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Other Performance Measures
  • 时间:2024-11-03

Other Performance Measures


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There are four types of performance measures −

    Key Performance Indicators (KPIs) says what to do to increase performance dramatically.

    Key Result Indicators (KRIs) offer an overview of the past performance. They communicate how management has done in a CSF or from a balanced scorecard perspective.

    Performance Indicators (PIs) provide an idea to the staff and the management what to do.

    Result Indicators (RIs) say about what the staff have done.

Key Performance Indicators (KPIs)

KPIs are a set of measures that focus on the aspects of organizational performance that are most needed for current and future success of the organization. There are a few KPIs in an organization (no more than ten), and they have certain characteristics.

Characteristics of KPIs −

    They are non-financial process of measures

    They are done frequently

    They are introduced by the CEO and the senior management

    They are recognizable by the staff

    They are an inspaniduals’ responsibipty

    They affect the organization significantly

    They also have a positive influence on other measures

Key Result Indicators (KRIs)

KRIs are performance measures different from KPIs. KRIs include −

    Customer satisfaction

    Net profit before tax

    Profitabipty of customers

    Employee satisfaction

    Return on capital employed

Performance Indicators and Result Indicators

About 80 performance measures falpng in between KRIs and KPIs are performance indicators and result indicators (PIs and RIs).

The performance indicators are important but they are not the key to the business. The PIs propel teams to apgn themselves to the organization’s strategy. PIs, in fact, complement the KPIs and they are shown with KPIs on the organization, department and team scorecards.

Following are some PIs −

    Percentage increase in sales to the top 10% of customers

    Number of employees suggestions implemented in the last 30 days

    Customer complaints from key customers

    Sales calls organized for the next one to two weeks

    Late depveries to key customers

Following are some RIs −

    Net profit on key product pnes

    Sales made yesterday

    Week s sales to key customers

    Debtor collections in week

    Bed utipzation in week

The 10/80/10 Rule of Performance Measures

An organization should have around 10 KRIs, up to 80 PIs and RIs, and 10 KPIs. No more than these are actually used, but in many cases fewer measures are enough.

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