The KPI system plays a major role in ensuring the stable operation of the company. At the same time, it is characterized by certain shortcomings.
During the implementation and application of KPIs, one has to face various obstacles:
Departments are increasingly becoming isolated from each other and do not coordinate their activities. The typical excuse is: “It’s not our responsibility”, “We’ve done our job”.
Initially, there is no clear understanding of the common goal between the units.
In some cases, it is not possible twitter database to achieve the goal even if all indicators are met. Therefore, it is necessary to develop additional KPIs. Let's say a call center operator must make 100 calls a day to process, for example, 5 applications. However, after making such a number of calls, only one application was processed. That is, fulfilling the KPI did not allow achieving the goal. Here, the solution is to establish additional KPIs, for example, calling specific groups of people or those who could not be reached.
Management will be less and less concerned with issues of managing and coordinating the work of the department, throwing all its efforts into calculating the achievement of KPIs by subordinates.
Many managers begin to think that the KPI system does not justify itself. Its implementation does not help to restore order, but only distracts from work. It is necessary to spend a long time doing calculations and experience difficulties when making decisions.
As a rule, the problem here is the discrepancy between expectations and reality. The management believes that the introduction of KPIs is guaranteed to solve all issues, ensure both accurate planning of results and increased labor efficiency. At the same time, there is no specific understanding of the shortcomings of this method of working with personnel.
Lack of a clear strategy when implementing KPIs can have the following consequences:
Employee dissatisfaction. Managers will most likely not be thrilled with a confusing KPI system and strict performance evaluation criteria. Achieve extremely clear formulation of indicators so that the performer does not have any questions. An example: "20 additional services sold per month per manager."
Reduction of staff salaries. When using the KPI system, the size of bonuses is affected not only by the personal achievements of the employee, but also by the results of the work of the entire team. Successful completion of assigned tasks requires constant development and high efficiency from subordinates. However, the value of the indicator does not always depend on the employee. Thus, among the applications accepted by the sales manager, not all may be targeted. In such a situation, it will be useful to form your own systems of indicators for various departments and positions.
Deterioration in the quality of the company's work. Employees may begin to view planned indicators as strict regulations and focus their activities solely on achieving them. For example, a marketer consistently ensures the receipt of 100 new applications every month. However, only in 10% of cases do negotiations with clients result in their further promotion through the sales funnel. Here, low conversion is due to weak engagement of the audience, which includes a small number of target clients. Try to give the KPI the clearest and most detailed formulation.
Problems with assessing work results. With a large number of indicators, their monitoring and assessment present great difficulties. It is clear that if you require an employee to successfully complete ten tasks, you should not count on an excellent result. A set of three to five metrics that are of the greatest importance is sufficient.
How can you organize the implementation of KPIs in a company in such a way as to avoid difficulties and improve the situation, rather than expose yourself to the influence of common negative factors?
Problems of KPI implementation