An example of designing a kpi scorecard. Examples of KPIs for measuring the success of a project office

You will learn:

What are the pros and cons of the KPI system.
Which employees should not implement KPIs.
What KPIs to set for the manager.
What to do if employees sabotage KPI implementation.
How to review the KPI system.

What is a KPI system

KPI is a special system of indicators, using which employers can evaluate the performance of subordinates. At the same time, KPIs key indicators each employee is tied to general business indicators (level of profitability, profitability, capitalization).

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There are different KPI goals, but the main one is to create a situation in the company in which employees from different departments could act together, without contradicting their business actions to each other. The activities of one specialist should not interfere with the work of another or slow it down. All employees must strive for a common goal and work effectively, receiving bonuses for this.

It is believed that KPIs are directly related to BSC (Balanced Scorecard - balanced system indicators), but this is not the case. The creators of BSC did not use the term KPI. They used the concept of "measure", "meter", or measure.

KPI and BSC are indirectly related. BSC is endowed with the perspective of business processes, where the associated goals are present. To measure how these goals are achieved, specialists use business process KPI indicators.

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So what is KPI in simple words? These are certain indicators, thanks to which it becomes much easier to understand what actions should be taken to increase efficiency. At the same time, efficiency is not only the number of manipulations carried out over a certain period of time, but also the benefit that the company received from the work of a single specialist.

Company KPIs are shared. However, in the divisions they are divided into small ones, called personal ones. There cannot be many of them. 3-5 clearly defined and understandable indicators are enough. The main requirement is the ability to simply and quickly measure them.

Here are some examples of KPIs . Possible KPIs for a sales manager are as follows: “Sales volume is not less than…”, “Number of new clients is not less than…”, “Average contract amount per client is approximately…”, “English proficiency is not lower…”.

Another example of KPIs. You are the owner of a large point of sale household appliances. 12 managers work for you. How effectively each of them works during the month is evaluated based on the following indicators:

how many people the manager talked to bought the equipment (percentage);
the amount of the average check;
to what extent the sales plan has been fulfilled (for example, the amount of the minimum bar is 350 thousand rubles a month; the level of overfulfillment of the plan as a percentage will affect the manager’s salary).

For example, you need to sell mixers of a certain brand and manufacturer. In this case, it would be reasonable to set a plan for each manager with a minimum number of mixers equal to 5. If the manager sells equipment more than the planned number, he receives 3% of the cost from each "extra" mixer. For specialists, this is a great motivation, KPI of this type allows you to successfully sell products. Experience shows that the optimal number of KPI criteria for one specialist is from 5 to 8.

3 interesting facts about KPI

The Key Performance Indicators system has been used in the West for over 40 years. In the CIS countries and Russia, it has been used for about 15 years.

In a number of states (Korea, Singapore, Hong Kong, Japan, Malaysia, Germany and the USA), the Key Performance Indicators system is a national idea. KPI is not just a concept there, but the basis of the work of all companies.

Russian President Vladimir Putin proposed creating a Key Performance Indicators system to evaluate how officials work.

How to avoid mistakes when implementing KPIs

The editors of the magazine "General Director" considered 6 popular mistakes in the KPI system and gave advice on how to avoid them.

Where does KPI development begin?

KPIs should be created from the top down, starting with the company's large-scale goals to the tasks facing individual worker. To fully solve problems, it is necessary that all personnel be involved in the preparation of the KPI system. We are talking about employees working in the planning, economic, financial, organization management specialists labor activity, a team of personnel departments, sales, technology department.

To get started, the organization needs to figure out which KPIs to prioritize. To do this, the enterprise specifies and checks the goals of a strategic and operational nature. The formulation of the goal should ideally be such that it does not have a clear designation of the financial component as the main indicator. Better if financial indicator will follow from the main task. With this approach, the company will be able to feel confident in the crisis period.

Requires connection of the goal with the market environment, changes in the market. For example, a company may set itself the goal of becoming one of the TOP-3 in the market for its products or take a leadership position in a certain territory. After being formulated the main objective, subgoals are highlighted.

After setting goals, you should analyze how effectively the company is now working and how it solves current problems. At the same time, it is necessary to determine how the wages of employees will be calculated.

When creating KPIs in an enterprise, it is important to budget for personnel costs. In this case, it is divided by types of payments. In addition, it is required to take into account the indexation of salaries and career growth of specialists.

At the final stage of development, provisions are created, KPI maps are prepared, the methodology for calculating each key indicator is prescribed, and the system is coordinated with the management of all independent units in the company.

The regulation on KPI should include information about the goals and objectives pursued by the system:

Improving results and increasing the efficiency of specialists. Development and implementation of employee motivation.
Increasing the profitability of the company. Development of goals and performance indicators for each position in departments and divisions of the company.
Creating an information base that will allow you to make the right management decisions. Ensuring prompt collection of information and control over the functioning of the system.

Key performance indicators and their types

Key KPIs are:

lagging, reflecting the results of the work at the end of the term. We are talking about financial KPIs that testify to the potential of the company. However, such coefficients cannot show how efficiently the departments and the organization as a whole work;
operational (leading), which allow you to manage the state of affairs during the reporting period in order to achieve the goals at its end. Operational performance indicators help to understand how things are now at the enterprise, and, at the same time, demonstrate financial results further. On the basis of operational KPIs, one can also judge how well the processes are running, whether the products are good, how satisfied customers (consumers) are with them.

