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How To Develop Key Performance Indicators For Employees

2013/9/8 10:22:00 17

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in performance management PDCA (Plan plan, Do implementation, Check inspection, Action adjustment) system cycle, it is the key step to establish performance plan and set performance target, and its success will directly determine the success or failure of the performance management process.

In the performance plan, the key performance indicators management card is the most important. All the work achievements of you and staff will be reflected here, whether the key performance indicators are selected accurately, whether the performance standards are set properly, whether employees have been recognized, whether they can be used as the basis for performance appraisal and feedback, and so on, a series of work will eventually be returned to this piece of paper.

strong > 1, why is "management card" instead of "assessment card"?

conceptually, "management card" is used to manage employees' performance, and the "assessment card" is used to assess employees' performance.

There is a guiding problem here. The role of "management card" and "assessment card" in performance management is different.

As a "management card", managers can better understand the performance management system, take performance plan as the starting point of performance management process, and implement it throughout. In the process of performance management, according to the contents of "management card", we should maintain effective performance communication with employees, help employees achieve and surpass performance goals; and "assessment card" will easily make managers forget the significance of performance management. It is customary to think that this is a one-year form of "performance", which is no longer being questioned in the file basket, which leads managers to ignore performance communication and guidance at ordinary times, only when they are reminded by human resources department, so that performance appraisal can become a mere formality.

In addition, the "management card" has both the function of management and the function of assessment. It combines management and assessment effectively. "Management card" not only clearly defines the orientation of performance management, but also helps managers conduct performance appraisal when they need it, which is the charm of "management card"!

all along, managers of some enterprises have a misunderstanding in the concept of performance management. They think that the performance of employees is checked out. They think that as long as the assessment is conducted, employees will actively work, and the performance of employees will be improved. Therefore, the management concept of "no assessment without management" is strongly advocated.

This kind of formulation is not appropriate, is not conducive to the development of enterprise performance management, and may even lead the enterprise to the wrong track for assessment, resulting in the surface and formalization of performance management.

After all, a simple performance assessment does not directly produce performance, and a systematic performance management can really help employees to improve their performance.

The performance of the employees is not the result of a brilliant manager, but the effort and hardship created by the staff under the communication and guidance of the high performance managers. That is to say, the creators of the employees' performance are the employees themselves, not the performance appraisal, nor the managers or supervisors of the employees.

therefore, in order to ensure the process of performance management to be controlled, ensure the effectiveness of communication between managers and employees, and ensure the basis of performance management and assessment, managers must establish key performance indicators management cards for employees, so as to establish performance targets for employees.

two, how to design the staff key performance indicator card format?

usually, an effective KPI management card format consists of four parts:

the first part is the staff's basic information, such as: employee name, job title, Department, direct superior, date of establishment, etc.

second is the main part of the key performance indicators.

And in this part, it can be divided into two latitudes, namely, business indicator and behavior standard. The performance of an employee is evaluated from two dimensions of performance and behavior, so that employees' performance can be comprehensively measured and assessed.

Among them, each category includes the name of performance indicators, assessment criteria, assessment level, weight and so on.

third is the confirmation sign column of performance indicators, generally signed by employees and their direct superiors, and important positions can be signed by their indirect superiors.

the fourth part is the confirmation sign of examination results. After the examination is finished, the direct supervisor and employee sign here to confirm the result.

three, how to determine the key performance indicators? /p >

through the introduction, we can see that in fact, the difficulty of developing the key performance management card is in the second part, that is, how to determine the key performance indicators, which is the most concerned problem for managers, and is also the key problem to be solved in this paper.

source of key performance indicators

In the end, it is the enrichment and development of the job descriptions, and any performance indicators should eventually be placed on the staff's job descriptions, and help managers reorientate their employees' work and enrich their work contents. One is the goal of departments or work teams, which is the strategic orientation of key performance indicators, because the goals of departments and work teams are closely integrated with the strategy of enterprises, and the key performance indicators of employees can be effectively decomposed to the goals of departments or work teams, closely integrated with the objectives of departments or work teams and the strategic objectives of enterprises. generally speaking, there are three sources of key performance indicators: one is the employee's job description, which is the material basis of the key performance indicators, and the key performance indicators come from the job descriptions.

here, we need to pay special attention to the fact that the employee's job description is the key.

We note that in some enterprises, this work has not received enough attention, or no job descriptions, or simply some job descriptions, and can not provide more detailed and accurate job information, making managers difficult to start when selecting performance indicators.

If you haven't adjusted the employee's job description according to the actual situation of the enterprise, and do not have an accurate and clear positioning of the employee's responsibilities, it is recommended that you first perfect your position management system, make the foundation work solid, and then start the performance management procedure, otherwise you will not be able to work out a good key performance indicator!

the number of key performance indicators

The reason why P is known as the key performance indicator is to identify the most critical content of staff positions as performance indicators rather than eyebrows and beards.

There may be more than 10 or even more responsibilities for an employee. You can't set a key performance indicator for each job. That way, you can neither grasp the key nor lose your way, which is not conducive to guiding employees to pursue high performance.

