Lecture Notes: Performance Management and KPIs

Introduction

• Importance of planning and action.
  • Reference to Bruce Lee's philosophy: Knowing is not enough; action is essential.
• Performance management as an ongoing process.

Performance Management Process

• Steps in Performance Management:
  1. Planning
  2. Action
  3. Observation
  4. Reflection
  • Goal: Improve and enhance the next plan by learning from past actions.

Performance Measurement

• Objective evidence is needed to determine if a good job has been done.
• Examples of performance objectives:
  • SMART objectives
  • Feedback from customers
  • Number of sales, orders, and other quantitative metrics

Examples of Performance Management Metrics

• Sales metrics:
  • Number of sales, orders, and sales value
  • Customer registrations and call numbers
• Other metrics:
  • Visits to existing accounts and new prospects
  • Revenue from home loans and outbound calls
  • Engagement with key accounts

Key Performance Indicators (KPIs)

• KRA (Key Results Area):
  • Represents performance outcomes.
  • Examples include development of account management plans and revenue growth.
• KPI (Key Performance Indicator):
  • Provides feedback on performance relative to KRAs.
  • More specific and measurable than KRAs.
  • Examples include:
    • Number of visits per week
    • Number of leads generated
    • Number of calls made
    • Personal KPI examples: journal articles published, customer service ratings

Conclusion

• KPIs are unique to the job and objectives involved.
• They measure how well objectives have been met.
• End of the lecture, open for questions.