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KPI of Key Point Indicator is not only abstract or real target value for your business or process but also unique manager that can make your people and process management really independent and efficient.
Correct establishment of KPI let you control everything without controlling anything. Different kind of KPIs should be appointed based on your goals and planned achievements.
How to establish KPIs? Standard way is to use SMART principle (Standard, Measurable, Achievable, Relevant, Time Bound). But is it enough? Let say not. My experience showed me that it is not enough especially if you wanna catch not some additional percentage but make something really new or go to other level.
What is needed for it more. I call it P and P. and it are Process and Person
1) Process KPI
How to establish a new process or adjust it in a way that you see in you thought. For this you need to understand what is the target of current process. If it has no target than this should be deleted, simplified or integrated in other process. Only if process have clear target it can have clear KPI. KPI should be established based on target of process and influence of this process on business and other processes. KPI have to be established for each significant process with clear target and for each process that influence on business But all processes that do not have clear targets or influence on business should be deleted or integrated on other process. How to establish KPI? Take process purpose and process influence, combine it and define by maximum 3-5 words main target of this activity and what you want to get from it. Then think how you can measure it in simplest way. If you understand it, than it will be KPI of the Process, if not then please thing how it can be changed, simplified or integrated in order to achieve measurable value.
2) Person KPI
How to control people's work without controlling them? There is only one way - to persuade them follow what you need. It can be achieved only if they understand that work with you is WIN-WIN for them also. But what is WIN-WIN? It is just a word or something more. WIN-WIN means that they feel that work with you can benefit them financially, mentally, target wise or let them feel that is better you be with you than without. To help them realize it, you have to give them clear indication of it. One of the best ways for clear indication is KPI. Real KPI that depends on them, that can be achieved by them personally but not on any abstract value like sales in region and same b...t that depends on entire company management that in most cases is not managed in proper level and depend in many cases also from environment. If you give them real feeling that they can influence on both sides targets and can give them benefits in return for it like money or something else what is important for them, they will really work independently and without any control. People should always have personal KPIs on all level, but not only for TOP or middle management. Without KPI's people will work in let say lackadaisical routine mode and productivity will be strictly dependent on many factors like mood, time, competitors who can provide them other offers or other circumstances. Always introduce personal KPIs for each person or employee in all levels but not is some cases. If you are not able to do it, you have to consult appropriate person or company.
Both KPI should be always established. Without it there is no success in your goals achievement no matter which company size you have, small firm or big corporation.
Let call it SMART + Process + Person that is equal to SMARTPP. Only if you use SMARTPP you will have your business but not vice versa.
SMARTPP KPI Establishment (Part 1)
