Mengenai Indikator Kinerja Utama (KPI)
KPI…tentunya
Pengukuran sebagai aktivitas manusia bukanlah hal baru. Aktivitas ini muncul sejak awal sejarah sebagai sarana untuk penemuan dan pemahaman. Para arkeolog menganggap alat ukur pertama yang digunakan dalam sejarah manusia adalah tulang Lebombo, tulang fibula babon yang memiliki 29 torehan. Bertanggal 35.000 SM, tongkat hitung ini ditemukan di pegunungan Lebombo di Swaziland.
Evaluasi, sebagai bentuk pengukuran, telah digunakan sejak abad ke-3 Masehi, ketika kaisar Dinasti Wei menilai kinerja anggota keluarga pejabat. Sifat bias dari evaluasi kinerja individu diperhatikan oleh filsuf Tiongkok Sin Yu, yang dilaporkan mengkritik seorang penilai yang dipekerjakan oleh Dinasti Wei dengan kata-kata berikut: "Penilai Kekaisaran Tingkat Sembilan jarang menilai orang berdasarkan jasa mereka, tetapi selalu berdasarkan suka dan tidak sukanya".
Tonggak penting dalam menghubungkan pengukuran sebagai aktivitas manusia dengan kinerja terjadi pada tahun 1494, ketika Luca Pacioli menerbitkan di Venesia 'Summa de arithmetica, geometrica, proportioni et proportionalita' ('Segala sesuatu tentang aritmatika, geometri, proporsi, dan proporsionalitas'). Karya tersebut merinci praktik yang dilakukan para pelaut Venesia untuk mengevaluasi kinerja ekspedisi pelayaran mereka, yang kemudian menjadi dasar sistem akuntansi double-entry.
Sifat subjektif dari evaluasi kinerja individu dan dominasi indikator keuangan untuk mengevaluasi kinerja perusahaan menjadi landasan bagi manajemen kinerja dalam aktivitas manusia.
Revolusi industri menambahkan metafora "organisasi sebagai mesin" pada kombinasi ini, yang memainkan peran utama dalam mendorong peningkatan efisiensi dan efektivitas. Hasilnya adalah model manajemen kinerja organisasi yang berbasis pada pemikiran mekanistik, komando dan kontrol, didorong oleh penilaian individu yang subjektif dan indikator keuangan, serta diakhiri dengan pengaturan pembayaran berdasarkan kinerja.
Apakah cara ini berhasil? Sampai batas tertentu, ya. Banyak organisasi berkembang dan matang berdasarkan model ini.
Apakah sistem ini memiliki kekurangan? Banyak. Dan meskipun keadaan historis telah mengurangi kekurangan tersebut seiring waktu, lingkungan saat ini memperkuat dan mengungkap kekurangan tersebut dengan kecepatan yang lebih tinggi.
Adakah cara yang lebih baik? Ya, tetapi tidak sederhana. Hal ini membutuhkan perubahan di berbagai tingkatan, mulai dari filosofi kinerja yang mendasarinya, hingga mentalitas dan proses. Ini tidak mudah.
Seiring waktu, penggunaan Indikator Kinerja Utama (KPI) menjadi sinonim dengan pengukuran dan manajemen kinerja. KPI merupakan penghubung antara yang lama dan yang baru dalam manajemen kinerja. Namun, penggunaannya jauh lebih kaya dan bermanfaat dalam lingkungan yang didasarkan pada prinsip-prinsip arsitektur kinerja organik:
Organisasi merupakan ekosistem tersendiri. Tingkat kematangan dan lingkungan tempat mereka beroperasi bervariasi. Oleh karena itu, penggunaan sistem manajemen kinerja mereka harus mencerminkan "kepribadian" masing-masing organisasi. Anda bisa mencoba membangun igloo di Sahara, tetapi itu tidak akan berhasil. Arsitektur kinerja setiap organisasi harus unik dan mencerminkan lingkungan internal dan eksternalnya.
Pemikiran sistem memberikan konteks yang jauh lebih kaya untuk memahami dan meningkatkan kinerja . Pendekatan komando dan kontrol berhasil pada zamannya untuk militer, untuk meningkatkan produktivitas pekerja tidak terampil selama revolusi industri, dan untuk mengatur organisasi besar (seperti layanan publik). Saat ini, pekerja pengetahuan membentuk mayoritas tenaga kerja di negara-negara maju, beroperasi dalam lingkungan yang jauh lebih saling terhubung, dan harus mengambil keputusan dengan kecepatan yang lebih tinggi. Memahami sistem tempat kita beroperasi, menganalisis alur, dan belajar berdasarkan data menjadi semakin penting saat ini, dan melengkapi pendekatan manajerial tradisional yang sederhana dalam menjalankan perintah dari atas.
