Key Performance Indicators (KPI) and Continuous Improvement
To assist you in defining and measuring the goals and objectives of your business or organisation, you could consider introducing Key Performance Indicators (KPI)as an effective measurement tool.
Once you have analysed your businesses or organisation’s “mission” and defined its “goals” and “objectives”, you will need to:
- Measure the progress towards achieving your businesses or organiasation’s goals and objectives by introducing an effective measurement tool
- Create a plan for Continuous Improvement.
What Key Management Measurement Tool can I use?
Using Key Performance Indicators (KPIs)
If used effectively Key Performance Indicators (KPIs) will assist you in:
- Measuring if your business or organisation is on track(i.e. where you are now and where you want to be); and
- Measuring if your business or organisation is working towards attaining a beneficial outcome or improvement.
KPIs are often used by many businesses and organisations to influence action, especially if they are linked to:
- Performance reviews;
- Recognition; and
- A Reward system.
Reminder: It is important to recognise that the key to staying on top of your Key Performance Indicators is to clearly measure:
- Where are you now?
- Where you want to be? and
- What steps are necessary to get you there?
Creating a Continuous Improvement Plan
To assist you in reflecting on, where your business or organisation is currently and how to evaluate its goals and objectives, you should create a plan that recognises where any Continuous Improvement or project-based initiatives may be required. To be successful the plan has to be directly aligned to your KPIs.
The following five steps can help you on the way to continuous improvement:
Step #1 – Get the Leadership Team Involved
For the continuous improvement and project-based initiatives to be successful, it is advisable that you get the support of the businesses or organisation/s leadership team.
Step #2 – Start Small
If you are new to continuous improvement you should start with smaller-scale pilot projects as this enables you to work out any kinks on a small scale. The data and outcomes derived from starting small can lead to larger initiatives.
Step #3 – Encourage Participation
Your employees are the bread and butter of making a continuous improvement plan initiative successful. Solicit ideas from your team members as soon as possible as this shows the employees that you are in fact serious about making improvements. Also, ensure that you give your employees feedback on any ideas they submit as this is vital in sustaining continuous improvement.
Step #4 – Make Room for Mistakes
When it comes to developing new processes and initiatives, there needs to be a place for trial and error as you might not always get it right the first time. Your people may not offer ideas for improvement if your business or organisation punishes them for not getting it right the first time.
Step #5 – Show the Difference
Be transparent, by showing your people what you used to do as this will show them how far you have come with your improvement processes and initiatives.
Seek Expert and Professional Advice
Singh Accountants understands through practical experience, how people respond to change. Our professionally qualified public accountants will help you in:
- Exploring how your business or organisation can stay on top of your Key Performance Indicators;
- Creating a plan for continuous improvement in your business or organisation; and
- Ensuring that you KPIs are clearly understood, and that the actions for continuous improvement are specific, measurable, attainable and time-bound.
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