What are the performance indicators?

Question 1: What is the meaning of performance indicators? Performance indicators refer to the aspects of measuring or evaluating employee performance.

A concept corresponding to performance indicators is performance standards. Performance standard: what level should each evaluation index reach in value?

For example, the product pass rate reaches 98%, in which "product pass rate" refers to performance indicators and "reaching 98%" refers to performance standards.

Question 2: What is behind the performance indicators? The starting point of selecting key performance indicators is not the indicators themselves, but the management direction behind the indicators. At present, the common characteristics of Chinese enterprises are immature management foundation and unclear development strategy; At this stage, we should distinguish different management directions and choose corresponding indicators from the actual management needs of enterprises. We find that the commonly used indicators suitable for Chinese enterprises are usually divided into the following three categories: developmental indicators: key performance indicators based on the strategic development of enterprises. According to the strategic planning of the enterprise, analyze the key success factors or achievement areas supporting the enterprise strategy, and design the developmental key performance indicators accordingly. The function of developmental indicators is to explain the strategic intention of enterprises and point out the direction and focus of enterprise management with more clear and quantitative standards. Developmental indicators are closely related to enterprise strategy, which is a dynamic development and continuous interpretation process; Therefore, the evaluation standard of developmental indicators lies in whether the indicators closely follow the changes of enterprise strategy and effectively support the realization of enterprise strategy. Strict strategic analysis and timely and reasonable adjustment are the keys to ensure the effectiveness of development indicators. Improvement indicators: key performance indicators based on enterprise management improvement. Many enterprises in China have some "shortcomings" in operation and management, and there is much room for improvement. Although these shortcomings are not directly related to the enterprise strategy, if they are not removed in time, they will restrict the realization of the enterprise strategy. For example, an enterprise pursues the "product leading strategy", and the products are quickly introduced to the market, but the technical support and service can't keep up, resulting in customer complaints and loss. Therefore, enterprises must focus on improving their own shortcomings in stages. When selecting specific improvement indicators, we can start with the fluctuation degree of indicators, and find out those indicators with large fluctuation and big gap through comparative analysis with the data of external benchmark enterprises. Monitoring indicators: key performance indicators based on enterprise management guarantee. There is also a class of indicators, such as safety index and quality index. Its biggest feature is that it can only be maintained and cannot be deteriorated. If it is "improved", it will not play an important role in promoting the operation of enterprises; If "deterioration" occurs, it will definitely seriously damage the operation of the enterprise. In essence, such indicators have no traction effect on real work, and are more like a "high-voltage line". Usually points are deducted, that is, the status quo is qualified, and points are deducted for "deterioration" events.

Question 3: What is the meaning of job performance indicators? Work performance indicators are usually the target values used by superiors for annual assessment of subordinates. They can be composed of multiple indicators, each of which is related to the company's important target values, such as profit value, output value and efficiency hunger. At the same time, it is necessary to explain the weight, target value and assessment basis of each index in the whole assessment system one by one so that the year-end assessment can be fulfilled.

Question 4: What is the relationship between the objectives and indicators of performance appraisal? There are two levels of goals. First, the implementation of performance appraisal objectives, such as improving departmental performance; Secondly, the goal of assessment content, such as workload assessment, is to improve work efficiency. Indicator is a specific numerical value to measure the target, so it is necessary to set the target first, and then set the indicator, that is, the ingot must be measurable, the set value must be achievable, and so on, in line with the SMART principle.

Question 5: What are the performance objectives? Performance indicators? Performance standards? What are the differences and connections between them? These three terms generally appear in management science and can be applied to the performance management assessment of departments/positions in enterprises and institutions in daily work. The following is the explanation of related concepts, and take the customer service manager as an example to illustrate the image:

Performance goal: also known as work goal, it is often a phased goal of comprehensive tasks, which is generally qualitative or quantifiable. Effective performance goals should conform to the SMART principle.

One of the performance goals of customer service managers is "service quality".

Performance indicator: it can also be called assessment indicator, which generally refers to what aspects of work output are measured or evaluated by the unit according to the department/individual.

For example, the detailed value of the customer service manager's performance goal-"zero complaints".

Performance standard: also known as assessment standard, refers to what level each performance indicator should reach. It can be divided into basic standards and excellent standards, that is, the upper and lower limits (plus/minus points) required for assessment and evaluation. For example, the customer service manager's evaluation criteria for complaints: add "no complaints in the current month +2 points" and subtract "0.5 points for finding a complaint".

Summary: First, there are qualitative or quantifiable evaluation objectives (performance objectives), then evaluation basis (performance indicators), and finally evaluation refinement standards (performance standards). I hope the answer will help you!

