1. Concept
Key Performance Indicators (KPIs): a target-based quantitative management indicator that measures process performance by setting, sampling, calculating, and analyzing key parameters of the inputs and outputs of the internal processes of the organization, a tool that breaks down the strategic objectives of the enterprise into actionable work objectives, and the basis of enterprise performance management. KPI can make the department head clear the main responsibilities of the department, and based on this, clear department personnel performance measurement indicators. Establishing a clear and practical KPI system is the key to good performance management. KPIs are quantitative indicators used to measure the performance of staff performance, is an important part of the performance plan.
2, the SMART principle of key performance indicators
Determine the key performance indicators have an important SMART principle. SMART is the acronym of the first letter of the five English words:
S on behalf of the specific (Specific), refers to the performance appraisal to be cut in the specific work indicators, can not be generalized; M on behalf of the measurable (), Measurable), the performance appraisal to be cut in the specific work indicators, can not be generalized; M on behalf of the measurable (), the performance appraisal to be cut in the specific work indicators. Measurable), refers to the performance indicators are quantitative or behavioral, verification of these performance indicators of the data or information is available; A on behalf of the Attainable (Attainable), refers to the performance indicators in the case of efforts can be achieved, to avoid the establishment of too high or too low a target; R on behalf of the relevance (Relevant), refers to the performance indicators are with the superior goal of clear relevance, and ultimately, the performance appraisal of the work of the company. R for relevance (Relevant), refers to the performance indicator is with the superior goal has a clear relevance, and finally with the company's objectives; T for time limit (Time bound), focus on the completion of the performance indicator of the specific period.
Determining KPIs generally follows the process below.
1, the establishment of evaluation index system
Can be in accordance with the order from macro to micro, in order to establish the indicator system at all levels. First of all, to clarify the strategic objectives of the enterprise, to find out the business priorities of the enterprise, and to determine the key performance indicators (KPIs) of these key business areas, so as to establish the enterprise-level KPIs. next, the departmental supervisors need to establish the departmental KPIs based on the enterprise-level KPIs, and then the departmental supervisors and departmental KPI personnel together to further break down the KPIs into more detailed KPIs. these performance measurement indicators are the elements and basis for employee appraisal. These performance measures are the elements and basis for employee appraisal.
2, set evaluation standards
Generally speaking, the indicators refer to what aspects of the work to measure or evaluate; and the standard refers to the various indicators should be achieved on what level. Indicators solve the problem of "what" we need to evaluate, while standards solve the problem of "how" and "how much" the evaluator is required to do.
3, review of key performance indicators
The purpose of the review of key performance indicators is to confirm that these key performance indicators can comprehensively and objectively reflect the work performance of the subject of the evaluation, as well as whether it is suitable for the evaluation of the operation.
The basic idea of KPI design
1. Fishbone Diagram Analysis
The use of the "fishbone diagram" analysis method, the establishment of the key performance indicator system, the main process:
(1) According to the division of responsibilities, to determine which individual factors or organizational factors are related to the company's overall interests. overall interests are relevant.
(2) Define the key success factors based on the job,1% criteria.
(3) Determine the relationship between key performance indicators, performance standards and actual factors.
(4) Decomposition of key performance indicators.
2. Flexibility in the quantification of work
Some departments do have difficulties in quantifying work, it is quantified in terms of work requirements and time nodes. Such as human resources managers, administrative staff, financial staff, the quantification of its key performance indicators is relatively difficult, if rigidly quantified from their own duties, the logic does not make sense, not to quantify their rationale, the same can not be said. In practice, it can be defined in terms of the assessment of their work tasks or work requirements, which can be defined in terms of time. In essence, the work tasks or work objectives defined by time are also quantitative indicators.
3. PDCA Cycle
Using the PDCA cycle for gradual improvement and implementation, its main processes are:
(1) Key performance indicators are designed by professionals.
(2)The design is submitted to the company's leadership team for consideration.
(3) Revisions are made based on the opinions of the company's leadership team.
(4) The revised draft is submitted to each functional department for discussion.
(5) Centralize the discussion and revise again.
(6) Reported for approval and issued.
Which (1)-(5), there will be a few back and forth in practice.
4. KPI assessment of the supporting environment
With the key performance appraisal index system, there is no guarantee that these indicators can be used in performance appraisal, to achieve the desired results. To really achieve the effect, but also depends on whether the enterprise has a key performance indicators assessment of the support environment. The establishment of such a supportive environment, the same key performance indicators must be considered when designing.
