Managing Business Performance Using Objectives, Key Result Areas, Key Performance Indicators and Targets

One of the critical competencies for managers and supervisors is managing the business performance of their departments/sections/units.  More often than not, this is one area where coaching and mentoring is much needed.

One basic approach that can go a long way is to learn more about and apply the use of SMART Objectives, Key Result Areas, Key Performance Indicators, and Targets.  While attending workshops are helpful, reading available materials and books are effective ways to learn as well.  Even more effective is to try out the few KPIs that are most relevant in terms of aligning a department’s objectives with the overall strategic objectives and strategies of the company.

Simply put, a Key Performance Indicator (KPI) is a measure of how well something, an objective, is achieved and gives valuable feedback on whether performance is on track or not so that the manager and team can take appropriate action to get back on track.

Not having clearly defined KPIs is like driving without a clear destination and directions to guide you.  Don’t leave results and outcomes to chance.  Plan the work and then work the plan.  Always have measures and get top management sign off.

Here are some useful resources to get you started on your journey of learning by doing and experimentation.

Here’s an article if you would like to discover more resources on KPIs:   Finding the Right KPIs – 5 KPI Libraries That Are Key to Your Performance.

If the subject of KPIs excites you, there are many resources to study and learn from, and help you equip yourself and your team with the knowledge and skills to effectively plan, execute, monitor and control, and realign business performance.