Question 6: What is the difference between performance indicators and performance indicators? It should be said that performance indicators include performance indicators, which are generally considered to be the same thing. If there is a difference, the industry Dan index focuses on business indicators, such as operating income, profit, market share, gross margin and other indicators, which are easier to take out for assessment and comparison; Performance indicators include not only performance indicators, but also management indicators, such as market expansion, project construction progress, corporate culture integration and so on. Personal views are not comprehensive and are for reference only.

Question 7: What is the meaning of the aging index? What are the main criteria for evaluating project performance? The criteria for evaluating project performance mainly include "output" and "benefit".

1. Output indicator: generally refers to output quantity (i.e. whether it is completed according to the preset quantity), output quality (i.e. whether it is completed according to the preset standard), output timeliness (i.e. whether it is completed according to the preset schedule), output cost (i.e. whether it is completed according to the preset cost, whether there is any waste of funds, etc. ).

2. Benefit indicators: generally refers to social benefits (that is, comprehensive social benefits generated after the completion of the project, which are refined according to the actual situation of the project); Economic benefits (that is, direct or indirect economic benefits after the completion of the project, such as increasing income or saving costs, etc. ); Sustainable impact (that is, the sustainable impact of project implementation on related parties or things, such as the sustainable impact of energy-saving renovation projects on improving the natural environment and reducing environmental pollution, etc.). ); Customer satisfaction (that is, whether the project has been recognized by the public or benefited the expected customers after completion, and how satisfied it is, etc. ).

Question 8: What is the definition of performance management indicators? The qualitative evaluation indicators of enterprise management performance include eight indicators, such as strategic management, development and innovation, business decision-making, risk control, basic management, human resources, industry influence and social contribution, which mainly reflect various management measures and their management effects taken by enterprises in a certain operating period.

(A) strategic management evaluation mainly reflects the scientific nature of the strategic plan formulated by the enterprise, whether the strategic plan conforms to the actual situation of the enterprise, the employees' awareness of the strategic plan, the safeguard measures for the strategic plan and its implementation, and the implementation effect of the strategic plan.

(2) The evaluation of development and innovation mainly reflects the measures and achievements of enterprises in management innovation, process innovation, technological transformation, new product development, brand cultivation, market expansion, patent application, core technology research and development, etc.

(3) The evaluation of business decision mainly reflects the measures taken by the enterprise in decision management, decision procedure, decision method, decision execution, decision supervision and accountability, and its implementation effect, focusing on whether the enterprise has made major business decision mistakes.

(4) Risk control evaluation mainly reflects the control measures and effects of enterprises in financial risk, market risk, technical risk, management risk, credit risk and moral hazard, including risk control standards, risk assessment procedures, risk prevention and resolution measures, etc.

(5) Basic management evaluation mainly reflects the enterprise's system construction, internal control, major event management, information construction and standardized management, including financial management, foreign investment, procurement and sales, inventory management, quality management, safety management and legal affairs.

(VI) The evaluation of human resources mainly reflects the enterprise's talent structure, talent training, talent introduction, talent reserve, talent deployment, employee performance management, distribution and incentive, corporate culture construction and employee enthusiasm.

(7) The industry impact assessment mainly reflects the market share of the main business of the enterprise, its influence and leading role on the national economy and regional economy, the market acceptance of the main products, and whether it has core competitiveness and industrial guiding ability.

(eight) social contribution evaluation mainly reflects the contribution and social responsibility of enterprises in resource conservation, environmental protection, employment, wages and benefits, safety in production, tax payment, business integrity, and building a harmonious society.

According to the Interim Measures for the Management of Comprehensive Performance Evaluation of Central Enterprises: "The qualitative evaluation indicators of enterprise performance should be further refined according to the needs of evaluation work, and those that can be quantified should be reflected by quantitative indicators."

"The quantitative evaluation index weight of financial performance is determined to be 70%, and the qualitative evaluation index weight of management performance is determined to be 30%. In the actual evaluation process, the weights of quantitative evaluation indicators of financial performance and qualitative evaluation indicators of management performance are set according to the percentage system, and the scores of sub-indicators are calculated respectively, and then converted according to 70:30.

Question 9: What are the first-level indicators of performance appraisal? When the performance appraisal effect is not ideal, it is often necessary to re-examine the whole index system. There are two problems, one is "what indicators to set" and the other is "how to set indicators".

Common "morbid" index system often embodies the following characteristics:

Pathology 1: Too few indicators lead to one thing after another.

Simply put, it is "the enterprise has not fully expressed its will".

For example, ignoring profit indicators.

Marketers are only responsible for sales, not profits. Many enterprises think there is no problem. Because the formation of profits is influenced by too many factors, the production cost, management cost and financial cost of enterprises are beyond the control of marketing departments.

In fact, although marketers can't determine the net profit of enterprises, they are directly responsible for the gross profit brought by sales. In the absence of profit assessment indicators, marketers will increase expenses, increase the number of gifts, and even directly ask enterprises to reduce prices in exchange for the achievement of sales indicators. These practices can often pose a ostentatious reason and unconsciously induce enterprises to obtain "unprofitable sales".

