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Development and use of key performance indicators (KPI) in the workplace is determined by the presence or absence of four foundation stones:-.
(i) Partnership with the staff, trade unions, the main suppliers and main customers,
(ii) Transfer of power to the front line
(iii) Measuring and reporting only what matters
(iv) Linkage of performance measures for the strategy through the CSF (critical success factors).
2.1 Foundation stones
2.1.1 Partnership foundation stone
Continued successful performance improvement requires the establishment of an effective partnership between the management. The implications of the stone of Foundation of partnership are the following:
(i) Recognition by all stakeholders that significant organizational and cultural change requires mutual understanding and acceptance of the need for change and how it must be implemented,
(ii) Commitment to the creation and maintenance of advisory effective arrangements with trade unions, representatives of employees and employees,
(iii) Joint development of a strategy for the implementation of best practices and key performance indicators
(iv) Extension of the concept of partnership to include and involve the customer organization and suppliers.
2.1.2 Transfer of power to the stone of Foundation of first line
Successful performance improvement requires the empowerment of employees of the Organization, particularly those in the operational "front line." Consequences of the transfer of power to the stone of Foundation of first line are as follows:
Operation effective from top to bottom and bottom-up, including staff communication
Empowerment of employees to take immediate action to correct situations that are negatively affecting KPI, delegate the responsibility for the teams to develop and to choose their own measures of performance,
(iii) Delivery of training on:
- Organization essential success factors
- Process improvement methods
(iv) Additional support for these employees with literacy, numeracy or other difficulties in learning
2.1.3 Measurement and report only what matters first stone
It is essential that management is developing an integrated framework so that performance is measured and reported in a manner which results in action. Organizations should be reporting events on a daily/weekly and monthly basis according to their importance, and these reports should cover the critical success factors (CSF). The team of human resources (HR) has an important role to ensure that labor collects the measurement of performance in a positive way. The implications of the extent of the report and only what is important are:
(i) Every report should link to a success factor (SF) or critical success factor (CSF); No. report should exist because it was done last month and the month before.
(ii) We should measure only what we need to. Each measure should have a reason to exist, a linkage to an SF or CSF.
(iii) What gets reported should get actioned.
(iv) There needs to be a major revamp of reporting so that it is more concise, timely, efficient to produce, and focused on decision making.
(v) Organizational performance measures will be modified in response to the performance measures developed at team level.
2.1.4 Linking Performance Measures to Strategy through the CSF Foundation Stone
For a performance measure to be a KPI it has to be linked to one or more of the organizations critical success factors (CSFs) and the organization's strategic objectives. Performance indicators, being less important, are normally linked to the organization's success factors (SFs).
An organization will be more successful if it has spent time defining and conveying its vision, mission, and values. They need to be defined in such a way that staff and management intuitively works with them on a daily basis. CEOs who are great leaders and motivators-these often go hand-in hand extensively promote the virtues of these three "beacons."
2.2 Defining Vision, Mission, and Strategy
Organizations are waking up to the fact that this linkage must be understood if staff members are to be "fast, focused, and flexible", as Bruce Holland (1) a respected strategic planner and communicator, puts it. Strategic planning processes must be much more inclusive if your organization is to reap benefits. Holland says, "If you have done your job properly, you should be able to rip up the final document, as staff and management have the linkage imprinted in their memory." Achieving this level of understanding is much quicker and easier than most managers and CEOs believe. Getting people throughout the organization involved can generate high levels of understanding, energy, goodwill, and commitment. Understanding the difference between a mission, vision, values, and strategy is vital.
The mission is like a timeless beacon that may never be reached (e.g., a multinational in the entertainment business has a mission "to make people happy", and 3 m's mission is "to solve unsolved problems innovatively"). A mission statement can remain the same for decades if crafted well.
The vision outlines what the organization wants to be by a certain timeframe. A vision statement is more specific in terms of both the future state and the timeframe. A vision describes what will be achieved if the organization is successful. The vision can galvanize your organization if it is stated with enough clarity, is time bound, and is supported extensively by the senior management team. There are some very famous visions; most notably John f. Kennedy's when he said, "I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth." This simple statement galvanized the U.S. scientific community and the management and staff of organizations in a herculean effort to achieve this vision. From the moment it was spoken, NASA experts began to plan how the millions of essential building blocks required to achieve this vision needed to be put together.
Â Â Note
1 Bruce Holland has a very insightful newsletter available from www.virtual.co.nz/consult/Articles/ThoughtsBruceH/Thoughts Introduction.htm.
Mise au point et l'utilisation des indicateurs de rendement clés (IRC) en milieu de travail est déterminée par la présence ou l'absence de quatre pierres de fondation:-