KPI (Key Performance Indicators) sebaiknya digunakan terutama untuk pembelajaran. Peran KPI adalah menyediakan informasi yang dibutuhkan untuk membantu mencapai hasil yang diinginkan. Prinsip yang sama digunakan oleh semut, yang meninggalkan jejak feromon untuk saling membantu dalam menemukan sumber makanan. Demikian pula, impuls saraf merambat melalui berbagai titik sistem saraf, mentransmisikan informasi. Hasil KPI harus menyebar ke seluruh organisasi, memfasilitasi komunikasi, menyediakan dasar untuk analisis/sintesis, dan pada akhirnya pengambilan keputusan di semua tingkatan organisasi.
Akurasi data dalam administrasi manusia merupakan keinginan yang sulit dicapai. Niels Bohr pernah berkata: “Akurasi dan kejelasan pernyataan saling eksklusif”. Akurasi merupakan tantangan dalam ilmu pasti dan bahkan lebih lagi dalam administrasi manusia. Berusaha untuk mendapatkan data KPI apa pun merupakan tantangan tersendiri bagi banyak organisasi, dan akurasi data merupakan tuntutan yang lebih besar lagi. Penggunaan KPI harus mengakui aspek ini dan berorientasi pada pemanfaatan data yang ada secara maksimal, seringkali dengan menggunakan interval varians. Pendekatan ini digunakan oleh tubuh manusia. Jika suhu turun di bawah batas aman, kita menggigil. Jika suhu meningkat, kita berkeringat. Keduanya merupakan inisiatif peningkatan kinerja tubuh, yang bertujuan untuk mengatur suhunya kembali ke batas aman. KPI di sini adalah suhu. Meskipun bukan konstanta, trennya baik jika berada dalam batas aman tertentu.
Penggunaan KPI untuk penghargaan dan hukuman harus dibatasi dan didorong oleh penilaian diri. Perilaku yang berorientasi pada tujuan adalah karakteristik organisme hidup. Bagi manusia dan banyak spesies lainnya, perilaku ini diperkuat oleh penghargaan dan hukuman. Seiring dengan penguatan ini, risiko juga meningkat. Manipulasi hasil, kurangnya kerja sama, penurunan moral, dan kecelakaan kerja adalah beberapa konsekuensi yang tidak diinginkan. Di sisi lain, sebagian besar impuls saraf dalam tubuh manusia mengirimkan informasi umum. Hanya dalam situasi tertentu, sinyal kesenangan atau rasa sakit dikirim. Demikian pula, penggunaan KPI untuk penghargaan dan hukuman seharusnya menjadi pengecualian, bukan norma.
Mengintegrasikan KPI ke dalam organisasi melalui visualisasi dan komunikasi hasil KPI adalah kunci untuk memaksimalkan nilai tambah yang dihasilkannya. Variasi KPI yang digunakan oleh tubuh manusia dirasakan oleh indra kita karena dampaknya kaya akan sensasi. Demikian pula, KPI yang digunakan dalam konteks organisasi harus diintegrasikan ke dalam penggunaan sehari-hari dan menjadi bagian dari pengalaman kerja. Aspek terpenting dalam mengkomunikasikan hasil KPI adalah representasi visualnya. Ini sangat penting, baik dalam hal mengoptimalkan tata letak representasi data maupun keberadaan tampilan visual di lingkungan kerja. Rentang media yang tersedia saat ini sangat beragam: poster, papan tulis, spanduk, monitor LED dan LCD harus dikombinasikan untuk menghidupkan hasil di seluruh organisasi. Hasil KPI tidak boleh lagi terbatas pada laporan kertas dan layar komputer.
