KPI - English is Key Performance Indicator is an indicator to evaluate work performance, is a tool to measure and evaluate work efficiency expressed through data, ratios, quantitative indicators, to reflect efficiency. activities of organizations or functions of companies or individual businesses. Each department in the company will have different KPIs to objectively evaluate the performance of each department.
The purpose of using KPIs in job performance evaluation is to ensure that employees properly perform the responsibilities in the job descriptions of each specific position, this contributes to performance evaluation becomes more transparent, clear, specific, fair and effective, improving the effectiveness of performance evaluation because KPIs are highly quantitative, can be specific measurement.
Depending on the business or organization, the KPI will be different and even each department will have a different KPI (Sales, Marketing, Product) and even each person in a department has different KPIs (SEO KPIs, Email KPIs, Social KPIs).
How to determine KPIs?
Setting targets, evaluating performance and rewarding is always a "thorny" issue for every organization, especially businesses. Performance metrics, combined with the BSC Balanced Scorecard, are an excellent tool used to address this issue.
The first thing we need to consider is the difference between a performance measure and an outcome measure. Performance metrics represent the results of actions taken previously, while performance metrics are a guide or directional measure of results achieved in performance metrics. It is worth noting that the Balance Sheet does not combine outcome and performance indicators.
Without drivers, performance metrics cannot tell us how to hope for results. In contrast, outcome metrics can signal major improvements in the business but do not indicate whether those improvements are driving customer or financial results in the absence of metrics. efficiency.