The main conditions are that indicators should contribute to the implementation of intermediate and final goals, and all indicators can be quickly and easily calculated. The coefficients are different - qualitative (in the form of a rating or points) and quantitative (in the form of time, money, production volume, number of people, etc.).

Examples of KPIs

KPI for an employee technical support. A specialist of this profile should advise those who are real buyers and help potential customers. The set of KPIs in this case is small. The work of an employee is evaluated on the basis of how well he conducts consultations, in what quantity, whether customers are satisfied with the service.

Key performance indicators for a sales manager. The number of new buyers must not be below a certain mark, the volume of sales must not be less than the established limit, the size of the average contract per client is within the indicated boundaries, the ownership English language on one level or another.

The KPI system consists of a number of indicators, but the universal ones are:

Process, indicating what result the process has brought, how requests from consumers are processed, how new products are created and brought to the market environment.
Client: how satisfied are the customers, how is the interaction with the sales markets, how many buyers were attracted.
Financial allow you to judge the external economic situation of the enterprise. Here we are talking about the level of profitability, turnover, market value of products, financial flow.
The development criteria show how dynamically the company is developing. This is the degree of productivity of specialists, the level of staff turnover, the cost per employee, employee motivation.
Indicators of the external environment: how the price fluctuates, what is the level of competition, what price policy on the market. These indicators should certainly be taken into account when creating KPIs.

How to calculate KPI

Stage 1. The choice of three key indicators of the effective activity of a specialist:

the number of users who were attracted to the site;
the number of repeat orders from existing customers;
the number of recommendations and positive reviews that appeared after purchasing a product or ordering a service on the website and in the social networks of the trade organization.

Stage 2. Determining the weight of each indicator. The weight in the total is equal to 1. At the same time, the largest share belongs to the priority indicator. As a result:

the number of new customers is given 0.5;
the number of repeat orders - 0.25;
reviews - 0.25.

Stage 3. Analysis of statistical data for the past six months for each KPI and development of a plan:

Stage 4. KPI calculation. An example is presented in this table:

KPI calculation formula: KPI Index = KPI Weight * Fact / Goal

In this case, the goal is the planned indicator of the marketer. The fact is the real result.

It becomes clear that the specialist has not achieved his goals to the end. However, based on the overall rate of 113.7%, it is safe to say that the real result is quite good.

Stage 5. Calculation wages.

In total, the marketer is owed $800, of which $560 is a fixed portion and $240 is a variable portion. The full salary of a specialist is paid for an index equal to 1 (or 100%). Thus, the indicator of 113.7% indicates that the plan was overfulfilled, which means that the marketer is given a salary with an additional bonus.

Result:

560$ + 240$ + 32,88$ = 832,88$.

If the KPI index is less than 99%, the amount of bonuses is reduced.

Such a table allows you to see the problems in the work of a marketer, the difficulties that he cannot cope with. Possibly, not enough good results of activity can be caused by the wrong strategy of increasing the level of customer loyalty. However, it is possible that initially the plan itself was drawn up illiterately. In any case, the situation must be controlled. If things don't improve in the future, reconsider the requirements for performance indicators.

If you stick to such a policy, you will learn what KPIs are in the process of production, sales, etc. You will better understand how the calculation of indicators and the process of their implementation should be.

The calculation can be modified taking into account the planned results, supplemented with new values: an indicator of the number of solved and unsolved tasks, a system of penalties for poor performance on the main points in the plan.

So, for the implementation of the plan for less than 70%, the employee may not receive a bonus at all.

There is also the following scheme for calculating the bonus part of the salary for a specialist who has fulfilled the sales plan:

Implementation of KPI in the company

Both employees and third-party consultants can be responsible for the process of implementing the KPI system created in the company. At the same time, one should take into account the specifics of the enterprise, how business processes flow in it, what goals and objectives the company sets for itself. It is necessary that the rank-and-file staff be aware of how the payroll system will change. Communicate to employees that the main indicator will be the level of their effectiveness. When introducing a KPI system, specialists should be trained. Personnel must understand that changes are beneficial mainly to them. Implementation of the system involves the development of special documentation: employment contracts, staffing, collective agreement and other papers related to payment for the activities of employees.

Before introducing a KPI system, test it with pilot project. Take 1-2 departments and work out new processes and wage formation in them in a pilot mode. The ratio of fixed and bonus components of remuneration can be adjusted in real time, taking into account target indicators for specific groups of personnel.

When new order has been tested and fully adjusted in the company, you can introduce it to other departments. Remember that it is better not to implement a KPI system without testing. As part of the pilot project, it will be possible to clearly understand what difficulties the system causes for personnel, learn about possible shortcomings and quickly eliminate them. All employees of the enterprise must work towards a common goal. Otherwise, employees will only experience discomfort, and all actions and aspirations will be in vain.

