Businesses are concentrating on growth in 2021. To perform better and prepare a KPI-driven culture, KPIs are required for all teams starting from small groups of 2-3 individuals to large groups. Preparing and comprehending the KPI, as well as maintaining it linked with the company’s purpose, is also required for desired growth. Mr. Shah Hussain Dilder Sagar, Head of HR at Chaldal.com, highlighted the growing problems regarding KPI as an industry expert at a webinar presented by digiGO. Mr. Shah answered few important questions which were required to bring to light.
Why KPI’s are important in a company?
According to Mr. Shah to attain higher growth an organization must first define its goal, how it will be reached, and the period in which it will be completed through open discussion and requirement gatherings. Growth may take various forms. That might be financial, operational, or customer service-related, or it can be a combination of all three. Some resources are required to bring about healthy growth, the first of which is human resources. According to him, the pie KPI or group task breakdown is critical for greater growth & for better growth, KPI’s are important in a company.
How to set smart and logical KPIs for the employees?
Mr. Shah advised businesses to carefully and rationally define KPI targets. He likened the KPI to the waterfall process by comparing the flow from one point to the next. A KPI is set up to help speed up the process and puts a huge impact on the organization. He explained how different tasks differ and how priorities shift from department to department and why a standardized KPI process should not be followed across the board. All employees in the company must understand the modern KPIs that have been developed to fit with the company. Especially in this COVID-19 situation, if a company’s employees are aware of their KPI already, the company will run toward achieving its goal smoothly without facing any difficulties.
How to ensure KPIs are implemented across the company?
Mr. Shah believes that KPIs should be communicated to all staff across all departments. At first, employees need to do know “What they need to do?”. Secondly, employees must align with the company’s specific goals through their works. Thirdly, companies should track their progress toward their goals every month to ensure that they are on the right track. Fourthly, they must fine-tune their approach by asking themselves whether they will attain their goal in the manner in which they are proceeding. Finally, the company must determine whether their KPI is relevant to their corporate goals and can be met within the time limit specified. These five things ensure that KPIs are implemented across the company.
What are the long-term problems of not having a KPI-driven culture?
The long-term consequences of not having a KPI-driven culture include relying too much on assumptions when making business choices, failure of actions performed during work, improper measurement of work, and inability to partition work into smaller segments to succeed, and eventually, not knowing what success looks like.
How is Chaldal implementing and managing KPI at this point?
Chaldal has distinct key performance indicators (KPIs) for each department. From delivery to customer service, Chaldal strives to offer the necessary equipment to meet the KPI objective. The major components that Chaldal is applying when monitoring its KPI are quality control, timely delivery, excellent customer service, and damage control.
In addition, he also answered some questions from the people who commented on Facebook & LinkedIn regarding this webinar.