KPI Framework Explanation

1. KPI BASED
PERFORMANCE MANAGEMENT
SYSTEM
Muhammad Farhan

5. WHAT IS KPI ? KEY PERFORMANCE INDICATORS
Key performance indicators (KPIs) are defined as quantifiable, specific measures of
an organization’s performance in certain areas of its business.
KPIs may vary by project, department or business; be weighted differently by each
project, department or business; and be either financial, nonfinancial or both.
(SHRM, USA)
A measurable expression for the achievement of a desired level of results
in an area relevant to the evaluated entity’s activity.
(The KPI Institute, Melbourne)
Doodle Video -

6. UNDERSTANDING PERFORMANCE TERMS
Example: Increase market share to 28% by the end of the financial year under
Marketing Director coordination.
Objective
KPI
Target
Owner
Time

7. UNDERSTANDING PERFORMANCE TERMS
Example: Increase market share to 28% by the end of the financial year under
Marketing Director coordination.
Objective Increase in Market Share
KPI % Market Share
Target 28%
Owner Marketing Director
Time By Financial year end

8. UNDERSTANDING PERFORMANCE TERMS
Example: HRM software implementation by the end June 2017 under HR Head
Objective
KPI
Target
Owner
Time

9. UNDERSTANDING PERFORMANCE TERMS
Example: HRM software implementation by the end June 2017 under HR Head
Objective HRM Software Implementation
KPI $ Payroll processed, # of Automated Processes
Target 3 Modules – Core Payroll, Employee DB, Reporting & ESS
Owner HR Head
Time June 2017

10. VALUE FLOW ANALYSIS
LOGICAL MODEL TO INDICATE THE VALUE GENERATION FROM INPUTS, PROCESS OUTPUTS AND OUTCOMES.
Objectives Inputs Processes Output Outcomes
Improve Customer
satisfaction with
service levels
# CSRs
$ CS Budget
# Time to answer an
inquiry
# Meetings with key
customers
%Solved Inquiries
%Customer
Satisfaction Index
# New clients from
referrals
%Returning
customers

11. VALUE FLOW ANALYSIS
LOGICAL MODEL TO INDICATE THE VALUE GENERATION FROM INPUTS, PROCESS OUTPUTS AND OUTCOMES.
Objectives Inputs Processes Output Outcomes
Placement of vacant
positions – Manager
level

12. VALUE FLOW ANALYSIS – CHOOSE KPIS WISELY
LOGICAL MODEL TO INDICATE THE VALUE GENERATION FROM INPUTS, PROCESS OUTPUTS AND OUTCOMES.
Objectives Inputs Processes Output Outcome
Placement of vacant
positions – Manager
level
$ Position Budget
$ Hiring Budget
# of Positions – 10
# CVs Recvd
# CVs Screened
# CVs Shortlisted
# Interviews held
# Final Shortlisted
# Offers Rejected
# Offers Accepted
Time to Hire
% Positions taken more
than 45 days to fill
# On boarding
$ Budget Variance
$ Hiring Budget Var.
# Probation completion
#Net hire index
# Placements
completed 1 year
# Placement completed
1 year with EE rating
Revenue per FTE

13. THANK YOU, STAY BLESSED 
FEEL FREE TO CONTACT
M.FARHAN.SM@GMAIL.COM
LINKED IN - HTTPS://PK.LINKEDIN.COM/IN/FARHAN26