In the process of introducing KPIs in the company, make sure that the indicators can be adjusted if necessary. Thanks to the constant monitoring of indicators, it will be possible to adapt in time to changes in the market environment and edit the working strategy. In addition, every year it is necessary to improve the model for the formation of premiums, that is, to optimize it. As part of the optimization, the evaluated indicators are changed to others that are more relevant for certain employees and departments.

What KPIs to set for the manager

KPI personnel and management should be related to the main objectives of the enterprise. You need to know exactly what you want to achieve after certain period. You can strive to get ahead of the competition and become a leader in your industry. Another option - the head of the company wants to sell the business for favorable price. KPI for the first case - an increase in the customer base and sales volumes, for the second - an increase in the company's capital and achievement maximum cost sales.

The main goal in without fail it is necessary to write down and formalize, and then break it into subgoals. When specialists successfully fulfill subgoals, they approach the solution of the main task of the enterprise.

If it's about large organization or a holding company, a director's KPI is required for each division and branch. If the owner of a large enterprise plans to compare the performance indicators of General Directors who are geographically distant from each other, it is necessary to develop a unified evaluation system. At the same time, it must be remembered that those KPIs that are easy to achieve in large regions are not always easy to achieve in small ones. In this regard, the system can be formulated in approximately the same way, but the numbers of indicators should be different for managers in different regions.

When preparing KPIs, try to set indicators in the optimal amount so that the employee can easily monitor work performance. It is better if there are five KPIs. When installing more indicators, the director may not pay attention to the main ones and focus on the minor ones.

When created KPI system for management, a combination of general and personal indicators is optimal. General indicators are called the results of the activities of the department subordinate to the specialist. On the basis of general indicators, it becomes clear how the team works, how much the manager is interested in solving the tasks. Personal indicators are called individually achieved goals and results of activities.

If the KPI system is created well, the ratios show how each of the managers works, and this information is useful for the company.

The head of sales is the hope and support of the team, the main role model. No matter how great a specialist he is, you still need to control the work. For motivation, you can use the same method as for ordinary merchants - the introduction of KPI indicators.

KPI of the head of the sales department - what is it?

The salary of the head of the commercial division, as well as his subordinates, consists of a salary (a smaller part, you can not use it) and bonuses based on the results of work. The amount that will be added to the salary depends on the implementation of the plan. The senior manager's utility factor corresponds to a number of characteristics.

KPI for the head of the sales department - transparent and understandable

To calculate the value, do not invent cumbersome formulas. "Tie" it to the amount that the boss received from clients per month, the number of meetings with the conclusion of the transaction or the number of new clients for the period. A percentage that is clear in the calculation is more convenient to use in management. And the head of the department is already so busy with work to unravel the meaning of the formulas composed by the manager. Everyone benefits from simplicity.

KPI for the head of the sales department - commensurate with the team

The leading employee does not force people to “plow under pressure”, but sets an example with his own achievements. At the selling part of the company common goals, and, therefore, the tools to achieve them are the same. General system Evaluation makes the boss closer to subordinates.

By the way, how effective is your sales department? I suggest you check, for this I will leave you the self-diagnosis questionnaires of the sales department. Enjoy!

Get questionnaires

KPI of the head of the sales department (example) - the number of calls, the result of which was a meeting with the client. In this case, the value applies to both managers and the lead merchant. But the number of calls per month for the latter will be higher. This is your best employee, right? He is distinguished from ordinary businessmen by his experience and professionalism, so the minimum results should be higher. The coefficient allows an ordinary employee to understand the difference in their results and a higher colleague. The manager sees what indicators to achieve in order to provide himself with an income similar to that of the manager. And the guru of the division is trying not only to earn money, but also to confirm the status of a professional.

The leader's KPI matches the company's strategy

The best people in an organization don't do common tasks. Yes, the sales manager does phone calls, but entrusts himself with the most "difficult" tasks. If it is important for a company to attract new customers, an experienced employee will solve the problem. The development of the VIP division will also fall on the shoulders of the leading merchant. Taking into account the goals of the company for the future, a system for measuring efficiency is determined.

Achievability of the indicator

Even a manager with ten years of experience is not a superman. No matter how high results your employee achieves, the numbers for motivation must be real. Determine motivation based on business experience. The easiest way: take the average result (for example, 10 meetings per month that ended in a contract), increase it to the maximum achieved in the department (for example, 15 meetings). As a result, we get the number that each employee strives for. In this case, for the boss, the number increases again (for example, up to 20). You can "draw" any figure, but if you want 200 successful meetings a month, even the best businessman will not be able to fulfill your desire.

KPI of the head of the sales department (an example for different departments)

Large companies create several sales divisions. One operates on the incoming flow, the other deals with active sales on a “cold” basis, the third works with VIP clients. For the head of each element of the company there will be a coefficient depending on the functionality of the employees. As a value, the number of calls with an appointment, the number of personal meetings, the amount of funds paid, the number of questionnaires filled out by contractors are suitable. It is possible to unify the motivation system for the leading managers of all departments if all values are converted into monetary values. But this measure is not suitable for every business. Measures for motivation are developed individually for management tasks.

In the personnel management system, not a single efficiency ratio is used, but their system. The more complex and diverse the functionality of a merchant, the more indicators are created. But you shouldn't get carried away.

