How to implement a KPI system in your company. Implementation of KPI Formation of the kpi system

KPI key performance indicators: what is it, examples of such systems, as one of the tools to increase business profitability, are becoming more and more in demand in the information field dedicated to entrepreneurship.

KPI solves the problem of transferring the evaluation of the company's performance from the sphere of subjective assessments to the world of reality and objectivity, allows you to identify weaknesses and bottlenecks in the business, optimize activities aimed at obtaining the highest possible profitability.

KPI is used as part of a strategic balanced scorecard, which performs the task of establishing cause-and-effect relationships between indicators and goals, identifies factors of mutual influence and business patterns through the dependence of some performance results on others (BSC system)

What does KPI mean?

This abbreviation came into Russian from English (Key Performance Indicators), most often translated as “key performance indicators”. “Efficiency” in the definition does not correspond to the full meaning of the word “Performance” in English management science, where this concept came from. The full meaning is described in the ISO 9000:2008 standard. 2 values ​​are accepted:

• performance, according to the standard, this corresponds to the degree of achievement of planned results;
• efficiency, this concept determines the correlation of the resources expended and the results that have been achieved through their use.

Thus, the term KPI is better understood more broadly - as "a key (main) indicator of performance."

Understanding the term KPI in this interpretation makes it clear that it can be used to evaluate the company's activities only in conjunction with the content of the goal, its content. Therefore, it was KPI that formed the basis of the modern concept of management "Management by Objectives". And the KPI itself is used to control the business activity of employees, departments of the company, the success of its activities as a whole.

Benefits of a KPI system

The KPI system has undergone many changes since the time of Peter Drucker and, in an effort to meet the ever-changing realities of the business world, has absorbed many management concepts that creatively develop the main one - “Management by Objectives”.

The advantage of the KPI system in comparison with others aimed at solving the same problems, first of all, is that KPI provides an inextricable link between such business components as plan, execution, result, motivation. Today, KPI allows, using the data it generates, not only to evaluate the effectiveness of employees, departments and the company as a whole, but also to build a perfect motivational mechanism for stimulating employees.

Not every indicator can be considered key. This includes only those indicators that are related to the purpose of the business and for which planned indicators and norms for employees are set. For example, it is illiterate to attribute timely accounting reports to KPI indicators, since it is not directly related to the specifics of the unit's activities.

Types of KPIs

KPIs are divided into several types:

• KPI of the result - what results have been achieved and their quantitative expression;
• Cost KPI - how many necessary resources were used;
• KPI of functioning - determines the execution of current business processes, evaluates their compliance with the desired execution algorithm;
• Performance KPIs are derived indicators that characterize the ratio of time spent on achieving the planned result in the value of the result itself;
• Efficiency KPIs are derived indicators that serve to assess the ratio of resource costs to the results achieved with their help.

In turn, efficiency KPIs are divided into:

1. lagging, that is, those that will reflect the results of the work after the passage of some time;
2. Leading(another name - operational) - these are those that allow management to manage the work during the selected reporting period, allotted to obtain the specified results after its completion.

lagging These are primarily financial indicators. They are aimed at demonstrating the connection between the desire of management and the ability of the firm to generate cash flows. Their disadvantage is that due to the delay in the manifestation of efficiency, it is not possible to describe the effectiveness of the company as a whole and its divisions at the current time.

Leading indicators they are involved, if necessary, to analyze the work of the enterprise at the current time, to give an objective assessment of the quality of current activities, the degree of satisfaction of customers' needs, how satisfied they are with cooperation, to identify the possibility of increasing cash flows for the future, to evaluate the quality of products.

What to keep in mind when developing KPIs

When developing indicators, the following rules should be observed:

• strive to minimize the set of indicators that are needed to manage the process of doing business;
• each indicator must be such that it can be expressed in a measurable numerical indicator;
• the cost of funds that need to be spent in order to measure the indicator should not exceed the monetary value of the profit as a result of its use.

KPI development algorithm

This work is carried out in several stages.

• Pre-project work. This stage consists of:

1. obtaining the approval of a higher manager and finding out ways to interact with him;
2. project initiation and planning;
3. creation of a project team;
4. work on conducting a pre-project study.

• Development of KPI methodology. At this stage, perform:

1. optimization of the organizational structure;
2. develop a methodological model;
3. develop a company management process using KPI;
4. develop regulations (a system of normative and methodological documents).

