Kpi method what. How to calculate the degree of KPI fulfillment. Determining the overall goals of the enterprise when implementing KPIs

KPIs are key performance indicators that can be used to evaluate the performance of employees in various departments of the company. On their basis, employees are promoted up the career ladder or paid bonuses.

Relatively recently, company leaders began to actively introduce such a concept as KPI into their work. Now the most valuable thing for which employees work is tied to it - wages. Moreover, the KPI indicator becomes important not only for the administration, managers or office employees - line managers, but also for representatives of working specialties.

The main idea of ​​KPI (Key Perfomance Indicator - usually translated as "key performance indicator") is that it can be used to unambiguously and substantively evaluate the work and performance of any employee, group of people, department, project and company as a whole. The indicator will reflect the whole picture of the processes taking place in the company with the help of numbers.

The most important thing is to develop the correct KPI for each position and enter real metrics. It is very important for an employee who is faced with this concept after getting a job in a company to immediately understand and understand what exactly is included in his personal set of KPIs (criteria for evaluating his work). The list of indicators will allow a beginner to quickly understand what exactly the employer wants to get, what results he expects from the employee. The KPI range will immediately show how much effort needs to be put in to achieve the desired level. wages whether this work will be within the capabilities of the applicant, or, conversely, his abilities will significantly increase the requirements and, accordingly, wages.

Scorecard

The KPI system gives specialists clear work goals and transparent bonuses. But the metrics can be unattainable, and the transition to such a system can be painful.

In large foreign companies, where everything is spelled out and detailed to the maximum, working according to the KPI system is an excellent option for an employee. He understands how much, for what and when he will receive in excess of the salary. He has personal tasks and deadlines for their completion, and the company, through the assessment, can regularly monitor his work.

In many organizations, in addition to the monthly report, it is the KPI results of all employees that serve as the basis for the annual assessment of the performance of the company's personnel. After the annual assessment, the HR Directorate compiles lists of the most promising specialists for their enrollment in personnel reserve companies and promotions.

But if in foreign companies the head office helps in developing goals and indicators, then Russian employers act somewhat differently. Some invite consultants, others manage on their own: the KPI is prescribed by the HR Directorate. Since neither one nor the other thoroughly know the peculiarities of the work of each particular specialist, it happens that the indicators are formulated inaccurately. It even happens that the most advanced, in quotation marks, organizations to develop KPIs involve managers and employees of the evaluated divisions.

Types of indicators

There are some key performance indicators in the KPI assessment system: financial, client, process and development criteria.

TO financial performance include, for example, market value, return on investment - ROI, turnover, cash flow, Internal Rate of Return - IRR, share price, total assets and many others. These indicators reflect the external economic situation of the company as a whole.

Client indicators characterize individual workers who deal with clients and create the external image of the company in the market. These criteria include market share, number of new markets, customer satisfaction, quality, image indicators and much more.

The process indicators include indicators that grow along with the speed of execution of various processes in the company: the time of development and launch of new products on the market, processing of a client's request; time spent on logistics and delivery of goods, etc.

Development criteria - KPI indicators characterizing the degree and level of development of the company itself (external processes of the company's development in the market and internal processes of human resource development): staff productivity, profit or administrative costs per employee, level of staff satisfaction and its “turnover”.

The employee works as a consultant in the sales department, answering questions of potential buyers by phone. The following key performance indicators (KPIs) are defined for it: customer satisfaction and the number of purchases that people made after consulting an employee by phone.

Advantages and disadvantages

The KPI system is good for employees whose work result affects the financial and economic performance of the enterprise. In trading firms, these are, first of all, top managers and sales managers, in recruiting companies - recruitment consultants.

In some companies, the implementation of the KPI by an employee also affects the individual size of the annual salary revision: the higher the score, the higher the percentage of salary growth. For example, the annual bonus for managers may consist of two variables, which depend on the results of achieving individual goals and on the performance of the company. This approach encourages better performance of functional duties.

For employees from different departments, the size of the bonus, which is influenced by the KPI, can range from 20 to 100 percent of the salary. At the same time, the formula for calculating the bonus itself is rather complicated: it takes into account the number of KPIs, the rate of implementation of each of them, as well as its "weight", called the coefficient of influence.

If the KPI scale is not designed correctly, there will be little benefit from it. If there are too many KPIs, the impact of each on the size of the total bonus will be small. For example, initially there was about 20 percent KPI, but after a year they were reduced to five. Most metrics accounted for a small percentage of the bonus, and the loss of 5 percent is not particularly significant. A 20% KPI weight motivates much more effectively.

One of the main disadvantages of the KPI system is the dependence of the quality of the work of an individual employee and the performance of the entire department. If the department did the work poorly or not very well, without fulfilling the general plan, then all employees of the department can lose their salaries at once. After all, personal KPIs are associated with key indicators of the entire division. In case of systematic non-fulfillment of planned targets, an employee may be demoted or fired. Therefore, KPI forces you to always "be in shape and tone." Whoever does not keep up with this rhythm leaves himself.

Another drawback is that not all employees can directly influence the company's strategic KPIs. When the bonus is dependent on net profit and sales, the secretary or economist will not be able to influence it.

From experience we can say that very often in Russian companies The KPI motivation system is one-sided: everything that an employee overfulfills is just a job well done, for which he receives a salary, and for underfulfillment he is deprived of some part of his salary.

