Increasingly present in companies, performance indicators – also known as KPIs or Key Performance Indicators – reflect the desire to manage and control the progress of one or more processes. The objective is to verify whether the goals determined in the organizational planning are being duly met.
In this context, we can say that the indicators form a series of references that enable a continuous evaluation of the position and evolution of an activity or process in a company. Through them it is possible to obtain strategic information that assists in continuous improvement and proactive performance, in addition to providing transparency to the company, usually being expressed clearly by percentages and probabilities.
In this article, you will better understand what performance indicators are, and will learn about the most commonly used ones. Read on and check it out!
Why is it important to define indicators?
“What cannot be measured cannot be managed. This old saying always remains current, because constantly checking the results obtained is essential for good management.
This way, it becomes easier to detect threats and opportunities, measure the relevance of each action, identify the need for specific adjustments, compare information, and analyze the possible effects of a strategy, among other aspects. Even the use of indicators in projects allows to prove the efficiency of a planning and generates valuable insights.
In addition, KPIs are fundamental to the work of people management and employee engagement within the team. With well-defined metrics, it is easier to understand what the responsibilities of each one are and also the impact that each professional brings to the company, benefiting the organizational climate.
Currently, there are several types of performance indicators available to directors and managers of the company. Thus, it is up to each one to choose which ones best fit the organization objectives, according to the demands and planning of the business.
To simplify the choice process, one of the most used methods is that of Performance Indicators, which when put into practice allow the integration of Strategic, Operational, and Organizational elements of the company.
Therefore, to define the performance indicators that best fit the company strategy, it is important to consider the main types of indicators, divided into four categories.
Everything related to the efficiency, efficacy, and effectiveness of the company processes and services offered to the client are part of the quality indicators. The indicators in this category are parameters that, within management, allow for precise and objective measurement of the progress of the business in terms of the quality of its results.
Unlike quality indicators, which are presented with percentage numbers, productivity indicators measure the results of the relationship between what was produced and the resources invested for this. These indicators are responsible for keeping managers aware of how the performance of their business is and provide the basis for knowing what can be optimized and what improvements can be made in a process.
It is very common for professionals to perform their activities without knowing exactly how much time they spend on each one. For this reason, there are capacity indicators, which measure the capacity to produce in a certain period of time. They are essential to understand when it is necessary to increase the team or even invest in new equipment.
Finally, we have indicators that analyze and monitor the company performance over time, showing the panorama in which the organization currently finds itself, such as time, resources, and energy employed in the development of its processes. The application of this indicator brings to light the fulfillment of the objectives and goals set by management, assisting in decision making.
The tip is: a KPI must be more than just numbers. They need to express something strategic about what your company is trying to achieve. In other words, a KPI must clearly reflect your business model.
Once you know the key performance indicators, you will know that working with them generates important competitive advantages for your organization to focus its efforts. Those who measure the activities and are concerned about optimizing processes have benefits that go from the company management to its operations.
Finally, it is worth emphasizing that it is of utmost importance to monitor the indicators periodically. Through continuous analysis it is possible to measure – like a thermometer – whether your organization is on the right track or not. Remember that the information that comes from the evaluation of the indicators is fundamental to guide planning and areas, promoting increasingly clear and precise results.
Now that you know everything about management by indicators, how about starting to apply it in your business and leverage your results? Fusion Platform offers an Analytics tool that allows the monitoring of KPIs in an agile, intuitive and fast way. So don’t waste any time and try the tool for free right now!