• The stage of development of the KPI information system. It includes:

1. development of technical specifications for setting up an information system and its setting;
2. user training;
3. performing trial operation.

When developing a KPI methodology, attention should be focused on:

1. development of KPI as a holistic development strategy;
2. the availability of an explanation of the benefits of KPI for staff;
3. identification and clear recording of corporate key success factors;
4. creating understandable reporting for all levels;
5. ways to refine KPIs to keep them relevant when existing business conditions change;
6. development of coordination and application of decisive KPIs.

• Project completion stage. Putting into practice the methodology of the KPI system.

Characteristics of effective KPIs

Key performance indicators will be effective if they meet the following characteristics:

1. Address affiliation. This means that each KPI must be associated with the direct executor (it can be either an individual employee or a structural unit), who are responsible for the results of activities that are in their area of ​​responsibility;
2. Correct Orientation- KPIs must meet key development projects, strategic goals of the company, key business processes;
3. Reachability- the implementation of KPIs must maintain a balance between the necessary efforts to achieve them and the probability of their implementation, it should be in the range from 70% to 80%;
4. Openness to action- KPIs should be set in such a way that there is an opportunity to intervene in processes to improve them;
5. Ensuring forecasting- it should be possible to assess the factors that directly determine the planned results and have a direct impact on the value of the business itself;
6. Limitation- KPI should be oriented in such a way that the performers focus on the implementation of priority tasks and do not scatter their efforts on the implementation of insignificant ones;
7. Ease of perception- KPIs should be accessible to their understanding by performers;
8. Balance and interconnectedness- key performance indicators should not be included in the zone of mutual conflict, they should complement each other;
9. Initiating change- KPI measurements should cause positive changes in the company like a chain reaction, that is, the implementation of some causes a natural process of improving others;
10. Ease of measurement- KPIs should be left in such a way that users can independently quantify progress;
11. reinforcement- KPIs should motivate employees, that is, be supported by individual material stimulation;
12. Relevance- since after a while the influence and effectiveness of even professionally created KPIs can significantly weaken, they need to be updated periodically;
13. Comparability- KPIs should provide the possibility of comparison in such situations, for example, it would be wrong to use the ratio of average revenue per day for single-format outlets, but having such a different location as a regional center and a small district town;
14. reasonableness- each indicator should provide an opportunity to conduct an analysis based on it and carry a semantic load. As a negative example of the lack of meaning, one can cite such a key performance indicator, which is calculated as all expenses for the maintenance of the administrative apparatus to the mass of profit (total). Such an indicator will meet the above characteristics, but in reality it will be meaningless.

General principles and rules for implementing KPI

To successfully complete the tasks that the system is aimed at, certain rules must be followed.

1. The 10/80/10 Rule this rule sets the number of key indicators in the system. It states that a company must have ten key performance indicators, no more than eighty production key indicators, ten key performance indicators. This ratio avoids overloading managers, as well as significantly reducing the time that management spends discussing the implementation of the program.
2. The rule of observance of the principle of controllability and manageability. It says that each unit that is responsible for a certain indicator must be provided with the necessary resources for implementation and management, and the result must be monitored.
3. Rule of the principle of partnership. When developing, and even implementing, the moment of mandatory application of establishing an effective partnership between all elements of the system, employees, a clear understanding of the need for change should be taken into account.
4. The principle of focusing efforts on the main direction. This principle establishes the need to analyze the activities of employees in order to identify the possibility of expanding their powers, identifying those who require advanced training, determining what training employees need, making them responsible for developing their own KPIs, establishing effective communication links (both vertically and horizontally).
5. The principle of integrating the processes of improving productivity, evaluating reporting and evaluating indicators. It is important to think over and implement such systems of reporting and evaluation of indicators, which would be aimed at stimulating concrete actions and understanding one's responsibility. A strict schedule for reporting meetings should also be established.
6. The principle of coherence between the overall strategy and performance indicators. This principle requires linking key performance indicators to the current critical success factors and inclusion in the overall balanced scorecard and company strategy.

Variability in KPI selection options

KPI- these are the indicators that form the direction of the actions of employees, are the main indicators on the basis of which it is possible to evaluate the effectiveness of their work

For example, you want the sales manager to bring some profit to the company. How can he do it?