Many managers international companies believe that work technicians(accountants, engineers, programmers) are easier to describe job description than to prescribe KPIs for them. Remember that planning and calculating this system takes time. Heads of areas or departments at the end of each month spend time setting and calculating the KPIs of all their subordinates. The indicators have to be coordinated with the HR Directorate, and the main work of managers goes by the wayside, and in fact the managers also have their own KPI.

As a rule, the transition to the KPI system is usually accompanied by unrest in the team: some quietly sabotage, others do not completely accept it and leave the company. It is difficult to immediately change your habits, the order of performing functions, and get used to the new conditions of remuneration. It is easier for new employees if the HR manager can explain to them what the company pays bonuses for, and newcomers are likely to accept work according to such rules normally.

Opinion 1:

Lyudmila Shusterova, Deputy general director outsourcing division of BDO

Original KPIs

KPIs are usually associated either with an increase in the company's profitability and its turnover, or with an increase in productivity and efficiency in the use of capital goods. Based on these conditions, it is unlikely that it will be possible to draw up any fundamentally new and original KPIs. Unless, of course, the work is connected with something very non-standard. For example, to the head of a biological station, you can put in the KPI an increase in the number of koalas by n percent. But the average manager is unlikely to be able to think of anything better than increasing revenues, increasing margins, increasing customer satisfaction, or reducing employee turnover. It is desirable that there are several KPIs, but not too many. Indeed, in the pursuit of business and profit growth, it is important that both customers and staff do not suffer - and this is a completely non-trivial task.

But the main task of indicators is not to be original, but to be effective.

Opinion 2:

Dmitry Pelakh, Director of the Financial Consulting Agency

KPI statement

In order to start applying the KPI system in your company, you need to fix it in internal documents. It is necessary to develop a regulation on KPI, which will be approved by the head of the company. In this position, it is desirable to bring formulas and calculations on the basis of which the system of indicators is built. It's also important to link metrics to data. accounting or with IFRS indicators, if the company uses international standards.

The regulation on the KPI system should establish the causal relationship of indicators with the main goals of the company and determine the level of responsibility for the values ​​of the indicators of employees to whom this system will be applied.

There is no standard form for KPI regulations, so a company can develop it on its own or turn to specialized consulting firms for help.

Opinion 3:

Ivan Shklovets, Deputy Head Federal Service for labor and employment

Dismissal for low performance

Labor legislation does not contain such grounds for dismissal as a low efficiency indicator. Consequently, the employer does not have the right to dismiss an employee with such a wording.

It is possible to dismiss an employee due to the inconsistency of the position held is possible only based on the results of employee certification, which must be carried out in accordance with the procedure established by the employer himself in the form of a local normative act... In this case, there must be a protocol attestation commission... However, even in this case, before dismissal, the employer will be obliged to offer the employee other available vacancies or work that he can do based on his health condition.

Failure by an employee to comply with established labor standards or quantitative (qualitative) indicators may affect the amount of remuneration. For example, he may be reduced or canceled incentive payments. However, when working out the established norm of working time, the employee in any case will have a guaranteed right to receive the salary (tariff rate) established for him. If the employer nevertheless dismissed the employee on the above grounds, he has the right to appeal against such dismissal in court.

Pros and cons of using KPIs to assess employee performance

Articles in this section

• Competent incentives for employees

  The topic of motivating and stimulating the work of employees is one of the key issues in personnel management in any organization. When establishing a system of incentives for employees, it is important to prescribe all the necessary provisions in local acts. Otherwise, claims of inspectors are possible.

• Motivation

  What are some of the best employee reward and recognition practices in your company? Is there a unified approach / common culture of gratitude and support for employee initiative, or does it all depend on the individual style of managers?

• Staff motivation. Struggle for efficiency. Time to act!

  A crisis, whether internal or external, forces people to learn and companies to change. As long as the company is profitable and there is no hint of problems, the owner and director are unlikely to be ready for major changes. Low efficiency in business (like ...

• Individual encouragement of employees. How?

  An individual employee reward system is an integral part of the work of an HR manager. After all, an efficient employee is, first of all, a satisfied employee!

• We motivate accounting employees

  Not all KPI systems are able to force accounting employees to perform their duties more efficiently and efficiently. However, everything can change if the gameplay is connected to the motivation.

• Formation of a system of non-material incentives

  At the present time, all possible systems of material incentives are developing quite well at enterprises. This is due to the fact that employers strive to clearly define and in the future to know for what, for what specific work, he pays an employee ...

• Employee Motivation: A Model of Fairness

  If employees perceive the remuneration as fair, their contribution to labor remains at about the same level. Biased management attitudes trigger tensions and motivation to reduce injustice. In the event that employees perceive the remuneration to be too high, the theory of justice states that they will feel an imbalance in their relationship with the employer and strive to restore balance.

• How motivational factors work

  How to build the practice of personnel management in your company on the basis of the theory of motivation, read in the article.

• Counter offer in the labor market - a way to keep a specialist in the company?

