Business Analysis Toolkit

It just cannot be denied how KPIs or key performance indicators are very important in any type of business nowadays. This is because there is a definite need to measure the performance of a certain company or enterprise, and you just cannot do this without the use of KPIs. This is precisely why companies are getting into all the hype just to prepare for KPI implementation. And you cannot do this without getting into the relevance of the KPI framework and what it can do for your very own enterprise.

But what exactly is this KPI framework? How does it work? A KPI framework is comprised of a number of things essential in the productivity and performance of an organization – goals, plans, facilitating procedures, means of measuring output quality, and the presence of competent people, of course. Let us break down these aspects of the KPI framework bit by bit.

The goal, in its most basic form, is the foundation of your enterprise or organization. Simply put, it is difficult for a company not to have a goal or goals. After all, goals are the driving forces behind the operations of the company itself. Goals can be either short-term or long-term. Short-term goals can cover a period of three to five years, generally. Long-germ goals, on the other hand, cover a longer period and can even be classified as monthly, quarterly, semi-annually, and annually. These goals direct every member in the organization as to how they should act, so as to achieve the goals that have been set even prior to the onset of operations.

The plan is yet another important part of the KPI framework. No matter the goal, it is still important for employees and the like to stick to a particular plan to achieve that certain goal. This is important in maintaining a certain flow as to how things are done within the enterprise. Moreover, having a plan makes goals easier to achieve through the identification of timeframes and strategies, and the allocation of resources.

But just because you have a comprehensive plan outlined does not mean you already have your work cut out for you. You still have to develop a process wherein all courses of action are integrated into the plan that you have created towards the achievement of goals. This system has to keep in mind the daily routine of the employees and staff themselves, and this requires periodic monitoring in the form of evaluation, assessment meetings, progress reports, and the like. This is then where the importance of facilitating procedures takes place. Aside from that, there is a need to measure the quality of your output as well. The expected outputs should then be in both qualitative and quantitative formats so that a non-biased presentation can be made.

The last factor in the framework is employee performance, which is influenced by a lot of factors – skills, competence, attitude, workplace environment, benefits, and many more. Employee development should be seen as a necessary investment, rather than an expense. The sooner the organization realizes this, the better they can prepare for KPI implementation.

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