Tuesday, August 4, 2009

Key Performance Indicators (KPI)

I have learnt about this indicator eversince I joined the corporate world way back in 1995. It is a must in corporate organisation where results of the work is utmost upheld. Each employee is given a set of indicators to track their performance throughout the financial year. This indicator will be reviewed and discussed during the annual performance appraisal where the bonus, increment and promotion are considered.

Nevertheless, that is on the individual level and when all the indicators are combined, it must support the overall company's goals and objectives for the financial year. The CEO will be having the overall responsibility to ensure the KPI of the company is achieved through the implementation of various individual units.

Today, the government under the leadership of our PM had openly declared the KPIs must be in place and is to be achieved for good governance. Agreeable, this is a good approach to lead a good governance. However, a good declaration and the success of this implementation is very much depending the real performance review and follow up actions periodically. Any of the minister who perform below average must be identified and replaced whilst those perform well, must be appreciated and entrusted for bigger roles. Likewise it goes down the hierarchy to the respective ministries, departmental, unit heads.

Quarterly result must be disclosed and reviewed to ensure the progress is tracked and if any of the actions need to replaced or enhanced, it can be identified and acted upon.

In company, the internal and external customers will be providing feedbacks, constructive complaints or even mere dissatisfaction or grouses over the services or implementation of programmes not effectively meet the needs of the users. In the same manner, NGOs, oppositions or rakyat could air through proper channels to provide feedbacks to the government on the non-performance.

It is also encouraged that if any of the good performance delivered, an appreciation of support should be made unselfishly as to spur the performers to continue with their good action rather than just highlighting the weaknesses which could be counter productive.

I believe if everyone subscribe truely to the goodness of KPIs, we will be building a great company, supporting in our effort to support a progressive nation leading to greater respect by others.