Filosofi kinerja baru, didorong oleh penilaian diri dan pencapaian yang bertujuan sebagai sarana menuju kebahagiaan. Meskipun kebahagiaan memiliki banyak arti bagi banyak orang, ekspresi umum dari perasaan ini adalah hasil dari pencapaian yang bertujuan atas suatu keinginan. Mencapai sesuatu yang kita inginkan, meskipun dibagikan dengan orang lain, adalah tentang diri kita dan bergema kuat di dalam diri kita. Menerapkan katalis kinerja yang ampuh ini dalam kehidupan pribadi dan organisasi kita difasilitasi oleh paradigma baru: Kebahagiaan didorong oleh pencapaian. Pencapaian adalah ekspresi dari kinerja. Jika kita ingin mengendalikan kebahagiaan kita, kita harus mengendalikan kinerja kita.
Penilaian diri terhadap hasil kinerja bukanlah hal yang mudah . Namun, jika lebih banyak penekanan diberikan pada pengembangan kemampuan ini pada setiap karyawan, organisasi dapat memperoleh manfaat dengan menciptakan lingkungan yang bermanfaat dan kondusif bagi kebahagiaan. Dalam lingkungan ini, manajer dapat fokus pada pemahaman dan peningkatan sistem kerja, sementara karyawan dapat fokus pada penilaian diri terhadap pencapaian hasil, pembelajaran, dan komunikasi. Pencapaian hasil yang bertujuan dalam sistem kerja yang terstruktur dengan baik akan membawa individu dan organisasi lebih dekat pada kebahagiaan dan kepuasan dibandingkan dengan pembayaran bonus dalam paradigma dominan yang didorong oleh perintah dan kontrol saat ini.
KPIs are here to stay. The question we have to answer is how do we want to use them: mechanistically or naturally?
Measure, Metric, Performance Indicator or Key Performance Indicator?
In many domains of human activity, the use of tools is essential for the achievement of results. Measurement and evaluation make no exception, being equipped with both conceptual and physical tools. Of the first category, at the core of any performance measurement and management system are the measures, metrics, indicators or KPIs used.
Both academic and practitioner literature uses interchangeably these terms, oftentimes even within the same organization. At smartKPIs.com, we have adopted the following definitions for these terms:
Measure - A number or a quantity that records a directly observable value or performance. All measures are composed of a number and a unit of measure. The number provides magnitude (how much) for the measure, while the unit gives number a meaning (what). Examples of unit measures are: dollars, hours, meters, inches, etc.
Indicator - Indicators are defined in many ways but the common sense for all of them is that they refer to specific information. Thus, the Organisation for Economic Co-operation and Development (OECD) defines an indicator as “a qualitative or quantitative factor or variable that provides a simple and reliable means to measure achievement, to reflect changes connected to an intervention, or to help assess the performance of a development actor”.
Metric, Performance Measure or Performance Indicator - A generic term encompassing the quantitative basis by which objectives are established and performance is assessed. It helps quantify the achievement of a result, the quantifiable component of an organization's performance. In the context of measuring and managing performance these terms are used interchangeably.
Key Performance Indicator (KPI) - A selected indicator considered key for monitoring the performance of a strategic objective, outcome, or key result area important to the success of an activity and growth of the organization overall. KPIs make objectives quantifiable, providing visibility into the performance of individuals, teams, departments and organizations and enabling decision makers to take action in achieving the desired outcomes. Typically, KPIs are monitored and distributed in dashboards, scorecards and other forms of performance reports.
While on paper the terms listed above can be differentiated, in practice the difference the difference between them is blurred and at some extent irrelevant. As long as their purpose and use is clear and understood by members of the organization, whether they are called performance measures or KPIs is a matter of preference.
What is a smartKPI?
At smartKPIs.com, we assess each example entered in the online database and label it as measure, performance indicator or KPI. It is an empirical and subjective approach to catalogue each entry based on relevance. Ultimately, all entries in the online database are considered KPI examples. In addition, to single out the entries that stand out in terms of relevance, we introduced a new label:
smartKPI - A Key Performance Indicator example available on smartKPIs.com, that is recommended as being the most relevant and truly "Key" for organizational performance. They are selected by the editorial team of the website based on criteria such as:
Performance measurement terminology popularity
Regarding the popularity of performance measurement terminology, as of March 2011, www.google.com searches illustrated the following results:
Types of KPIs – A taxonomy
The following list provides an explanation of several popular terms characterizing KPIs
Leading KPI - Drive the performance of the outcome measure, being predictor of success or failure.. Examples of leading indicators are: “%Employees involved in the innovation process”, “% Conversion rate”, or “%Inventory quality ratio (IQR).
Lagging KPI - Type of indicator that reflect the success or failure after an event has been consumed. Examples include: “$ Operating profit per room”, “$ Earnings before interest and taxes (EBIT)”, or “$ Cost avoidance savings”.
