How to enter kpi in an organization. Identification of "leading" and "lagging" KPIs

KPIs are key performance indicators with which you can evaluate the results of the work of employees of various departments of the company. On their basis, workers are promoted according to career ladder or give them bonuses.

Relatively recently, company leaders began to actively introduce such a concept as KPI into their work. Now the most valuable thing for which employees work is tied to it - wages. Moreover, the KPI indicator becomes important not only for the administration, managers or office employees - line managers, but also for representatives of working specialties.

The main idea of KPI (Key Performance Indicator - usually translated as “key performance indicator”) is that it can be used to unambiguously and objectively evaluate the work and performance of any employee, group of people, department, project and company as a whole. The indicator will reflect the whole picture of the processes taking place in the company, using numbers.

The most important thing is to develop the right KPI for each position and enter real indicators. It is very important for an employee who encounters this concept, having received a job in a company, to immediately understand and understand what exactly is included in his personal set of KPIs (criteria for evaluating his work). The list of indicators will allow the beginner to quickly understand what exactly the employer wants to receive, what results he expects from the employee. The KPI range will immediately show how much effort you need to put in to achieve the desired level wages whether this job will be within the capacity of the applicant, or, conversely, his abilities will significantly increase the requirements and, accordingly, wages.

Scorecard

The KPI system gives specialists clear work goals and transparent bonuses. But the indicators may turn out to be unattainable, and the transition to such a system can be painful.

In large foreign companies, where everything is spelled out and detailed to the maximum, work on the KPI system is a great option for an employee. He understands how much, for what and when he will receive in excess of the salary. He has personal tasks and deadlines for their implementation, and the company can regularly monitor his work with the help of evaluation.

In many organizations, in addition to the monthly report, it is the KPI results of all employees that serve as the basis for the annual assessment of the performance of the company's personnel. After the annual assessment, the HR Directorate draws up lists of the most promising specialists for enrollment in the company's personnel reserve and promotion.

But if in foreign companies the head office helps in developing goals and indicators, then Russian employers act in a slightly different way. Some invite consultants, others do it on their own: KPI is prescribed by the HR Directorate. Since neither one nor the other thoroughly knows the specifics of the work of each particular specialist, it happens that the indicators are formulated inaccurately. It even happens with us that the most advanced, in quotation marks, organizations for the development of KPI involve managers and employees of the units being evaluated.

Types of indicators

There are some key performance indicators in the KPI assessment system: financial, client, process and development criteria.

Financial indicators include, for example, market value, return on investment - ROI, turnover, cash flow, internal rate of return - IRR, share price, total assets and many others. These indicators reflect the external economic condition of the company as a whole.

Customer indicators characterize individual workers who deal with customers and create the external image of the company in the market. These criteria include market share, number of new markets, customer satisfaction, quality, image indicators, and more.

Process indicators include indicators that grow along with the speed of various processes in the company: time to develop and launch new products on the market, processing a client's request; time spent on logistics and delivery of goods, etc.

Development criteria - KPI indicators that characterize the degree and level of development of the company itself (external development processes of the company in the market and internal development processes human resources): staff productivity, profit or administrative costs per employee, staff satisfaction level and its "churn".

The employee works as a consultant in the sales department, answering questions from potential buyers by phone. The following key performance indicators (KPIs) are defined for it: customer satisfaction and the number of purchases that people made after consulting an employee over the phone.

Pros and cons

The KPI system is good for employees whose work results affect the financial and economic performance of the enterprise. AT trading firms these are, first of all, top managers and sales managers, in recruiting companies- Recruitment consultants.

In some companies, the performance of an employee's KPI also affects the individual size of the annual salary review: the higher the score, the higher the percentage of salary growth. For example, a manager's annual bonus may consist of two variables that depend on the results of meeting individual goals and on the performance of the company. This approach encourages better performance of functional duties.

For employees from different departments, the size of the bonus, which is affected by KPI, can range from 20 to 100 percent of salary. At the same time, the formula for accruing the bonus itself is quite complicated: it takes into account the number of KPIs, the coefficient of completion of each of them, as well as its “weight”, called the coefficient of influence.

