Organizational Prerequisites for KPI’s

Before a global organization creates KPIs for each goal, they will need to have a many organizational processes in place for this to be effective. Without having the processes in place will render all of the measurement processes of the KPI’s useless wasting time, money and resources.

Some of the base processes needed to be successful is as follows:
Strategic & Annual global planning
Formalizing structures, processes, and roles for all members of the organization
Identifying clear objectives for each strategic goal and vision for all teams/units
Creating quantifiable, measurable, detailed and timely KPIs
Communicating KPI and clear objectives to all employees from the top down
Continual strategy meetings based on feedback from KPIs

Strategic and Annual Global Planning

Strategic Planning is one of the MOST important thing that management can do for the health of the organization. Planning helps to identify how management objectives are achieved by setting performance goals and creating the means to achieve them. Planning provides the starting point for making the decisions and taking action that build the organization's future.

Formalizing Structures, Processes, Roles for Entire Organization

Formal structures and processes are important in the allocation of decision-making rights and the distribution of information across the entire organization and all members of the company from the top down. Processes must be measurable across the enterprise.

Identifying clear objectives for each strategic goal and vision for all teams/units

The first step to understanding whether the company is headed where it wants to, these goals must be matched into clear objectives. At the departmental level, objectives translate into specific activities that are unique to the work of that department.

Creating quantifiable, measurable, detailed and timely KPIs

They must be matched to each organizational objective and be quantifiable, measurable, and timely.

Communicating KPI and clear objectives to all employees from the top down

For KPIs to be effectively implemented, an organization must make sure that all managers and employees (top down) thoroughly understand it. To achieve this, the KPIs must be communicated clearly by distributing clear objectives, activities, and KPIs throughout the organization.

Continual strategy meetings based on feedback from KPIs

The main goal behind KPIs is to discover activities that move a global organization towards its goal of success. This is achieved if the information gathered from KPIs can be effectively traced back, activities, overall strategic plans.

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