Organizational performance management aims to direct all efforts of the organization towards its objectives. In this way, the effectiveness of all the company’s activities aligned with the macro objective of the organization is sought.
Within this perspective, the importance of the indicators is observed. Performance indicators, also known as KPI (Key Performance Indicator), facilitate the transmission of the company’s mission and vision to employees who do not occupy more strategic positions, and direct their efforts towards the company’s strategic objectives.
It is common, but not healthy, that in the work environment, several employees do not know the importance of their activities and do not see the impact of their activities on the company’s final result. Thus, the indicators guide all their efforts in search of goals that generate a high competitive performance of the organization.
KPIs are characterized as a tool for measuring the performance of sectors, in a quantifiable way, seeking to understand whether the objectives are being achieved and the need to adopt corrective measures.
Characteristics of KPIs in companies
Scholars on organizational performance highlight some characteristics that a good performance indicator should have, being:
- Relevant and high impact: the indicator must have direct relevance to the business;
- Understandable and simple: understanding the indicator must be simple, so that all employees are able to understand it and understand its importance;
- Balanced: the KPI must seek balance to meet short and long term needs;
- Temporal: its measurement should allow monitoring and corrective action, so it is interesting that it is measured daily, weekly, monthly, varying with the need.
The development of good KPIs allows the company to measure its performance and identify where its internal problems are, enabling the improvement of its operations. Effective performance indicators increase the efficiency of the sectors, assist in decision making, boost sales and even reduce costs, among other benefits. Thus, it is very important for organizations to develop good indicators that convey the importance of these to employees.
So, now that you’ve learned about KPIs, are you prepared to take your Marketing strategies to the next level?
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