“Key performance indicators (KPIs) are defined as quantifiable, specific measures of an organization’s performance in certain areas of its business” (SHRM, 2014).
Please see my KPI and Dashboard Example as it relates to this post.
The purpose of the KPI metrics that I created is to monitor the goals and critical success factors of each supervisor in my department of which there are 15. The example provided below contains an easy to read dashboard page that supervisors can view to quickly assess current progress. Viewers can then click on each specific KPI to see all of the associated data and graphs for the fiscal year, and then also view comparative data by month and by year to date. Each of the five KPI goals is given a score out of 20, and supervisors strive to achieve a score above 90% in total.
Tracking this information has been extremely useful for the supervisors to monitor their goals and track trends, and managers have seen an increase in performance and cost savings after these KPIs were implemented.
The attached example is a KPI report for a third shift supervisor. As you can see by the dashboard, the only goal currently achieved is for the safety KPI. When we view each KPI separately, we see that the score for Quality Assurance has decreased from previous months, and scores for Supplies Allocation Management (budget), Supplies on Hand (inventory), and Training have slightly increased. When we view the Totals tab, we can see that even though the supervisor has not achieved his overall goal for the month of February, his scores are dramatically better than the previous three months.
To put these scores into context, the previous supervisor left the position at the end of October, and the current supervisor started his position in mid-November. After a learning curve, he is beginning to perform better and we can expect even higher scores for March.
Reflecting on these KPIs, it is important to note that before the implementation of these metrics, the expectation was that supervisors had between 6-12 months to get past the learning curve of our organization. However, with this KPI tool, new supervisors are able to quickly understand the expectations and requirements of the job, which has decreased the duration of the learning-curve significantly. It would be interesting to examine the cost savings associated with this KPI tool and its secondary purposes of communicating expectations, decreasing uncertainty, decreasing the time for new supervisors to learn their role, and increasing accountability.
References
SHRM. (2014). “Strategic Planning: What are Key Performance Indicators, and how do they Relate to the Human Resource Function?” Society for Human Resource Management. Retrieved from:
https://www.shrm.org/templatestools/hrqa/pages/whatarekeyperfindicatorsandhowtheyrelatetothehrfunction.aspx
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