How to create and manage performance indicators that work
Posted: Thu Jan 30, 2025 10:48 am
When we work in the business environment, many goals, objectives and plans need to be established so that the results are in line with what is expected. Therefore, performance indicators , or in English, Key Performance Indicators (KPI), are metrics that quantify your performance according to your organizational objectives.
For these indicators to contribute to the company's control, it is first necessary to understand the strategic planning and have clear objectives when defining administration directors email database the goals that must be achieved .
Therefore, the development and management of these metrics can be focused on analyzing the evolution of business results, serving as a reference for the decision-making process and the creation of improvement strategies based on what is presented.
From there, as your company begins to follow a plan, it is necessary to make a decision on which priorities will be monitored in the performance indicators. And, above all, what the impact will be on your business.
In order to actually achieve results from a tool, it is important to first know how to create performance indicators that work, because measuring performance is essential to managing any activity.
So, check out the main tips below on how to create performance indicators that really work, followed by some incredible reports from Professor João Batista Vilhena, coordinator of the MBA in Commercial Management at MMurad | FGV!
Importance of using indicators
When answering a question about the need to measure performance, Professor João Batista says that:
“We measure people’s performance to help those who aren’t doing well improve.
But I say that this obviousness is not always observed by companies, which often measure the performance of their employees to punish them.
Obviously, if I am punished for underperformance, my almost irresistible temptation is to falsify the results, postponing the punishment.”
For these indicators to contribute to the company's control, it is first necessary to understand the strategic planning and have clear objectives when defining administration directors email database the goals that must be achieved .
Therefore, the development and management of these metrics can be focused on analyzing the evolution of business results, serving as a reference for the decision-making process and the creation of improvement strategies based on what is presented.
From there, as your company begins to follow a plan, it is necessary to make a decision on which priorities will be monitored in the performance indicators. And, above all, what the impact will be on your business.
In order to actually achieve results from a tool, it is important to first know how to create performance indicators that work, because measuring performance is essential to managing any activity.
So, check out the main tips below on how to create performance indicators that really work, followed by some incredible reports from Professor João Batista Vilhena, coordinator of the MBA in Commercial Management at MMurad | FGV!
Importance of using indicators
When answering a question about the need to measure performance, Professor João Batista says that:
“We measure people’s performance to help those who aren’t doing well improve.
But I say that this obviousness is not always observed by companies, which often measure the performance of their employees to punish them.
Obviously, if I am punished for underperformance, my almost irresistible temptation is to falsify the results, postponing the punishment.”