CONTENTS Why Objectives and KPIs are important? What is Objective and KPI ? Why do we need Objectives and KPIs? What should be include? How to prepare them? The Benefits of Objectives and KPIs Why Objectives and KPIs are important? What is Objectives? Objectives are your overarching goals, the big things you need to achieve. So an objective for a salesperson would likely involve increasing sales revenue by a certain amount. What is KPI ? KPIs are Key Performance Indicators. These are the individual tasks which need to be completed in order to reach your general objective. So to return to our salesperson, they won’t be able to increase sales revenue without making a certain number of prospecting calls, or by upselling a certain number of new products to existing customers. What is Objective and KPI ? Let’s look at an example: Goal or Big Objective - Decrease employee turnover rate by 25% over the next quarter. OBJ1 – Providing one internal training and one external training per month OBJ2 – Implementation 2 kinds of employees recognition program per month OBJ3 – Implementation one communication channel and posting three kinds of group activities or departmental achievement per month OBJ1 – Providing the one internal training and one external training per month KPI 1 – Inquire about the training from three training center and reporting KPI 2 - Arranging with IT and Admin Team for the training room for 30 trainees one day ahead of training date KPI 3 – Request to the Finance Department for training fees one week ahead of training date specific To set a specific you must answer the six "W" questions: Who: Who is involved? What: What do I want to accomplish? Where: Identify a location. When: Establish a time frame. Which: Identify requirements and constraints. Why: Specific reasons, purpose or benefits of accomplishing the Objective. measurable To determine if your goal is measurable, ask questions such as: • How much? • How many? • How will I know when it is accomplished? attainable When you identify Objectives that are most important to you, you begin to figure out ways you can make them come true. You develop the attitudes, abilities, skills, and financial capacity to reach them. You begin seeing previously overlooked opportunities to bring yourself closer to the achievement of your Objectives. realistic To be realistic, a goal must represent an objective toward which you are both willing and able to work. You must have the resources and the skills to get them done realistic To determine if your Objective is realistic, ask questions such as: • Do I truly believe that it can be accomplished? • Have I accomplished anything similar in the past? • Can I identify the conditions that would have to exist to accomplish this Objective? timely An Objective should be grounded within a time frame. With no time frame tied to it, there is no sense of urgency. When do you want to accomplish your Objective? “Someday” won't work. But if you anchor it within a timeframe (“by May 1st”), then you have already set your unconscious mind into motion to begin working on the goal. OBJ1 – To sell the 30 units or USD 10000 per month KPI 1 – Contacting to 30 organization KPI 2 - Visiting and presentation to 15 potential clients KPI 3 – Send the proposal to 10 potential clients OBJ1 – To renew the license of office’s 15 cars in January KPI 1 – Issuing the cash from Finance 2 days ahead of actual day KPI 2 - Contacting to the related department one week ahead of actual day KPI 3 – Calculating the cost 2 weeks ahead of actual day Measurement the Objective Achievement Objective Achievement To increase 15% of Employee Satisfaction Success Criteria Measurement Kids If the employee satisfaction is increase over 15% 100 If the employee satisfaction is increase under 10% to 15% 60 If the employee satisfaction is increase under 10% 20 Compare with old report and new The Benefits of Objectives and KPIs Direction Motivation Recording Milestones Performance Evaluation Time Management Coordination Standardization THANK YOU Thank you very much for attending my training and I really appreciate it. If you need like the cooperate training or ISO (QMS) standard for your organization, please remember me and contact to me anytime. Win Pyae @ Williams ( Management Consultant ) 09975212851 winpyae2@gmail.com