  Recruiters staffing companies argue that employers are increasingly resorting to counter-offer (ie, providing better conditions than the new employer) in an attempt to retain a good employee who has already decided on a new job and leaves. How relevant is the counter-proposal today? Many companies not only do not retain employees, they, on the contrary, cut staff. Nevertheless, the topic of the counter-proposal remains relevant to this day, since good specialists or leaders are needed always and everywhere. Accordingly, to accept or not to accept a counter-offer is one of the defining choices in the career of every person. After all, your future fate as a specialist or as a leader will depend on which offer you choose. You will learn about what is happening on the labor market now from the article

• Motivational profile of the candidate

The article examines the factors of motivation that most often cause employees to change jobs. Practical recommendations and advice are given on how to eliminate and / or reduce the negative impact of these factors or reduce the risk of their occurrence.

• What do TOPs who already have everything want?

  The question “How to motivate someone who already has everything?”, From my point of view, is an epic. What is the difference between a true story and an epic? Byl is a story that happened once, and an epic is a repetition of this story many times with distortions in legends and myths. That top manager, who already has everything, has never met in my life, this is an epic.

• The most effective methods of staff motivation

  Employees should be incentivized to achieve milestones rather than waiting for all the work to be completed, as great successes are difficult to achieve and relatively rare. Therefore, it is advisable to reinforce positive motivation at not too long intervals. It is important to make employees feel confident, as this is required by the internal need for self-affirmation. Success entails success. In general, a number of rules for the implementation of effective motivation of employees can be formulated.

• Diagnostics of motivation

  The article is dedicated to research and evaluation strategic development systems for managing labor motivation for managers and specialists, as well as their remuneration at enterprises construction complex Penza region. The possibility of the existence of unused managerial reserves in the strategic system of labor activity motivation is substantiated.

• The satiety threshold.

  Managers are characterized by territorial mobility, high sensitivity to changes in the labor market and are not limited to a specific geographic area. They live and work all over space. Russian Federation... At the same time, there are pronounced local features that significantly distinguish, for example, the manager of information technology from the city of Voronezh from the same specialist from the city of Yekaterinburg. The differences boil down to three main parameters: the size of the "satiety threshold", the format of leisure activities and self-esteem.

• Job satisfaction as a component of effective organizational behavior

  The most important task facing the modern Russian business community is the development of mechanisms for managing the organizational behavior of an employee. Organizational behavior will be effective if it contributes to the achievement of the organization's strategic objectives, i.e. the main vector of behavior of all employees coincides with the movement of the organization to achieve its strategic goals. However, the achievement of these goals will be possible only if the stability of this movement is ensured. Job satisfaction (job satisfaction) can impart such resilience to employee behavior.

• Motivational mechanism of corporate culture

  Probably the key condition for increasing the efficiency of the internal segment of corporate management is the choice of adequate methods of activating personnel at all levels of the hierarchy: from an ordinary executive to a top manager.

  Why, in an atmosphere of cuts in budgets and staffing, are some employees loudly outraged while others are quiet? Does this mean that the former began to work worse? How demotivated are the "quiet ones" who are completely withdrawn in themselves? This article briefly describes a little-known, but very effective for business model of personal differences by W. Marston DISC, explains why different people react and behave differently in a crisis, gives recommendations on the individual motivation of representatives different types personality.

• And you do not have exactly the same, only without wings?

  In job advertisements, you can often read the following: "Communication skills, initiative, discipline and creative thinking are necessary conditions." Of course, we all want "everything and a lot" without assuming that some requirements may be incompatible.

  Why, when developing employee incentive programs, it is necessary to focus on strategic goals company?
  How to make the motivation system as transparent as possible?

• How to motivate staff in a crisis

  The crisis situation threatens the company not only financial problems and the loss of their positions in the market, but also the loss of qualified personnel, without which it is impossible to overcome the crisis. Retention of key employees is one of the main tasks of management at the stage of a crisis, and this goal can be achieved if staff is promptly informed and an adequate motivation system is implemented. Let's talk about this in more detail.

KPIs are Key Performance Indicators. Indicators are different. The key ones are those that affect the bottom line. The indicator itself may change quite a bit, but the profit is noticeable.

For example, the owner of a barbershop calculated that if he increases the average barber's bill by 100 rubles, the annual revenue will grow by 300 thousand rubles. If costs remain the same, profits will rise. The average barber bill for a barbershop is a key indicator.

Why are KPIs needed

The task of KPI is to make life easier for the head of the enterprise, the owner of the business and ordinary employees. I introduced the KPI system when our team grew from two people to 22. Too much time began to be spent on solving operational problems, it was not enough for direct directorial duties. Thanks to KPIs, I delegated authority and responsibility to the level of department heads and ordinary employees, but I still control everything.

When KPIs are not useful, the point is that the company is not working with them correctly. This is exactly how it was with the co-owners of the cosmetology clinic. They worked with a sales funnel, collected indicators, but did not know what to do with them next. And when we figured out which indicators affect and who should be responsible for each, in three months they made the business profitable from a loss-making one.

How to work with KPIs

Implementing KPIs

The authors of books on management portray the implementation of KPIs as a multi-step procedure: paint organizational structure companies, financial structure, business processes. With this approach, the process threatens to drag on for at least six months. Big business it is, perhaps, within the power. But a small business cannot afford to mark for so long.

But there is an easier and faster way. You will need to determine which metrics have the most significant impact on bottom line and who in the company influences those metrics. There is no universal set of indicators. They are individual for each business. For online sales, the key indicators are cost per click and site conversion. For a call center, the duration of the operator's calls.

We identified an indicator that affects profit, understood who it depends on, and appointed a responsible person.