Input KPI - Reflects assets and resources invested in or used to generate business results. Examples include: "# Headcount", "$ Cost per broadcast hour" and "# Knowledge materials distributed to employees".
Process KPI - Refers to the efficiency or productivity of a business process. Examples include: "# Product-repair cycle time," "% On time delivery" "# Conflicts arose during the project", "# Average call handling time", and “# Mean time to repair".
Output KPI - Measures the financial and nonfinancial results of business activities. Examples include: "$ Bonus payout", "# New customers acquired", or “$ Revenue per successful call”
Outcome KPI - Reflects overall results or impact of the business activity in terms of generated benefits, as a quantification of performance. Examples include: “% Customer retention”, “% Employee turnover” or “% Brand awareness”
Qualitative KPI - A descriptive characteristic, an opinion, a property or a trait. The most common ones gauge customer or employee satisfaction through surveys. While the survey data itself is quantitative, the measures are based on a subjective interpretation of a customer’s or employee’s opinions.
Quantitative KPI - A measurable characteristic, resulted by counting, adding, or averaging numbers. Quantitative data is most common in measurement and therefore forms the backbone of most KPIs. Operational systems that manage inventory, supply chain, purchasing, orders, accounting, financial systems, all gather quantitative data by means of KPIs. Other examples of quantitative KPIs are “# Employee tenure”, “# Units per man-hour” or “# Maintenance backlog”
Functional area KPI - A KPI that is relevant for an organizational main capability and is valid across multiple organization typed and industries.
Industry KPI - A KPI that is specific for a particular line of operations or industry
Note: The management of a particular situation, however, will often require a combination of more than one of the above. Performance indicators should be actionable in the sense that when an indicator reflects a situation or change that exceeds a pre- agreed tolerance, managerial intervention or corrective actions should be possible.
All KPIs are based upon measurement. There are different types of measurements with the use of KPI.
- comparisons of cost, savings, efficiency gains, etc actual against budgets or plans
- comparison of system development progress with pre-approved schedule
- comparison against industry or sector benchmarks
- comparison against known result for the organization for a similar period or event or project.
- systems performance
- software development performance against schedule
- software maintenance backlog
A KPI taxonomy by Functional Area and Industry
KPIs by Functional Area
Accounting KPI
Corporate Services KPI
CSR / Sustainability / Environmental Care KPI
Finance KPI
Governance, Compliance and Risk KPI
Human Resources KPI
Information Technology KPI
Knowledge and Innovation KPI
Marketing & Communications KPI
Online Presence - eCommerce KPI
Portfolio and Project Management KPI
Production & Quality Management KPI
Sales and Customer Service KPI
Supply Chain, Procurement, Distribution KPI
KPIs by Industry
Agriculture KPIs
Arts and Culture KPIs
Construction & Capital Works KPIs
Education & Training KPIs
Financial Institutions KPIs
Government - Local KPIs
Government - State / Federal KPIs
Healthcare KPIs
Hospitality & Tourism KPI
Infrastructure Operations KPIs
Manufacturing KPIs
Media KPIs
Non-profit / Non-governmental KPIs
Postal and Courier Services KPIs
Professional Services KPIs
Publishing KPIs
Real Estate / Property KPIs
Resources KPIs
Retail KPIs
Sport Management KPIs
Sports KPIs
Telecommunications / Call Centre KPIs
Transportation KPIs
Utilities KPIs
KPIs formulation and selection
The saying “What gets measured gets done” illustrates the importance of the right things being measured and inappropriate things being left out. The choice of KPIs will have a major impact on the operation and direction of the organization, and knowledge of the factors driving behavior and influencing performance becomes crucial.
An organization tackling the task of developing a suite of KPIs needs to address a couple of questions like:
Focus on the right topics
KPIs should focus on aspects that are important for the organization. This means that the organization should be at all-time clear about what is seeking to achieve – its core objectives- and how is going to achieve them. KPIs should focus on the actions and services provided at each level in the organization to achieve its objectives. High level KPIs will address corporate issues while lower level KPIs will look at operational and day to day matters. Also an important rule is that organizations should be careful to avoid the common pitfall of measuring that which is easily measured, rather than that which should be measured.
Focus on the right KPIs
It is important to develop a balanced set of KPIs that reflect all the aspects of the service. There are several different frameworks that can be used to do this.
