KPI Presentation-final - For Distribution

8/19/2019 KPI Presentation-final - For Distribution

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Sharing Session onDesigning JD, KPI & GOAL

Facilitated by

WARD

Job Description: Insights & In-depth

Job Description: Insights

What is the Role

What you need to do

What are the challenges

In which environment you will work

What tools/ machines you need to operate

Job Description: Insights

What are the hazards

What is the reporting relationship

What are the KPIs

What is the status of authority and responsibility


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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

• 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

Why every org need KPI


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Making KPIs work in your org

• KPIs development should consider the correct balance of the threestakeholders

Making KPIs work in your organization

Create KPIculture

Decide onthe right

KPIFramework

DevelopRight KPIs

Analyzeand Report

Types of KPI

•As per contribution type:

•Strategic

•Operational

Types of KPI

• As per Area / stage of function:

• Process

• Input

• Output

• Lagging

• Leading

• Outcome


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Types of KPI

• Process KPIs - measure the efficiency or productivityof a business process.

• Examples - Days to deliver an order.

• Input KPIs - measure assets and resources invested inor used to generate business results.

• Examples - Dollars spent on research and development,Funding for employee training, Quality of raw materials.

• Output KPIs - measure the financial and

nonfinancial results of business activities.• Examples - Revenues, Number of new customersacquired.

• Leading KPI measure activities that have asignificant 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 thesuccess 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 aquantification of performance.

• Examples are customer retention, brand awareness.

Types of KPI

•As per measurement type:

•Qualitative

•Quantitative


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• 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 andtherefore 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

A Balanced Scorecard Perspective on Performance

O b j e c t i v e

M e a s u r e s

T a r g e t s

I n i t i a t i v e sC U S T O M E R

H o w d o o u r

c u s t o m e r ss e e u s ?

O b j e c t i v e

M e a s u r e s

T a r g e t s

I n i t i a t i v e s

L E A R N I N G a n d

G R O W T H

C a n w ec o n t i n u e t o

i m p r o v e a n dc r e a t e v a l u e ?

O b j e c t i v e

M e a s u r e s

T a r g e t s

I n i t i a t i v e sF I N A N C I A L

H o w d o w el o o k t o

s h a r e h o l d e r s ?

O b j e c t i v e

M e a s u r e s

T a r g e t s


I N T E R N A L B U S I N E S S

P R O C E S S

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

V i s i o n

an d

S t r a t e g y

O b j e c t i v e

M e a s u r e s

T a r g e t s

I n i t i a t i v e sC U S T O M E R

H o w d o o u r

c u s t o m e r ss e e u s ?

O b j e c t i v e

M e a s u r e s

T a r g e t s


L E A R N I N G a n d

G R O W T H

C a n w ec o n t i n u e t o

i m p r o v e a n dc r e a t e v a l u e ?

O b j e c t i v e

M e a s u r e s

T a r g e t s

I n i t i a t i v e sF I N A N C I A L

H o w d o w el o o k t o

s h a r e h o l d e r s ?

O b j e c t i v e

M e a s u r e s

T a r g e t s


I N T E R N A L B U S I N E S S

P R O C E S S

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

V i s i o n

an d

S t r a t e g y

V i s i o n

an d

S t r a t e g y

Measuring andunderstanding your

financial performance


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Assessing Your Financial KPIs

Revenue& profit

Liquidity& cash

flow

ShareholderValue

Financialefficiency

Measuring andunderstanding your

operational

performance

Assessing Your Operational KPIs

Efficiency &quality Measuring andUnderstanding Your

Customers


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Assessing Your Customer KPIs

Customersatisfaction

& loyalty Market Share

Measuring and

understanding your

employees

Assessing Your Employee KPIs

Employeeengagement

Talentretention

Measuring and

understanding your

internal processes


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Quality Index

Process Downtime

Process completion time

KPI Example: Organization ’s KPI

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: 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

KPI Example: IT

% of Automation of Core Fnctions


% 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




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KPI Example: HR

Lead time for KPI design, Goal Setting for every employeesLead 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


Employee Retention Rate

% of Cost Reduction



% of accident regarding Health & Safety

1. Goal and goal setting

Goals: Insights

• 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 lastyear’s results’

•✓ Relative to external benchmarks: Such as ‘Exceedcompetitor X’

•✓ Relative to global best practice: Such as ‘Become asgood as X’

A good Goal must be…

S (Specific)

M (Measurable)

A (Achievable)

R (Relevant)

T (Time phased)


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Examples of SMART Goals

Goal SMART (Y/N)?

The production team will achieve a 10%

reduction in re-work within 6 months

comparing to last year.

Yes

We will achieve market share growth. No

Reduce transport costs No

Increase our market share in 2008 by 3% over

2007 level.

Yes

Let us utilize the learning

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 managementsystem in the organization

Job Description

•Ensure employee retention

•Ensure proper output from every employee

•Assist (if required) to execute compensationprogram

•Maintain employee database

•Analyze attendance report

•Maintain leave record


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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

• Key performance indicators are

measurable indicators used to

evaluate your performance level

• Every Key Result Areas musthave 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 thescale of p riority. Total

weight should be 100.


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Targets are defined

based on historical

data and future

expectations.

Targets can be

percentage,

number, or score –

depending on the

type of KPIs.


Actual is the act ual results. Or

target achievements.

We should develop reporting

system to capture these results.


Formula to calculate score :

Actual / Target x 100 (for KPIMaximize, the higher the better)

or

Target / Actual x 100 (KPI

Minimize; the lower the better).


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Formula to obtain Final Score

= Score x Weigh t /100


Final Score is used to determine bonus

allocation, salary increase, and promotion.

Thanks for being with US

KPI Presentation-final - For Distribution

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