Wednesday, March 8, 2017

How do you build KPI management for the whole of your company? KPI for sales department is much more straight forward, KPI for the whole company is need much more thought.

Building KPI for the sales department is quite straight forward.
You look at sales funnel concept and set your KPI and the sales process in place.
Of course another component is your company sales process must be automated, using a system. No need to ask your sales staff to write report at the end of the month.
Looking at sales funnel, you will have the following KPI:
1. How many leads ( and from which source - event, exhibition, facebook, online marketing etc)
2. How many calls - how many days from leads date
3. How many sales meeting
4. How many quotation, how $ quotation
5. How many become Orders, how much $
6. How many becme invoices , how much $
These are the normal KPI for the sales people.
In fact if you use ny CRM software, you will see the KPI and the Process flow.
OfficeCentral also have these features.

The KPI for the whole company is much more complicated.
Most leading companies worldwide will use Balanced Score Card ( BSC) 
BSC says that the KPI can be looked from four perspective:
1. Financial
2. Customer
3. Lifelong learning
4. Internal process.
Every one of the staff performance will have impact to overall company performance.
Normally every staff will have between 4-6 KPI targets.

Staff level:
KPI 1 -
KPI 2 -
KPI 3 -
KPI 4 -
KPI 5 -

What is the target
What is the unit of measurement
What is the weightage

Department level:
The performance of the staff will have impact to the department performance
The calculation is based on the various staff KPI and the weightages.

Staff 1 composite KPI, weightage
Staff 2 composite KPI, weightage
Staff 3 composite KPI, weightage
Staff 4 composite KPI, weightage

The result will be he KPI for the whole department.
What is the weightage of this department,
the calculation will have impact to the performance of he whole company performance.

Department 1 composite KPI, weightage
Department 2 composite KPI, weightage
Department 3 composite KPI, weightage
Department 4 composite KPI, weightage

What is the weightage of this department,
the calculation will become the performance of the whole company.

Most companies will fumble during the building of the KPI process.
1. What is the correct measurement?
2. What is the correct weightage?
3. Are we giving the correct hings to do?
4. Is it really helping the company to achieve the objective?

A good KPI will have the following characteristic:
 The measurement should come from the process within the company.
If you are doing it manually, i.e everyone have to key in their work or numbers manually every week/every month, the system will fail.
Try to have a system to automatically track the KPI.

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