KPI BASED PERFORMANCE MANAGEMENT

SYSTEM

Muhammad Farhan

WHAT IS KPI ? KEY PERFORMANCE INDICATORS

Key performance indicators (KPIs) are defined as quantifiable, specific measures of an organization’s performance in certain areas of its business.

KPIs may vary by project, department or business; be weighted differently by each project, department or business; and be either financial, nonfinancial or both.

(SHRM, USA)

A measurable expression for the achievement of a desired level of resultsin an area relevant to the evaluated entity’s activity.

(The KPI Institute, Melbourne)

Doodle Video -

UNDERSTANDING PERFORMANCE TERMSExample: Increase market share to 28% by the end of the financial year under Marketing Director coordination.

Objective

KPI

Target

Owner

Time

UNDERSTANDING PERFORMANCE TERMSExample: Increase market share to 28% by the end of the financial year under Marketing Director coordination.

Objective Increase in Market Share

KPI % Market Share

Target 28%

Owner Marketing Director

Time By Financial year end

UNDERSTANDING PERFORMANCE TERMSExample: HRM software implementation by the end June 2017 under HR Head

Objective

KPI

Target

Owner

Time

UNDERSTANDING PERFORMANCE TERMSExample: HRM software implementation by the end June 2017 under HR Head

Objective HRM Software Implementation

KPI $ Payroll processed, # of Automated Processes

Target 3 Modules – Core Payroll, Employee DB, Reporting & ESS

Owner HR Head

Time June 2017

VALUE FLOW ANALYSIS LOGICAL MODEL TO INDICATE THE VALUE GENERATION FROM INPUTS, PROCESS OUTPUTS AND OUTCOMES.

Objectives Inputs Processes Output Outcomes

Improve Customer

satisfaction with

service levels

# CSRs

$ CS Budget

# Time to answer an

inquiry

# Meetings with key

customers

%Solved Inquiries

%Customer

Satisfaction Index

# New clients from

referrals

%Returning

customers

VALUE FLOW ANALYSISLOGICAL MODEL TO INDICATE THE VALUE GENERATION FROM INPUTS, PROCESS OUTPUTS AND OUTCOMES.

Objectives Inputs Processes Output Outcomes

Placement of vacant positions – Manager level

VALUE FLOW ANALYSIS – CHOOSE KPIS WISELYLOGICAL MODEL TO INDICATE THE VALUE GENERATION FROM INPUTS, PROCESS OUTPUTS AND OUTCOMES.

Objectives Inputs Processes Output Outcome

Placement of vacant positions – Manager level

$ Position Budget

$ Hiring Budget

# of Positions – 10

# CVs Recvd# CVs Screened# CVs Shortlisted# Interviews held# Final Shortlisted# Offers Rejected# Offers AcceptedTime to Hire% Positions taken more than 45 days to fill

# On boarding

$ Budget Variance

$ Hiring Budget Var.

# Probation completion#Net hire index

# Placements completed 1 year

# Placement completed 1 year with EE rating

Revenue per FTE

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