Motivation must also take into account complex schemes of work. For example, incoming call from the client gives the result in the form of a signed contract and payment six months after the first contact.

Relationship with personnel results

Personal profit is important for gurus, but team profit is even more important. The income of the leading merchant depends on the achievements of the team to such an extent that their own achievements are perceived as a contribution to the common cause. KPI is "tied" to the indicator of the team. This helps to motivate both the boss and his team.

Another important point- constancy. The first manager strives not only to achieve a key value with his team, but to repeat it from month to month. Even better, if the actual sales rate increases over time. Stable growth is paid accordingly.

The income of the manager of the sales department may look like this:

Money received when fulfilling your own plan; Award for achieving KPI level by subordinate managers; Persistence payout.

At the same time, all values for determining the effectiveness are transparent and commensurate. The first point of this chain may be a permanent - salary - part. You should not give her more than 30%. The larger the variable part of income, determined by efficiency, the more subordinates will strive to attract a new client and fulfill the plan.

Metrics are not everything

The introduction of a motivation system with the help of KPI solves many difficulties with the management and control of subordinates. It is quite realistic to calculate the number of successful transactions and profit per month per manager. Not everything is measurable, even in a work setting. For example, creating a system for measuring authority is problematic. But this factor cannot be ignored, because the authority of a superior colleague determines the result of work.

The ability to make decisions in difficult situations, the ability to direct the development of subordinates in the right direction, the willingness to demonstrate by example the work with complex stages of implementation - the qualities that a leading employee possesses. It is difficult to "drive" such concepts into the system because of their immeasurability.

But do not forget that real professional, who has leadership qualities and the ability to manage people, will show excellent results from month to month in a measurable "field". After all, it is impossible to bring a stable profit to a company without the classic qualities of a sales guru.

The best way to quickly master and implement the technology of building a sales department is to visit K. Baksht's sales management training "Sales System".

We continue the series of materials dedicated to the KPI of top managers responsible for various functions within the company. Theoretical basis The KPI method has been described in previous publications, so this article provides only minimal explanations that contribute to a quick understanding of the material. We draw attention to the fact that all the examples given cannot be used in practice without appropriate adaptation to specific conditions real enterprise.

First, let's talk about what a project is. As defined in the seminal book on management methodology PMBOK projects(PMI standard) a project is a temporary sequence of work leading to the creation of a unique product, service or result.

All activity of the enterprise consists of projects and processes. The difference between these two activities lies in the result. In a project, the result is unique; in a process, it is cyclical and reproducible. It is the uniqueness of the result that puts project managers in a special category. employees inhabiting the business space.

In fact, the main task of all project managers is to ensure the achievement of a unique result with limited resources (time, material and human). The solution of such a problem implies both entrepreneurial and actually managerial, managerial aspect. Despite the famous statement of the poet about the fact that “you cannot harness a horse and a quivering doe into one cart”, project managers basically do just that - they bring together the irreducible, organize everything that is poorly organized and with a firm hand lead projects to successful completion.

The position of a project manager implies the presence of many competencies, in particular, the ability to plan and be guided by the plan in one's actions, along with the understanding that life is much richer than ideas about it, and the willingness to contribute desired changes. He urgently needs to be “friends” with numbers in order to reduce all the customer’s vaguely formulated expectations from the project implementation to specific criteria and indicators that are taken into account. In addition, the project manager must be a subtle psychologist. The project team often requires the presence of completely different specialists, who sometimes find it difficult to understand each other. It is the manager who is faced with the task of not only selecting a team and motivating all its members to perform specific professional tasks, but also organizing such interaction between them in order to move the project forward, and not lead to a dead end.

Good project managers are expensive and rarely available in the job market. Even in times of crisis, they remained in demand and highly paid professionals.

As already noted, project activity, being part of the overall activity of the organization, is also an agent of change. The uniqueness of a successful result involves reconfiguring the entire management system in such a way as to make a successful "probe" part of the repeatable, cyclical work of the enterprise, that is, to build the results of the project into the company's processes.

Why, in general, does the company operate? Even without taking into account such concepts as "mission", "vision" and "strategy", it is clear that the owner of any business wants his enterprise to bring him a good guaranteed income in the form of profit. The results of the activity must justify the efforts and means expended by the business owner, as well as provide him with sufficient well-being so that he wants to continue to invest them in his enterprise.

Thus, each manager is required not only to ensure the maintenance project activities until the result is achieved, but also stay within the project plan and budget, despite the unpredictability of circumstances (separately budgeted in the form of calculated risks) and other “material resistance”. In addition, projects can be different, not all of them involve the company receiving irreversible profits. For example, investment projects assume a return through certain time after reaching the main result. However, the implementation of most projects in commercial organizations is aimed at making a profit. In this regard, the main objectives for which the project manager is usually responsible are:

From the tasks facing the project manager, follow key indicators that measure the effectiveness of its activities.

Typically, the following KPIs are included in the project manager's calculation scheme:

profit;
the size of deviations from the plan and budget of the project;
the amount of overdue receivables, if the manager was faced with the task of selling products created as a result of the project

Profit KPI is often the so-called stop factor in general scheme. If you fail to achieve its planned value, this will lead to the absence or significant reduction of bonuses for the implementation of other KPIs.

