Determining accurate and effective KPIs is the key to successful assessment. So where does the KPI come from and how can it be refined and determined? Before we do it, we need to think and answer this question first. Depending on the characteristics of the company and the nature of the job, everyone may have their own specific practices. Then, how does the KPI index of your appraisal position be refined and determined? electrical discharge machining
KPI index refinement is a technical skill work, but also a “controversy” “negotiation” work. Until now, it has been impossible to figure out how many times such “refining” work has been done and what should be done in compliance with SMART principles. The indicators can be refined through PAST workflow decomposition method, fishbone diagram decomposition method, and brainstorming method. electrical discharge machining
Some of my friends may know more about me: Every day learning and sharing, I don’t talk much about the theory of HR, but I have more to say about the practice of the actual work. I still insist on “How to refine KPIs” today: On this piece of land, whether it is private, state-owned or government institutions, the “Appropriation of Experts Law” is the most suitable method. Now I will briefly share how to use this method to extract KPIs from top to bottom:
1. The company-level KPI indicators are refined.
After walking through several companies, each year when setting up targets and targets for the coming year with the boss, the most important thing is the net profit index. This is the most important “outline”. The boss summoned more than deputy generals, legal advisors, and several of the boss’s best friends to use the evening or the evening after work to go to cafes, restaurants, restaurants, etc., chatting while eating and reviewing the past few years. The achievements and lessons learned should be analyzed. Domestic and foreign policies, industry development, business opportunities, talent development, and so on, will eventually lead to the introduction of pure profits. What are the major things to be done to ensure the realization of this net profit?
In a relaxed and harmonious atmosphere, everyone spoke a word in my heart and spoke out a lot of true thoughts in their hearts, which revealed many of their own management experiences, from product innovation, cost control, production efficiency, logistics control, price strategy, The promotion methods, fund management, talent management, safety management, and social responsibilities have been discussed on many occasions. Since these aspects have clear data and vivid examples in their minds, the discussions are in-depth and thorough. Each time there is a result. electrical discharge machining
After many democratic consultations by the above experts, the boss’s secretary collated and summarized the boss’s revisions. It is understood that the boss usually takes a few days and nights to have a result. According to him, the days and nights It is his calmest and most painful situation. The indicator will be less afraid of failing to guarantee the realization of profits. It will be more afraid of everyone’s emotions. Of course, the most polished ones are the goals of the various indicators (not discussed today, and will be announced later). .
After the boss made the first draft, he then convened the heads of departments, deputy generals, etc. to meet and discuss together. The basic revisions were relatively few, and the meeting was held public. After the finalization, the office and the HR department were jointly released and the prominent position of the company was announced. These indicators include: operating income, gross profit, purchase cost reduction rate, number of safety accidents, production efficiency improvement rate, market share of important products, market-oriented new products, labor costs, review of management system, and social donations. Wait. electrical discharge machining
The above are both KPI performance indicators of the company and KPI performance indicators of the general manager.
2, deputy general KPI indicators refined.
With the company’s or general manager’s KPI performance indicators, each vice president can easily refine the performance indicators according to their respective responsibilities. Generally speaking, the HR department decomposes it into the heads of the deputy head according to the general manager’s index, and then adds some responsibility indicators for the departments in charge. Then it looks for deputy general consultations and submits them for approval by the general manager. If it is modified, it will be announced as modified. For example, after refining, the vice general indicators for sales include: sales revenue, sales cost, gross profit, market share of important products, new product market expansion, product promotion, personnel loss, and employee training.
3. The KPI indicators of each department are refined.
According to the general manager and deputy general indicators, the HR department decomposes each department one by one and consults with the person in charge of the relevant department. If necessary, it will “quarrel”. The controversial place makes the ruling of the superior, and after the draft is formed, the deputy general audit and general manager Approve, if need to amend, execute according to general manager opinion. For example, the final KPI indicators of the HR department include: labor cost control, recruitment completion rate, employee turnover rate, employee satisfaction rate, safety accidents, social donation work, and employee training. electrical discharge machining
4. The KPI indicators of employees are refined.
Of course, the individual indicators of employees in various departments are based on the indicators received by various departments to decompose and increase the indicators of job characteristics. In general, the draft of the draft is submitted by the person in charge of each department, the HR department reviews, and the deputy general approval can be implemented. Of course, in this process, the HR department needs to provide prompt and professional guidance to all departments, for example, If the number of quantitative indicators and indicators are appropriate, etc., the HR department needs to remind the department heads to exchange and communicate with employees when refining indicators so as not to cause too much controversy. For example, the indicators of security personnel include: registration rate of people and vehicles entering the factory gate, handling of security accidents, violations of discipline, and bravery; etc., and the indicators of the first-line employees in the piece-rate system include: production completion rate, quality pass rate, attendance rate, and violation of regulations. Violation of the rules, rationalization of recommendations, etc. electrical discharge machining
5, the refinement of special positions.
There are exceptions for everything. The company also has special positions such as long-term living, legal consultants, temporary staff, and internships. Of course, uncorrected personnel are not included in the scope of performance appraisal. The special staff is the HR department to discuss with the leaders of all departments how to set the indicators according to the characteristics of their work, and inform the person to be assessed, if there are other opinions, to modify or persuade after the consultation. For example, the indicators of legal advisors include: the implementation of the consultancy agreement, the number of changes in the company’s paperwork, the accuracy of court appearances, the case’s success, and legal professional standards.
6, appropriate non-KPI index refinement.