We motivate staff

The next step is to create a staff motivation system. The popular option, when an employee's bonus is tied to the overall result of a company or department, works poorly. The employee is responsible for his own result. But how will it affect the results of colleagues? Therefore, you need to know what a particular subordinate affects and what is responsible for, and tie the bonuses of each to his individual result.

It should be taken into account whether the employee directly or indirectly affects financial results... Our team includes an editorial staff that produces content for the site. Content works to increase demand, but indirectly. The editorial office is the cost center. Therefore, it makes no sense to tie the motivation of the editor-in-chief to profit. But the sales department has a plan for the number of calls and the conversion of requests to sales. They directly affect revenue.

A sign of a good KPI motivation system is when an employee sees in the middle of the month how much has already been done and what needs to be done to get as much as he wants.

Drawing conclusions based on KPIs

Employees don't always meet targets. And not always through their own fault. When you see that something is going wrong, do not rush to shoot the personnel in the corridor. First, figure out what is the reason. If the employee is not guilty, then you need to help him and create conditions under which he can achieve the target indicators.

If the employee does not fulfill the plan from month to month and it is in him that is the point, all that remains is to replace him with those who will cope. Neither the charm nor the good attitude of the management will save here. These factors are powerless against indicators.

We carry out an audit of the KPI system

Implementing and adjusting the KPI system is not all. You have to understand: the system that you have implemented is not once and for all. In business, something is constantly changing. With each change, the KPI system may need to be adjusted. You have to be ready for this.

When you need to adjust the KPI system, figure out which indicators are no longer relevant, which ones need to be replaced and who should be responsible for the new indicators. It is easier to tweak the system than to create it from scratch.

The motivation system also needs to be adjusted. This is best done with the involvement of employees. Each employee has personal goals. And best of all, the motivation system works when both you and the employee understand what he wants and what he must do for the company in order to realize his personal goals. If an employee wants to earn 150 thousand a month, let his salary be 75, and the rest - bonuses. So he will understand that it is worth 75 thousand, but can earn 150 if he is a successful professional.

Remember

• Understand which metrics affect profits and who in the company influences them.
• Choose the key metrics that have the greatest impact on bottom line and assign responsibility for them. Set 2-3 clear KPIs for each department.
• Motivate employees for their key metrics.
• Keep track of whether employees are meeting targets.
• When the indicators are not achieved, figure out what is the reason. If an employee needs help, help. If this is the case, replace it with another.
• Constantly review the KPI and motivation system. Make adjustments when you realize the system needs them.

Key Performance Indicators = KPI = Key performance indicators (KPIs) Is a system for measuring the set goals, which is based on the usual mathematics of calculating the "Plan / Fact" of the goal achievement as a percentage. In a specific situation, key performance indicators (KPIs) define milestones in the process of achieving multi-stage objectives.

Key Performance Indicators (KPI) can be translated into Russian in different sources in different ways, for example: "key performance indicators", "key performance indicators", "key performance indicators".

It is commonly said that an indicator is a KPI if it measures the achievement of a goal. The technology of setting, monitoring and revising the goals of the work of employees and departments as a whole is a task modern system management. One of the popular KPI management concepts is called "Management by goals".

Automating the calculation of Key Performance Indicators (KPI) is a challenge for level decisions Business Intelligence (BI)

Management by Objectives = MBO = Management by goals - This is a process of agreeing goals within the organization, in which the company's management and employees, setting goals, as a rule, “from top to bottom”, understand the existence of a hierarchy of goals within the company.

Simply put, Management by Objectives (MBO) means that every leader, from top managers to line level, and every employee in the organization must have clear KPIs that ensure that the KPIs of higher-level managers are met.

In this case KPI (Key Performance Indicators)- These are key performance indicators that measure the achievement of goals by employees at all levels in the organization.

Management by goals Is, first of all, the task of the company's management, which includes the work:

• on the formulation of goals
• by KPI definition
• communicating goals and KPIs to employees
• to provide the goals with the necessary resources
• to control the achievement of the set goals

Ideally, the goal itself, which is measured using KPIs, should meet SMART concepts, i.e. have:

• S - specific/ Specificity (to be specific, to have a specific result)
• M - measurable/ Measurability (to be measurable, to have a measurement of achievement, i.e. KPI)
• A - achievable/ Achievability (have the necessary resources to achieve)
• R - relevant/ Significance (to be relevant, the implementation of this task is necessary now)
• T - time-bound/ Limited in time (have a deadline, certainty in time)

Applying the approach to the organization Management by Objectives (MBO) allows you to systematize the process of setting goals and assessing the performance of personnel by setting personal KPI indicators by employees.

In practice, all Key performance indicators (KPI) the employee are reflected in the so-called "Matrix of MBO indicators", or still found names: "Performance Assessment Sheet"- (ENT list) or simply "Personal file of an employee".

KPI results are used in corporate "Personnel motivation system", for example, in the calculation of the bonus part (bonuses) of employees.

Methodology "Management by goals" is an effective tool for setting and monitoring the implementation of tasks at the level of tactical management. At the same time, according to the requirements of quality management systems at the enterprise (ISO 9001), tasks at the level of tactical management should be coordinated (flow) from the tasks defined at the strategic level, where the most effective management tool is "Balanced Scorecard" (BSP).