Then, is the less the number of performance indicators the better? Many managers often explore a question when they discuss this problem, that is, "get one or two indicators for assessment and assessment, and get too busy to catch up."

People who hold this view tend to think that performance management is an additional burden, that performance management is to delay their time and give them trouble.

This idea is not acceptable, because performance management is not a trouble maker for managers, but a highly effective management platform for managers, nor an additional burden, but a "responsibility" within managers' responsibilities. This must be clear, otherwise, a good performance management system can not be effectively implemented.

the author's point of view is that 3-5 key performance indicators are selected, and 2-3 key behavioral criteria are more appropriate. Of course, the premise is that the selected indicators must be key performance indicators.

principle of establishing key performance indicators

usually, we should follow the following five principles in formulating key performance.

the first is the SMART principle: S stands for concrete (Specific), which means that the key performance indicators should be specific to the specific objectives and cannot be generalized; M represents the measurable (Measurable), that is, the key performance indicators are quantitative or behavioral, and the data or information of these key performance indicators can be obtained; A represents the realable (Attainable), which means that the key performance indicators can be achieved in the effort, avoid the establishment of too high or too low targets; R represents reality (Realistic), that is, the key performance indicators are real, can be proved and observed; T represents time limited (R), indicating the specific time limit for completing the key performance indicators.

second is quantification, that is, the key performance indicators are best able to < a href= "http://www.91se91.com/news/index_z.asp" > /a >, because quantified indicators are the most easily managed and assessed, such as "500 million yuan of sales income before December 31, 2006", which is a quantitative performance indicator.

third is refinement. For the work that can not be quantified, it can be refined according to the four latitudes of "quantity, quality, time and cost".

Such as quality management, this is not easy to quantify the work, we can refine it, such as quantity: A, a monthly quality management coordination meeting, B, quarterly quality management system for internal audit, C, weekly quality inspection of key departments two quality aspects: A, product quality, a pass rate of more than 98%, B, quality management system through external audit; time: A, any quality problems must be resolved within 3 days, B, 8 days before each month must submit the quality analysis report last month; cost: quality loss caused by the control must be within 10000 yuan.

The fourth principle of is process oriented, which can be designed for workflow which is not easy to quantify and the content is relatively simple.

For example, the job of "training commissioner" is relatively unitary, that is, responsible for training. If we set the performance indicators, it is easy to cause the assessment indicators too thin to fully reflect his / her work.

At this time, we can divide the training work into several parts according to the work process, "training needs survey, develop training plan, organize implementation, evaluate training effect", and then formulate corresponding standards for each work process, conduct management and examination.

The fifth principle of is to make performance indicators < < a href= > http://www.91se91.com/news/index_cj.asp > behavior pformation < /a >, which will soon turn the examination of employees into the examination of their behavior. For example, we often say that teachers' "ethics" can not be directly tested, but we can see teachers behave in teaching.

For example, listening to students' demands is part of the "body teaching" in Chinese words and deeds.

4, the weight of key performance indicators /p >

Generally speaking, the weights of key performance indicators and key behavior standards should be 80% and 20%, respectively. P

Among these two, we should divide the weight according to the importance of each specific index.

5, the formulation period .

the development cycle varies with the performance cycle, and a performance cycle is formulated once.

The performance cycle is different from the actual situation of the enterprise. The enterprises with relatively strong management foundation, relatively high quality of employees and relatively stable development can take a year as a performance cycle, that is, to set up a key performance indicator in a year. On the contrary, those enterprises with relatively weak management foundation and relatively poor quality of employees should shorten the performance cycle, and develop a a href= "http://www.91se91.com/news/index_z.asp" key performance index < /a > in one quarter for one performance cycle.

It is better not to shorten the performance cycle to one month, because it not only increases management costs, but also makes managers lose interest, passively cope and perfunctory because of frequent examination.

four, communicating with employees' performance indicators /p >

analysis of why the key performance indicator card is designed, how to design the format of the key performance management card, and how to define the key performance indicators.

In the process of operation, managers should pay special attention to communicating with employees. After all, employees are the masters of their performance. After the key performance indicators are formulated, they should be implemented. Therefore, before deciding on key performance indicators, first of all, they must get their consent, get their recognition, and finally reach agreement with them.

in order for the work to be carried out smoothly, we must communicate with employees at the very beginning when developing key performance indicators management cards.

When communicating key performance indicators with employees, the most likely problem for managers is that employees will haggle and ask for lower assessment standards.

At this time, as a manager, you need not be anxious or discouraged. Instead, you need to use your wisdom and communication skills to convince your employees, and plan your future work how you can help them achieve these goals. Tell employees, let employees accept, let employees understand that these performance indicators are not the "stick" of managers to punish employees, but the common interests of managers and employees. Finally, they agree with employees, and both sides sign and endorse them.

up to now, if a good KPI card is completed, you and your employees can officially enter the track of performance management (PDCA cycle) and start your performance management journey!