1. Make a very big deal with one very wealthy client. But there are few such clients, and there is an active struggle for them.
2. Therefore, he must work through a large array of smaller clients. To get this pool of potential clients, the manager will have to make a large number of phone calls, send commercial offers to do a lot of work to create communication links with potential clients.

For a manager, when building a system of indicators, KPI is the right choice of indicators that will most effectively influence the achievement of the goal, for example, the company's profit.

How the KPI system is built

We write out those indicators that, in your opinion, will lead to the required results. For example:

• volume of sales;
• percentage of customer service;
• quantity of goods sold x and y;
• markup.

Mistakes when creating KPIs

As an example, we can analyze the creation of a KPI system for a company that itself manufactures and sells products.

Structurally, such a company can be represented as consisting of:

• department that purchases the necessary materials;
• production department;
• sales department;
• financial division.

The purchasing department is focused on reducing costs when purchasing materials. Naturally, in order to fulfill your planned KPI, you need to create a system for obtaining sustainable discounts, bonuses, and so on.

For the production unit, the main KPI is the equipment load (it should be above 80%). For example, if two types of products are produced, you need to have an effective scheme for redirecting the work of equipment so that it does not stand idle.

Now let's analyze the mistakes that will inevitably occur if KPI is introduced mechanically, without taking into account the strategic activities of the company.

Meeting the goal for the purchasing department of reducing the cost of purchased materials includes opportunities to reduce their cost by:

• purchases in large quantities, and this, in case of excess materials for the production unit, will entail additional costs for storing and freezing money in stocks;
• purchases of lower quality materials - this can cause equipment breakdown;
• prepaid purchases - this entails a freezing of funds.

The second mistake is the implementation of KPI without taking into account the motivation of employees. For effective work, it is necessary to ensure the connection of KPI with the system of bonuses and fines, that is, with the system of material motivation.

The third mistake is the substitution of KPI indicators for result indicators, for example, revenue, profit, marginal profit. KPI indicators are correlated with the employee's activities in order to achieve such a result that you need to specifically perform today, tomorrow, the day after tomorrow, that is, the leading indicators described above. If we consider the sales manager, this will be:

• number of clients to meet;
• how many contracts to conclude;
• how many calls to make;
• how many potential customers to find.

The fourth mistake is the lack of a planning and KPI accounting system. These indicators can be taken from the operational accounting system, the management personnel control system. Planning means setting targets for a certain period.

Using the KPI system for motivational purposes as an indicator that affects the increase in base wages should be done very carefully and legally correctly. If this variable part is introduced into the employment contract, then the court will consider those payments that were made before the case was considered in court as wages. In the event of a labor dispute, an employee, even if he did his job poorly, will be able to receive additional money from the company. Therefore, it is better to draw up an additional production contract or efficiency contract to the main employment contract. which displays the variable part of the salary.

In order for KPI to become not just a fashionable innovation, a kind of marker for the company's management as trying to keep up with the times, but really effective tools for increasing the company's profitability, three points must be observed:

• introduction of a norm- this is the KPI that is achievable by an employee during normal work, this is not a dynamically changing indicator, but a static one, for example, in order to receive a regular salary, a manager must conclude a minimum of 10 and a maximum of fifteen contracts. The norm excludes the factor of chance, as well as the factor of luck;
• introduction of the concept of purpose- this is the money that an employee can receive if he achieves outstanding results, for example, based on the above, an employee will conclude from 15 to twenty contracts;
• introduction of the concept of "Challenge"- this is the money that can be received when achieving results that are significantly higher than the average for the company, for example, not thirteen contracts concluded per month, but forty.

How to evaluate the performance of an employee

The first indicator is the result, that is, something measurable (square meters of tiles laid, the number of contracts concluded, and so on).

The second factor by which it is possible to evaluate the activities of employees is the time factor, that is, how quickly the business process is performed. For example, the time of fixing an error in a call center by IT services. This time, regardless of the type of business, can be normalized and entered into KPI.

The third factor is the quality factor, that is, the absence of returns, complaints, complaints, and so on. Also, when introducing such a performance indicator, it is required to take into account that if an employee has achieved a satisfactory planned result for a period of planned time, the quality can be considered satisfactory.

You can also measure efficiency by estimating the amount of resources that should be spent on the execution of a business process.