(1) The support of performance-oriented corporate culture. The establishment of a performance-oriented organizational climate, through the corporate culture to resolve the contradictions and conflicts in the performance appraisal process, the formation of the pursuit of excellence in performance of the core values of the corporate culture.
(2) Supervisors at all levels are tasked with performance management. Decomposing and formulating key performance indicators is a responsibility that should and must be assumed by supervisors at all levels. Professionals only play a technical support role.
(3) Emphasize the construction of performance communication system. In the process of decomposition and formulation of KPIs, the establishment and implementation of KPIs is a top-down and bottom-up institutionalized process. Without a good communication system to ensure that the key performance indicators assessment will not be effective and challenging.
(4) Performance appraisal results are linked to value allocation. Practice shows that the degree of linkage between the two closely, the key performance indicators as the core of the performance appraisal system can really play a role.
Three, the KPI indicator system to establish the process
KPI indicators can be extracted from the "cross-focused, duty-corrected" summarized in one sentence. But in the specific operation process, to do at all levels from the vertical strategic goal decomposition, horizontal combination of business processes, "ten" word extraction, is not a very easy thing. The following table illustrates the process of extracting KPI indicators.
Figure: KPI index extraction diagram
Decomposition of corporate strategic objectives, analyze and establish the linkage between sub-objectives and major business processes
The overall strategic objectives of an enterprise can usually be decomposed into a number of major supporting sub-objectives, and these supporting more specific sub-objectives themselves need the support of some of the major business processes to be achieved to a certain extent. be achieved to a certain extent. Therefore, the following tasks need to be accomplished in this section:
1. The top management of the enterprise establishes the overall strategic goals of the company (in the form of a fishbone diagram);
2. The top management of the enterprise breaks down the strategic goals into the main supporting sub-goals (in the form of a fishbone diagram)
3. The correlation is made between the main business processes of the enterprise and the supporting sub-goals.
Figure: Example of Fishbone Diagram of Strategic Goal Decomposition
Figure: Example of Strategic Goal and Process Decomposition
Determine the goal of each supportive business process
After confirming the supportive business processes for each strategic sub-goal, it is necessary to further confirm that each business process supports the strategic sub-goal of reaching the premise of the total goal of the process itself, and to use the Nine-Palm Diagram to further confirm that the total goal of the process is achieved in different sub-goals, and to further confirm that the total goal of the process is achieved in different sub-goals. The way to further confirm the detailed decomposition of the total goal of the process in different dimensions.
Table: Example of confirming process objectives
Confirming the link between each business process and each functional department
This session establishes the link between processes and work functions by means of the ninety-nine-maze diagram, so as to establish the link between processes, functions and indicators at a more microscopic departmental level, and to establish the link between the overall strategic objectives of the enterprise and the performance indicators of the department.
Example of confirming the linkage between business processes and functions
Extraction of departmental KPIs
In this section, departmental KPIs are extracted from the linkage between process priorities and departmental responsibilities established through the above section.
Table: Example of extracting departmental KPI indicators
Alignment of goals, processes, functions and positions
Based on the departmental KPIs, business processes, and the responsibilities of each position, we can establish the alignment of corporate goals, processes, functions and positions.
Table: KPI further decomposition to the position example
Four, KPI target development
From the perspective of the organizational structure, the KPI system is a vertical indicator system: the first to determine the company's level of concern for the KPI, and then determine the department and even the individual to undertake the KPI, as the KPI system is decomposed, so that the indicator system to the "people". Strategy to "people". In order to implement the strategy, it is necessary to "visualize" the KPIs at each level and form a corresponding vertical target system. Therefore, in the implementation of strategy, there are "two lines": one is the indicator system, is a tool; the other is the target system, the use of indicators to get the tool. Of course, the target system itself is still a communication and transmission system, even if the use of the KPI system as a tool, the development of specific objectives also needs to be communicated between managers at all levels: lower-level managers must participate in the development of a higher level of objectives, so that he can be clear about the position of the department in the larger system, but also to allow higher-level managers to make clearer the requirements of their departments, so as to ensure that the development of an appropriate and effective Sub-objectives. In this way, through the formulation of the corresponding objectives at all levels, a "target line" without deviation is formed to ensure that the strategy is effectively transmitted and implemented to the specific operational level. Specific to the implementation of performance management, each department to undertake the KPI is determined by the strategy, but specific to a certain year, it is not necessary for all of its KPIs to assign values and set goals.
