What Are KPI's And Why You Need Them
Do you still hold your team members hands and aren’t getting the job done for you ? Then one of the greatest tools in management is having KPI’s. KPI’s are goals for each of your team member to measure performance. That way you can make them accountable for performance gaps.
Transcription of the video :
Hi there, I’m Kay, coach, consultant and management trainer and I want to talk about Key performance indicators or KPI’s .
KP WHAT you say ?
For those who don’t come from a corporate background this “word” will probably not sound familiar. No worries, I encountered many managers even in corporate companies that don’t know what it is.
What is a KPI ?
A Key Performer Indicator (KPI) is a goal that helps you to measure a team members performance. They are the same for all your team members in the same role ! So, let’s say you have a sales agent, a VA, a personal assistant they will all be different. But if you have 2 sales for example, they will have the same KPI’s. Clear ?
So, even you should set up some KPI’s to measure your performance as a CEO in your business as nobody will do it for you . Your series of KPI’s are based on your team members job description.
If you don’t have that either …. Don’t worry, that’s not a problem, check out my freebie so you can write one.
So, of your job description you should be able to get the tasks that you expect your employee to do in a global way. For example, a sales manager will be responsible to sell, right ? Now we are going to make this global task measurable that’s when it becomes a KPI.
To sell he needs to increase clients… you are going to write down how many % or how many clients - 1, 2, 3 - he should increase a year, then a month.
The second KPI could be that he needs to call a certain number of prospects a day.
The third could be that he needs to answer his email in 24 h, which stands for providing excellent customer service in his job description.
Or launch a new promotion for a certain date, add deadlines….
Every task or behavior you expect from your employee should become a KPI that is measurable in time or in numbers.
I wrote my KPI’s, what now ?
After writing all your KPI’s for all the roles in your company, you should present them to your employees and explain why you set them up. And then you can sit down once a month to look at the numbers together and see where his performance strengths are and what should be improved.
I always ask my employees to keep track of their own numbers and send them to me a few days before our meeting that way they are involved in the process. I even create the KPI’s with them sometimes depending on their ambition and experience, they love this !
When we spend time together like this, we set accountability and give importance to their role in our business. It shows them that they are important ! And it gives us a clear indicator to what works and what doesn’t.
Then celebrate successes and share them with the rest of the team so they can learn from them and address performance gaps with a clear plan, without guessing what went wrong.
So, KPI’s are measurable goals that indicates performance.
Let me know how it went and shout out if you need any help !
Have a nice day and take some action !