If the KPI scale is compiled incorrectly, there will be little benefit from it. If there are too many KPIs, the impact of each on the amount of the total bonus will be small. For example, initially there were about 20 percent of KPIs, but a year later they were reduced to five. Most of the indicators accounted for a small share of the bonus, and the loss of 5 percent in it is not particularly significant. A 20% KPI weight motivates much more effectively.

One of the main disadvantages of the KPI system is the dependence of the quality of work of an individual employee and the performance of the entire department. If the department did the work poorly or not quite qualitatively, without fulfilling the general plan, then all employees of the department can lose their salary at once. After all, personal KPIs are associated with key indicators of the entire department. In case of systematic non-fulfillment of planned indicators, an employee may be demoted or dismissed. Therefore, KPI forces you to always "be in shape and tone." Who can not stand this rhythm, leaves himself.

Another disadvantage is that not all employees can directly influence the company's strategic KPIs. When the bonus depends on net profit and sales, the secretary or the economist will not be able to influence him.

From experience it can be said that very often in Russian companies the KPI motivation system is one-sided: everything that an employee overfulfills is just a job well done, for which he receives a salary, and for underfulfillment he is deprived of some part of his salary.

Many managers international companies believe that the work of technical specialists (accountants, engineers, programmers) is easier to describe job description than prescribing KPIs for them. We must not forget that the planning and calculations of this system take time. Heads of areas or departments at the end of each month spend time setting and calculating KPIs for all their subordinates. The indicators have to be coordinated with the HR department, and the main work of managers goes by the wayside, and after all, bosses have their own KPI.

As a rule, the transition to a KPI system is usually accompanied by unrest in the team: some quietly sabotage it, others completely do not accept it and leave the company. It is difficult to immediately change your habits, the order in which functions are performed, and get used to the new conditions of remuneration. It is easier for new employees if the HR manager explains to them in an accessible way what the company pays bonuses for, and newcomers, most likely, will normally perceive work according to such rules.

Opinion 1:

Ludmila Shusterova, Deputy CEO BDO outsourcing division

Original KPIs

KPIs are usually associated with either an increase in the profitability of the company and its turnover, or with an increase in productivity and efficiency in the use of capital assets. Based on these conditions, it is unlikely that it will be possible to draw up some fundamentally new and original KPIs. Unless, of course, the work is connected with something very non-standard. For example, you can put an increase in the number of koalas by n percent in the KPI for the head of a biological station. But for a typical manager, it is unlikely that anything better will come up than an increase in revenue, margins, increased customer satisfaction, or a decrease in staff turnover. It is desirable that there are several KPIs, but not too many. Indeed, in the pursuit of business and profit growth, it is important that both customers and staff do not suffer - and this is not a trivial task at all.

But the main task of indicators is not to be original, but effective.

Opinion 2:

Dmitry Pelah, Director of the Financial Consulting Agency

Regulation on KPI

In order to start applying the KPI system in your company, you need to fix it in internal documents. A regulation on KPI should be developed, which will be approved by the head of the company. In this position, it is desirable to provide formulas and calculations on the basis of which the system of indicators is built. It is also important to link indicators to data. accounting or with IFRS if the company uses international standards.

The regulation on the KPI system should establish a causal relationship of indicators with the main goals of the company and determine the level of responsibility for the values of the indicators of employees to whom this system will be applied.

There is no standard form for a KPI statement, so a company can develop it on its own or seek help from specialized consulting firms.

Opinion 3:

Ivan Shklovets, Deputy Head Federal Service for work and employment

Dismissal for low performance

The labor legislation does not contain such grounds for dismissal as a low indicator of efficiency. Therefore, the employer has no right to dismiss an employee with such a wording.

It is possible to dismiss an employee due to inconsistency with the position held only on the basis of the results of the employee's attestation, which must be carried out in the manner established by the employer himself in the form of a local regulatory act. In this case, there must be a protocol attestation commission. However, even in this case, before dismissal, the employer will be obliged to offer the employee other available vacant positions or the work that he can do, taking into account his state of health.