Because the strategic goal is relatively long-term, and specific to the year will be biased, the requirements in the selection of a comprehensive measure of the strategy of the KPIs should be based on the strategy of some trade-offs. The formulation of specific annual goals is based on a comprehensive analysis of the internal and external environment and conditions of the enterprise, according to the annual strategic vision, the KPIs determined for the current year to be assigned, so as to obtain. In this, KPI is only a tool system; and the key to the development of goals also lies in the "people" and "people" communication and understanding, the need for managers and their superiors, peers, subordinates, external customers, suppliers, 360 ° all-round communication. Management, in the formulation of goals and implementation of strategy, is a communication and implementation process. The implementation of the so-called strategy, it is through the continuous definition and realization of this milestone state and gradually achieved.
Fifth, the establishment of KPI indicators
The main points of the establishment of KPI indicators lies in the process, planning and systematic. First of all, to clarify the strategic objectives of the enterprise, and the use of brainstorming and fishbone analysis in the enterprise meeting to find out the business focus of the enterprise, that is, the focus of the enterprise value assessment. Then, the brainstorming method is used to find out the key performance indicators (KPIs) of these key business areas, i.e., enterprise-level KPIs.
Next, the supervisors of each department need to establish departmental KPIs based on the enterprise-level KPIs, decompose the KPIs of the corresponding departments, determine the relevant elemental targets, analyze the performance-driving factors (technology, organization, and human beings), determine the workflow for achieving the targets, and decompose the workflow of each departmental level, so as to achieve the goals. process, and decompose the KPIs at each departmental level in order to determine the evaluation index system.
Then, the head of each department and the departmental KPI staff together to further break down the KPIs, broken down into finer KPIs and performance measurement indicators for each position. These performance measures are the elements and basis for employee appraisal. The establishment of this KPI system and the evaluation process itself, is to unify all employees towards the strategic goals of the process, but also will certainly play a great role in promoting the performance management work of managers in various departments.
After the establishment of the indicator system, it is also necessary to set evaluation criteria. Generally speaking, the indicator refers to what aspects of the measurement or evaluation work, to solve the "evaluation of what" problem; and the standard refers to the indicators should be achieved in what level, to solve the "evaluated how to do, how much" problem.
Finally, the key performance indicators must be audited. For example, review such questions as: multiple evaluators to evaluate the same performance indicators, the results can be achieved consistently? Does the sum of these metrics explain more than 80% of the evaluee's work objectives? Is tracking and monitoring these KPIs actionable? And so on. The main purpose of the audit is to ensure that these KPIs reflect the performance of the appraisee comprehensively and objectively, and that they are easy to operationalize.
Each position affects a process, or a point in a business process. In setting targets and conducting performance appraisals, consideration should be given to whether the incumbent of the position can control the results of the indicator, if the incumbent can not control, the indicator can not be used as a measure of the incumbent's performance. For example, a cross-departmental indicator cannot be used as an assessment indicator for a junior employee, but should be used as an assessment indicator for a department head or a higher-level supervisor.
Performance management is the process by which both sides of management reach a *** knowledge of goals and how to achieve them, and the management methods that enhance the success of employees in achieving them. Managers give subordinates to set work goals based on the department's KPIs, the department's KPIs from the parent department's KPIs, the parent department's KPIs from the enterprise level KPIs. only in this way can we ensure that each position is in accordance with the direction of the enterprise's requirements to work hard.
Making good use of KPI appraisal of the enterprise will help integrate the enterprise organizational structure, improve the efficiency of the enterprise, and streamline unnecessary institutions, unnecessary processes and unnecessary systems.
Six, KPl system design principle misunderstanding
When the KPI system design, the designer was followed SMART principle. Generally speaking, KPI designers are familiar with this SMART principle, but, in the actual design and application of the time, but often fall into the following misunderstandings.
