Key performance indicators (KPIs) are the detailed specifications used to track business objectives. We all have goals or long term objectives that we want to achieve whether it be I 2 years, 5 years or 10 years’ time, well KPIs are a business or organizations equivalent to your long term goals. A business will also have short, mid and long-term objectives and will put measures, or KPIs, in place to achieve these goals. Therefore, as part of the company, the measures that you are given as an employee are designed to reflect the organization’s overall goals, to help them get to where they want to go. To make KPIs effective they should be SMART:
S pecific – a well-defined goal that is clearly understood by everyone. M easurable – can you track your progress towards the goal? A greed - both employer and employee must agree on what the goals are. R ealistic - can you achieve the goal with the resources provided? T ime related - will there be enough time to complete the task? Most employers have a way of keeping their staff informed on how they are going with meeting their KPIs, and if they are in fact not meeting their KPIs they have training programs in place to help their staff meet their KPIs and help grow the business. For example retail industries have an online report that gets printed out each day and staff are shown their personal objectives. Their individual sales targets are calculated by how many hours they are working in the business divided by how many staff work in the department and then divided by the budget for the month. This is then broken down further and split into other sections including sales per hour etc. the budget for the month is based on last year’s budget and profits for the same month.
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