Balanced Scorecard = BSC = Balanced Scorecard (BSC) - one of the powerful tools strategic management, which allows you to formalize the strategic goals of the company and further decompose them to the level operating activities and core business processes. It is customary to distinguish the following groups of indicators as key levels of decomposition:

• Finance (financial indicators)
• Customers and Products (Sales Metrics)
• Business processes (process performance indicators)
• Personnel (personnel training and development indicators)

Control at all levels balanced scorecard (BSC) carried out through the so-called Key Performance Indicator (KPI)- Key performance indicators.

The relationship of all KPIs in groups is shown in "BSC Strategic Map".

It should be noted that in this case KPI are indicators of the achievement of strategic goals, as well as characteristics of the effectiveness of business processes, and not the work of each individual employee.

In the context of employees KPI is used in managerial models of tactical management, for example, in the concept "Management by goals", from which, as a rule, follows "Personnel motivation system" based on the achievement of personal KPIs.

Schematically, all this can be linked like this:

Relationship diagram BSC -> MBO -> KPI -> Business Processes *
(Strategy -> Objectives -> Plan / Fact -> Actions *)

But all this is theory ...

In practice, the calculation of KPIs comes down to the following mathematical logic:

KPI roster

KPI consists of:

• KPI plan (planned KPI value to be achieved)
• Fact KPI (the actual value of the KPI that was achieved)

KPI types

KPIs are:

• Absolute (numeric)
• Relative (percentages / ratios)

KPI calculation

KPI calculation formula:

• Fact KPI / Plan KPI = Implementation of KPI (Fact / Plan = if the result is more than the plan - good)
• KPI Plan / Actual KPI = KPI Fulfillment (Plan / Actual = if the result is greater than the plan - bad)

Examples of KPIs

I will give a number of examples of KPIs in the areas of analytics that are provided by default in our off-the-shelf Business Intelligence (BI) solutions .

Absolute KPIs (numeric)

Sales KPIs:

• Sales volume in rubles
• Sales volume in units
• Average sales price
• Markup in rubles
• Margin in rubles
• Discount in rubles
• Number of customers in sales
• Number of brands in sales
• Number of products in sales
• Number of factories in sales
• Number of suppliers in sales
• Number of orders in sales

Purchasing KPIs:

• Purchase volume in rubles
• Purchase volume in units of measure
• Average purchase price
• Number of brands in purchases
• Number of items in purchases
• Number of factories in purchases
• Number of suppliers in purchases
• Number of orders in purchases

KPI for reserves:

Accounts receivable KPIs:

• As a rule, absolute KPIs are not used

Credit KPIs:

• As a rule, absolute KPIs are not used

KPI for payments:

• As a rule, absolute KPIs are not used

Relative KPIs (percentages / ratios)

Sales KPIs:

• Increase in sales in rubles
• Sales growth in units of measurement
• Percentage markup
• Percentage margin
• Percentage discount

Purchasing KPIs:

• Increase in purchases in rubles
• Increase in purchases in units of measurement

KPI for reserves:

• Remaining shelf life in percent

Accounts receivable KPIs:

• Percentage of overdue receivables (PDZ / ODZ,%)

Credit KPIs:

• Percentage of overdue accounts payable (PKZ / OKZ,%)

KPI for payments:

• Percentage of payment for documents
• Payment distribution percentage
• Percentage margin on payments
• Percentage margin on documents

This was an example natural key performance indicators that are inside analytical modules (OLAP cubes) and have full detail on all dimensions (references) of an OLAP cube analytics.

Also in practice there are artificial KPIs, the calculation of the Plan KPI and the Fact KPI of which is more complex and often involves only certain details, for example, only by employees. Such KPIs, as a rule, are usually taken out in a separate module, which contains analytics only for KPIs.

For such a case, we have a ready-made level module Business Intelligence (BI) called "KPI ANALYTICS". This module allows you to automate the calculation of the Plan / Fact by KPI of any complexity.

To write this note & nbsp was spent:

• 68338 kilometers for travel.
• 72 man-hours for mail correspondence.
• 423 man-hours for experiments with a team of 30 people.
• 88 hours for preparing reports and speaking at conferences.
• 17 cups of coffee for a conversation with wise people at the after party.
• About 25 hours to type this text and fix bugs in it :).
• A tortured copywriter who was forced to go through my drafts, audio recordings and, in general, thanks to him.

Lots of money and time. Perhaps the most costly (in terms of nerves, time and money) was the experiment on my own team, which I am incredibly embarrassed to remember. But more on that below.

Sooner or later, probably every director has a desire to pay fairly. For the work done. And a lot of people are now trying to implement KPIs (Key Performance Indicators). It works like this: you, as a business owner, assign specific goals to employees. They achieve or do not achieve their goals in the course of work. Those who have achieved are given a bun (cash bonus).

The rationale behind this approach is to pay fairly. As much as I have earned, I received so much. This is honest, this is logical, this is wonderful!

Well, it is logical that:

• Salespeople need to be assigned a percentage of turnover. The wolves must be hungry. (Yes, there is an alternative opinion that applying this approach means “taxing yourself.” But as for me, everything is fair here :-)).
• Office plankton - set a salary. Stability for them is a very important condition for their existence.

But with creative units (designers, programmers) - everything is much more complicated.

We recently conducted a survey of the heads of the leading digital agencies and web studios in the country on the topic "how do you use KPIs in relation to the work of creative units", as a result we got the following picture:

Some companies (15%) use KPIs to measure the performance of programmers and designers.