In my opinion, KPIs are important for assessment purposes, but in order to fully reflect the performance of companies, departments, and employees, non-KPI indicators should also be appropriately refined, such as: corporate culture, compliance, coordination, and coordination. index. Appraisal is given through a superior appraisal, but the scores should not be too large, and should not exceed 20 points. electrical discharge machining
7, special reminder for refining indicators.
The above are the KPI indicators extracted from the expert opinion method, because they are the most aware of the size of the company’s work, and it is difficult for external consultants and government experts to achieve. In addition to knowing the company well, they often participate in external industry exchanges, college education, etc. Most of them have a university diploma, and they are middle-aged and mature. They have mature ideas and are full of energy. Therefore, they are really practical experts in this group of companies. They are the backbone of the company and are the trusted corporate loyalty at any time.
However, there is special skill in the field of surgery. Even geniuses have blind spots of knowledge or skills. In refining the KPI indicators, we still need to pay attention to the following details.
(1) The superior is not a simple addition of subordinate indicators. electrical discharge machining
We have seen that there are about 3 KPIs for general employees, 7 for department heads, 10 for vice presidents, and 20 or more for general manager indicators. The general manager finally requested a review of the indicators. The superior is not the sum of all the subordinate indicators. The indicators that should be undertaken by the subordinates should not necessarily be reflected in the indicators. Finally, the number of department heads has been reduced to 5, vice president 7, and general manager 10 or so.
(2) The KPI assessment index of each post should not be much.
Some department heads and even bosses think that if there are fewer assessment targets, and that employees are not actively working or can not fully promote employees to work hard, they come to a “designed” design index, and some indicators are even close to the repetition but the expression is not the same. This is not necessary. If it is just the introduction of the appraisal system, it is even more incapable of doing so. The result of greed for many things is to “disregard each other” and “have lost sesame seeds and lost watermelon”. The only way is that the “20/80” principle is more applicable for appraisal. Leaders: Do not be afraid of employees being lazy and seize the main performance appraisal. Other situations will be discussed later. electrical discharge machining
(3) Regulations can be negotiated and revised quarterly.
If the KPI assessment is not fixed, it cannot be changed. In the performance appraisal method, it can be stated that “the index or assessment plan can be adjusted or negotiated on a quarterly basis.” In particular, when changes in job responsibilities, adjustments in positions, and changes in departmental responsibilities occur, KPIs must be revised.
(4) Each KPI assessment index should be quantified clearly.
The refining index is usually determined along with the target. In the setting of the target, it needs to be quantified as much as possible, and only a few that cannot be quantified can be evaluated at all levels. As long as I use my brains, I think that any indicator can be quantified, but you are willing or not, of course, some indicators do not necessarily quantify the assessment just fine. For example, “obedience” as assessed by “number of disobedience to work schedules” may increase the burden on data collectors, or it may become a tool for some leaders to dispel subordinates at ordinary times. On the contrary, if 360-degree evaluations are used, they will be objective. electrical discharge machining
(5) Fully communicate with the examinees.
The work of each post will be more colorful and easier to get results. The one who has the right to speak is the employee of the post, not his superior or subordinate or other employees of the same class, because he is in contact with these jobs every day. Regardless of what resources, support, collaboration, and difficulty are needed, only he knows best, and many skillful things in his work cannot be fully expressed in language. Therefore, in setting the assessment index, the superior must communicate with the person to be assessed. How to set the index to better reflect his performance, but also reflect his responsibilities. This means that it means that all those who have been assessed will be evaluated. On the contrary, the index refinement is the work led by the HR department or superior leaders.
(6) Bottom-up refining is highly likely to be rejected. electrical discharge machining
Some companies take employees to refine the indicators first, then refine each department, and finally form the company’s KPI index. This bottom-up refining method has no precedent in actual work. Even if such a refining method is to be adopted, the company’s leaders will only refer to everyone’s opinions and “democratic” on the surface, drawing “inspiration for creativity” from the wisdom of the masses. Ultimately, it will focus on the concentrated opinions of the boss or the leader. This is at least a common occurrence.
(7) The performance specialist is familiar with the business process as far as possible.
Whether it is refining the company’s KPI index, or the refining department, the indicators of each employee, the HR department’s performance specialists always work through it, and work from beginning to end to coordinate, explain, consult and summarize. In these processes, if you are unfamiliar with the business processes of other departments of the company and do not know the results of the work, you may only silently record that you can serve only as a clerk, and you cannot submit your professional opinions on HR performance assessment. Therefore, the performance specialists and even all colleagues in the HR department should use all kinds of time to be familiar with the work content, processes, and requirements of the company’s various departments and positions. Only in this way can professional HR knowledge be used and used in the company. There is only a right to speak in. electrical discharge machining
(8) The HR department needs to provide professional advice.
After all, performance management involves a wide range of tasks and is highly professional. KPI index refinement is also the same. The HR department needs to conduct professional training on indicator refinement at all levels of the company’s management staff before the index is refined, including sample use. , the number of indicators, name specifications, target settings, communication, examples to explain, etc., must not allow the free refinement of the various departments, in the end or by the HR department to reorganize and regulate, so repeated work can be avoided, and why we Do you not prevent it in advance?
The KPI index refinement is only the first step in the long-term management of performance management, followed by goal setting, program design, assessment implementation, data receipts, performance interviews, and the use of results. It is believed that there are many people who have gained knowledge and experience in refining KPIs. Let’s study together in the sun. electrical discharge machining