Why Are KPIs Important?
Setting key performance indicators for an organization usually happens during the strategic planning phase, whether you do that yearly, quarterly or even more frequently, the goal is to ensure the entire organization is aligned towards the same objectives.
Ask any employee why they don't feel engaged at work and you'll probably get some variation on the same theme:
Examples:
•They feel disconnected from the organization’s larger purpose.
• They fail to see any impact on their daily efforts – the activities which occupy most of their time – have on larger organizational goals.
• They don’t understand the strategic direction of the organization.
These are in some ways distinct problems. But in other ways they all stem from the same issue: Poor communication between management and lower-level employees.
KPIs help solve this problem:
1-KPIs strengthen employee morale:
When people feel responsible for KPIs, they are more likely to push themselves and receive more satisfaction from a job well done.
2-KPIs support and influence business objectives:
KPIs are important to business goal because they keep objectives at the forefront of decision making.
3-KPIs monitors personal growth:
With KPIs, teams are able to see exactly how they are performing at any given moment. No longer do they need to wait for the end of a quarter or project to see the results.
4-KPIs are critical for performance management:
KPIs simplify performance management by allowing a clear management between each department objectives reaching the common organizational goal.
5-Unlocking the power of employee engagement:
Best thing is to get employees involved in developing and connecting them to your organization’s purpose.
