KPIs and Performance Analysis

KPIs and Performance Analysis: Hussain Al Shemsi Charted Accountants, AJMAN, U. A. E

Setting KPIs and Performance analysis

Measuring an organizations performance at regular intervals will help you in tracking goals and attaining the desired results. Key Performance Indicator is a tool that will help you in measuring and analysing the overall performance of a department or a company. It is one of the main factors that will help to determine the success of an organization such as projects, programs, products, and other initiatives in which it engages.

Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g., zero defects, 10/10 customer satisfaction, etc.), and sometimes success is defined in terms of making progress toward strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is important to the organization. What is deemed important often depends on the department measuring the performance – e.g., the KPIs useful to finance will differ from the KPIs assigned to sales.

Importance Of KPIs
  • Company progress can be tracked
  • Reviewing employee performance
  • Morale boost
  • Envisioning future of the business
  • Spotting problems early
Performance Management

Performance Management is a mandatory element of a business and no longer optional. Performance management can strengthen a company and motivate the employees. An effective system will be fair, ongoing, and will carefully document and will be aligned with organizational culture and values.

An organization uses diverse KPIs for various departments which are aligned to their specific goals and target that particular department. The use of KPIs in different levels of an organization will add value to the company. Employee engagement can also be increased as they will be aware of their contribution to the company and their performance. Rewarding the efforts of the employees will also enhance their productivity, creativity, and morale.

Effective and regular communication between the employees and management in the form of guidance and feedback is important. The employee’s responsibility can be clarified with the help of timely and clear feedback.

At HALSCA we have professional experience in assessing the validity and reliability of measures, metrics, and indicators used by various departments and sections in an organization. We thoroughly analyse the organizational strategy and extract Key Performance Indicators (KPIs) which the organization consider as the most valuable element for its sustainability.