How to develop KPI for a specific department, examples

Although the competent development of efficiency ratios is an individual process, taking into account all the specific features of a company or production, examples of typical developments can still be given. This is especially applicable for services with typical functionality, such as accounting. Below are some examples. At the same time, it should be noted that correctly created KPI systems also take into account the workload, if it is more than 100% - an employee and bonuses, if it falls below 70% - the manager is fined because he could not provide employees with work.

You can learn more about KPI, its development, implementation and use by viewing the webinar recording.

KPI-system is a system for managing the performance of employees in an enterprise. Today, company leaders are increasingly aware of the fact that the right motivation of company employees can give a lot. The further the worldview of each individual employee will defend from the Soviet principle “I get paid to sit at the workplace until 18:00,” the more benefits the company will receive. Before proceeding to the implementation of KPI, it is worth understanding the basic concepts, determining the purpose and strategy of the KPI system, and choosing a software solution for automating this system. Let's take a closer look at each of the above stages of implementing a KPI system in a company.

What is a KPI?

1. Performance KPI - characterizes the ratio of the results obtained to the time spent (for example, the number of sales per month);
2. Efficiency KPI - characterizes the ratio of the result obtained to the cost of resources (for example, ROI, target cost per sale).
3. Functioning KPI - allows you to assess the compliance of the executable business process with the required work algorithm for its implementation (for example, the completeness of the fulfillment of the stated requirements).

Stages of implementing a KPI system in a company

Goals and strategy development

• Increase the motivation of employees and the growth of the main indicators of the enterprise.
• Build a clear system of short and long-term goals of the company in order to consistently achieve them.

Building a hierarchy of goals is not work for one person and not for one day. The more information is collected and processed, the more employees and heads of departments can speak on such an issue, the more likely it is that the list of goals will correspond to the internal capabilities and needs of the company.

Employee training

The most common leadership mistakes at this stage are:

• Lack of proper explanation to employees why such a system is needed. If it is introduced “by order from above”, and the opinion of employees is not taken into account, then this is the worst example of motivation when trying to introduce just a motivation system.
• Actual wage cuts.

If the manager follows the path of savings, then the employee who received, relatively speaking, a rate of 10,000, after switching to KPI, will receive a rate of 7,500, and in order to get his usual 10,000, he needs to show miracles of efficiency.

It’s better not to do this, this is a strong blow to motivation, which can even push an employee to look for a new job.

Before implementing KPIs, it is highly recommended to prepare employees for this, best of all gradually. If the employees are not yet ready, it will not hurt to postpone the implementation of this system, because it will bring a good result only on the basis of the staff's favor for the changes being made and understanding why they are needed.

Choosing the Right KPIs

With the correct implementation of the KPI system, the key indicators of employees grow, because everyone sees a clear connection between them and their income.

Automation of the KPI system

• Simplify the process of planning activities and choosing KPIs to achieve the key goals of the company.
• Collect data on actual performance indicators from the CRM system used.
• Consolidate data on planned and actual indicators into a common database for further processing.
• Calculate employee benefits.
• Generate reports on the effectiveness of individual employees and departments.

How to choose a software solution for KPI implementation

• There is not enough time to collect statistics and calculate KPIs.
• I do not want to spend a lot of money on the purchase and maintenance of a KPI system automation program.
• Employees are not eager to spend time learning new programs.
• There is no desire to create an IT department or expand an existing one.

What are the advantages of low-code systems?

• Quickly adapt to changing business needs without the involvement of IT specialists
• Maintenance costs are minimal
• Do not require special training
• Clear and easy for employees
• Available from mobile devices

As an example of automated KPI systems based on the Comindware Business Application Platform, which are already used by domestic enterprises to increase their performance and increase employee motivation, you can read

According to the opinion of the management of the Chaikhona No. 1 restaurant chain, the use of the Comindware platform to automate the KPI system of the restaurant chain managed to achieve noticeable results in a short time, which proves the effectiveness of both the KPI strategy itself and the IT solution based on the Comindware Business Application Platform.

You can evaluate the benefits of IT solutions for employee performance management based on the Comindware Business Application Platform by ordering a demo.

Elena Gaidukova, marketing analyst, brand manager of solutions based on , partner relations specialist.

