Key performance

indicators
 Key performance indicators —
performance indicators of the
unit (enterprise), which help
the organization to achieve
strategic and tactical
(operational) goals. The use of
key performance indicators
gives the organization the
opportunity to assess its status
and help in assessing the
implementation of the strategy
Types of key performance indicators:
• Result KPI-quantitative and qualitative indicators of the result;
• KPI cost - number of resource costs;
• KPI functioning-how the execution process corresponds to the established
algorithm;
• KPI performance-derived indicators that characterize the ratio of the result
and the time spent on its production;
• KPI efficiency (performance indicators) - are derived indicators that
characterize the ratio of the result to the cost of resources
The main advantages of KPI include:
• employee motivation;
• fairness, transparency and
comparability of results
(management and staff see who
works and earns);
• correction of the employee's work
on the lagging indicator;
• involvement of personnel to
achieve the goals of the enterprise;
• quality control of performance of
duties.
Despite all the positive aspects of the
KPI system-it is not universal. Not all
indicators in the work of the staff can be
measured quantitatively, and therefore
for each business its own way of
assessing efficiency, and to find them
will require a large amount of time,
labor and Finance.
KPI indicators are often used by larger
companies (not where the owner, Director,
seller and loader are the same person), but
on the contrary, when the company has a
large number of employees and branches.
The use of "result" allows you to easily
control the efficiency of all departments of
the company. Having key performance
indicators, we are able to manage the
process and make changes to it. Set goals
for the staff and motivate them to achieve
them.
When creating and implementing KPIs, it is very important that the counting
system is simple and understandable for employees, otherwise such changes
can cause consequences, up to failure to work.
It is possible to motivate employees to work
financially — bonuses and all kinds of financial
incentives, and intangible — career and personal
growth. There are three steps: minimum
(sufficient not to expel the employee), norm
(indicators that satisfy the employer) and
maximum (the level to which the employee
should strive). When an employee clearly
understands what his salary depends on and
what indicators he should achieve to save
himself from an unpleasant surprise at the end
of the month, he will work for the benefit of the
company
 example in sales the main key
performance indicators of a sales
Manager and sales Department
are:
• 1. Sales volume. The Manager sets a
plan for a certain period of time
(month, quarter, year).
• 2. Number of sales. Number of
customers who have made a
purchase
• 3. Traffic. The number of customers
who have learned about your
product – potential buyers.
• 4. Check Average. Introduced in
order to encourage the Manager to
sell additional products.
• 5. Conversion. The number of clients,
traffic is relative.