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Writing Measurable KPIs

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Writing Measurable KPIs

Organization leaders judge HR strategic role NOT on be the basis of emotions or HR ACTIVITIES but by the IMPACT of their actions on the organization, which is always measured in tangible measureable terms.

In an increasingly competitive environment dominated by cost-cutting and budget justification, the role of HR is becoming more critical to the overall success of the organization. Currently, the workforce investments range from 20 to 50% of overall operating expense and consequently the Shareholders, Stakeholder, CEOs and CFOs all measure results. They are keen to have rigorous, logical, and principles-based framework for seeing the connections between human capital investments and organizational success.

HR Metrics Consulting provides non-traditional HR solutions to optimize employees as well as organizational performance. It is pioneer in introducing evidence based management frameworks for workforce management in Pakistan and its indigenously developed programs have been approved by Human Resource Certification Institute USA www.hrci.org for continuous professional development and recertification of HR professionals worldwide. This is an unprecedented honor for an HR consulting firm in the history of Pakistan.

Organization leaders judge HR strategic role NOT on be the basis of emotions or HR ACTIVITIES but by the IMPACT of their actions on the organization, which is always measured in tangible measureable terms.

In an increasingly competitive environment dominated by cost-cutting and budget justification, the role of HR is becoming more critical to the overall success of the organization. Currently, the workforce investments range from 20 to 50% of overall operating expense and consequently the Shareholders, Stakeholder, CEOs and CFOs all measure results. They are keen to have rigorous, logical, and principles-based framework for seeing the connections between human capital investments and organizational success.

HR Metrics Consulting provides non-traditional HR solutions to optimize employees as well as organizational performance. It is pioneer in introducing evidence based management frameworks for workforce management in Pakistan and its indigenously developed programs have been approved by Human Resource Certification Institute USA www.hrci.org for continuous professional development and recertification of HR professionals worldwide. This is an unprecedented honor for an HR consulting firm in the history of Pakistan.

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Writing Measurable KPIs

  1. 1. www.thehrmetrics.com Provides human capital measurement solutions to optimize workforce productivity and organizational performance. Sole education partner of SHRM USA in Pakistan for SHRM-CP & SCP & recertification credit hours. Programs approved by HRCI USA for GPHR, SPHR, PHR, HRMP, HRBP
  2. 2. Measurable Key Performance Indicators (KPIs) If you can not track changes in organization bottom line with change in employees performance, assume that your organization is measuring employees performance ACTIVITIES rather that OUTCOME
  3. 3. What about Effectiveness and Outcome Blurred line of sight between organizational KPIs and employees’ KPIs Why Measurable KPIs
  4. 4. Resentment and frustration by employees, resulting in degradation in organization morale, employees' grievance and loss of key talent Blame game between line and HR on performance rating and reward Paper centric appraisal with no effective tools with line managers to distinguish between stellar performers and dead wood Overly inflated appraisal bell curve, not corresponding with achievement of business targets Consequences
  5. 5. We Assist Companies in Creating Verifiable Linkages between Organization and Employees Performance Operational objectives Performance Objectives Coaching and support Performance review Performance appraisal Performance development Strategic Business Goals
  6. 6. Performance Alignment Sub Functional Objectives Functional Objectives Organization Objectives Employees Objectives
  7. 7. Goal of Measurable KPIs Logical Measurable Practices Impact Product Development Improve Customer Service Increase Market Share Boost Share Price
  8. 8. KPIs Dimensions Tangible/Intangible Benefit Volume of Work Cost per Unit Turnaround Time Quality Indicator User Satisfaction Level Consistent and Formal Measurement
  9. 9. Efficiency Volume Time Cost Effectiveness Quality User Satisfaction Outcome Financial Impact KPIs Classification
  10. 10. KPIs Line of Sight
  11. 11. KPI Objective Methodology
  12. 12. KRA Key Result Area Key Result Areas are the chief tasks of a job identified during the job analysis process
  13. 13. KPI Key Performance Indicator Key Performance Indicators are the quantifiable measurements of things that are important to the Organizational long-term goals and critical success factors
  14. 14. Objective What When Where Who A specific result that a person or system aims to achieve within a time frame and with available resources
  15. 15. Following organizations arranged this intervention
  16. 16. Engineering Ltd Chairman Abdul Razak Dawood (Former Minister of Commerce) and CHRO Dr Sitwat Husain GPHR
  17. 17. Leasing Ltd Orix Leasing Limited CEO Teizoon Kisat with C Suite CHRO, CFO, COO, Head Risk, Audit, Sales
  18. 18. Pharma Pakistan Searle Pharma Pakistan CHRO Athar Iqbal with C Suite
  19. 19. Pakistan Poverty Alleviation Fund CEO Qazi Azmat Isa with GMs and SMs
  20. 20. “What gets measured gets done, What gets done well gets rewarded, What gets rewarded, gets repeated” Quality Guru
  21. 21. Chief Consultant Zahid Mubarik SHRM-SCP, GPHR, HRMP CEO HR Metrics President SHRM Forum Pakistan Chairman Technical Committee HR Standards Pakistan Member ISO Geneva TC 260-HR Standards Ex Member Special Expertise Panel-Human Capital Measurement Metrics SHRM USA
  22. 22. Our Vision “Our vision is to optimize industrial productivity through fact based analytical frameworks in workforce management decisions”
  23. 23. Mission We provide customized human capital management tools to leverage workforce productivity for sustainable organization and employees' growth
  24. 24. Core Values • Focus on HR effectiveness and visible impact on bottom line • Use cutting edge people performance optimization tools • Data driven solutions supported by local industry research
  25. 25. Question/Comments www.thehrmetrics.com info@thehrmetrics.com +92-51-4939069

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