Non-compliance by an employee with established labor standards or quantitative (qualitative) indicators may affect the amount of remuneration. For example, incentive payments may be reduced or canceled. However, when working out the established norm of working hours, the employee in any case will have a guaranteed right to receive the salary established for him ( tariff rate). If the employer nevertheless dismissed the employee on the above grounds, he has the right to appeal such dismissal in court.

Pros and cons of using KPI to evaluate employee performance

pros	Minuses
The amount of an employee's bonus directly depends on the fulfillment of his personal KPI	Due to too many KPIs in the total bonus, the share of each of them is small
Each employee is assigned responsibility for a specific area of work.	Too much weight of one of the indicators leads to distortions in work (the employee does not pay enough attention to the functionality that has the least weight in the KPI system)
The employee sees his contribution to the achievement of the overall goal of the company	Really unattainable KPIs demotivate employees

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Key Performance Indicators or Key Performance Indicators is an evaluation system for determining the achievement of the operational and strategic goals of an enterprise. KPI helps a company assess its current state and improve the efficiency of its own development strategy.

Very often the technique KPI used to evaluate and control the activities and activity of employees of the enterprise. In Russia and the CIS countries, the term "Key Performance Indicators" is often used, as a translation from the English term "Key Performance Indicator" (KPI). However, this translation cannot be considered accurate enough.

If the translation of the word "key" as a key (essential for achieving the goal) and the word "indicator" as an indicator (indicator) can be considered sufficiently accurate, then there are difficulties with the translation of the word "perfomance". According to ISO standard 9000:2008 the word "perfomance" can be divided into two terms, efficiency and effectiveness. According to the standard, performance refers to the degree to which planned results are achieved and the ability to focus on results. Efficiency, according to the standard, means the ratio between the result and the costs (monetary, quantitative, time and others) to achieve it. Taking into account the fact that performance combines both effectiveness and efficiency, it is more accurate to translate KPI as “Key Performance Indicators”, since the result also includes the costs of obtaining it.

KPI is an excellent tool for measuring the degree to which certain goals are being achieved. In the actual activity of the enterprise, it is necessary to use only those indicators that are related to the goals of the enterprise.

Today, enterprise goal management or management by enterprise goals is one of the foundations modern concepts enterprise management. This concept provides for the ability to anticipate the results of activities and plan ways to achieve them.

The concept of management by objectives began its development with the work of Peter Drucker in the 20th century. According to his works, managers should avoid much attention to solving daily routine tasks, instead they should focus on achieving the goals set for the enterprise (department). Today, the KPI system includes this concept, complemented by other modern techniques and automated software tools.

According to various estimates, today enterprises have significant problems with setting the right goals and a system for evaluating results. According to surveys of company executives in the United States, it turned out that more than 60% of managers are dissatisfied with the system for evaluating the results of an enterprise. In Russia, dissatisfaction is even greater - more than 80%.

KPI and the system of motivation of employees of the enterprise are very closely related things, with the help of KPI, you can prepare and implement a highly effective system for stimulating the personnel of the enterprise.

There are many more key indicators. The set of indicators depends on the area of their application; they are often used to evaluate the result of the work of enterprise managers.

Key indicators of the enterprise can be divided into the following types:

Lagging KPIs - show the results of the enterprise after the end of the period
Leading KPIs - allow you to quickly manage the situation within a given period to achieve the desired results after its expiration

Financial performance is usually driven by lagging KPIs. Although financial indicators are used by the owners of the enterprise to assess the ability of the enterprise to generate cash flows, financial indicators, due to the fact that they are lagging, cannot show the current efficiency of the departments and the enterprise as a whole.

Leading (operational) KPIs tell about the current activities of the enterprise. These indicators can often provide indirect information about planned cash flows. In addition, when properly configured, they evaluate the quality of the enterprise's business processes, product quality and customer satisfaction.

A set of enterprise KPIs is part of the system balanced scorecard, which defines cause-and-effect relationships between indicators and goals. Such connections make it possible to see patterns and factors of mutual influence of the results of some processes on others.