KPIs are key performance indicators for a company or a separate department. In the article, we will consider examples of KPIs for various specialists and analyze how to develop and implement a system.

What is KPI

Ki ai stands for Key Performance Indicators - key performance indicators.

The KPI system is a reward system based on key indicators.

Working on such a system allows employees to better understand what they need to do in order to be effective. Moreover, efficiency refers not only to the amount of work performed by them, but also to the benefits received by the company.

How to develop a KPI system

To create a Ki Pi Eye system in a company, you need to:

1. Choose a key performance indicator model.
2. Determine KPIs and allocate responsibility.
3. Create reporting.

How to choose a key performance indicator model

There are many methods for defining and grouping indicators. In Russia, the classical approach is most often used, as well as the balanced scorecard (Balanced Scorecard, BSC).

The classical approach is based on the use of predominantly financial indicators, such as; see figure.).

Picture. EVA based KPI tree

It should be noted that financial indicators alone may not be enough to implement the developed strategy. No less important for business is the development of customer relations, personnel management, product quality, that is, those aspects of activity that are difficult to value.

Within the framework of the balanced scorecard, four main aspects of the company's work are distinguished, which provide answers to the following questions:

• how the company is evaluated by shareholders (“Finance”);
• how it is evaluated by customers (“Clients”);
• how to improve the quality of activities (“Personnel”);
• what processes can provide a company with an exclusive position in the market (“Business Processes”).

What to choose

Which approach to choose depends on the level of business. For small companies, the classic approach is more suitable, since it does not require significant costs for attracting consultants and implementing an information system. In the future, it will be possible to refine the created classical system by including non-financial criteria in it.

Large companies should use a balanced scorecard, as it gives a more complete picture of the company's activities.

How to develop KPIs for finance staff

The editors of Sistema Financial Director prepared motivation schemes and KPI performance reports for financial service employees. Download and use examples of key accountant and other employees of the accounting department, employees, budgeting department and other departments in your company.

How to choose key indicators

To determine which KPIs to use, you need to:

1. Select groups of indicators and distribute the responsibility of managers of different levels of management for each of the groups.
2. Make the most detailed list of KPIs used by management.
3. Select the criteria that best characterize the achievement of strategic goals.
4. To formalize the algorithms for calculating each of the ki pi ai.

Selection of groups of indicators

If a company uses a classic approach to developing a KPI system, then the following groups should be distinguished:

• ;

Responsibility for each of the groups will be distributed among the leaders of all levels of management. For example, the general manager is responsible for the whole, while management should be transferred to the heads of departments.

When using a model that includes both financial and non-financial KPIs, the following groups of key performance indicators can be distinguished:

• financial and economic - for business in general;
• customer satisfaction;
• main and auxiliary business processes (see how to describe them);
• staff efficiency.

After identifying the main groups, it is necessary to determine who will be responsible for their implementation. An example of the distribution of responsibility, see table 1.

Table 1. Groups of indicators and distribution of responsibility

Detailing

The list of ki pi ai for each of the selected groups should be as detailed as possible. Ask the managers who will be responsible for a particular group to make such a list. For example, the CEO should specify what criteria he uses to evaluate "shareholder (owner) satisfaction".

As a result, several hundred criteria can be included in the general list of KPIs. It is obvious that the construction of such a system is unjustified, since it will lead to a significant increase in the workload on personnel associated with the collection and processing of data necessary for the calculation. Therefore, from the general list, you need to select those data that are really necessary for management to manage and will allow you to assess the degree of achievement of your goals, and not just be controlled “for information”.

Choosing a KPI

To select KPIs, form an expert group. As a rule, it includes directors of divisions and heads of departments. Their task is to characterize each of the indicators according to the following criteria:

• whether it reflects the degree of achievement of the company's strategic goals;
• whether it is understandable, first of all, to those managers who will have to make a decision based on it;
• whether it is useful for decision making.

In addition to those listed, other criteria may be applied, for example, the ability to use performance indicators in planning or analysis.

The evaluation procedure can be formalized based on the use of a scoring system. For example, 1 point - the criterion is not met, 2 points - partially meets the specified criterion, 3 points - meets the specified criterion. The indicators that receive the highest number of points during the peer review will be included in the CI system.

