Publisher's Synopsis
What is key performance indicator (KPI) components? Performance management strategy of performance metrics are a powerful toole of organizational change. It can measure organizational performance really. Companies define objectives, establish goals, measure progress, reward achievement, and diplay the results for all productivity. Executives can use performance metrics to define and communicate strategic objectives tailores to every individual and role in the organization. Managers can ue them to identify underforming individuals or teams and guide them and employees can use performance metrics to focus on what is important and help them achieve goald defined in their personal performance plans.But wrong metrics can have unintended consequences: They can threaten to prolong on organizational processes, demoralize employees and undermine productivity and service levels. If the metrics do not accurately translate the company's strategy and goals into real useful actions that employees can take on a daily basis. Employees will work hard but have nothing to show for their efforts, everyone will feel tired and frustrated, also the company will be efficient but ineffective.Performance metrics are a criticial ingredient of performance management, performance management has a four steps cycle involves strategize misson, value, goals, objectives, incentives, strategy maps. Then, it needs to plan budgets, forcasts, models, targets. Next, it needs to monitor / analyze performance report, analytical tools. Finally, it needs to adjust or make action to assess, decide and track in execution step.A performance metrics measurement tool can fasten the business, distill an organization's strategy to serve its stakeholders, linking strategy to processes. A performance metrics can give visual information delivery system that lets users measure, monitor, and manage the effectiveness of their tactics and their progress toward achieving strategic objectives . Collecting, a performance metrics measurement tool enable users to idenitfy problems and opportunities, taken action and adjust plans and goals as needed.What is key performance indicator (KPI) components? The only difference between a metric and KPA is that a KPI is a strategic objective and measures performance against a goal. KPI is a strategic objective, KPI measure performance against specific targets. Targets are defined in strategic planning, or budget sessions and can take different forms, e.g. achievement, reduction, absolute zero, tagets have ranges of peformance, e.g. above on, or below target. Targets are assigned time frame by which they must be accomplished. Time frame is often divided into smaller intervals, targets are measured against a baseline or benchmark. The previous year's results often serv as a benchmark.The goals associated with KPIs are known as targets because they specify a measurble outcome rather then a conceptual destination. Ideally, executives, managers and workers collectively set targets during strategic planning or budget discussions.