The total bonus of the project manager is equal to the sum of bonuses for each of the KPIs. In this case, the bonus as a whole is accrued if a KPI is obtained, which is a stop factor (in this case, profit). If this KPI is not achieved, no bonus is awarded, regardless of the achievement of the remaining KPIs.

KPI bonus amount Bi is defined as follows:

Bi \u003d BF x Bi x min (KPIact. / KPIplan.; 1) + VP, where

bf– employee bonus fund;
Bi- the weight of the indicator in the employee's scorecard;
KPIfact. – actual value KPIs
KPIplan.– planned value of KPI;
VP- remuneration for overfulfillment.

A KPI bonus is awarded if the KPI completion percentage exceeds the threshold value (PV) and if the overall KPI is met.

The amount of the bonus depends on the percentage of the set KPI and the weight of the KPI in the scorecard.

PMBOK - project management body of knowledge - is a regularly updated publication. Currently, there is a fourth version, the translation of which into Russian is available on the forum: microsoftproject.ru

Pushkin A.S., poem "Poltava"

Meaning commercial enterprises. AT state companies and public organizations success criteria are different. In this article they are not considered in order to avoid defocusing.

Typically, the expected return is measured through ROI - return on investment - an indicator of when and to what extent investors should wait for a return on invested funds before reaching zero (full return on invested funds) and then generating profit (getting more than was invested) . Understanding ROI is very important in terms of investment priorities. So, at first glance, it may seem that the acquisition of several apartments in Moscow with a view to their further leasing could be a good investment. However, the current situation in the residential real estate market in Moscow is such that it is possible to compensate for investments in the purchase (return the funds spent, taking into account inflation, exchange rate differences and other factors affecting the absolute amount of funds) only after several decades, if this market does not cardinal changes will occur (but they, too, are more likely to lengthen the return on investment, because the cost of housing in Moscow is greatly inflated compared to comparable housing in other civilized countries and cities. A manager dealing with residential real estate must know all the features of the market well so as not to disappoint investors.

The profitability of the project is so important for commercial organizations that in the event of a large number of force majeure circumstances that dramatically increase the cost of the project, the manager can decide to terminate the project, and this will be much more effective than continuing it at any cost. Unfortunately, in state structures, the attitude towards money is different, therefore, project monsters that last for decades appear, giving rise to long-term construction, turning into abandoned objects, if funding for unprofitable work nevertheless stops. An example of this is the building of the Aganbegyan Academy, which has been sparkling with the remains of crumbling blue glass for thirty years, in the south-west of Moscow. Another example of the constant burying of project funds in the ground is the long and persistent attempts of various Russian administrations to develop a depressed area between the two capitals - Moscow and St. Petersburg. expressways, farms for retired military men, the settlements of migrants from the former Soviet republics are all projects that attracted billions of dollars of investments, but did not give any tangible result, except for the launch of a high-speed Sapsan, and even then with a large number of restrictions. The “ambush” is understandable: two megacities, like two giant vacuum cleaners, are blowing the population out of the adjacent territories, making it unrealistic to evenly populate this zone. Permanent deficit labor resources in both capitals, it is guaranteed to depopulate all the "Potemkin villages"

The project budget is based on standard profitability, but the PM is often specifically motivated by the Owner to reduce costs in order to achieve the planned result at a lower cost.

This goal appears in those MPs that are driven by pronounced commercial projects, involving not only the development and creation of a product, but also its implementation to the consumer.

Marina Vishnyakova,
"Handbook of personnel management"

With their help, you can evaluate the work of the director of personnel.

Use and calculation of KPI to evaluate the activities of specialists and departments

KPI is an abbreviation from English. Key Performance Indicators - key performance indicators. With their help, you can evaluate the activities of both individual structural divisions both groups and specialists. They depend on the goals that the company faces at the moment.

All KPI indicators used in the enterprise must have a clear definition and calculation procedure. All this should be stipulated in the local regulatory act, which is approved by the general director of the company. Such a document should contain formulas and examples by which this or that KPI is calculated. As a rule, the period for which the assessment is made is a year, after which calculations are made and it is determined how the indicators characteristic of this position have changed. Additional payments depend on how they differ from the planned ones.

Experts recommend limiting the number of such indicators to 3-4, but at the same time they should include both personal and general indicators that take into account the work of the entire structural unit / company.

The choice of a set of KPIs for evaluating the effectiveness of the HR director will depend on what the responsibilities of the employee holding the position include. At different enterprises, the tasks facing the director of personnel may differ.

KPI for evaluating the "Recruitment" block

The following indicators can be used to evaluate the effectiveness of recruitment efforts:

average time to fill vacant positions;
compliance with the budget allocated for the selection of candidates;
the ratio of employees who successfully passed the probationary period to those who did not pass it;
staff turnover rate, etc.

KPI for "Head of Human Resources"

Characterize the effectiveness personnel office work and accounting can be done using one or more of the following indicators:

penalties imposed by the labor inspectorate;
provision of employees with job descriptions;
the period of time required for the complete registration of a new employee;
the speed of providing information about the employee at the request of management.
monetary penalties imposed on judicial order due to illegal dismissals;
the speed of preparing a package of documents for retirement or dismissal;
the amount of penalties or lost profits;
the ratio of employees dissatisfied with the execution of dismissal to the total number of dismissed.