1, the specific principles of understanding the bias brought about by the excessive refinement of the indicators
Specific principles of the original intention is to refer to the performance appraisal to cut a specific work indicators, can not be generalized. However, many designers understand that if the indicators cannot be generalized, they should be refined as much as possible. However, over-detailed indicators may result in indicators that do not become key drivers of enterprise value creation. For example, in the original KPI assessment system of a Tianjin-based chemical raw material manufacturer, the clerk responsible for issuing office supplies in the office on weekdays also set an assessment indicator: "Attitude of issuing office supplies", which was explained by the relevant personnel as "in order to gain the understanding of the staff so that the operation can be carried out, an indicator was set for each employee's work, and an indicator was set for each indicator. Indicators, and each indicator has been refined, and strive to achieve concrete and feasible. In fact, although this indicator, "Attitude towards the distribution of office supplies", can be used to measure the effectiveness of the clerks' work, it is not "critical" to the creation of value for the company. Therefore, it is not appropriate to include this indicator in the KPI system.
2. Omission of KPIs due to biased understanding of the principle of measurability
The principle of measurability refers to the fact that performance indicators are quantitative or behavioral, and that the data or information to validate these performance indicators is available. The principle of measurability is a soulful principle that all KPI designers should focus on, as the feasibility of an appraisal is often most directly related to the adherence to this principle. However, measurable does not simply mean quantifiable, and the principle of measurability does not require that all KPI indicators must be quantitative. However, in the actual design of the KPI system, some designers go overboard in pursuing quantization and try their best to make all indicators quantifiable. Admittedly, quantitative indicators are easier to assess and compare, but the excessive pursuit of quantitative indicators often leaves some non-quantifiable key indicators out of the KPI system. For example, the vast majority of indicators in the sales department can be quantified, so quantitative indicators should be used as much as possible, while certain tasks in the human resources department are difficult to quantify. At this point, if the quantifiable nature of the indicators is still emphasized, it will result in some departments having an insufficient number of KPIs to reflect the key performance of their work.
3, on the principle of achievable understanding of the bias of the indicators brought about by the problem of "middle of the road"
Achievable principle refers to the performance indicators in the case of effort can be achieved to avoid the establishment of too high or too low goals. Due to the high target may lead to employees and enterprises no matter how hard it can not be completed, so that the indicators are virtually useless, without any meaning; and too low target setting can not play a role in incentives, therefore, the designers of the KPI system in order to avoid the polarization of the target setting, often tend to "middle of the road", usually love to choose the average value of as a indicators. However, not all "middle-of-the-road" goals are appropriate, the selection of indicators need to be considered in conjunction with the growth of the industry, the growth of the enterprise and the product life cycle. For example, a software company in Xiamen is a growing enterprise, the sales revenue in 2003 was 8 million yuan. In the development of the 2004 KPI system, sales revenue for the determination of this indicator, initially set at 19.8 million yuan. After the consulting company intervened in the design of the KPI system, it pointed out that this target was set too high, it was difficult to achieve, and would lose its incentive effect. And then, the enterprise and through market research, re-estimated the sales revenue in 2004, that should be between 9 million yuan to 13 million yuan, and is prepared to take the average of the two 11 million yuan as the KPI assessment index. The consulting firm, after integrating all factors, especially analyzing the company's growth, suggested that the seemingly "middle-of-the-road" target of 11 million yuan, although higher than the previous year's sales revenue for a company in the growth stage, was still insufficiently motivating when compared to the 13 million yuan that could be achieved through active efforts. The consulting firm recommended choosing a KPI of $13 million, which was achievable with the existing strengths of the company and the efforts of the employees, which were significant. Therefore, for the understanding of the principle of achievability, the indicator must not only be achievable, but also be achievable with great efforts, so that the assessment can play a role in motivation.
4, the avoidance of the principle of realism and the appraisal of the problem of deviation from the goal
The principle of realism refers to the performance indicators are real, can be proved and observed. As the assessment costs, while the enterprise itself is profit-driven, many enterprises within the KPI system designers in order to cater to the idea of enterprises want to minimize the cost of some of the key performance indicators within the enterprise need to pay a certain amount of money to take the practice of discarding, in order to reduce the difficulty of the assessment to reduce the cost of the assessment, and their reasons (or excuses) often based on the principle of realism, the indicators "unobservable and observable". The reason (or excuse) is often based on the principle of realism, that the indicator is "unobservable and unprovable". In fact, in many cases, the indicators discarded under this pretext play a key role in the achievement of corporate strategy. Even if the KPIs are detached from the company's strategic objectives because too many of these indicators are discarded, the efforts of the positions they measure will be at odds with the realization of the company's strategic objectives. Therefore, if due to the limited knowledge resources and technical level within the enterprise temporarily unable to assess this type of indicators, and this type of indicators is the key driving factors affecting the creation of corporate value, then you can seek external help, such as hiring external experts or consulting firms for the design of the KPI system, can not be because of the cost of preventing the right choice of KPI indicators.