KPI system development

When developing a system of key indicators, several stages can be distinguished:

Pre-project work. Such work usually includes the creation of a project team and a pre-project survey. It is also important at this stage to obtain the approval and support of volume managers.
Development of KPI methodology. At this stage, the optimization of the org. enterprise structure, development of a methodology and a set of indicators, development of management mechanisms based on KPI, preparation of a set of documentation.
Training software to manage KPIs. A technical task is being developed for making changes to the software. Direct system programming, user training and pilot operation systems. An example of a program based on "1C" for KPI
Completion of the project. On the final stage the KPI system (and methodology and software) is being put into commercial operation.

Explaining to staff the benefits of using KPIs
Determination of strategic indicators for the entire company
Development of mechanisms for operational monitoring of indicators
The need for further continuous improvement of the set of KPIs to support the development of the organization.

Rules and principles of KPI implementation

There are various assessments of the need and sufficiency of the number of key performance indicators. Norton and Coplan once suggested using no more than 20 KPIs.
Fraser and Hope recommend using no more than 10.

The most successful current practice is to use the 10/80/10 rule.

This rule means that an enterprise should use about 10 key performance indicators, about 80 indicators related to operational (for example, production) activities and about 10 key performance indicators.

very important in implementation of KPI is the principle of manageability and controllability. This principle states that the department or individual responsible for the result of the indicator should be allocated all the resources to manage it, and the result should be measurable and controllable (including by them).

There are other principles for building a KPI system:

The principle of partnership - in order to successfully increase efficiency, it is necessary to seek partnership between all interested subjects of the company. Partnerships should start with building the system and continue as the system progresses.
The principle of transferring efforts to the main areas - increasing efficiency may require a significant expansion of the powers of certain employees of the enterprise. Often these are employees working on the front line. They may also need to upgrade their skills, provide training and include them in KPI development related to their activities. It is also necessary to improve communication between different departments and employees.
The principle of integrated performance evaluation, reporting and performance improvement. Created in the enterprise should encourage employees to make responsible and concrete decisions. It is also necessary to provide employees with all the reporting they need in their work.
The principle of coordinating operational indicators with the strategy. All indicators should be aimed at achieving the stated goals of the enterprise. It is necessary to constantly analyze and optimize key indicators. In the work of the enterprise there should not be indicators that are not consistent with strategic goals enterprises.

The application of these principles will allow you to build an effective enterprise management mechanism.

To write this note it took:

68338 kilometers for travel.
72 man-hours for mail correspondence.
423 man-hours for experiments with a team of 30 people.
88 hours for preparation of reports and presentations at conferences.
17 cups of coffee for a conversation with wise people at an after-party.
About 25 hours to type this text and fix bugs in it :).
A tortured copywriter to death who was forced to parse my drafts, audio recordings, and generally thanks to him.

Lots of money and time. Perhaps the most costly (in terms of nerves, time and money) was the experiment on my own team, which I feel extremely embarrassed to remember. But more on that below.

Sooner or later, probably, every director has a desire to pay fairly. For the work done. And a lot of people are now trying to implement KPIs (Key Performance Indicators). It works like this: you, as a business owner, assign specific goals for employees. They achieve or do not achieve their goals in the process of work. Those who have reached - a bun (cash bonus) is issued.

The point of this approach is to pay fairly. How much you have earned - so much you have received. It's honest, it's logical, it's wonderful!

Well, it makes sense that:

Sellers need to assign a percentage of turnover. Wolves must be hungry. (Yes, there is an alternative opinion that applying such an approach means “imposing an additional tax on yourself.” But as for me, everything is fair here :-)).
Office plankton - set a salary. Stability for them is a very important condition for existence.

But with creative units (designers, programmers) - everything is much more complicated.

We recently conducted a survey of the heads of leading digital agencies and web studios in the country on the topic “how do you use KPI in relation to the work of creative units”, as a result, we got this picture:

Some companies (15%) use KPIs to evaluate the performance of programmers and designers.

About 25% of companies implement KPIs in this moment/ meet resistance within the company or work according to a simplified scheme.