KPI for the block "corporate culture of the company"

The main tasks that the HR director has to solve in this case are three: participation in the resolution of industrial and labor conflicts; implementation and rehabilitation corporate culture; planning career development and staff development. How the HR director copes with the first task can be assessed using the following indicators:

the ratio of industrial conflicts in the current period in relation to their number in the past;
staff turnover;
sociometric rating of service units.

The effectiveness of its activities in the field of corporate culture can be assessed using indicators such as:

change in the level of employee loyalty;
satisfaction with their quality and working conditions;
the number of comments and proposals for adjusting and changing the regulations and rules in force in the company in relation to the total number of adopted amendments;
the average time for consideration of proposals and their acceptance.

KPI block "Personnel training and development"

How effective is the activity of the HR director in the field of planning the career growth of employees and their development can be assessed by the following KPI indicators:

the number of certified employees in relation to their total number;
labor productivity of employees before and after training;
the number of successful appointments for more than high positions in relation to the total number of appointments.

KPI of HR director - business partner

KPIs for the HR director, whose role in the company is a strategic business partner, are determined taking into account the fact that in this case he has to deal with complex complex tasks, such as developing effective system motivation or provision of the company with highly qualified personnel occupying leading positions in the industry. The extent to which the personnel management system created by him ensures the achievement of strategic goal, facing the company, can be assessed using the following indicators:

labor productivity;
speed of solving production problems;
change in the ratings of service divisions in the overall rating of the structural divisions of the company.

KPI block "Personnel motivation"

The following KPIs are used to evaluate the effectiveness of the motivation system:

Implementation of the company's strategic objectives in the current period as a percentage;
Changes in the profitability of structural divisions;
Change in the level of loyalty, staff turnover.

You can evaluate how the system of searching and attracting highly qualified specialists works by the following indicators:

the number of top managers involved in the company and working in it;
the ratio of the number of attracted "stars" to the total number of highly qualified professionals;
the number of top managers grown in the personnel reserve of the company itself;
conducting professional examinations to confirm the high class of the company's management team.

From this article you will learn:

Why KPIs are needed for managers

What are the benefits of KPI for managers

What KPI criteria for sales managers to use

How to calculate KPI for sales managers

The harmonious concept of KPI for managers, which appeared abroad in the last decade of the last century, reached us only in the zero years. First of all, this system was recognized as a strong incentive regulator of business activity. In this publication, we will focus on the key performance indicators of managers that can be used productively for your organization.

Why KPI is needed for managers

The Balanced Scorecard (BSC) judgment gained fame among managers because of the work of two authors - R.S. Kaplan and D.P. Norton. One of the significant components of this concept are the models of motivational indicators, which eventually became known as KPI (Key Performance Indicators). Due to the problematic and inaccurate translation of KPI in Russian, they called KPI (Key Performance Indicators) or KPI (Key Performance Indicators). The second option has gained great popularity, gaining a foothold among managers.
KPI models embodied in real business, are a constituent element of the harmonious concept of indicators. At the same time, they themselves are a system integrated into a significant number of functional control units, of which the leading positions are occupied by strategic management, sales and personnel management.

To which managers does the KPI apply:

KPI for HR manager.

Today, KPIs are often used to motivate employees by linking their performance and pay. However, the main omission of a significant part of organizations is that either the wrong indicators, or the largest number of them, are taken into account. Therefore, the main goal in forming the KPI concept for the HR manager is to identify the right indicators for each employee. Then the team will have a stable understanding of what tasks each of them faces, what kind of encouragement awaits him if he effectively achieves his goals.

KPI for project manager.

A high KPI of a project manager is not the most common indicator for free personnel. The thing is that a good manager in this area is very valuable and is usually in no hurry to change jobs. Naturally, a high KPI of a project manager is a strong argument for decent pay. Even in times of crisis, they are in-demand and well-paid specialists. Project work, being a component of the entire work of the company, is simultaneously considered an agent of change. The exclusivity of high performance implies reforms in the settings of the entire management concept. It is necessary to make a good "probe" part of the company's repeatable, cyclical activities, that is, to build the results of the project into the organization's processes.

KPI for top managers.

The main indicators should be focused on the tasks set for the organization, on what you want to achieve in a specific period of time. For example, the goal might be to win a high position in the market or to get a good income from the sale of a business. For the first option, the KPI manager will include sales volumes, an increase in the client base, and for the second, an increase in the capitalization of the organization, selling at the highest possible price. The goal must be formalized, therefore, it is necessary to fix it in writing and divide it into less significant parts, the totality of which will help to achieve the main goal.

KPI for office manager.

The main KPI performance indicators of office managers are at the same time areas of regulation. The following KPIs are considered:

completion of work on time;
actions within the budget, saving resources and competent choice of supplier;
positive assessment by employees and management of the organization of the level of administrative support;
indicators interconnected with the management of personnel of subordinate structures (staff turnover, compliance with positions held, the number of dismissals during probationary period, high appreciation of colleagues from other departments when interacting with the administrative team).

