When it comes to performance management, charts, spreadsheets and dashboards are more than outdated. Current strategies involve complex KPI sets that focus on directing the organization to the right path in order to achieve success. Choosing the perfect KPI template will come with benefits on the short and the long term as well. In a balanced scorecard, there are four perspectives that encourage the identification of relevant financial and non-financial measures.
Performance management is an approach that facilitates and improves the overall performance of a company and its employees. The strategies used in function of HR are driven towards ensuring that the goals and the mission of an organization are constantly being met in an efficient manner. It uses knowledge and technology in order to manage behavior and results, which are the two elements that sustain performance. This kind of strategies can be implemented in any type of organization: from businesses, to schools, hospitals, churches, social events or even sports teams. It can basically be applied wherever a group of people interact with each other.
Years of research have proven that there is an immediate correlation between performance management strategies and enhanced organizational results. The benefits will include not only a fast and considerable financial gain, but also a better motivated workforce and improved management control. The main goal of this approach is to determine key objectives for every business and job. This way, it can be possible to merge personal goals with organizational goals and create the foundations of an efficient working space.
Key performance indicators (KPI) are an essential part of performance management. They are selected measures that monitor key processes in order to provide an insight on the performance of your business, in line with a set of pre-determined goals. A KPI template must be quantifiable and they should reflect the objectives of the company if you want them to become the key to its success. And because every business has different focuses, there will be different KPIs for each of them. The process of selecting the right set of performance indicators should be based on a thorough analysis of the future expected results.
The balanced scorecard is a KPI framework that suggests that four performance indicators are needed in a KPI set in order to provide a comprehensive performance management strategy. These four dimensions are: the internal management perspective, service and user perspective, financial perspective and learning perspective. A balanced scorecard will basically take action to develop effective measures for both short term and long term targets. It is a strategy that allows you to create a better communication in your company. Its design aims to identify an amount of measures and attach targets to them. This way, when they are analysed, they can help entrepreneurs determine whether the company is on the right tracks or not.
About the Author
Make smart decisions with your balanced scorecard and create a KPI template that will allow your business to push the boundaries on its road to success. Find out everything you need to know at smartKPIs.com!