Focus on KPIs formulation
The formulation of the right KPIs should follow certain specific steps. First of all, avoid reinventing the wheel. The World Wide Web gives access to a vast range of KPIs and may therefore be great help in a first orientation.
Secondly, attempts to formulate a complete indicator straight away seldom results in good quality KPIs. Therefore, based on the characteristics of SMART KPIs (Specific, Measurable, Achievable, Relevant, Time-bound) during the formulation of a KPI, the following questions need to be asked:
A taxonomy of sources used for KPI selection
Working with Key Performance Indicators (KPIs) requires selecting a group of relevant KPIs first. There are many options for this: start with a blank page, review other sources, or get someone else (such as a consultant) to do this for you among others.
Some of the general rules to follow on embarking on such a journey are:
Having these general rules in mind, the question is: “Where do we do our research to inform the KPI selection process?”. The main sources of information can be grouped in three categories:
Primary Sources
Secondary sources
External sources
Individually or in combined, these sources can generate a list of prospective candidates for KPI selection, anchored to organizational objectives. Ultimately the decision on which KPIs will be used should be based on discussions within the organization to determine the most relevant ones. Consultants can be useful in this process as facilitators, but not necessarily as “fountains of truth”. Their role should be more as guides on this journey, providing tools, information and advice, but not developing the final list of selected KPIs in an ivory tower.
Using KPIs
KPIs are the measures that monitor the performance of key result areas of business activities, which are absolutely critical to the success and growth of the business. The development and use of the KPIs should form the basis for the analysis of an organization’s current performance, its future requirements and the improving strategies required for ongoing success.
Getting the most from your KPIs
The ultimately purpose of performance management being to drive future improvements in performance, there are two main ways you can use KPIs to achieve this kind of management power.
The first is to use your KPIs to spot potential problems or opportunities. Remember, your KPIs tell you what's going on in the areas that determine your business performance. If the trends are moving in the wrong direction, you know you have problems to solve. Similarly, if the trends move consistently in your favor, you may have greater scope for growth than you had previously forecast.
The second is to use your KPIs to set targets for departments and employees throughout your business that will deliver your strategic goals.
Principles
During the use and applications of KPIs certain principles should be taken in consideration:
Every initial proposal for KPIs is expected to be imperfect. However, it is important for the organizations to understand and apply the appropriate KPIs so that they can develop some experience in using them from which they can derive real expertise.
KPI visualization and enabling software
The premise behind data visualization is that looking directly at the numbers is not always the best way to understand the data. Data visualization is the process of converting raw numerical or tabular data into a graphical depiction of the data. One of the main goals of data visualization is to support decision making through the use of properly designed graphical representations of information. When information is presented in a visual format, it allows users to more quickly perceive patterns or properties that may not have been anticipated or even discovered had the data been displayed differently - allowing users to draw valuable conclusions more intuitively, holistically and rapidly. In relation with KPI visualization and representation graphical approaches adopted by the public and private sector include:
KPI Dashboard
This is an analogue of a vehicle dashboard or aircraft cockpit display. The intention is to provide the person with a graphical representation of KPIs that enable them to take action. Techniques applied include digital, ribbon and dial displays, moving bar graphs, and ticker tape analogues. Dashboards, which provide graphical depictions of up-to-the-minute KPIs across a company, are becoming increasingly vital. Customized information relating to the KPIs can be integrated from multiple components into a unified display. The goal is to respond faster to change and put out fires before it is too late. Dashboards may be customized in a multitude of ways to display various data points and provide a powerful way of monitoring the organization's performance in real time.
By visualizing data through the use of charts, graphs and maps, properly designed dashboards provide a high-level view combined with the ability to drill down into underlying information thus making it easier to identify trends and locate exceptions to the trends The proper use of color in a dashboard cannot be underestimated. For example, some managers might like a display that looks similar to a series of stoplights, which is populated with KPIs such as daily sales or hourly factory output. If all systems are green, the situation is fine. If one turns red, there is a problem that needs immediate resolution. Thousands of separate measurements can be abstracted into relatively simple representations. Drill down allows the decision-maker to dig into the red light details without getting bogged down with departments which are working fine.
Traffic Light
When reviewing KPIs, color signals, are used to visualize the difference between the current situation when it is compared to the desired outcomes. This is an effective tool for communication. Red signals visualize that immediate action is necessary, while yellow is used to express that close attention is needed. Green is used when the relationship between current and target measures are satisfying.