As a result, a "short" list of key performance indicators of the company will appear (see table 2).

table 2. An example of a ki pi trading company(fragment)

The vast majority of business owners are dissatisfied with the performance measurement systems they use. The problem is that there is no clear sequence between planning, execution and the result. Moreover, no one knows how to connect staff motivation with the goals of the organization. KPI development helps change the picture. This system allows you to control the business activity of employees and the enterprise as a whole and takes the company to a new level.

General concepts

The KPI indicator is voluminous and contains the degree of achievement of the result, as well as the costs of obtaining it. Formation of the system is possible in absolutely different areas of activity. The implementation of KPI is accompanied by special indicators that help create an effective system of motivation and incentives for employees of the organization. Of course, we are talking about those employees whose activities directly affect the income of the enterprise. KPI is also developed for employees of administrative and management personnel to determine the effectiveness.

Key performance indicators are divided into subspecies:

1. result KPI. Displays both the quantity and quality of the result.
2. Cost KPIs. Shows nested resources.
3. KPI of functioning. It includes performance indicators of intended operations and allows you to compare what you expected with what you got.
4. performance KPIs. Forms indicators that characterize the ratio of the result to the time spent.
5. efficiency KPIs. It characterizes the relationship between the result and the invested resources.

The development of KPI in the company is convenient not only for the director, but for each employee. The system helps to most transparently calculate the steps that an employee needs to take in order to achieve the desired result. That is, each employee clearly understands the algorithm of necessary actions to increase personal sales and the income of the entire company.

What does it look like?

Let's give an example of using KPI in business. In the field of direct sales, performance indicators are actively used. Indicators reveal the relationship between calls, meetings with a client, and the number of sales. The consultant is explained how much product needs to be sold in order to reach the planned figure, as well as how many calls and meetings are needed to do this. An example of a KPI result in this case will focus on the minimum allowable number of customers, as well as on sales volume not lower than the established limit.

When developing KPIs, the main thing is not to get carried away. Remember that personal indicators should be at least three, but not more than five. The main thing is a clear formulation and easy measurability.

In addition to incentives, the KPI system helps the director determine at what stage a particular employee experienced a sharp decline. If we take the same sales manager as an example, then thanks to KPI indicators, you can see the number of calls and sales, as well as consider the client base. If everything is fine on these points, but for some reason there are no sales, then professionalism is the weak point of the employee. In other words, there is no necessary knowledge or ability to convince.

Application in practice

So, you've decided to apply the system within your organization and don't know where to start. The development of KPI at the enterprise includes the stages of a certain sequence. First of all, it is necessary to carry out some pre-project work.

After receiving approval from the management, the planning phase of the project begins. Here, key performance indicators are formed, all the subtleties are developed and taken into account. A project team is being created, which conducts all the necessary research.

The preparatory activity smoothly flows into the development of the system methodology. At this stage, attention is paid to the optimization of the organizational structure. For this, a methodological model is developed on the basis of regulatory documentation. The company management process is completely transferred to the KPI system.

Having developed regulatory and methodological documents, it is worth moving on to organizing an information system. Namely, a TK is created with further programming customization. As soon as everything is ready, the staff should be involved in the implementation of the system. A competent briefing on the use of the program is carried out, examples of developments and their practical application in practice are clearly demonstrated. At the final stage, KPI is put into operation.

It is important to know!

The efficiency of the system is based on the following points:

• it is important to correctly develop a tree of company goals;
• it is necessary to correctly distribute all performance indicators;
• it is important to clearly define the responsibilities between employees for goals and processes;
• it is necessary to introduce an accounting system that will make it possible to calculate all KPI formulas;
• it is necessary to involve disinterested people who will be specially trained for this in the maintenance of the accounting system.

The last item must be restricted. The group of persons responsible for the accounting system cannot include employees who fulfill these KPIs. Otherwise, it may adversely affect the operation of the entire system.

There are several points that have an extremely unfavorable effect, and sometimes even interfere with the operation of the system. The main negative factors can be identified. The KPI system will not start correctly if the director did not participate in the development of goals, and also if all performance indicators were not taken into account when planning.

The created accounting system must reflect absolutely all data. Therefore, if at least part of the information is missing or it is entered incorrectly, you should expect trouble. In the case when KPI indicators are applied only in certain departments, the desired result cannot be achieved either. The system should cover every department.

