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This article deals with how to develop KPI (key performance indicators) in the company, as well as what needs to be taken into account so that the KPI system is re-established.

People are most motivated when they believe that their actions will lead to the desired goal. Therefore, the essence of any motivational system is to link the objectives of the enterprise and the objectives of the staff so that personal objectives can be achieved only through the objectives of the enterprise. This linkage is effective if staff members have a clear understanding of the enterprise ' s objectives and the ability to influence their income (and not simply come after salary, which is in no way dependent on the performance of the staff member). Therefore, starting with the level of divisional managers, the remuneration of each employee should include a variable, not less than 25 per cent of total income (depending on the unit).

What is KPI

KPI itself is not a motivational system, it's just a management tool. In fact, any indicator is now accepted as KPI. I don't understand why paying sales managers a percentage of their profits in many businesses is KPI. Or why an old good labour rate is called KPI. It's not more than a time of fashion.

In fact, KPI is key performance indicators. The specificity of the KPI management system is that the enterprise ' s main objective can be achieved through performance indicators for staff working in different units.

What kinds of KPI are

1. Target KPI. These are key performance indicators that show how close we are to achieving the goal. It is the target KPI in this article.
2. Process KPI. Show how effective the process is. They can assess whether a process can be made faster or less cost-effective without loss of quality.
3. Project KPI. They relate to the specific objectives of the project and show how effectively the project as a whole, as well as individual work within it, is being implemented.
4. KPI external environment. These are indicators that cannot be directly influenced, but they need to be taken into account in developing, for example, targets. Examples of external KPI efficiency are the prevailing market price, price fluctuations.