Graphs
These are particularly useful where the KPI is most informative when viewed as part of a trend or when compared with other linked or comparable factors.
Characteristics of good KPIs
There are a number of general characteristic that can help to ensure that proposed KPIs will be useful and effective.
Relevant
A KPI should be relevant to the organization. One way of helping to ensure the relevance is to relate the KPI to the strategic goals and objectives of the organization or of a specific service area. KPIs should ideally also be relevant to the people providing the data and to the users of the KPIs, but it may not be possible for a single KPI to be relevant to all users due to differences in perspectives and interests.
Clear definition
A KPI should have a clear and intelligible definition in order to ensure consistent collection and fair comparison. Vague descriptions can lead to misinterpretation and confusion. To tight or to broad definitions could also create problems.
Easy to understand and use
It is important that KPIs are described in terms that the users of the information will understand, even if the definition itself have to use technical terminology. KPIs focused on the public should avoid management jargon, or abstract concepts.
Comparable
A KPI should ideally be comparable on a consistent basis both between organizations and over time. An essential aspect of the comparability of KPIs is the inclusion of the context within which the comparison is taking place. External and internal circumstances can differ to such a degree that comparison is invalid.
Verifiable
A KPI also needs to be collected and calculated in a way that enables the information and data to be verified. The KPI should be based on robust data collection systems, and it should be possible for managers to verify the accuracy of information and the consistency of the methods used.
Cost effective
Another important criterion is to balance the cost of collecting information with its usefulness. Where possible, a KPI should be based on information already available and linked to existing data collection activity.
Attributable
Service managers should be able to influence the performance measured by the KPI. If this is not the case, the incentives for making an effort to improve performance will diminish, and the KPIs may be regarded as unfair, and discourage staff and managers.
Responsive
A KPI should be responsive to change.
Allow innovation
The definition of a KPI ought not to deter organizations from developing innovative processes or coming up with alternative methods, systems or procedures to improve service delivery. KPIs should ideally be constructed to allow such innovations take place.
Statistically valid
All KPIs should be statistically valid.
Timely
The KPIs should be based on data that are available within a reasonable time scale. This time scale will depend on the use made of the data. Some data is collected on a weekly or even a daily basis, as it is needed in the operation management of the services, whereas other is available once a year for more strategic and long term purposes.
*Adapted from East Dorset District Council (2003), Assessing ICT Performance, Information and Communications Technology Fundamental Service Review Team, Public Report, Agenda Item No 6.
KPI framework review and assessment
Data driven decision making is at the core of scientific management. The ability to select the right data points and collect accurate data sets is a key enabler of organizational performance management systems.
Assessing the organizational performance measurement capability represents a reality check that assists in developing a roadmap for improvement. The review and analysis methodology can be based on a Performance Measurement Maturity Model and usually takes in consideration 5 important dimensions:
10 KPIs recommended by smartKPIs Performance Architect
smartKPIs.com contains over 6,400 KPI examples from 14 functional areas and 24 industries. A question raised by many is: ‘If you are to pick a handful, which ones would stand out?’
Selected below are 10 KPI examples of what we consider to be smartKPIs: they are widely used and relevant, the superstars of KPIs. This is not to say any company should use them. Simply, a list of 10 KPI examples anyone should take note of:
% Net profit rate – A profitable business is a sustainable business. It is however important to have realistic expectations. Returns of over 30% may be speculative, while in some economies returns of under 5% are lower than interest rates.
$ Revenue – Growing revenue is an expression of having the right product/service mix, supported by the right team delivered at the right time. Converting opportunities in sales is the essence of a sustainable business.
% Profitable customers – Getting the balance right is the basis for financial success. Although oftentimes it is difficult to track, it is ads a great deal of insight and informs decision making. Activity based costing is key to getting this KPI right.
# Net Promoter Score – Having customers that are not only satisfied, but are actively endorsing a company/product/service. Recently it has become a favorite KPI of customer satisfaction, due to its simplicity and relevance.
% On-time delivery – An operational focused KPI with wide reaching implications. It can be used in a variety of industries and functional areas, as time is an important resource to anyone. Oftentimes it acts as a bottleneck as it is influenced by many KPIs and it impacts a great deal of other KPIs.
% Projects on time, on budget and according to specifications – getting the triangle right is difficult and priorities may vary from one project to another. It is however a useful base to start from. The KPI can be customized as per the preference of project boards and project managers to cover only specific aspect of the triangle.
