Typically, the list of these parameters and data is compiled from top to bottom - in accordance with the organizational structure of the company.
The first to formulate metrics is to evaluate the overall performance of the enterprise. These include important indicators, the fulfillment of which is of key importance for business owners or investors.
On their basis, efficiency metrics are developed for departments, branches and other structural elements of the organization. And then you can move on to the performance indicators of each specialist.
We create a KPI matrix.
These are the tables already mentioned oman email list in the example with the calculation of the dependence of the results of the work of the marketer (planned and actual) and the seller.
The main important elements of KPI matrices include:
the performance indicators themselves;
the weight of each of them (no more than one);
their values: target, expected and critical (basic).
The matrix filled with data allows you to calculate the actual values for each indicator and performance coefficients.
We are developing a motivation program.
The system of evaluating the performance indicators of employees will only work if the staff implements and supports it. Therefore, a motivation program must be thought out.
Reasons:
Employees are more responsible in their work performance if they understand what results management expects from them.
They take their job responsibilities more seriously and sometimes even work overtime, since they are entitled to bonuses for their diligence (which, of course, should be proportionate to this diligence).
In addition to the standard motivation system, there is an additional, more complex scheme tied to KPI achievements. It is structured as follows:
Any result threshold corresponds to a certain bonus coefficient: when the plan is exceeded by 10%, it is equal to, for example, 1.4, and when it is 20% above the plan, it is 1.9. Such conditions allow the company to grow quickly.
There are also reduction coefficients. Thus, if the plan is only 80% fulfilled, then the employee's salary is equal to 0.8 of his rate.