First, the establishment of enterprise KPI system
First of all, make clear the strategic objectives and annual business objectives of the enterprise. Strategic objectives include: market strategy, product strategy, human resources strategy and corporate culture construction strategy. Management strategies include brainstorming and fishbone analysis.
Second, the key success factors of an enterprise are generated through the decomposition of strategic objectives.
Thirdly, by decomposing the key success factors of the enterprise, the key performance indicators of the enterprise are generated.
Fourth, the enterprise KPI decomposition produces department-level KPI.
Fifth, the department-level KPI is decomposed to produce the KPI of each position in the department.
The above steps are the KPI index system of the enterprise company. This process of establishing and decomposing KPI system is a process of unifying the efforts of all employees to the strategic objectives of the enterprise, and it will also clarify the objectives for the performance management of managers in various departments.
Six, enterprise KPI assessment cycle
Suggestion: For senior management, annual assessment or quarterly assessment plus annual assessment should be adopted.
Intermediate, quarterly assessment+annual assessment
Grassroots: monthly assessment+annual assessment, or quarterly assessment+annual assessment.
Specifically, it should be determined according to factors such as sales cycle, management efficiency, management cost and enterprise habits.
Seventh, the index measurement standard.
There are two effective measurement methods, linear score and addition and subtraction score.
Linear score formula: actual completed value/target planned value scores.
Add and subtract scores: scores, extra points, and less points.
Second, enterprise KPI and performance appraisal
Enterprise KPI is the core part of performance appraisal system, but it is not the whole content of performance appraisal system.
The KPI of each position in the department comes from the department KPI, the department KPI comes from the superior department KPI, and the superior department KPI comes from the enterprise KPI. Only in this way can we ensure that every post is working hard in the direction required by the enterprise.
But this does not mean that each position only undertakes a certain KPI of the department, because the more you go to the grassroots level, the more difficult it is for the position to be directly related to the department KPI, but should contribute to the department KPI. Each position affects a process of a business process, or a certain point in the process. When setting goals and conducting performance appraisal, it is necessary to consider whether the incumbent of the position can control the results of the indicators. If the incumbent can't control it, KPI can't be used as the performance measurement index/standard of the incumbent, but a process or a point that affects the realization of a KPI should be used as the measurement index/standard of the incumbent, that is, the post responsibility index.
Third, performance improvement and value evaluation.
KPI is the basic basis for evaluating employee performance improvement and performance results, and provides direction, data and factual basis for evaluation.
Fourth, establish an evaluation partnership through performance interviews.
KPI emphasizes the work achievement to prove the work ability, and the actual ability is proved by the stable work performance of the assessed in the natural state. If we use an exam or a test to evaluate the ability, it will deviate from the purpose, making employees spend a lot of time and energy to study the methods and skills to deal with the evaluation or test, and some even resort to deceit instead of improving their ability and performance. The evaluation of KPI standard adopts the method of obtaining evidence, and it is a very objective, fair and effective method to collect evidence that employees meet performance standards from specific work results or find out the gap with performance standards.
In the past evaluation process, there has always been an antagonistic relationship between the evaluator and the assessed, and there have always been differences in the boundaries of evaluation levels and proportions, and the ways of comments and criticisms. This often fails to reach the assessment results, which also hurts the organizational atmosphere to a certain extent, and the assessed person has not made continuous progress because of the assessment. Its root lies in the unclear relationship between the evaluator and the evaluated. Appraisers are regarded as supervisors and judges, while appraisers are only regarded as executors and authenticatees. In this way, nature is in an unequal position from the beginning, resulting in opposition. In the KPI evaluation method, the evaluator and the evaluated become equal evaluation partners, and everyone learns together and makes progress together. The purpose is to improve the ability of the assessed as soon as possible and reach the performance standard.
This partnership is first reflected in the formulation of the evaluation plan. KPI emphasizes that any evaluation scheme must be the result of consensus reached by both parties through discussion. Through the discussion of the connotation of performance standards, both sides have a unified understanding, which is convenient for the assessed to establish clear goals, carry out their own work according to the requirements of the standards, and make corresponding judgments against the standards in the future. The way, time, type and quantity of obtaining evidence are also agreed by both parties in advance. Even after obtaining the evidence, what kind of judgment procedures and methods will be carried out are agreed in advance. This whole process of making evaluation plan through performance interview fully embodies the spirit of mutual trust, unity and cooperation between the two sides.
Generally speaking, the enterprise KPI performance system is a performance management system, including the establishment and gradual decomposition of the company KPI, the work target system supporting the post responsibility indicators achieved by the KPI target, the assessment cycle, the indicator measurement/evaluation criteria, performance improvement, performance interview, performance culture (the partnership between the appraiser and the examinee) and performance value evaluation (the application of performance results).