How to set up Performance Indicators! The ultimate KPIs guide!

hello and welcome back to my channel in this video we will be talking about one of my favorite topics and basically answering the following question how to set up key performance indicators and be prepared this video is going to be packed with tons of useful information we will start by clarifying why it is crucial to define your objectives before jumping to performance indicators then we will be showing the difference between kpis and performance indicators once this is understood we will be talking about how to design kpis and how to set the associated targets and finally i will show you how to properly create synergies inside your teams and with an entire organization also do not forget if you enjoy the video please like and subscribe for more now let's get started regardless if you are thinking about yourself as an individual or from the perspective of a team manager or the owner of a large corporation properly defining objectives is crucial for achieving your dreams let's imagine that we have a journey ahead of us a key part of defining objectives is actually understanding what is your starting point it is amazing how many of us jump directly to setting grandiose goals without spending a bit of time understanding what are our current capabilities and performance so before you conquer the world make sure you do your homework and you are aware what is your current reality once this is done you can start thinking about your objectives and the problem here is that many start defining kpis without having any goals whatsoever you know what they say when you have no objective every road is going to take you there equally dangerous is to have poorly defined objectives such as do more than last year or try your best in order to avoid that you should make sure your objectives are smart that's right coach double s aaa smart let's see what it means most of you know that objectives should be specific but sometimes we over complicate our life and we forget that they should also be simple to understand increase service level by 10 per month for the next two quarters can be very specific but not simple to understand for everyone wait wait i got it no false alarm servicing 70 of our customers in 10 minutes within half a year time could be a lot easier to understand for every member of the organization right yes so much simpler the m stands for measurable meaning you can find out at any given moment the progress that was made like when i know my guys need to get to 1000 push-ups and they can today do only 100 exactly you are getting it traditionally the first a stands for achievable what are you telling me should i have started with 500. maybe at the same time an objective should also be ambitious huh back to 1000 with you last but not least it should be actionable meaning it should point the action that needs to be done in order to reach it man i'm so good at this stuff go on push-ups lots of push-ups r stands for relevant it means that the objective is given to those that can actually do something to reach it and it's also in line with the skills that they've been hired for what do i mean by that for example avoid giving your sales guys risk-related objectives it's not in the set of skills for which you hired them and most likely you will end up losing business let me see if i got it if i would be a soccer coach i should not give defenders objectives related to scoring goals even thought i want them to score goals objectives and the kpis that derive will drive your players mindset and behavior a defender should know that his job at the end of the season depends on the team not receiving goals but if he scores he will contribute to the higher team's objective which ultimate will impact him in a positive way and finally objectives should be time-bound meaning it should be clear in how much time we need to get from point a to point b but at the same time make sure to have in between milestones that can be checked until finally reaching your goal now that you know exactly where you are and where you need to go it's time to talk about kpis kpis are those two to three critical performance indicators which will ensure that you successfully reach your objective if they are all met at the same time performance indicators are those that have met or not met will not determine if you reach your objective although not having a crucial role in your journey performance indicators could offer important indication why you go one way or another i don't get it how can i make the difference no worries coach let's see how it applies for you you have a competitive team so your objective every year is to win the championship right four in a row there is no other way take a look at these performance indicators which ones if met will make you champion at the end of the season and which ones will not let's see i can score many goals but still please so this would be a performance indicator showing if your team has a good offensive game but will not be guaranteeing that you are winning the championship how about the next one if i look at last four seasons i made 2.6 out of three in average per game and one every time but once it was closed the eagles had a good season too so if i was not winning against them i would have been second bingo number two and number four were your two kpis that ensured winning the championship that's right and number three tells if my guys are not disciplined or not aggressive enough but has no real impact on the season coach i believe you are ready for number five best of luck when designing kpis i am usually looking at three critical dimensions and ask myself the following questions what is the kpi that will make team members desire to constantly produce more points or tickets per hour should do the trick in operations sales per day or customers served could be good options for services for quality i usually ask myself how will i make sure that my team is not making any errors error rate default rate or customer satisfaction could be some very good kpis to choose from for behavior i ask myself how will i make sure that my team works together as one and individuals are connected to the company values over time i understood that the best kpi for this one is derived from the results of a 360 survey trust me i tried them all not sure how to design one in my next two videos i will cover how to create an excellent 360 survey but also how to make an incentive scheme that will boost your kpi's efficiency so make sure you will not miss it now that you have your kpi's definition you should also add a target to it when you chose the numerical value make sure that it's achievable but also ambitious always look at all important elements such as the historical data market trends seniority team capacity and so on when making the decision and finally we are ready for the last chapter synergies if you ever worked in a bigger organization you already know that reaching your company goals can be quite difficult from the moment a customer places an order till the moment the customer gets the product the request usually goes through multiple departments with multiple layers which follow one or more end-to-end processes so in order to make sure your customer will actually end up having a camera and that he will be happy with the quality of the product and the level of service make sure that you first define process kpis that will deliver your company promise to the customers once this is done you can derive connected relevant kpis for each department involved while making sure that each indicator is cascaded through the different layers of management so that all individuals are working in the same direction also very important you need to have process leaders that make sure to keep everyone aligned and nobody loses focus only when having everything in place you will be one step closer to your goals and this is it congratulations you should now be able to give it a try and set up your own key performance indicators isn't that exciting if you found the video useful reward it with a like and subscribe for more also if you want to create similar animations i am leaving a link to vyond website in the description below best of luck

Channel: A2B Thinking

Views: 170,495

Keywords: how to set up performance indicators, how to set up KPIs, KPIs, performance indicators, how to measure performance, how to define performance indicators, how to define KPIs, how to set up performance indicator, how to set up targets, how to set up objectives, key performance indicators, how to set up organisational goals, how to capture performance, how to track performance, what are KPIs, how to create KPIs, how to create performance indicators, business management

Id: UPMEv60r1Ac

Length: 9min 52sec (592 seconds)

Published: Sun Nov 08 2020