KPI for quality manager.

For example, OJSC KAMAZ uses several indicators as an assessment of production efficiency, each of which is significant and effective in a certain position. You can call it a hierarchy of production or operational KPIs. Two KPIs are at the head: assessment of the quality level of products from the point of view of the consumer - APA - Audit Past Assemble; the number of hours actually worked by employees per unit of output - HPU - Hours Per Unit. These KPIs define production processes organizations in general. A little lower are three more KPIs: full time period production cycle- TPT - Through put Time; share of products that have not been modified and troubleshooting - FTT-First TimeThrough; compliance with the working schedule for the delivery of final products - OTD - On Time Delivery.

KPI for development manager.

Usually, in the classic approach to leadership, professionals recommend applying from 10 to 20 KPIs. high level. However, it is possible to delve into internal processes, increasing the number of those KPIs that are relevant to local actions within the organization through monitoring. These KPIs relate to four main segments - finance, customers, processes, people. This approach contributes to the regulation of activities on all fronts.

KPI for sales manager.

The management of the organization decides to introduce KPIs for sales managers in order to have a forecast for the receipt of finances and the growth of the company. There are good reasons for this, because an elementary request addressed to a manager to provide a sales forecast for the next 2-3 months with a probability of realization of 75% can cause serious difficulties. All activities of an employee without KPI cannot be predicted, and the main goal that an organization needs to achieve is to come to a planned economy. We consider it necessary to consider in more detail KPI for a sales manager, examples of which will be found below.

5 Benefits of Using KPIs for a Sales Manager

Result orientation- the employee earns financial incentives corresponding to his performance.
Controllability- helps the manager to regulate the efforts of employees, depending on fluctuations in the market situation or the tasks of the organization.
Justice- an adequate assessment of the employee's contribution to the success of the organization and a fair distribution of risks in case of failure.
Clarity and transparency- employees understand what they receive remuneration for, and they have the right to independently calculate the main indicators of their activities.
Stability- when the target indicators change in some periods, the concept of motivation remains the same, which forms a trusting relationship.

What are KPIs made up of?

KPI is considered to be a part of the general goal-setting concept, which, in addition to personnel performance indicators, contains strategic targets, a system of tactical and operational design and regulation. If the concept of KPI is not related to long-term goals and the main parameters of the functioning of the organization, then it will remain only formal. In other words, the concept of KPI for a manager will simply be ineffective.

Decomposition of goals by levels of leadership:
Strategic business goals → Company goals → Goals of divisions, departments → Employee goals

Focusing on the existing tasks, the specifics of the activity, the powers and the level of the official, KPIs for managers are identified. Speaking of KPIs, one can consider economic indicators, contributing to the assessment of commercial performance, as well as indicators of the main processes and the consumption of basic resources.

Step by step development of KPI for managers

To develop a matrix of tasks and KPIs, you need to take six steps:
Step 1. Make sure that the tasks put forward are really amenable to implementation. Unrealistic demands of a manager can frustrate employees and significantly reduce their efficiency.
Step 2. Optimally divide tasks by subdivisions, departments and employees. The goals of the organization should not be located in the manager's matrix.
Step 3. After a competent division of goals, formulate personal tasks and KPIs for managers. Two KPIs can correspond to one task. Pay attention to the full compliance of KPI with the goals of the organization. Each task has its own weight, which directly depends on its importance, and their total sum is 100%. In addition, they may differ in the difficulty of achieving them, which should also be taken into account by the manager.
Step 4. Form planned indicators, for this you need to study the information about the previous period. If these data are analyzed for the first time, then it is necessary to investigate the situation on the market, especially for organizations with seasonal activities. Also consider existing resources. Only after collecting all the data, it is possible to put forward planned indicators. Remember that too high KPIs will lead to a decrease in performance, and too low KPIs will lead to unreasonably high financial incentives for employees.
Step 5. Start creating performance criteria. Refer to the calculation formula:

Performancei = Facti / Plan i, where performance i = performance on the i-th goal

Step 6. Compare the results with the performance of the manager. For any goal, you need to highlight a satisfactory result. All the data obtained are added up, and a general result is obtained, which directly affects the amount of the employee's remuneration.
In the future, you can use the complex construction of a goal matrix, where all indicators are divided into three groups:

invalid;
planned;
leadership.

The amount of remuneration for managers is determined in accordance with the listed groups. For example, if an employee's final result belongs to an invalid group, then he does not receive a bonus.

A competent KPI concept for sales managers provides high-quality management accounting and helps to regulate personnel policy. The worker should not pursue quantity, but quality. You need to understand that a sales manager is a completely creative specialty, and an employee needs his own approach, since restrictions and tightening often reduce motivation and efficiency.

How to calculate KPI for a sales manager

There is a kpi formula for a sales manager. We give an example of calculating the quantitative KPI coefficient below:
PV (variable part) = Planned amount of the variable part * (KPI1 Weight * KPI1 Factor + KPI2 Weight * KPI2 Factor).