Approximately 30% of companies pay employees based on the subjective assessments of managers. Or rather, 30% admit it ;-)
The remaining 30% do not confess.

The most interesting thing is that many have tried to implement KPIs or are trying now. And not very successful. This does not mean that “KPI is bad”. Poorly prepared food is impossible to eat. Maybe we just don't know how to prepare this KPI?

But statistics show that the overwhelming majority have difficulties with implementation. And there is a suspicion that the same problem is common to all. Let's try to figure it out.

The first thing you will have to face when implementing KPI is the resistance of the team

The question arises: What hovers developers the most when implementing KPIs?

After conducting several experiments and surveys among colleagues, we identified 6 main reasons:

Fear of novelty. Everyone is totally afraid of innovation, thinking that it will get worse (less money, more work etc.).
Opaque scheme. By using a compensation scheme with multiple parameters, we increase the risk that workers will not understand it. People get frustrated and demotivated when they don't understand exactly how they can achieve the best results or why they suddenly get less money.
"Why so many?" Yes, this happens too. If the scheme is built in such a way that the result of this month will appear only in two or three. “This month I worked worse, but I got more. So, last time I didn't get it. Management are idiots, they don’t understand anything about my work!”
The employee's heart rate. It is almost impossible to get into a person's sense of self and give him a "fair" bonus.
Incomplete dependency achievement criteria from the worker. For example, it is not entirely up to the designer whether the design he draws will be sold or whether 50 edits will have to be made.
Reports. I don’t know anyone who likes to write reports, put down the time spent, promise “exact dates”.

If you look at this list carefully, you will find that most of the claims are related to choice, consideration, transparency and the adequacy of the criteria.

OK. So, you just need to come up with Good Criteria!

Well, those who will understand everyone, who will not soar anyone, who will be easy to explain even at an interview. And so that everything was honest, and I wanted to work more and more.

In general, let's try to find Good Criteria. (By the way, "Good" - for whom?). We have three key affected stakeholders: the studio owner, the customer, and the developers.

What can be a Good Criteria from the customer's point of view? Usually it all comes down to money (well, or some actual results):

ROI - Roughly speaking, this is a "return on financial injections." The indicator derived by economists is not entirely applicable to developers: after all, they cannot control the return on their work and measure it in money on the go. That is, they cannot directly affect the indicator.
Low cost of the feature. It is beneficial for the customer to have a low cost feature. And for the developer, this is a pattern break ("How is it: I get more money because I work cheaply?").
Degree of satisfaction. I don’t know how to calculate it, but given that people want happiness or at least less steam (Dmitry Satin), then we can even offer this formula:

However, the reality now is such that to come and offer, for example, to a designer the dependence of his salary on the ephemeral “satisfaction” of the customer is a guaranteed way to be left without a designer. A very serious crisis is needed for this topic to start working. Or a lot of good extra designers.

Date of release. Everything seems to be logical: we hand over the project on time - we get a lot of money, we hand it over ahead of schedule - we get even more money. The indicator is suitable, but it has an already identified problem: not everything depends on the developer. Deadlines most often arise from the client-management side. (Hence the fair: “Why should I lose in salary, although this manager did not knock content out of the customer?”).

OK. These Criteria, which are Good for the customer, will obviously not be Good for the developer. (I have no illusions, now you can easily come up with another 200 pieces of different criteria that are significant for business. Write and discuss in the comments :))

But you can measure PERFORMANCE! It's so simple!

Or not? How to measure it? If I painted the fence, then everything is obvious. But there is a catch. There are many thinking, creative, talented people in our industry, and no one paints the fences. Let's look at the example of programmers. So what Good Performance Measures come to mind?

