A web based key performance indicators solution can ensure that important performance data is both updated regularly and also distributed efficiently throughout management and the rest of the organization.
A web based key performance indicators solution can really ensure that performance management is both updated and coherent across the organization. Key performance indicators are quantifiable measures or metrics that are very relevant to particular aspects of an organization’s performance. That is,
for a given part, function, or aspect of an organization, there would exist one or more key performance indicators that could be monitored to give an idea of how well that part, function, or aspect is performing.
These key performance indicators or KPIs are metrics that, more often than not, form part of measurable organizational objectives. That is, for objectives to make sense, they should be based in some manner on something measurable and concrete – KPIs. So, this would already give you an idea of the intimate relationship between KPIs and organizational goals.
In fact, the most sensible way of going about and selecting which metrics are the most relevant is to start setting goals first. In the strategy map approach, this begins with an overarching mission statement or vision, which lays out what exactly the organization wishes to become in the future. Then, each aspect of the organization would be able to formulate their own goals in terms of what would take the organization forward towards their vision. These goals of each aspect would then guide each smaller subpart, and so on, up until the individual or employee level.
Now, these goals are for the moment not necessarily measurable. Once everyone has a general idea of what goals they should be pursuing in order to follow the organization’s overall strategy, they can then turn to thinking about what they could measure in order to track these goals. This is where the key performance indicators would be selected.
Given a specific goal, a relevant metric or measurement could readily be identified. For instance, if the rough goal were to increase sales, metrics could be gross sales, number of transactions daily, and the like. This would turn the vague goal of increasing sales into a more specific, measurable goal, such as “increase gross sales by 10% by the end of year 200x”. The same principle applies for other types of goals, with the proper substitution of relevant metrics.
Online applications can make the tracking of these key performance indicators much easier and more efficient when compared to the use of local spreadsheets. This is because the information would be gathered in one database that can then be edited and viewed by many users that are connected to the web, whether the Internet or Intranet. For example, a branch of a retail store chain would be able to enter its metric data for submission to central management whom may be located elsewhere. Feedback and collaboration becomes much easier with this web based key performance indicators solution, which basically takes sharing over a network to the next level. By using these tools properly, an organization will be better able to not only measure various aspects of its performance, but also to strive for its strategic goals and eventually achieve its vision.
