"What's measured improves." Peter F. Drucker
The use of Key Performance Indicators (KPIs) and performance appraisal systems go hand in hand. Without one, how do you measure the other? As a business owner or manager you need to be able to measure the performance of the business and of your team.
You can't manage what you can't measure.
KPIs influence management behaviour and culture as well as improve and transform business performance. KPIs reflect the most important objectives and key drivers of the business and provide you with a high level snapshot of the business at any point in time on which to make decisions.
KPIs evolve from identifying the key drivers in the business. For example, what are the key drivers in sales growth? Are they lead generation, conversion rate, new product development, volumes or some other factor? How do we measure those drivers so we are ensure we are on track? How do we implement a system that measures, monitors and communicates these to keep our focus?
Because a key success factor in performance is focus, both for the business overall and for individual team members. When the business is clear on its focus, it becomes much easier to implement performance management, appraisal and reward systems that focus team members on their success factors.
AOD Consultants work with business owners and managers to develop and implement performance management systems for their business - from key driver identification, KPI development through to team and individual performance appraisal. Contact us for more information on how we can support you.
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