6 ways to Redefine Performance with KPI Software
To achieve sustained growth, adhere to regulation and operate within acceptable tolerances organisations use systems of performance monitoring. In order to perform organisations must clearly define, monitor and manage their key measures of success. Organisations are increasingly adopting tools such as KPI software to better manage and improve their business performance.
Performance management works best when undertaken at a corporate level as well as an individual level. Key Performance indicators (KPI’s) are a great way to link organisational vision to individual action. In an ideal world KPIs are set at a strategic level and cascading down through the organisation.
1. Establishing Effective Key Performance Indicators
Organisations should aim to take some time to assess the relevance of Key Performance Indicators with respect to desired outcomes. Five key areas define effective KPIs:
- Relevance – Are KPIs relevant to the outcomes and performance of people responsible for them?
- Strategically Aligned – Does alignment exist between KPIs and business goals? and how do they feed into the long term strategy?
- Realistic – Are KPIs challenging enough to allow for change and innovation to happen while not being impossible to achieve?
- Measuring what is Critical – Do your KPIs measure what is crucial to a specific department’s success?
- Predictive – Can KPI results be used to derive future projections?
The true value of key performance indicator doesn’t have to be in the measurement of performance alone. Data driven conversations can result from the effective use of KPIs. In turn this allows for better decision making across the organisation.
Well-designed Key Performance Indicators should provide a clear picture of business performance and whether an organisation is tracking as expected.
skefto KPI software allows key performance indicators to be defined, associated with objectives, business units, processes and activities. Result data is able to be regularly recorded against KPIs with scheduled reviews allowing results to be assessed. This provides an opportunity to pivot the strategy in instances of under performance or to seize an opportunity.
2. Monitoring Organisational Health & Strategy
Key Performance indicators (KPIs) allow management and organisations to clearly communicate to their employees which goals are most important. They provide a snapshot of overall business performance right down to understanding how individual departments are performing at any given time.
Developing and tracking departmental KPIs can foster improved collaboration and a team first approach to achieving organisational goals. They also highlight how individuals in each department contribute to corporate success and the health of a strategy.
skefto KPI software allows organisations to demonstrate value to stakeholders and customers by providing meaningful insights into business performance and initiatives.
3. Encourage Accountability & Boosting Morale
A good performance tracking system can often increase the capability of employees. In keeping leadership abreast of a team’s performance, managers can use performance information to document employee action and progress. This approach can be used to discuss findings and provide feedback which can ultimately increase job satisfaction as targets are met.
It can be rewarding and motivating for employees to receive positive reports for meeting certain key performance indicators. Striving toward and achieving key performance indicators gives employees a sense of purpose and keeps them focused on meeting their goals. This is most effective when one person is directly responsible for the success of each KPI.
Leaders of an organisation should engage staff when defining which KPIs fall within their department and which ones to measure. In this way management can define what success looks like not only strategically but also on a team and individual level.
It can be a challenge for teams to stay focused and positive when goals are too large, or difficult to attain. Employees feel empowered to make a difference when they feel that they have some portion of control over their outcomes. Breaking down goals into smaller processes and reporting on associated KPIs can give employees the opportunity to achieve goals in stages.
Focusing on achieving milestones and celebrating the wins along the way improves morale and keeps everyone focused on the prize. skefto KPI software allows management across all levels to monitor staff performance and outcomes for activities emanating from their business units. skefto dissects objectives, actions and key performance performance indicators into practical and achievable portions. skefto assigns staff responsible for execution and monitoring whilst maintaining alignment with the strategy.
4. Create an Atmosphere of Learning – solve problems or tackle opportunities
A lot has been said about acheiving key performance indicators and celebrating the wins. But the reality is that not all reporting on KPIs can be favourable. Low performing KPIs provide an opportunity to foster a culture of learning and improvement. They teach us how things could be done differently to drive improved business performance in order to reach targets.
When a KPI are not performing we should firstly analyse whether the KPI is perceived as realistic or simply unreachable. This analysis can be used to modify measures and drive positive performance whilst leaving room to cultivate individual growth.
skefto KPI software enables structured and proactive reviews of performance. This providing an opportunity for high performance to be commended and issues to be managed through a collaborative and constructive approach.
5. Measuring Progress Over Time
KPIs provide valuable insights however in order to make results meaningful an organisation should allow for evaluation over a time period.
A KPI measured across periods (e.g. quarter over quarter) starts to show patterns. By using KPIs organisations can establish the data needed in order to make more enlightened predictions on business performance.
Organisations could use performance data to foresee slow periods and use that time to plan for their busy periods. Measuring progress over time not only creates predictable outputs but also visibility over individual and business performance.
skefto KPI software allows organisations to measure performance against targets and benchmarks and regularly report to decision makers. skefto allows for scheduling of KPIs with “just-in-time” alerts ensuring users are always aware of their performance obligations.
6. Stay On Track with Lead KPIs & Reviews
Lead KPIs are measurable factors that change before the organisation starts to follow a particular pattern or trend. These are effective in keeping strategic initiatives on track and ensuring business services and activities are performing as expected.
Lead KPIs provide real time data allowing for incremental adjustment whilst avoiding frantic change at the end of each reporting period. When tracked routinely lead KPIs can provide insights for changes required to stay on track in driving strategic outcomes.
Used well, lead KPIs support our goals and strategy. They allow an organisation to focus on what matters most as well as monitor progress and define performance. Furthemore setting Result Targets can provide real time traffic light alerts highlighting operating performance against acceptable business tolerances.
skefto KPI software allows periodic for performance reviews to occur. skefto provides an opportunity for KPIs to be amended as required based on the changing environment.