Managers often call me to indicate their need to define and use good KPIs to manage their business better. My first question is why? Why would you use KPIs tomorrow if you didn’t use KPIs in the past? How will you communicate that to your employees? What will be their reaction? ‘’Aren’t we working properly today?” You can end up with a lot of stress within the organization in case you don’t communicate the reason for implementing KPI’s.
So, it is important to understand the real story behind implementing KPI’s. The golden tip is: focus on the main issues the organization is facing and that blocks the company reaching their mission / mission. These issues make the strategic path difficult, but will help you to communicate the main reason for starting with KPIs. At the end, KPIs, as part of Performance Management, is the means to guide the strategic path. Main issues could be:
1. Losing market share to competition due to bad service.
2. Not reaching customer expectations.
3. Lack of innovativeness
4. and many others.
So what is the change message for your organisation? What is excellent about these change messages is that they are mostly linked to external factors. So you implement KPIs to be better than competition or serve customers better. Not because the manager wants it.