KSLOC. Do you know what it is? And what is the Hindu code - do you know? Implement - find out. KSLOC is the number of thousands of lines of code. If you link this indicator to salary, then wait for thousands of lines of copy-paste. A friend of mine received a completed order somewhere in Bangalore - a php script, for only ten dollars, but for as much as 20 MB. And he worked!
The amount of some shit per hour (WTF/h). The number of pages drawn per day, the number of features implemented per hour, etc. It seems to be a normal metric - something can actually be calculated and used to distribute goodies. However, a problem similar to the previous point arises: a drop in quality at the expense of quantity, an increase in technological debt. Motivation, interest, satisfaction - everything is rapidly falling down. As a result, turnover and low qualification.
The number of bugs. The fewer bugs, the more we pay. Everything is logical, isn't it? Not really. Is there a bugtracker implemented in your studio? If yes, forget it. Your testers will very soon agree with your programmers on how many bugs to write and how many not, so that it is not to the detriment of both parties.
Processing.“If you stay late at work, you don’t work well.” Is that also logical? We fight overwork, for example, turn off the electricity after 18:00. However, here it must be remembered that the psychology of a developer is fundamentally different from the psychology of office plankton: if he sits until the evening, then he is interested (and this should be encouraged).

People work in our field mainly because they are interested in it.

Do not interfere with stupid corporate rules.

focus factor. This metric came to us from my favorite Scrum. Shows how much the task should have taken ideally, and how much it ended up being. "Concentration" of the team on the project. Is it possible to pay money based on this criterion? Quite, but if your managers are not “techies”, then programmers will deliberately overestimate time estimates, minimizing their own risks. The consequence of this approach is that the deadlines are stretched, the customer is indignant (or does not buy from you). Yes, and every meeting will turn into squabbles and arguments in 10 minutes.
Velocity. Also from Scrum. The notorious "performance". It is rather non-obvious here, the humanities can skip the paragraph.

Allows you to predict how many tasks the team will be able to score in the next stage, depending on how many they completed in the previous one. The problems are the same as the focus factor, plus one more is added. Often a manager (especially an inexperienced one) who senses that team performance can be "measured" begins to use this tool "in the other direction." But Velocity cannot be an accurate criterion, because shows how long the same task can take, performed by the same team under the same conditions. However, after completing the task, the team has already changed: it has gained experience on how to solve this particular task. And the metric won't work again.

cycle time. How quickly time passes from the moment the idea arose to implement a feature on the project, until the moment it was done.

I personally really like this metric. One of the key ones that should be measured and optimized. But developers do not directly influence this factor. This is a very high level metric. If you start paying the team a salary based on their Cycle Time, it means that you, as a leader, do not seek to solve the problems of the team and understand the processes, but simply transfer everything to the team.

An attempt to make a developer's salary dependent on a high-level metric is evidence of managerial impotence

So, is it possible to measure the effectiveness of a team? Yes, you can, especially since we have written about a dozen indicators for this. And another dozen or two can be thought of in the comments. Another question is whether it is worth making the developer's salary dependent on indicators? Now this is risky.

I start working, and I do my job - it's good, because I'm a professional and it's interesting for me. But if they start to spread rot on me with stupid metrics, I will optimize these stupid metrics. I will write 1000 lines or draw 10 shit designs a day. And my interest in work will dry up very, very quickly, I will stupidly want dough. This is called substituting intrinsic motivation for extrinsic motivation.

The story of a madness

Once, “a good friend of mine”, the head of the studio, got excited about the idea of introducing a very fair wage, where a bunch of parameters would be taken into account. Naturally, the matter was approached on a grand scale. Wrote a whole bunch of criteria, such as:

- monthly plan for worked man-hours and actual hours worked;

- quarterly sales plan;

- the number of wards and their salaries;

- the amount of positive communication from customers (satisfaction);

- the number of repeated requests from the client with new projects;

- awards at specialized competitions;

— negative communication with the client;

- the number of bugs found by QA;

- growth of receivables;

- the number of bugs found by the client after the start of the project;

reading books, writing articles.

And 20 more pieces. (Useful list, take it ;-)).

All this was brought into one system. Naturally, the system had to be balanced. Therefore, in the first few months, it was decided to calibrate it on virtual "wrappers". A large board was invented on which a list of employees was drawn. Various “wrappers” were posted on the board - as soon as the payment was received, the project ended or some good (or bad) event occurred that would affect the salary in the future.

