If the process works, I can give continuity to the action and, if appropriate, implement it. If the process does not respond as expected, I will have to put corrective solutions in place to improve it.<\/p>\n
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KPIs: what they are and why are they needed?<\/h2>\n
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I dedicated an in-depth study to what KPIs are<\/a>, the English acronym for Key Performance Indicators.<\/em> I invite you to read it to follow the logical development from the concept, already expressed, of a useful metric<\/strong> to describe how much and how one approach (or deviates) from a set goal to the key points on which I will focus in this article:<\/p>\n <\/p>\n <\/p>\n The KPIs are chosen on the basis of the objectives, which in turn depend on the quality of the business processes and the sector of the organization. This level of variability should not lead us to think that the KPIs are totally subjective: although you may have a free hand in selecting the performance metrics<\/strong>, the company performance indices still refer to 3 basic parameters.<\/p>\n <\/p>\n <\/p>\n While on the one hand, the number of company performance indices ranges from 3 to 10 (but you can choose more, or even less), on the other hand, it is important to select the useful and usable KPIs<\/strong> to measure effectiveness, efficiency, value, quality, safety or any other parameter that falls within the corporate strategic plan.<\/p>\n The product manager collaborates to determine the number and type of KPIs to monitor, because he knows the process of product management and knows what data is actually necessary for the creation of value<\/a>.<\/em><\/p>\n<\/blockquote>\n To identify the KPI characteristics<\/strong> you can draw inspiration from the SMART method of defining business objectives. In the SMART acronym, every single letter defines the characteristics of a goal:<\/p>\n <\/p>\n More about the importance of SMART KPIs you can find here<\/a>.<\/p>\n <\/p>\n <\/p>\n Focus on the goal, only in this way will you be able to concentrate enough energy<\/strong> to achieve it. To be specific, the goal must have clear and defined outlines from the answers to the following questions: “What do I want to do?”; “Because it is important?”; “Who is involved?”; “What resources do I need?”.<\/p>\n <\/p>\n <\/p>\n Be sure to identify both the business performance indicators that can be expressed in the form of numbers<\/strong> and the suitable tool for monitoring in order to measure the performance of the organization during the process.<\/p>\n <\/p>\n <\/p>\n Limit your ambitions, commensurate them with resources and abilities<\/strong>. Although the goal raises the bar, aiming for improvement and the achievement of value, it must in any case remain within the limits of feasibility.<\/p>\n <\/p>\n <\/p>\n If it is not relevant it is not important. Before devoting your resources and energy to pursuing a goal, make sure it is truly worth it and is aligned with other strategic goals<\/strong> related to it. For example, you could choose a specific, measurable, and achievable KPI, but not relevant. This KPI will prove to be ineffective and, in conclusion, useless as part of the corporate strategy.<\/p>\n <\/p>\n <\/p>\n Always set an expiration date: you will have a deadline that marks the activity plan both in the short and long term and you will be able to organize time by priority<\/strong>, without losing sight of the final goal. The continuity of the plan will also give you the opportunity to measure company performance indices according to the most appropriate periodicity.<\/p>\n <\/p>\n <\/p>\n KPIs are the detectors that signal what is working, to what extent, and why that portion of the process will create value.<\/p>\n In management by objectives, I think starting from the end: first I establish a SMART goal and then I plan a strategy to achieve it, within which I insert detectors (KPIs) that act as alerts.<\/em><\/p>\n<\/blockquote>\n Depending on the sector of activity and the organization’s mission, I can use specific types of KPIs, selecting them from the main categories:<\/p>\n Within these macro-categories, each company department (eg marketing, commercial, financial, production) will establish its own KPIs on the basis of sales objectives, promotional campaigns, customer satisfaction, etc.<\/p>\n <\/p>\n <\/p>\n To demonstrate how you can use KPIs, I bring some practical examples<\/strong> of how to use company performance indicators. Suppose you have analyzed the sales channels: e-commerce shows room for improvement in terms of profits (total revenue) and expansion of the scope of the new customer base.<\/p>\n The goal is therefore to set up an effective online marketing campaign, in terms of costs and sales conversion rate. Which marketing KPIs do I choose<\/strong>? Here are 3 possible:<\/p>\n <\/p>\n <\/p>\n The same company taken as a model in the previous case can decide to set up an economic-financial development strategy, choosing some KPI indicators such as:<\/p>\n Formula ROI <\/p>\n <\/p>\n Before concluding, I want to leave you some ideas to set the business objectives in a smart way, so that the process derives the maximum possible benefit.<\/p>\n The objective and the related KPIs are a reflection of each other<\/strong> and both reflect the needs of the company and its mission statement. If the overall vision is short-sighted or approximate, you will have poor goals dictated by underperforming KPIs.