About 25% of companies are implementing KPIs at the moment / are meeting resistance within the company, or they are working according to a simplified scheme.

Approximately 30% of companies pay employees based on the subjective assessments of managers. Rather, 30% admit it ;-)
The remaining 30% do not confess.

The most interesting thing is that many have tried to implement KPIs or are trying now. And not very successfully. This does not mean that the KPI is bad. Poorly cooked food is impossible to eat. Maybe we just don't know how to prepare this KPI?

But statistics show that the overwhelming majority have difficulties in implementation. And there is a suspicion that everyone has a common problem. Let's try to figure it out.

The first thing you will have to face when implementing KPIs is team resistance

The question arises: What is the biggest fan of developers when implementing KPIs?

After conducting several experiments and surveys among colleagues, we identified 6 main reasons:

1. Fear of novelty. Everyone is totally afraid of innovations, thinking that it will get worse (less money, more work, etc.).
2. Opaque scheme. By using a multi-parameter compensation scheme, we increase the risk that workers will not understand it. People are enraged and demotivated when they don’t understand exactly how to achieve the best results or why they suddenly received less money.
3. "Why is there so much?" Yes, that happens too. If the scheme is structured in such a way that the result of this month will appear only after two or three. “This month I worked worse and got more. Means, last time I was not given. The management is idiots, they don't understand anything about my work! "
4. The employee's emergency response rate. It is almost unrealistic to get into a person's self-awareness and give him a "fair" bonus.
5. Incomplete dependence achievement of the criterion from the employee. For example, it doesn't really depend on the designer whether the design he has drawn will be sold or 50 edits will have to be made.
6. Reports. I don't know anyone who likes to write reports, put down the elapsed time, and promise "exact deadlines."

If you look at this list carefully, you will find that most of the claims are related to choice, accounting, transparency and adequacy of criteria.

OK. So you just need to come up with Good Criteria!

Well, those who will understand everyone, who will not soar anyone, who will be easy to explain even at an interview. And so that everything was fair, and I wanted to work more and more.

In general, let's try to find Good Criteria... (By the way, "Good" - for whom?). We have three key affected stakeholders: the studio owner, the customer, and the developers.

What can be a Good Criterion from the customer's point of view? Usually it all comes down to money (well, or some actual results):

• ROI - roughly speaking, this is the "return on financial investments." The indicator deduced by economists is not entirely applicable to developers: after all, they cannot control the return on their work and measure it in money on the go. That is, they cannot directly influence the indicator.
• Low cost of the feature. It is beneficial for the customer to have a low cost of the feature. And for a developer, this is a break in the pattern ("How is this: I get more money for the fact that I work cheap?").
• Satisfaction. I don’t know how to count it, but if we take into account that people want happiness, or at least take a little steam (Dmitry Satin), then we can even offer this formula:

However, the realities are now such that to come and offer, for example, a designer the dependence of his salary on the ephemeral "satisfaction" of the customer is a guaranteed way to remain without a designer. A very serious crisis is needed for this topic to start working. Or a lot of good superfluous designers.

• Date of release. Everything seems to be logical: we hand over the project on time - we get a lot of money, if we turn it in ahead of schedule - we get even more money. The indicator is good, but it has a problem already identified: not everything depends on the developer. The deadline most often arises from the client-managerial side. (Hence the fair: "Why should I lose in salary, although the manager did not knock out the content from the customer?").

OK. These Criteria Good for the customer will obviously not be Good for the developer. (I have no illusions, now you can easily come up with another 200 pieces of different criteria that are significant for business. Write, we will discuss in the comments :))

But you can measure PERFORMANCE! It's that simple!

Or not? How to measure it? If I painted the fence, then everything is obvious. But there is a catch. There are many thinking, creative, talented people and nobody paints fences. Let's take a look at the example of programmers. So what are some Good Performance Benchmarks that come to mind?

• KSLOC. Do you know what this is? Do you know what the Hindu code is? Implement - you will find out. KSLOC is the number of thousands of lines of code. If you tie this indicator to your salary, then expect a thousand lines of copy-paste. An acquaintance of mine received a completed order somewhere in Bangalore - a php script, for only ten dollars, but for as much as 20 MB. And it worked!
• Amount of some shit per hour (WTF / h). The number of pages drawn per day, the number of features implemented per hour, etc. It seems to be a normal metric - something can actually be calculated and used to distribute buns. However, a problem similar to the previous point arises: a drop in quality at the expense of quantity, an increase in technological debt. Motivation, interest, satisfaction - everything plummets downward. As a result, turnover and low qualifications.
• The number of bugs. The fewer bugs, the more we pay. Everything is logical, isn't it? Not really. Is there a bug tracker in your studio? If so, forget it. Your testers will very soon agree with your programmers about how many bugs to write and how many not, so that this is not to the detriment of both parties.
• Recycling."If you are late at work, you do not work well." Is it also logical? We are struggling with recycling, for example, we turn off the electricity after 18:00. However, here you need to remember that the psychology of a developer is fundamentally different from the psychology of office plankton: if he sits until the evening, then he is interested (and this should be encouraged).

People work in our field mainly because they are interested in it.

Do not interfere with stupid corporate rules.