Literally within 1 hour, the faces of the employees became very, very gloomy. A couple of days later, questions began: “why do I have fewer candy wrappers?” or “why didn’t they give me a candy wrapper - did I help Vasya?”.

The mood was becoming unsettling. Within a week, project evaluations were taking 4 times as long as they used to, and each evaluation turned into an endless argument between the developer and the project manager. By the end of the month, few people wanted to help their comrade - they explained that "there is enough of their own work." An infinite number of situations were revealed that could not be formalized. Many candy wrappers were issued according to subjective sensations.

Few people wanted to work without candy wrappers, the tension grew. Productivity and motivation - fell. A month later, the program was cancelled. After a couple of months, the anxiety disappeared.

As a conclusion:

Different metrics should be measured and thought-think-think how to influence them. But do not transfer high-level metrics directly to developers and designers. And further.

“A developer has four components: body, heart, mind and soul.
1. The body needs money and security.
2. Heart - love and recognition.
3. Mind - development and self-improvement.
4. Soul - self-realization.
S. Archipenkov

Respect other people and give them the opportunity to do what they like)).

And the very last. There is a suspicion that every leader must understand for himself whether his organization is ready for the transition to KPI. I hope this small selection of articles that we managed to collect will help in making the right decision.

The implementation of the KPI system is an important step for the company towards increasing the efficiency of each employee and the enterprise as a whole.

Western companies have long used a system of key indicators to motivate employees, while we have only large organizations gradually begin to introduce a similar approach, and not always correctly.

A well-built KPI system allows you to best customize the work of the organization, all its departments and each employee individually. It allows:

find out the goals of the company and convey them to employees;
to motivate the team to achieve goals and qualitatively fulfill the assigned duties;
increase the growth of the company's performance in the end.

But do not take KPI as a panacea. It is not enough to simply “set a bar” for each employee, tie pay for work to this bar, and watch how employees jump above their heads in pursuit of a bonus. The implementation of KPI is a complex and lengthy process that requires a lot of time and effort, both from the manager and employees. The whole company should be involved in the process of developing a system of key indicators - this is the only way to avoid the effect of "rejection of novelty", and the most adequate perception of the new scheme of work.

KPIs are the best introduce gradually. Watch the reaction of your employees - if they are negative about this idea, it is better not to rush, but first to conduct extensive outreach and training. Only if the staff will be favorable to the changes and will understand why they are needed, it will bring a good result.

Definition of key indicators

It is very important to develop such KPI , which will be correlated with the main goals of your company and will be realistically achievable. That is, those that the employee himself can influence. It makes no sense to set indicators that a person cannot influence in any way - for example, the number of calls from the site for the sales department (for tracking). itKPI for a marketer or SEO specialist.

Consider what role the employee plays in your company and what you want them to do better. This could be an option KPIs. Each employee in the company should have their own performance indicators.

For a sales employee these will be: the number of outgoing calls, the size of the average check, deals made, the number of sent CPs.

Lawyer's KPI– the number of cases won and thus saved funds for the company.

The job of a marketer can be assessed by the market share occupied by the enterprise, by the number of attracted customers and by ROI.

ForSEO Specialist key indicators can be ROI, the number of applications from the site.

Developing KPI, it is very important to correctly prescribe the calculation formulas, explain them, and agree with each employee. It is important to achieve an understanding of what exactly, and how the wages of each employee will be calculated. A person must understand what he can influence and how to earn more and improve the state of affairs in the company.

The implementation of the system of key indicators takes place in several stages.

1. Development of KPI in relation to the goals and overall strategy of the company.

At this stage, you need to initially determine the overall goals of the company. This may be entry into the top 10 companies in their niche in the region, a certain sales turnover, entry into the international market, and others. Once you've identified your goals, you need to categorize them as important (priority) and non-priority. Otherwise, you can direct the efforts of employees in the wrong direction.

Involve department heads and employees in creating the pyramid of goals. The more people involved in the process, the better. The more information you collect, and if you listen to the opinion of the employees themselves, the more likely it is that the goals will be real and achievable.