5, on the time limit principle of understanding the bias brought about by the assessment cycle is too short
The time limit principle refers to focus on the completion of the performance indicators of a specific period of time, the completion of the indicators can not be far away. The design of KPI system within the enterprise, sometimes this cycle is too short problem, some KPI designers, although the middle and senior management within the enterprise, but some of them have not received systematic performance appraisal training, the regularity of the appraisal is not enough to grasp the appraisal of the appraisal is not in-depth enough to understand. They tend to think that in order to understand the situation of employees and work dynamics in a timely manner, the shorter the appraisal cycle, the better. This understanding is more biased. In practice, different indicators should have different assessment cycles, some indicators can be seen in the short term results can be assessed once a quarter, while some indicators need a long time to see the effect of the assessment may need to be assessed once a year. However, in general, KPI indicators are not recommended monthly assessment, because this will waste a lot of human and material resources, disrupt the normal work plan, so that the assessment of the burden of the enterprise, for a long time, the assessment system is bound to be a formality.
VII, the main responsibility of the center KPI indicators
● R & D system
1, the organization increased
Indicator name: the rate of growth of new product sales ratio and the market growth rate of the old product
Indicator definition: the rate of growth of the annual order of new products accounted for the ratio of the total amount of sales orders, the old product of the net growth rate
Established Purpose: to reflect the effect of product development, reflect the growth of the company's strength, and adhere to the market test standards of the product
Data collection: Finance Department
2. Productivity Improvement
Indicator name: per capita gross profit growth rate of new products
Definition of the indicator: the growth rate of the ratio of the gross profit of the planned period of the new products' sales revenues minus the cost of sales of the new products to the average number of employees of the R & D system. The growth rate of the ratio of new product sales revenue minus new product sales cost to the average number of employees in the R&D system.
Purpose: To reflect the average efficiency of the R&D system staff, to control the staff structure of the R&D system and to improve the R&D management
Data collection: Human Resources Department
3. Cost control
Indicator name: technical optimization of the old products and reduction of material costs
Definition of the indicator: during the planning period, the sales of the old products minus the increase or decrease in the cost of the comparable purchases. The amount of material cost reduction after deducting the factors of cost increase (decrease).
Purpose: To encourage the R&D department to continuously improve the old products, reduce the material cost of the old products and increase the competitiveness of the old products.
Data Collection: Finance Department
Indicator Name: Decrease in Failures of Running Products
Definition of Indicator: Decrease in the total number of failures of online running products during the planning period
Purpose of Establishment: To urge R&D system to improve the quality and stability of new and old products, and to reduce the maintenance cost of products
Data Collection: Marketing Department
●Marketing System
1. Organizational Growth
Indicator Name: Sales Growth Rate
Definition of Indicator: Sales growth rate during the plan period, calculated by order caliber and by sales return caliber, respectively
Purpose of Establishment: To serve as the main indicator reflecting the company's overall organizational growth and market share improvement
Data Collection: Finance Department
Indicator Name: Growth Rate of Export Revenue to Sales Revenue Ratio
Definition of Indicator: Growth Rate of Export Revenue to Sales Revenue Ratio during the Plan Period
Purpose of Establishment: To Emphasize the Strategic Significance of Increasing Export Revenue, and to Promote the Growth of Export Revenue
Data Collection: Finance Department
2. Increase in Productivity
2. Indicator Name: Gross profit per capita growth rate
Definition of Indicator: Ratio of gross profit from product sales revenue minus cost of sales to the average number of employees in the marketing system during the plan period
Purpose of Establishment: To reflect the fulfillment and efficiency of the marketing system's responsibility for recovering payment for goods, to increase the company's revenue, and to improve the cash flow
Data Collection: Human Resource Dept.
To improve the productivity of the marketing system, we have set up the Gross profit per capita growth rate.
3. Cost Control
Indicator Name: Reduction of Sales Expense Rate
Definition of Indicator: Reduction of the ratio of sales expense to sales revenue in the planning period
Purpose of Establishment: Reflecting the effect of sales revenue generated by sales expense inputs, and prompting the marketing system to allocate and utilize the sales expense more efficiently
Data Collection: Finance Department
Contract Error Rate
Data Collection: Human Resources Department
Continued on next page p>Indicator Name: Reduction Rate of Contract Error Rate
Definition of Indicator: Reduction Rate of the Ratio of the Number of Contracts with Errors to the Number of All Contracts in the Planning Period
Purpose of Establishment: To promote the marketing system to reduce the number of contractual errors and to reasonably commit to the delivery date, so as to increase the level of the whole company's planning and economic efficiency.