<\/p>\n “If you don’t aim at anything, you’ll hit it every time.” (Zig Ziglar)<\/p>\n<\/blockquote>\n <\/p>\n <\/p>\n Choose the KPIs that reflect your goals and your vision<\/strong>, without being misled by general statistics or improvised ‘experts’. Always ask yourself what is more significant, having as a reference the company and the product and their structural and distinctive features.<\/p>\n Having a clear goal removes gray areas and communication gaps, facilitating the work team and managers during the process. Each KPI marks an arrival point<\/strong> and at the same time a stage that tells where you are and how the journey is proceeding.<\/p>\n Break down the long-term goals into a series of results to be achieved<\/strong> along with the action plan, some of them will be consequential, others may be simultaneous. If you have an annual goal, KPI checks on a quarterly basis can be pit-stops to see if you’re going straight to the finish line.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Company performance indicators: Characteristics and KPI examples Setting the company performance indices allows the manager to check if and to what extent the strategic objectives have been achieved. For this reason, I go back to talking about KPIs (Key Performance Indicators) focusing on how to achieve an effective measurement of the activities carried out […]<\/p>\n","protected":false},"author":5,"featured_media":4702,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" [et_pb_section fb_built=\"1\" _builder_version=\"3.22\"][et_pb_row _builder_version=\"3.25\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\"][et_pb_column type=\"4_4\" _builder_version=\"3.25\" custom_padding=\"|||\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.9.10\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" hover_enabled=\"0\" header_font=\"Abhaya Libre||||||||\" header_2_font_size=\"30px\" sticky_enabled=\"0\"]<\/p> \u00a0<\/p> Settare gli indici di performance aziendale consente al manager di verificare al bisogno se e in quale misura gli obiettivi strategici sono stati raggiunti. Per tale motivo torno a parlare degli indicatori KPI<\/strong> (Key Performance Indicators<\/em>) facendo focus su come realizzare una misurazione efficace delle attivit\u00e0 svolte e dei processi attuati in funzione dell\u2019obiettivo aziendale.<\/p> Se il processo funziona, posso dare continuit\u00e0 all\u2019azione e, se opportuno, implementarla. Se il processo non risponde come previsto, dovr\u00f2 mettere in atto soluzioni correttive per migliorarlo.<\/p> \u00a0<\/p> \u00a0<\/p> Ho dedicato un approfondimento a cosa sono i KPI<\/a>, acronimo inglese di Key Performance Indicators<\/em>, ovvero indicatori chiave di prestazione. Ti invito a leggerlo per seguire lo sviluppo logico dal concetto, gi\u00e0 espresso, di metrica utile <\/strong>a descrivere quanto e come ci si avvicina (o ci si scosta) da un obiettivo prefissato, ai key points<\/em> sui quali mi concentrer\u00f2 in questo articolo:<\/p> \u00a0<\/p> \u00a0<\/p> Gli indicatori KPI sono scelti sulla base degli obiettivi, i quali a loro volta dipendono dalla qualit\u00e0 dei processi e dal settore dell\u2019organizzazione. Tale livello di variabilit\u00e0 non deve indurre a pensare che i KPI siano totalmente soggettivi: per quanto si possa avere mano libera nella selezione delle metriche prestazionali<\/strong>, gli indici di performance aziendale fanno comunque riferimento a 3 parametri di base.<\/p> \u00a0<\/p> \u00a0<\/p> Se da un lato il numero degli indici di performance aziendale spazia in un range da 3 a 10 (ma puoi sceglierne di pi\u00f9, o anche di meno), dall\u2019altro \u00e8 importante selezionare gli indicatori KPI utili e utilizzabili<\/strong> per misurare efficacia, efficienza, valore, qualit\u00e0, sicurezza o qualsiasi altro parametro che rientri nel piano strategico aziendale.<\/p>\n
Company performance indicators: 3 parameters to measure<\/h2>\n
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![\"KPI](\"https:\/\/lucianocastro.com\/wp-content\/uploads\/2022\/02\/Indici-di-performance-aziendale-parametri-300x225.png\" "\\"\\"")
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KPI characteristics: the SMART method<\/h2>\n
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![\"SMART](\"https:\/\/lucianocastro.com\/wp-content\/uploads\/2022\/02\/SMART-KPI-300x169.png\" "\\"\\"")
<\/p>\nCharacteristics KPI Specific<\/h3>\n
Characteristics KPI Measurable<\/h3>\n
Characteristics KPI Achievable<\/h3>\n
Characteristics KPI Relevant<\/h3>\n
Caratteristiche KPI Time-based<\/h3>\n
Categories of corporate performance indicators<\/h2>\n
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How to use corporate performance indicators: practical examples<\/h2>\n
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Examples of economic-financial KPIs<\/h3>\n
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<\/strong>Percent Growth Formula
<\/strong>{[Final Revenue Value – Initial Revenue Value] \/ Initial Revenue Value}*100<\/p>\n\n
<\/strong>Operating income (or gain from the investment made) \/ Capital invested<\/p>\nCompany performance indices: 3 best practices<\/h2>\n
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![\"kpi](\"https:\/\/lucianocastro.com\/wp-content\/uploads\/2022\/02\/kpi-obiettivo-strategia-specchio-300x192.jpg\" "\\"\\"")
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<\/strong><\/li>\n<\/ol>\nIndici di performance aziendale: caratteristiche KPI ed esempi<\/h2>
Indicatori KPI: cosa sono e perch\u00e9 servono?<\/h2>
Indici di performance aziendale: 3 parametri da misurare<\/h2>
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Caratteristiche KPI: il metodo SMART<\/h2>