This obviously goes against the true will of the enterprise.

Therefore, it is not necessary to assess the net profit, but to assess the gross profit. From this perspective, performance appraisal is indispensable, and profit contribution represents "sales quality" and is as indispensable as "sales volume".

Another example is the lack of market share indicators-although sales have increased, market share has declined. For this "performance" of water mixing, enterprises cannot but be vigilant.

Pathology 2: Too many indicators lead to haste makes waste.

Simply put, it is "the enterprise wants to eat a fat man".

Corresponding to the lack of core indicators, many enterprises have too many non-core indicators, which also makes performance appraisal lose its due effect.

Generally speaking, core indicators focus on short-term performance evaluation, which can often be obtained from financial data, such as sales, profits, expenses, market share and so on.

Non-core indicators focus on medium and long-term development potential evaluation, which often need managers to record and sort out, such as terminal construction, promotion activities, after-sales service, brand expansion and so on.

The former is result evaluation and the latter is process evaluation.

In reality, many enterprises confuse the difference between the two. Results assessment and process assessment are mixed together, regardless of weight and distinction, which makes the core indicators not get the prominence and attention they deserve.

Too many process assessment indicators often lead to haste makes waste. For example, some enterprises only have 10 index in terminal construction, such as the number of franchise stores, sales volume, transaction rate and satisfaction. It must be evaluated that marketers are as busy as a bee every night.

This complex index system binds the hands and feet of front-line marketers, making them entangled in details and often neglecting more important work.

In addition, sometimes the process index and the result index are negatively correlated. Doing this well will hinder doing that well. The more indicators, the greater the possibility of contradiction, which makes marketers at a loss.

Pathology 3: the index is too shallow, which leads to specious.

Simply put, it is "what the enterprise wants is inconsistent with what it says".

The most typical example is the misunderstanding of sales indicators.

The sales required by enterprises are actually "actual sales" sold to consumers, not taken away by dealers, but "virtual sales" accumulated in channel warehouses. The former completed a complete production and sales cycle, while the latter only squeezed the cash flow of the channel and did not form actual sales.

When the expression of enterprise assessment indicators is too shallow, they are often equated. As long as the channel picks up the goods and pays, even if everything is fine, the marketers will achieve "performance". Under the guidance of this assessment index, the focus of marketers has shifted from "selling goods to consumers" to "selling goods to dealers", resulting in a directional deviation.

Therefore, what marketers think about every day is not how to make the market bigger, but how to push the goods to the channel. This short-term behavior is often more obvious at the end of each year.

The debt owed will be paid sooner or later. The product has not been sold, but the channel has bought more goods this year and will buy less next year. This repeated "virtual sales game" between manufacturers has no substantial help to sales growth.

Another example is to assess the investment promotion work of marketing personnel. If the index is set according to the number of merchants, it is better to set the index according to the new sales of merchants. Because the former may make enterprises happy, recruit a group of nominal agents who can't get much goods, and spend the investment expenses in vain, while the latter will bring real money that enterprises need.

Pathology 4: The index is too deep, which leads to putting the cart before the horse.

Simply put, it is "the enterprise requires perfect indicators".

Management has dual characteristics. On the one hand, it pursues effectiveness ... >>

Question 10: What do the key indicators of key performance indicators mean? Key performance indicators (KPI) are objective quantitative management indicators to measure process performance by setting, sampling, calculating and analyzing key parameters of internal process input and output. It is a tool to decompose the strategic objectives of an enterprise into operational objectives, and it is the basis of enterprise performance management. KPI can make the department head clear about the main responsibilities of the department, and on this basis, make clear the performance measurement indicators of the department personnel. Establishing a clear and feasible KPI system is the key to do a good job in performance management. Key performance indicators (KPI) are quantitative indicators used to measure employees' performance and an important part of performance plan.

KPI method conforms to an important management principle-"28 principle". In the process of enterprise value creation, there is an "80/20" law, that is, 20% of the backbone personnel create 80% of the enterprise value; Moreover, the "82 principle" also applies to every employee, that is, 80% of work tasks are completed by 20% of key behaviors. Therefore, we must grasp 20% key behaviors, analyze and measure them, so as to grasp the key points of performance evaluation.

KPA (key process area) is the key process area, which points out that enterprises need to concentrate on improving and solving problems. At the same time, these key process areas point out the specific problems that need to be solved in order to reach the capability maturity level. Each KPA clearly lists one or more objectives and points out a set of related key practices. Implementing these key practices can achieve the goal of this key process area, thus achieving the effect of increasing process capability. KRA(Key Result Areas) refers to the key result area, which is indispensable to achieve the overall goal of the enterprise and must achieve satisfactory results, and is the gathering place of key success factors of the enterprise.