Data Collection: Production Headquarters
●Purchasing System
1. Organizational Increase
Indicator Name: Improvement in Timely Supply of Qualified Materials
Definition of Indicator: Improvement in the ratio of timely supply of purchased materials qualified by IQC to the number of purchased materials in the production demand during the planning period
Purpose: To reflect the purchasing system's ability to manage suppliers, as well as its ability to guarantee and respond to balanced production
Data Collection: Production Headquarters
2. Productivity Improvement
Indicator Name: Growth Rate of Per Capita Purchase of Materials
Indicator Definition: Ratio of the total amount of purchased materials arriving at the factory during the planning period to the average number of employees in the purchasing system
Indicator Definition: Ratio of total purchased materials to average number of employees in the purchasing system
Purpose of establishment: to reflect the productivity of the procurement system and urge it to reduce manpower and increase efficiency
Data collection: Human Resources Department
3. Cost Control
Indicator Name: Comparable Purchasing Cost Reduction Rate
Definition of Indicator: Purchasing Cost Reduction Rate calculated by representative material varieties (with a focus on A-type items), comparing to the same period of the previous year, or comparing to the best level in the industry. Purchasing Cost Reduction Rate, which includes the cost share of the purchasing system in the purchasing cost
Purpose of Establishment: To reduce the overall cost of material purchasing
Data Collection: Production Headquarter
●Production System
1. Organizational Increase
Name of Indicator: Growth Rate of Timely and Complete Shipments
Definition of Indicator: The increase of timely and complete shipments of products by production system according to order contracts in a planning period. Definition of Indicator: The ratio of the production value of the production system shipped correctly and on time according to the order contract to the planned production value during the planning period
Purpose of Establishment: To reflect the contract fulfillment capability of the production system and the company as a whole
Data Collection: Marketing Department
2. Productivity Improvement
Name of Indicator: Growth Rate of Per Capita Production Value
Definition of Indicator: Ratio of the total output value of the production system and the average number of employees during the planning period
Purpose of establishment: to reflect the labor productivity of the production system, and to urge it to reduce manpower and increase efficiency
Data collection: Human Resources Department
3. Cost Control
Name of Indicator: Reduction of Manufacturing Expense Rate
Definition of Indicator: Reduction of the ratio of manufacturing expenses in the cost of product manufacturing
Purpose of establishment: To encourage the production system to reduce manufacturing costs
Data collection: Finance Department
Indicator name: Improvement in the rate of straight-through rate of product manufacturing
Definition of indicator: Improvement in the ratio of batches of products (including components) that pass the inspections of each stage of the production process in one go to the total number of batches produced
Purpose of establishment: To improve the quality of manufacturing, and to reduce the cost of manufacturing quality. Cost
Data collection: Management Engineering Department
●Financial Management System
1. Organizational Growth
Indicator Name: Net Profit Growth Rate
Definition of Indicator: Growth rate of net profit during the planning period
Purpose of Establishment: To promote the financial management system to promote the growth of the final results of the company through the effective control of the overall budget and effective monitoring of the recovery of goods. Monitoring and controlling to promote the growth of the Company's final results
Data collection: Management Engineering Department
2. Productivity Improvement
Indicator name: Reduction rate of the ratio of financial and managerial personnel
Definition of the indicator: Reduction rate of the ratio of the average number of personnel of Huawei Technologies' financial and managerial system to the average number of the Company's staff in the planning period
Establishment purpose: Aiming to promote Reduction of personnel and increase of efficiency in the financial management system
Data collection: Human Resources Department
3. Cost Control
Indicator name: Reduction rate of management expense ratio
Definition of indicator: Reduction rate of the ratio of the Company's management expense expenditure (excluding research and development expenses) to sales revenue during the plan period
Establishment purpose: To urge the financial management system to effectively improve the management expense ratio by means of comprehensive budgetary management. Budget management, effectively improve the effect of management expense expenditure and reduce the rate of management expense
Data collection: Management Engineering Department
This answer is recommended by Tian Hao, a person who is categorized by science education