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Part I
Setting the Scene
Chapter 1
The Great KPI Misunderstanding
Performance Indicators

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Performance indicators (PIs) are those indicators that are nonfinancial (otherwise they would be result indicators) that can be traced back to a team. The difference between performance indicators and KPIs is that the latter are deemed fundamental to the organization's wellbeing. Performance indicators, although important, are thus not crucial to the business. The performance indicators help teams to align themselves with their organization's strategy. Performance indicators complement the KPIs; they are shown on the organization, division, department, and team scorecards.

For the private sector, performance indicators that lie beneath KRIs could include:

● Abandonment rate at call center – caller gives up waiting

● Late deliveries to customers

● Planned abandonments of reports, meetings, processes that are no longer functioning

● Number of innovations implemented by each team / division

● Sales calls organized for the next week, two weeks, and so forth

● Number of training hours booked for next month, months two and three, and months four to six – in both external and internal courses

For government and nonprofit agencies, Performance Indicators would also include:

● Number of media coverage events planned for next month, months two to three, and months four to six

● Date of next customer focus group

● Date of next research project into customer needs and ideas

Key Performance Indicators

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