• Focus Factor. This metric came to us from my beloved Scrum. Shows how much the task should have taken, ideally, and how much it ended up. "Concentration" of the team on the project. Is it possible to pay money based on this criterion? Quite, but if your managers are not "techies", then programmers will deliberately overestimate the time, minimizing their own risks. The consequence of this approach is that the deadlines are stretched, the customer is indignant (or does not buy from you). Yes, and every meeting will turn into squabbles and arguments in 10 minutes.
• Velocity. Also from Scrum. The proverbial "productivity". This is rather unclear, the humanities can skip a paragraph.

Allows you to predict how many tasks the team will be able to score in the next stage, depending on how many they completed in the previous stage. The problems are the same as the focus factor, plus one more is added. Often a manager (especially an inexperienced one), who senses that the performance of a team can be "measured", begins to apply this tool"On the other side". But Velocity cannot be an exact criterion, because shows how long the same task, performed by the same command under the same conditions, can take. However, after completing the task, the team has already changed: it has gained experience in how exactly to solve this particular task. And the metric won't work again.

• Cycle time. How quickly time passes from the moment the idea arose to implement a feature on the project to the moment it was made.

I personally really like this metric. One of the key ones worth measuring and optimizing. But the developers do not directly influence this factor. This is too high-level metric. If you start paying the team a salary based on their Cycle Time, this means that you, as a leader, do not seek to solve the team's problems and understand the processes, but simply pass everything onto the team.

An attempt to determine the dependence of the developer's salary on a high-level metric is evidence of managerial impotence

So, is it possible to measure the effectiveness of a team? Yes, it is possible, especially since we have written about a dozen indicators for this. And another dozen or two you can think of in the comments. Another question - is it worth making the developer's salary dependent on performance? But this is already risky.

I start working and do my job - well, because I am a professional and I am interested in it. But if they start to scandalize me with stupid metrics, I will optimize these stupid metrics. I'll write 1000 lines or draw 10 shit designs a day. And my interest in work will very, very quickly dry up, I will stupidly want the dough. This is called the substitution of internal motivation - external.

The story of one madness

Once, a "good friend of mine", the head of the studio, came up with the idea of ​​introducing a very fair salary, where a bunch of parameters would be taken into account. Naturally, the matter was approached on a grand scale. We wrote a whole bunch of criteria, such as:

- monthly plan for worked man-hours and actual hours worked;

- quarterly sales plan;

- the number of wards and their salaries;

- the amount of positive communication from clients (satisfaction);

- the number of repeated requests from the client with new projects;

- awards at specialized competitions;

- negative communication with the client;

- the number of bugs found by QA;

- growth of accounts receivable;

- the number of bugs found by the client after the start of the project;

- reading books, writing articles.

And 20 more pieces (useful list, take it away ;-)).

All this was brought together into one system. Naturally, the system had to be balanced. Therefore, in the first few months, it was decided to calibrate it on virtual "candy wrappers". A large board was invented on which a list of employees was drawn. Various "candy wrappers" were hung on the board - immediately, as soon as the payment arrived, the project ended, or some good (or bad) event happened that would affect the salary in the future.

Literally within 1 hour, the faces of the employees became very, very gloomy. A couple of days later, the questions began: "why do I have fewer candy wrappers?" or "why didn't they give me a candy wrapper - did I help Vasya?"

The mood became anxious. After a week, project evaluations began to take 4 times longer than before, and each evaluation turned into an endless dispute between the developer and the project manager. By the end of the month, few people wanted to help their comrade - they explained that "there is enough of their work." An infinite number of situations emerged that could not be formalized. Many candy wrappers were given out based on subjective feelings.

Few people wanted to work without wrappers, the tension grew. Productivity and motivation dropped. A month later, the program was canceled. After another couple of months, the anxiety disappeared.

As a conclusion:

Different metrics should be measured and think-think-think how to influence them. But don't transfer high-level metrics directly to developers and designers. And further.

“The developer has four components: body, heart, mind and soul.

1. The body needs money and security.
2. Heart - love and recognition.
3. Mind - development and self-improvement.
4. Self-realization for the soul. "

S. Arkhipenkov

Respect other people and give them the opportunity to do what they like)).

And the very last thing. There is a suspicion that each leader must understand for himself whether his organization is ready for the transition to KPIs. I hope this small selection of articles that we managed to collect will help in making the right decision.

In this article, you will learn:

• What is KPI
• What examples of KPIs for representatives of various specialties can be taken into service
• How to calculate KPI in EXCEL using an example

The personnel assessment method using key performance indicators KPI (Key Performance Indicator) is based on the methodology of "management by goals" by Peter Drucker. It has been used in Russia since the early 2000s. In this article, we will describe the essence of KPIs, give examples of KPIs and show the prospects for the application and improvement of the KPI method in Russian enterprises.

What is KPI by example

Since 07/01/2016, professional standards have been introduced at Russian enterprises as the basis for the formation of personnel policy. To assess the success of the standards implementation, a system for assessing the quality of workers' labor is required.
The criteria that characterize the quality of labor are presented in Figure 1.

Picture 1... The structure of the criteria for the quality of labor of employees of the enterprise.
Level I criteria Are actually the names of two main classes of criteria.
Level II criteria- generalizations suitable for presentation for the award (but not for evaluation).
Level III criteria- unified indicators that allow an approximate assessment of the effectiveness and reliability of the employee's work. Almost all known methods of personnel assessment are focused on assessing the criteria of the III level. Depending on the education and literacy of the authors of the methods and consumers, the following are most often chosen:

• Purely economic criteria KPI. Suitable for managers and professionals directly related to financial management and product sales.
• Questionnaires in the form of expert forms to assess competencies.
• Psychological criteria (Cattell test, etc.) - on the assumption that the quality of work is determined mainly by personal properties.
• Job profiles based on specialized (mainly psychological) sets of indicators.

