Innate KPI and Process KPI (Key Performance Indicator)
2024-07-11

KPI (Key Performance Indicators) is a target measure of the success of each Work Output in the Job Description which is a tangible form of usefulness or SOLUTION that must be produced by each HR in their respective positions. The formulation of the list of work outputs has no business meaning or Business Value or Capital if it is not accompanied by the KPI target.


KPI targets are set TOP DOWN according to the company's needs in doing business. in the performance appraisal year. So if there are KPIs that are set BOTTOM UP then this is questionable regarding the purpose and quality of the KPIs set.


Each Work Unit has brought its own KPI according to its scope of work which is the highest KPI that must be realized by the presence of the Work Unit in the company.


Example:

1. 100% Nett Profit Target achieved (Unit Sales)

2. 100% Market Share Target achieved (Marketing Units)

3. 100% of Human Resources are able to produce Target OUTCOME (Output+KPI) (HC+Employment)

4. 100% reliability level of installed IT (IT Unit)

5. 100% level of compliance with business procedures (Audit)

6. 100% level of availability of goods/work materials in the company (Procurement)


Each Work Unit must be directed to realize the Default KPI Target gradually. The Default KPI Target must not be negotiated to be below 100%. That is the KPI Target that must be realized by the presence of Work Units in the Company. Because, the company pays a certain amount of Investment value in presenting each Work Unit is FOR SUCCESS not for half success. This is the Capital Value or Business Value provided by the Work Unit to the company as a form of ROI (Return On Investment).


How to realize the built-in KPI Target? The answer is in the implementation of "MBO3" accompanied by "HCM".