If the indicators are not tied to motivation, nothing will work. When building a system, the personal goals of employees should be taken into account. In addition, it is important not to delay the payment of performance bonuses for more than three months. Otherwise, employees will get tired of waiting, and motivation will disappear.

Eventually

Building KPI is directly related to motivation, the whole system of which is based on the primacy of the company's goals. In this case, personal goals are also taken into account. Remember that people are most motivated to act when they believe their work will lead to their specific desired goal.

Preliminary task setting: takes place as an introductory meeting with the management of the company or the initiators of the project to form an updated technical task based on its results. The document will show:

• goals and objectives of the project;
• restrictions on solving these problems;
• form of presentation of the result;
• methodology and scope of work;
• the composition of the information requested by the consultant;
• forms of obtaining this information (interviews, internal regulatory documents, questionnaires, etc.);
• work schedule reflecting the timing of the achievement of intermediate and main results.

Creation of a working group: the working group includes employees from the side of consultants and the necessary specialists from your side. Employees of the working group from your side are required to provide information about the company, participate in the discussion of the submitted documents and for the preliminary acceptance of the results of the work of consultants.

At this stage, primary information about the company is collected by studying the internal documents of the company and conducting interviews with employees:

• consultants produce a description of the core competencies of the company and the units included in the project, as well as the current situation in these units;
• consultants form requests for the provision of internal regulatory documents, including a description of the organizational structure, basic business processes, descriptions of the functionality of employees, job descriptions (in the form in which these documents exist), etc.;
• consultants determine and agree on a list of specialists from whom it is necessary to obtain additional information, after which they conduct a survey or interview of company employees (the methodology is determined in advance and agreed with you); Questioning is carried out according to a questionnaire specially designed for this purpose, interviewing is carried out according to a previously developed and agreed guide (interview script), individual and group interviews (triads, dyads, focus groups) are possible.

At this stage, the consultants process the collected documents and materials, analyze the results of the survey and/or interviews, systematize, summarize and translate the information received into a formal language.

Thus, within the framework of this stage, the following works are expected to be performed:

• Description of business processes in graphic and / or text format at the level of departments and positions;
• Description of the main functional responsibilities of employees at the level of departments and positions.

As part of this stage, the following is carried out:

• identification of bottlenecks in the organization of business processes;
• search and coordination of solutions to optimize business processes;
• development of schemes and maps of optimized business processes.

This stage does not always take place - depending on your wishes. In general, the development of KPI should be preceded by the stage of optimizing business processes, but sometimes this is not required, and all processes are considered to be correctly built and debugged.

After agreeing on the results of the analysis, the consultants proceed directly to the development of a motivation system based on KPI. As part of this stage, you need to:

• develop a general scheme of the system of remuneration and motivation (the structure of remuneration, levers and mechanisms of motivation, accents, etc.);
• define and agree on goals and objectives at the level of the company as a whole, the main divisions and individual employees, identify ways and methods to achieve goals;
• develop formulas for evaluating performance indicators at the level of departments and positions under consideration (possibly two or three options for discussion);
• determine the frequency of calculation of these indicators and develop a motivational policy based on the "binding" of employee performance indicators to the variable part of remuneration.

After the development and approval of the developed motivation system, the company's consultants form the relevant regulatory documents, which describe in detail the principles of building the motivation system, the scheme for calculating remuneration, the frequency of payments, non-material incentives, etc. The format and content of the documents are agreed in advance with the Customer.

Before implementing the KPI system, it is necessary to test it to identify bottlenecks and unaccounted for points. To do this, an implementation and testing plan is drawn up, employees are trained, and the effect is monitored on a regular basis. As such, the implementation process begins from the moment the KPI system is developed by informing employees about the goals of implementing the system. It is necessary for employees to understand that the goal of implementing the system is not to reduce their wages, but to obtain a tool for a fair assessment of their performance.

As part of this stage, it is expected:

• conduct test payroll calculations in accordance with the developed model: open payroll is carried out according to the old and new systems;
• conduct a survey (survey) of employees and / or discussions in the format of focused group discussions;
• if necessary, make adjustments to the developed system (composition of tools, calculation coefficients, etc.) and prepare appropriate changes to regulatory documents;
• conduct a training session on the use of the new motivation system;
• adapt the work of personnel in accordance with the new work order;
• prepare and set up a communication platform for timely informing employees and receiving feedback.