Let's take a look at the most popular KPI-based scoring technology.


The main idea of ​​the KPI- detailing the strategic goals of the enterprise to the level of the employee. As a rule, the strategic goals are financial and economic indicators. There are several subgroups of KPIs based on quantitative measures of activity:

1. Expenses- in value terms.
2. Performance- percentage of equipment utilization.
3. Efficiency. Most often this is the ratio of revenue to cost.
4. Results. For example, the number of products produced.

KPIs can be operational or strategic.

• Operational indicators characterize the current results of the enterprise and its divisions. Allow online monitoring of technological processes, material support, product quality and adjust control parameters in accordance with changing conditions.
• Strategic indicators allow you to monitor the generalized results of the enterprise for a month, quarter, half-year and make decisions to ensure that these results are consistent with the planned ones. Calculated short-term forecasts of the effectiveness of the divisions, profitability for the coming period.

KPI are numerical indicators of the degree of success in achieving specific goals. This allows the KPI system to be used as the basis for motivating employee performance management.

Examples of KPIs for representatives of various specialties

KPIs are most convenient for assessing the performance of administrative and managerial personnel (managers, economists, financiers, etc.).
Key performance indicators trading activities calculated based on the data:

KPIs are calculated based on:

Specific examples are presented in the following table:

Example of calculating KPI in EXCEL

Each enterprise has its own KPI assessment system. Key performance indicators are set independently for each position. Their total number for a specific position / workplace is no more than five. At the end of each month (for some enterprises - a quarter), the final individual KPIs of each employee are calculated as the weighted average of private KPIs. The simplest algorithm for combining private indicators of a separate workplace:

where are private performance indicators;
n – number of private indicators ( n≤5) ;
- the weights of individual (private) KPIs. Usually
The weights differ, since the significance (importance) of individual indicators may not be comparable. Weights are normalized:

Value-Based Premium Formulas K(decision rules) can be expressed as a simple linear or step function TO.
The values ​​of the motivational coefficients (that is, the conversion coefficients of the value K into the premium) can be determined, for example, according to the following algorithm:

The following figure shows an illustrative example of calculations using Excel.


Picture 2... An example of assessing the success of an activity.
Explanations:

• Salary- a fixed part of wages. It is proportional to the number of hours worked. For simplicity, in the example of calculations, the fixed and variable parts of the salary are assumed to be equal.
• Percent the fulfillment of the sales plan and the work plan is calculated in relation to the actual indicators to the planned ones (as in the above table of calculated values).

Excel formulas for calculating KPI for each employee: = (50% × (IF (D3<80 %; 0; ЕСЛИ(D3<90 %; 0,5; ЕСЛИ (D3<100 %; 1; 1,5))))). Влияние показателя 1 и показателя 2 на сумму премиальных считается одинаковым. Коэффициенты тоже равны. В связи с этим для расчета показателей 1 и 2 берутся одни и те же формулы.

• The formula for calculating the amount of the premium to be accrued is = C3 × (F3 + G3). The planned bonus is multiplied by the sum of indicator 1 and indicator 2 for each employee.
• Salary - salary + bonus.

In order to assess the work of employees by several key performance indicators, a matrix is ​​compiled as follows:


Figure 3... Worksheet form.

1. Key Indicators A - Private KPIs (.
2. Weights B -.
3. Base C is the minimum value of the indicator.
4. Rate D is the target level.
5. Goal E is the value to strive for. Above standard indicator.
6. Fact F - actual performance results.
7. KPI G index - the level of the result in relation to the norm.

The formula for calculating the KPI index:

An example of filling out a matrix for an office manager is shown in the following figure.


Figure 4. An example of KPI calculation.
The efficiency factor is the result of the calculation according to the formula (1).

How to implement a KPI system in an organization

As can be seen from the above example, the introduction of a motivational personnel management system based on key performance indicators does not require serious investments and high qualifications of developers. No special training of HR specialists is required - the ideology is simple and popular. There are many enterprises that operate semi-automated Excel-based systems. The whole question is how effective is personnel management when using the technology under consideration.
As you can conclude from the example, the KPI system is best suited for enterprises with discrete manufacturing, for example, mechanical engineering enterprises. For industries with a continuous process (for example, nuclear power plants, chemical plants), the focus should be on the technological component of control, its reliability and safety. In this case, for example, it is impossible for an OSH inspector to formulate appropriate assessment criteria related to the financial well-being of the enterprise.

To correct this deficiency, the KPI assessment complex can be supplemented with a competency assessment subsystem. An example of a fairly successful solution is the STP 001.089.010-2005 standard, developed at OJSC Irkutskenergo.
In OJSC Irkutskenergo, special forms are used to assess competencies, which are filled in by experts - the head of the person being assessed and his colleagues. An example of such a form is presented in Table 1.
Table 1. Assessment of an employee by competence.

The experts assess the employee's compliance with the requirements of the position in points. In this case, the scales of the vocabulary of competencies are used. Examples of the scaling of the two competencies are presented in Table 2.
Table 2. Scaling of competencies.
Initiative

Ability to plan work effectively