Traditional Culture Encyclopedia - Traditional virtues - Lei Jun: KPI is outdated, Xiaomi never use! KSF allows employees to work hard for themselves!

Lei Jun: KPI is outdated, Xiaomi never use! KSF allows employees to work hard for themselves!

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Introduction:

Without performance management, the enterprise can not talk about management. Because all management activities are designed to produce better performance.

However, performance management must be selected to suit their own, effective landing methods and models.

Currently, the most commonly used tools for performance appraisal are KPIs, but in recent years, more and more companies are realizing that there are many limitations to the KPI assessment.

Lei Jun believes that KPI has been unable to adapt to the management needs of the Internet.

Because KPI will let employees lose themselves, and the core of millet's work is, is to make the user screaming products, improve customer experience.

In the Internet era, how much money an enterprise makes is transparent, so the enterprise must establish a transparent benefit-sharing mechanism, based on each person's ability to share the benefits with the contribution.

Many people say that millet is de-culturalized management, in fact, I think it is exactly culture and values management. Xiaomi's seven initial partners were originally bosses, in order to **** the same ideals and goals pursuit, seven different abilities, different value orientation of people get together, to do this thing.

Relying on values to cohesion, traction, everything around customer value, organizational flattening, management simplicity, emphasis on speed, this is what we see from the practice of small meters of the Internet era management innovation. The reality is that many small and medium-sized enterprises, do performance why easy to failure?

Many enterprises performance appraisal or: base salary + commission + performance pay.

Details:

Lower base salary, higher commission, monthly "base salary + commission" 30% of the total salary to do performance pay, such as: "base salary + commission" = 1,000 yuan. commission" = 10,000 yuan, there will be 3,000 yuan to do Performance Wage, and then accounted for a different proportion of the decomposition to different indicators , the enterprise each month on each performance indicator will be put forward corresponding objectives, and finally according to the target rate of achievement of the KPI scoring method for scoring, the highest score of 100 points! But employees almost never get 100 points, which means that employees will be deducted a few hundred dollars every month!

When it comes to broadband pay and performance management, many people will think of KPIs first, but KPIs are not the same as performance, it's just a tool for corporate performance appraisal.

The author of these years for many enterprises to do consulting, have seen many enterprises use KPI after the performance but worse, the bosses complained, but nothing to do. And employees are on the KPI complaints, scolding. The author selected a few KPI in the actual operation of the drawbacks, readers can see if they have "shot":

1, over budget

For example, last year, the qualified business sector costs 4.98% of the company's mandatory requirements, it must be reduced by 0.5%-1% rate, KPI's high target, is through the "rate of achievement" as an indicator, the target is higher than now or in the past, more than the budget.

2, high target

KPI set a high target, if the head of production can not do, then the boss will think that you are not hard enough to complete 100% of the target, you have to deduct wages, deduct bonuses. This is because the KPI with subtraction to control, so that your target must be 100% complete. But whether the actual target is reasonable or not, it has to be supported by data.

3, negative incentives

KPI's negative incentives, it only focuses on the assessment, some of the opportunities impossible to complete the goal, are required to fully achieve, such negative incentives, can only make the staff to become more uninspired, there is only pressure and no motivation, the staff resisted such a model, should be no positive incentives.

4, only look at the surface

Only look at the value of the surface, ignoring the real performance. Bosses generally longer-term vision, the need for long-term sustainable development, closer to the short-term goal is to achieve profit growth, such as the plan to produce 1,000 units per month, the actual production of 1,000 units is all completed, then you will be rewarded, if the plan monthly production of 3,000 units, the results of the production of 2,400 units, not all completed, then it is necessary to be deducted money. So if you look at the two months, that month's performance is good, obviously 2300 units is high, but the supervisor is going to be deducted money.

5, employees are not motivated

like to put the salary performance together, the incentive degree is too poor is the biggest problem of KPI. If the production supervisor's monthly salary is 18,000, the basic salary of 5,000, 6,000 job salary, subsidies 2000, performance 5,000, then the performance appraisal is to assess the performance of this 5,000, in fact, the supervisor of a year, there are 8 months were deducted from 300-1200, there are 4 months to get 400-600 incentives, then from the data point of view, it is the penalty is greater than the award, the employee No motivation is normal.

KPIs have the following four natural hardnesses, affecting their more functionality, and it should also be seen that the use of KPIs is very limited:

Employees definitely don't like KPIs, but employees have a special fondness for KSF.

Many companies in the consideration of the design of the businessman's salary, generally go (total income = base salary + commission) line, which is still particularly single way, incentive is not rich enough for the business, incentives, natural power is not enough level of comprehensive.

How to make the salesman and the enterprise *** growth *** development?

First of all, in the remuneration system to give a clear positioning and planning, not only to give employees short-term interests, but also to give long-term interests. Let each salesman from the company's first day to know their own future and development direction, the longer or better performance of the salesman will not easily leave the company.

4) Senior salesman: 1 year average performance of 5 million or more, the following year automatically upgraded to senior salesman, KSF salary increase of 20% -30%, the incentive strength of the high value.

1, Gross Profit: For every 10,000 RMB increase, 31 RMB will be rewarded, and for every 10,000 RMB decrease, 25 RMB will be paid less;

2, Gross Production Value: For every 3,000 RMB more, 5.3 RMB will be rewarded, and for every 3,000 less, 4 RMB will be paid less;

< strong> 3, scrap rate: every drop 0.05%, reward 2.5, every rise 0.05%, less 2 yuan;

4, timely delivery rate: every rise 0.05%, reward 2 yuan, every less 0.05%, less 2 yuan;

5, employee Wastage rate: no loss, reward 50 yuan, every loss of 1 person, less 250;

No convergence of interests, there is no unity of thinking! Don't lose the opportunity for employees to willingly work hard for you because of unreasonable wage design, which is the most uneconomical input cost!