% Processes optimized – One key managerial responsibility is creating the right environment for the staff members to operate in. This includes using a management system that is well thought of and refined. Mapping and improving work processes is key to using a performance oriented architecture.
# Employee engagement – Some say money can’t buy it. It is that extra level of commitment that is induced by motivating purposes, inspiring leaders and working environments that facilitate happiness in the professional life.
# Proposed improvement ideas per employee – inspired by H.W. Heinrich’s work in the 1930s or “the Pyramid Theory” as some call it. They main results are visible at the top, but you need to monitor the base to ensure the right outcomes are achieved.
$ Investment in learning per employee – Not the ideal KPI of training impact, but a widely used substitute. It monitors both training spend and the wide allocation of funds to avoid serial trainees.
An issue with KPI examples is that names don’t tell the complete story. To find out more about each of these examples and thoroughly understand them a separate blog post would be required for each, complemented by a complete KPI documentation form. In the meantime, www.smartKPIs.com is available to further explore relevant and well documented KPI examples.
Top 10 KPIs of 2010
Key Performance Indicators (KPIs) are today some of the most popular management tools. From the National Museum of Australia, to the First Bank of Nigeria, from the Panama Canal Authority to Rolls Royce, from the Ministry of Education in Brunei Darussalam to the American Medical Association, KPIs are used to understand, learn and improve performance across industries, departments and teams.
Dalam lingkungan yang ditandai dengan semakin populernya KPI sebagai alat manajemen, smartKPIs.com menjadi tempat utama untuk mendapatkan informasi tentang penggunaan KPI di seluruh dunia. Sebagai platform online berbasis riset untuk integrasi pengetahuan manajemen kinerja, situs web ini berisi lebih dari 6400 contoh KPI yang digunakan di tingkat organisasi dan individu, Peta Strategi yang sudah terisi, Dasbor dan Kartu Skor KPI, wawancara dengan praktisi, konsultan, dan akademisi, serta referensi 1000 laporan yang menggambarkan penggunaan KPI dan tujuan organisasi dalam praktik. Intinya adalah basis data online terbesar yang berisi contoh KPI yang terdokumentasi secara menyeluruh dari 14 area fungsional bisnis dan 24 industri. Program riset smartKPIs.com didukung oleh komunitas yang terdiri dari puluhan ribu anggota dari lebih dari 190 negara dan wilayah.
Minat terhadap KPI dan penggunaannya di berbagai industri semakin meningkat di seluruh dunia, didorong oleh peraturan pemerintah dan manfaat yang diberikannya dalam hal akuntabilitas, transparansi, dan pencapaian hasil. Tren ini tercermin pada tahun 2010 dengan ratusan ribu kunjungan ke situs web smartKPIs.com dan banyaknya KPI yang dikunjungi, ditandai, dan diberi peringkat oleh anggota komunitas smartKPIs.com.
Laporan 10 KPI Teratas Tahun 2010 merupakan sintesis dari apa yang menjadi inti smartKPIs.com: laporan ini menyajikan gambaran umum tentang bagaimana KPI digunakan dalam praktik saat ini, dengan menggabungkan masukan dari komunitas smartKPIs.com dengan riset dan analisis dari tim editorial.
Pada tahun 2010, daftar KPI yang paling banyak dilihat di smartKPIs.com didominasi oleh KPI yang spesifik untuk area fungsional (8 dari 10), yang memang sudah diperkirakan mengingat prevalensinya di berbagai industri:
10) # Daftar pekerjaan pemeliharaan yang tertunda
Pemantauan dan pengukuran tumpukan pekerjaan pemeliharaan (maintenance backlog) adalah salah satu cara paling efektif untuk mengelola beban kerja pemeliharaan, karena tumpukan pekerjaan yang dikelola secara akurat berdampak langsung pada perencanaan dan penjadwalan aktivitas produksi secara efektif. Aspek-aspek ini diakui oleh banyak organisasi sepanjang tahun 2010, yang mengakui tumpukan pekerjaan pemeliharaan sebagai indikator utama kepuasan pelanggan.
9) # Rasio persediaan terhadap penjualan
Menjaga keseimbangan yang tepat antara nilai persediaan dan volume penjualan merupakan salah satu tantangan utama bagi organisasi. Terutama di masa resesi ekonomi, ketika tingkat permintaan tampaknya turun di bawah tingkat penawaran, organisasi harus tetap waspada dan mengawasi dengan cermat rasio persediaan terhadap penjualan mereka.
