The importance of the process of Performance Management

KPIs2-300x240

The first time I took over the Performance Management department of a large organization I wondered, as some of you probably, what exactly includes this concept.

In order to do a good job, I started looking for information about it and as I was getting further into it, I saw that the power of it is spectacular. It is neither more nor less than to create a system to help measure and therefore manage the level of performance (effectiveness and efficiency) of organizations. This ranges from the measurement of business performance, through the strict control of the operations and the correct measurement of the various internal departments, support processes. All, of course, aligned with corporate strategy.

The key instrument of the process (in some organizations even department) is the key indicator, in English terminology is known as KPI (Key Performance Indicator). Indicators can be inducers, or are necessary to achieve the final goals and finalists, the final performance measure set. An example would be the training of employees, which will end (or should) improve the performance of production people, for example, that would be a finalist indicator.

Finally, these indicators tend to collect in a table known as Dashboard, the style of which you can see below:

KPIs2-300x240

In short, with our experience in different companies, we can say that those organizations that have been working theKPIs (it’s a process that requires a significant period of maturation) are able to manage the company much more effectively than those that do not have developed. What started structuring?