As an example, let's take the sales department in your company. Discuss with the head of the department and employees how realistic it is to increase sales by X percent. To do this, each employee needs to increase the average check by X, and the number of calls to customers. Determine specific numbers that are not divorced from reality - this can become a KPI for employees in this department.

2. Introduction to the process, explanation to employees.

The introduction of the system must begin with an explanation to employees why it is needed. If you simply introduce key indicators, as directed from above, you may encounter misunderstanding and rejection of this system. If the opinion of employees is not taken into account, and they are simply confronted with a fact, it will not work to create a strong team and achieve their goals.

When developing a strategy, you should already take into account the wishes of employees. Now it remains to gradually introduce new scheme work.

When hiring, each new employee must be familiarized with the system for evaluating the effectiveness of his work, explaining what is behind each indicator.

3. Control.

Now the following question arises: you need to somehow determine the effectiveness of the work of employees, control and keep records of key indicators. Only in this way can you fairly pay for their work. You will have to count and take into account specific key indicators: for example, the number of calls per day for the sales department, the number of units for the production department, etc. Therefore, it is necessary to think over and introduce a reporting system, and automate the process of accounting for indicators.

The easiest way to do this is with special software. In the case of the sales department, CRM, a customer service system, will help track the effectiveness of each employee. Here, each employee will be able to record data about clients, calls, the results of a conversation with a client, and so on.

If you have a good IT department, you can develop your own reporting solution based on Excel.

You can choose some good tracker for teamwork - there are a lot of them on the market.

The ideal solution should:

ensure control over the work of each employee;
collect data in uniform format and bring them into one database;
help with payroll.

4. Analysis of efficiency and refinement.

If you did everything right, then each employee will be able to track their performance and the relationship between them and wages.

Analyze the effectiveness of subordinates. A correctly introduced system for evaluating key indicators will allow you not only to sum up the results at the end of the month or quarter - you will be able to see inconsistencies even in the very process of performing work. Your task as a leader is to identify such problems in time and eliminate them.

If an employee shows poor results, this is not a reason to dismiss him or deprive him of a bonus. Consider the possibility of advanced training, training, additional explanation of the system of work in the company.

Also, periodically you will need to review key indicators for each employee. You can do this every month, when calculating wages. Some of them may become irrelevant, some may lose weight, or quantitative indicators will need to be revised. You can assign this task to a member of the Human Resources department.

Be sure to let's feedback. The employee must understand which actions lead to a positive result, and which do not. Perhaps it will be possible to develop a development system for each individual employee.

What exactly will emerge over time - you will see who is already ready for promotion, and who does not belong at all in your company.

Payroll based on KPI

The introduction of a KPI system must necessarily affect the payroll procedure. The following scheme is usually used: wages are divided into salary and bonuses. An employee receives a salary in any case, no matter whether he has achieved key indicators or not. But the amount of money in the bonus, bonus part directly depends on the efforts of the employee, on how many indicators he has achieved or not achieved.

Common Mistakes When Entering KPIs and Changing Payroll:

with the introduction of KPI, salary is cut. If an employee received 15,000 rubles, and after the introduction of a system of key indicators, his salary fell to 10,000, and the rest still needs to be earned, this weakly motivates a person not only to work, but also to stay in your company in general. Therefore, before introducing a KPI system, you need to think about the budget - you must have additional funds for bonuses for employees;
an insignificant amount of the bonus, or vice versa, too small a salary. In the first case, the employee has a small material motivation to work quite well, in the second case, too, since if the indicators are not achieved, the person will be left with nothing. And it will scare away new potential employees from working in your company. The ideal ratio is 75% salary and 25% bonus.

You can use the formula to calculate:

And always keep your promises. If a person has earned a bonus, he should receive it anyway.

Implementing a KPI system is a long and painstaking process. It requires not only time, but also resources - moral, material. But soon, after a period of adaptation, you will see the qualitative and quantitative growth of your company. It will immediately become clear which employees are ballast, and those who do their job well will be rewarded according to their merits. And most importantly, everyone will understand common goal company and contribute to its achievement.