Follow several principles:

1. There are three sources of performance indicators. The first is the decomposition of enterprise strategic objectives; The second is the regular index of the post; Third, we hope to improve the phenomenon in the next assessment cycle.

A. the goal of performance appraisal is to realize the strategic goal of the enterprise. According to the spirit of the balanced scorecard, the strategic goal is to determine the financial goals of shareholders for the next performance appraisal cycle of the enterprise. For example, the turnover reaches XX; Profit reaches XX, or return on capital, and so on. These are some clear indicators, which can be directly used to ask business departments, marketing departments and so on. In order to achieve these goals, we must gain the recognition of our customers. For example, demanding customer satisfaction; Number of key customers; The number of projects undertaken, etc. This is the second client area; In order to meet the target requirements of the customer field, we must change, improve and adjust those workflows internally. For example, speed up the delivery cycle; Improve the yield; Improve the response time of complaints and so on. This is the process area. Finally, in order to make employees adapt to these new processes, it is necessary to improve their abilities or change their concepts, which is the last field of learning and growth. The above are some performance appraisal indicators based on the strategic objectives of the enterprise. Such as turnover, profit margin, customer satisfaction, average development cycle, yield, performance appraisal courses and so on. These can be used as indicators of performance appraisal, and they must all be used as indicators of performance appraisal. Otherwise, the strategy will be divorced from the performance appraisal, and the purpose of realizing the strategy will not be achieved.

B. Conventional indicators refer to some assessment indicators that are necessary for each position and do not need to be defined in the strategy. For example: attendance indicators; Number of customers of business personnel; The residual number of the developer; Accounting error rate of financial personnel, etc. Is something he must do well in his work. It can also be used to evaluate the meticulous degree of work.

C. phenomena to be improved. Enterprises will have different problems at different stages, and performance appraisal indicators can also be used to force improvement. For example, if everyone is found to be late and leave early during this period, the attendance index or proportion can be increased. Because it is related to their bonuses, employees will pay more attention to keep going to work on time, which is equivalent to improving attendance. Or if the company wants to go public in the near future, it needs to increase its turnover and the profit rate can be slightly relaxed. At this time, the turnover of salesmen is required to increase. Or at this time, to control the cost, you can add the cost rate to the assessment index. These can immediately improve some behaviors.

2, the indicators must be systematic, and the performance indicators of any position should be systematic, and they are all related to his work. Not doing what you want to do. A fast food company heard a new index, called the loss rate of fresh food, and thought it was very good. The implementation of the system requires reducing the loss rate of fresh food. Results In order to reach the company's target, the store manager asked all hamburgers to wait until the customer finished ordering. So there will be no new losses. As a result, the fast food restaurant became a Chinese restaurant, and it didn't start business until the dishes were ordered, and the turnover immediately dropped. Therefore, we should not rashly introduce some simple indicators, and each indicator should be carefully considered to understand its effects and shortcomings.

3. Few independent indicators can achieve good results. It usually takes two or three indicators to achieve the really needed behavior. For example, it feels good to ask business people for turnover. But salespeople must only care about sales volume, regardless of profit. Judging the production department by output, there must be many defective products. Therefore, in addition to sales, sales staff are also required to ask for profit margins. The yield is required, and the qualification rate is also required. Only in this way can we ensure that employees really take the right behavior to complete the indicators.

4. Indicators must be clear, definite, quantitative and feasible. No employee will come up with an indicator that can really restrain his behavior, or set an indicator that is difficult for him to accomplish. For example, inventory management will require the arrival rate of parts, requiring 90%, which looks good. But a product needs ten parts, and the purchasing department bought many parts, but only one part didn't. Then his parts arrival rate is still 90%, but the workshop operating rate is 0. Therefore, the calculation of arrival rate must be based on the situation that the workshop can start.

5. Don't have too many indicators and don't confuse them. Too many indicators will make employees ignore key requirements and lose the management spirit of KPI. Chaotic indicators will only make employees feel at a loss.

The above principles are basically the focus of selecting performance management indicators.