Table 6. Control of all proposed salary options for all possible KPI values (with a detailed decoding for many values)

KPI1/KPI2	<50%	51-89%	90-100%	>100%
<50%	5000 (option 4)	18 750	22 500	26 250
51-89%	18 750	22,500 (option 3)	26 250	30 000
90-100%	22 500	26 250	30,000 (option 1)	33 750
	26 250	30 000	33 750	37,500 (option 2)

Option 1
Execution of the sales plan 90-100% (KPI1 = 1). Execution of the activity plan 90-100% (the value of the coefficient KPI2 = 1). The variable part (FC) is 50% and is equal to 15,000 rubles.
IF \u003d 15,000 rubles * (1 × 50% + 1 * 50%) \u003d 15,000 rubles.
Monthly wages = 15,000 (fixed part) + 15,000 (variable part) = 30,000 rubles.
Conclusion: the employee has a planned salary established according to the payroll standard.
Option 2
Fulfillment of the sales plan by more than 100% (KPI1 = 1.5).
Execution of the activity plan by more than 100% (value of the KPI2 coefficient = 1.5).
IF \u003d 15,000 rubles * (1.5 * 50% + 1.5 * 50%) \u003d 22,500 rubles.
Monthly wages = 15,000 (fixed part) + 22,500 (variable part) = 37,500 rubles.
Conclusion: the employee has more than the planned salary by 7,500 rubles, but the fulfillment of the plan for each of the indicators exceeds 100%.
Option 3
Execution of the sales plan 51-89% (KPI1 = 0.5). Execution of the activity plan 51-89% (value of the coefficient KPI2 = 0.5).
IF \u003d 15,000 rubles * (0.5 * 50% + 0.5 * 50%) \u003d 7,500 rubles.
Monthly wages = 15,000 (fixed part) + 7,500 (variable part) = 22,500 rubles.
Conclusion: the employee has less than the planned salary by 7,500 rubles.
Option 4
Execution of the sales plan is less than 50% (the value of the coefficient KPI1 = 0). Execution of the activity plan is less than 50% (the value of the KPI2 coefficient = 0).
IF \u003d 15,000 rubles * (0 * 50% + 0 * 50%) \u003d 0 rubles.
Monthly wages = 15,000 (fixed part) + 0 (variable part) = 15,000 rubles.
Conclusion: the employee has less than 15,000 rubles, because the variable component is 0 due to the implementation of the plan for each indicator is less than 50%.

In which case KPI for a manager will not work

The management of the organization did not take part in the formation of the goal tree.
There is no way to calculate KPI for managers due to the lack of information in the accounting system, subjectivity or falseness of their assessment.
Incorrect formation of KPI for managers happens when the necessary indicators for achieving certain goals are ignored.
There is no direct connection between KPI for managers and the concept of motivation.
The use of KPI for managers by absolutely all departments. Then the management system may have errors and distortions.
There is a connection between KPI for managers and the concept of motivation, but there is no accounting for the individual motivation of employees for whom the KPI system was implemented.
If the KPI system for managers does not imply payment for current achievements in long-term projects, but focuses only on the final result. In such situations, employees lose the relationship of effective performance with rewards.

How to motivate managers to work with KPI

It is necessary to convey to employees that the KPI system being introduced is not something unknown and frightening. It should be explained that the KPI will not make a drastic change and will not invalidate their past achievements.
KPI can be defined as a very complex tool. That is why it is worth introducing and explaining this technology to users in advance. To study the feedback, hold discussions, discussions of emerging issues, etc.
An indicator of the future success of KPI implementation is considered to be active participation in setting up motivation for KPI of the CEO and top managers of the organization. If the management team is uncertain about the effectiveness of this project, such implementations will not be successful, which means that there is no point in them.
Top managers are required to involve middle managers in the formation of KPIs. These are the employees who will evaluate and plan their actions in accordance with the new concept. Managers will have to work together and form a phased plan for the introduction of the proposed project. Most often, the initial trial of the concept is entrusted to commercial departments, and the last to connect the back office to the KPI system for managers.
It is necessary to stimulate the activity of employees when introducing KPIs and it is necessary to encourage all efforts and merits.
Document flow must necessarily correspond to the innovations being introduced. To do this, you should separately plan the transition from the existing concept to KPI, and this will not happen quickly. The transition period will take some time, so you need to control this process.
Changes and innovations can be very beneficial to an organization, but it must be ensured that they are consistent with the main goal of the company and work for it.

How to easily implement KPI for sales managers in your company

When forming and introducing a KPI system for managers, it is worth making sure that the calculation algorithm remains easy and does not require constant clarification. Complex and incomprehensible systems do not inspire confidence, but bring dissonance into the work of the team. It can go as far as giving up work duties. Managers need to clearly articulate the meaning of the introduction of KPI, the staff should not have any questions about this. When explaining, you need to draw the attention of employees to the benefits of this concept. It is advisable to introduce KPI for managers in test mode and eliminate all the shortcomings identified by practice, so you can avoid errors in payroll calculations.
An important factor in the effectiveness of the introduction of KPI for managers is the automation of the process; for this, different CRM systems are used.
You can develop a KPI system on your own, but it is quite difficult and leads to certain mistakes. Serious organizations entrust the formation of a KPI system to specialists who have rich experience in this area.

THE BELL