8) # Jam kerja yang diperoleh
Salah satu cara terbaik untuk melacak kemajuan dan produktivitas proyek adalah dengan mengukur tingkat jam kerja yang diperoleh. Penyelesaian proyek sesuai rencana selalu menjadi tantangan, dan penggunaan KPI untuk mengelola kinerja proyek kini umum dalam banyak metodologi manajemen proyek. Karena keberadaan proyek yang universal dalam bisnis, masuknya KPI manajemen proyek dalam 10 KPI yang paling banyak dikunjungi pada tahun 2010 bukanlah hal yang mengejutkan.
7) # Rasio manajemen terhadap staf
Pada tahun 2010, banyak organisasi mengalami perubahan struktural besar, yang seringkali berdampak pada jumlah karyawan dan struktur manajerial. Penggunaan KPI ini diperlukan untuk menjaga keseimbangan yang tepat dalam hal koordinasi kerja. Rentang kendali yang sehat memiliki efek positif baik pada moral staf, tingkat stres, dan produktivitas organisasi.
6) # Perputaran karyawan
KPI ini terkait erat dengan keterlibatan dan kepuasan karyawan di tempat kerja, karena karyawan yang tidak bahagia lebih cenderung untuk berhenti. Pada tahun 2010, fluktuasi personel menjadi sorotan, tetapi dengan cara yang tidak lazim, karena peningkatan pengangguran di seluruh dunia, karena banyak organisasi harus memberhentikan sebagian karyawan mereka.
5) # Unit per jam kerja
Salah satu KPI yang paling umum digunakan untuk mengukur tingkat produktivitas di sebagian besar industri. Terutama di industri konstruksi dan manufaktur, KPI ini mewakili salah satu dari dua metode pelaporan dasar yang digunakan bersama dengan volume unit yang diproduksi. Karena produktivitas merupakan inti dari pengukuran kinerja tradisional, KPI ini pasti akan tetap menjadi salah satu KPI paling populer yang digunakan dalam manajemen operasional.
4) % Tingkat realisasi
Pada tahun 2010, pelacakan tingkat realisasi merupakan salah satu fokus utama bagi organisasi penyedia jasa profesional. Di tengah kondisi ekonomi yang sulit, tarif diskon adalah praktik umum, namun hal ini justru memberikan tekanan lebih lanjut pada tingkat keuntungan. Perusahaan jasa profesional yang mencapai tingkat realisasi tinggi biasanya memiliki kehadiran perusahaan yang kuat di pasar dan dikenal karena kualitas layanannya.
3) # Rasio beri
Perusahaan menggunakan rasio profitabilitas untuk mengukur kemampuan mereka menghasilkan keuntungan melalui alokasi dan penggunaan sumber daya yang tersedia secara efektif. Rasio Berry, yang menjadi favorit para analis pajak dan penetapan harga transfer, menonjol sebagai rasio keuangan paling populer pada tahun 2010. Rasio ini memiliki sejarah panjang dan namanya berasal dari Dr. Charles Berry (1930-2007), seorang spesialis dalam organisasi industri dan mikroekonomi terapan serta profesor di Universitas Princeton.
2) % Stok yang pergerakannya lambat
Persediaan yang perputarannya lambat merupakan salah satu masalah paling signifikan yang harus dihadapi organisasi karena persediaan tersebut dapat menjadi usang dan menimbulkan kerugian finansial. Di masa-masa sulit, seperti resesi ekonomi, memantau perputaran persediaan secara cermat sangat penting untuk memastikan arus kas.
1) % Tingkat hunian tempat tidur rumah sakit
Menempati peringkat teratas dalam daftar KPI terpopuler tahun 2010, KPI layanan kesehatan ini mencerminkan tingginya minat di sektor ini untuk meningkatkan kinerja fasilitas layanan kesehatan. Didorong oleh meningkatnya tekanan dari pasien untuk peningkatan kualitas dan volume layanan serta persyaratan kepatuhan peraturan pemerintah, penggunaan KPI dalam industri layanan kesehatan menjadikannya salah satu yang paling banyak diukur dalam spektrum profesional. Secara alami, KPI layanan kesehatan menerima jumlah kunjungan tertinggi pada tahun 2010 di smartKPIs.com dan terus memimpin dalam popularitas.
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