TARGET SETTING
2Goals are based
on past performance
BSC DESIGNER
6 PROBLEMS IN TARGET SETTING
3 Unrealistic expectations
BSC DESIGNER
6 PROBLEMS IN TARGET SETTING
4Placing all
expectations on financial goals
BSC DESIGNER
6 PROBLEMS IN TARGET SETTING
5Using ineffective
data analysis programs
BSC DESIGNER
6 PROBLEMS IN TARGET SETTING
6 No agreement on action plans
BSC DESIGNER
CLEAR OBJECTIVES HELP TRACKING POSITIVE CHANGE
• It goes without saying that without clearly defined KPIs you’re setting your employees and company up for failure.
BSC DESIGNER
CLEAR OBJECTIVES HELP TRACKING POSITIVE CHANGE
• It goes without saying that without clearly defined KPIs you’re setting your employees and company up for failure.
• That’s why managers should understand that goals that align with a company’s overall strategy benefit everyone equally.
BSC DESIGNER
CLEAR OBJECTIVES HELP TRACKING POSITIVE CHANGE
• The only way to reach these goals, other than what’s been mentioned, is to continually measure and analyze the results.
BSC DESIGNER
CLEAR OBJECTIVES HELP TRACKING POSITIVE CHANGE
• The only way to reach these goals, other than what’s been mentioned, is to continually measure and analyze the results.
• This critical link ensures that what they’re doing on a daily basis matches the needs of the company.
AN EMPLOYEE’S EXPECTATIONS MIRROR THE STRATEGIC GOALS OF A BUSINESS
BSC DESIGNER
FOR BUSINESS
• Long-Term Vision -- to increase direct sales through demonstrator support
BSC DESIGNER
FOR BUSINESS
• Long-Term Vision -- to increase direct sales through demonstrator support
• Current Objective -- put more demonstrators in front of potential customers through hosted parties and workshops
BSC DESIGNER
FOR BUSINESS
• Long-Term Vision -- to increase direct sales through demonstrator support
• Current Objective -- put more demonstrators in front of potential customers through hosted parties and workshops
• Key Performance Indicator -- Measure amount of new parties hosted parallel to past analytics (volume and sales)
AN EXAMPLE
IN BSC DESIGNER
BSC DESIGNER
DEMONSTRATOR GOALS FOR EMPLOYEE
• Hold two extra parties per 30 day period.
BSC DESIGNER
DEMONSTRATOR GOALS FOR EMPLOYEE
• Hold two extra parties per 30 day period. • Increase sales by 10 percent per party hosted.
BSC DESIGNER
KEY PERFORMANCE INDICATOR FOR EMPLOYEE
• Performance will be measured at the end of every month by immediate supervisor.
• Results will determine what can be done to improve, what’s working, and what can be done to improve areas for other employees.
HOW TO DEFINE EFFECTIVE KPIS
BSC DESIGNER
HOW TO DEFINE EFFECTIVE KPIS
• First understand the objectives of your company, the abilities of your employees, and the ways in which you can make a strategy into a reality.
BSC DESIGNER
HOW TO DEFINE EFFECTIVE KPIS
• First understand the objectives of your company, the abilities of your employees, and the ways in which you can make a strategy into a reality.
• That’s why you must first be able to answer what the overall vision for the future should look like, and how it can be accomplished.
BSC DESIGNER
HOW TO DEFINE EFFECTIVE KPIS
• First understand the objectives of your company, the abilities of your employees, and the ways in which you can make a strategy into a reality.
• That’s why you must first be able to answer what the overall vision for the future should look like, and how it can be accomplished.
• You have to remain flexible to the fact that objectives can and do change, so you don’t want to remain too static when it comes to developing a strategic direction.
BSC DESIGNER
AN EMPLOYEE’S EXPECTATIONS MIRROR THE STRATEGIC GOALS
• Above all, you should remember that measuring these results is critical to long-term success.
BSC DESIGNER
AN EMPLOYEE’S EXPECTATIONS MIRROR THE STRATEGIC GOALS
• Above all, you should remember that measuring these results is critical to long-term success.
• Just because something is currently working, doesn’t mean it’ll will continue to work in the future.
BSC DESIGNER
AN EMPLOYEE’S EXPECTATIONS MIRROR THE STRATEGIC GOALS
• Above all, you should remember that measuring these results is critical to long-term success.
• Just because something is currently working, doesn’t mean it’ll will continue to work in the future.
• Being able to help your employees adapt to changes in the business climate will not only help you build trust within your workforce, it’ll ensure that they’re keeping up with the evolving strategy.
KPIS IN BSC DESIGNER
BSC DESIGNER
KPIS IN BSC DESIGNER
• BSC Designer actually supports the Business Scorecard framework, which is consistently one of the most popular tools for executing a business strategy.
BSC DESIGNER
KPIS IN BSC DESIGNER
• BSC Designer actually supports the Business Scorecard framework, which is consistently one of the most popular tools for executing a business strategy.
• And not only is it a strategy map, BSC Designer can visualize business processes and KPIs and act as a base for strategy discussions, performance reviews, or as a presentation of your strategic ideas.
BSC DESIGNER
KPIS IN BSC DESIGNER
• BSC Designer actually supports the Business Scorecard framework, which is consistently one of the most popular tools for executing a business strategy.
• And not only is it a strategy map, BSC Designer can visualize business processes and KPIs and act as a base for strategy discussions, performance reviews, or as a presentation of your strategic ideas.
• In layman’s terms, it can see the “big picture” of your strategy, and give you the tools to measure your plans success.
BSC DESIGNER
KPIS IN BSC DESIGNER
• BSC Designer can indicate which metrics adhere to your vision and strategy, and which are inconsequential to your success.
BSC DESIGNER
KPIS IN BSC DESIGNER
• BSC Designer can indicate which metrics adhere to your vision and strategy, and which are inconsequential to your success.
• It can measure and give benchmarks along your goal’s path.
BSC DESIGNER
KPIS IN BSC DESIGNER
• BSC Designer can indicate which metrics adhere to your vision and strategy, and which are inconsequential to your success.
• It can measure and give benchmarks along your goal’s path.
• It can even help you determine which metrics could be manipulated in a negative way, so that you can better define or monitor changing strategies.
REINFORCE YOUR SYSTEM WITH REWARD KPIS
BSC DESIGNER
REINFORCE YOUR SYSTEM WITH REWARD KPIS
• Standard setting is an important factor in a business’s success and an employee’s personal development, but is a reward system.
BSC DESIGNER
REINFORCE YOUR SYSTEM WITH REWARD KPIS
• Standard setting is an important factor in a business’s success and an employee’s personal development, but is a reward system.
• Reinforce your employees’ efforts by established recognition practices that are directly tied to the original KPIs that were set.
BSC DESIGNER
MORE ABOUT THE BALANCED SCORECARD
Find more insightful articles about the Balanced Scorecard in ”Articles” section at www.bscdesigner.com
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THANK YOU!
Feel free to send us your questions using the contact form at www.bscdesigner.com