We often hear business owner clients complain about the performance of their employees and one of the ways to remedy this is to have clear KPI’s (Key Performance Indicators) in place for each employee.

KPI’s provide absolute clarity on exactly what the employee needs to deliver and removes any confusion or conflicts between priorities. Each team member should therefore have a job description and a set of KPI’s, the difference being as follows:

Job Description – What you need to do

KPI’s – What you need to do to keep your job

A few guidelines on KPI’s:

• They must be specific
• They must be measurable
• Usually no more than 5 or 6 per person

We have seen so many instances where once written KPI’s are issued to employees, their performance improves immediately. This is because they now know exactly what is expected of them and the fact that they are in writing and signed off by the employee has a psychological impact in the mind of the employee.

Lets look at a few examples of suggested KPI’s :

Accountant / Bookkeeper

1. To produce accurate monthly management accounts by no later than the 15th of each month
2. To ensure debtors days are at a maximum average of 35 days
3. To ensure compliance with all statutory deadlines including PAYE, VAT, UIF etc
4. To provide a full variance analysis between actual and budgeted figures by the 20^thof each month
5. To maintain a rolling 3 month cash flow forecast and present to the directors every Monday
6. To ensure final annual financial statements are signed off by the 30^thof June of each year

Sales Representative

1. To perform in line with your sales targets as per attached addendum A
2. To follow the documented company sales process at all times
3. To visit at least 5 existing clients and 5 prospective clients each week
4. To achieve an average of 35% GP on sales every month
5. To respond to all emails and telephone messages within a maximum of 24 hours

Once you have KPI’s in place, the bi-annual or annual performance appraisals become very easy to conduct as the actual performance is then measured against the KPI’s. This can then inform any salary increase or bonus process.

Our Offer to You

At ActionCOACH Ignite, we help businesses make more money, improve the performance of the team and implement processes and procedures.

Should you be interested in hearing more about how we can help you, then take us up on our offer of a complimentary consultation where we will explore how you could take your business to the next level. (Available to business owners only).

Please click here to request your session.

Remember – Thinking Big is still just Thinking.

For more info on ActionCOACH Ignite, visit us at www.actioncoachignite.co.za

Kind Regards
The ActionCOACH Ignite Team

Kloof, Durban