Nowadays KPI has become quite popular with Vietnamese enterprises; effective KPI management is like a magnetic needle that helps Enterprises go in the right direction and achieve the set right strategies. Establishing the right KPI will help Enterprises achieve a lot of successes, and to the contrary, it can also cause serious consequences for the Enterprises. Therefore, building KPIs is always a difficult problem for managers. It is necessary to have suitable know-hows for Enterprises in the era of 4.0 technology.
Types of KPIs that can be applied to employees to manage KPIs effectively:
KPI or Key Performance Indicator means the indicator of performance evaluation, an effective tool to measure and evaluate the work efficiency through data, percentage, quantitative targets to reflect the operational efficiency of the organizations or functional units or individuals.
Nowadays, Enterprises need have different types of KPIs for each employee to optimize their work such as: set up KPIs for each sales area, KPIs when finding new customers, KPIs for each sales level, sales, or managers can set KPIs based on the work hours of the employees and the number of customer visits.
From the understanding of KPIs and KPI types to apply for each employee, the business owner will have a more appropriate and effective strategy. However, the limitation of Vietnamese enterprises in KPI management is that there is no specific procedures and no regular supervision, which leads to many gaps making the assessment and evaluation inaccurate and more subjective. Therefore, enterprises need to build their own criteria to have effective KPIs.
Based on this criterion, Enterprises will have the orientation for each of its employees. KPI will help the manager motivate the working spirit of each employee. However, in practice, the implementation of KPI is still facing many shortcomings due to the requirement of frequent changes and updates of KPI, the general targets, the difficulty in manual result collection, ease to get discrepancy, resulting in limitation in KPI’s benefits.
To overcome these disadvantages, many enterprises have applied the software technology to manage KPI. So the question here is: what will the software technology help enterprises?
The first benefit: Setting criteria for effective KPI evaluation: The software will integrate the feature of setting KPIs by region, by area, .. and also integrate a variety of KPIs such as LPPC, PC, centered items … from which the managers can easily select the KPI appropriate with each of its employees
Second, The software is integrated on mobile devices, tablets …to help the managers know the work situation of employees and make timely adjustments if the KPI is inappropriate, and the employees work on the market will be equipped with tools – software that are integrated on mobile devices, tablets so that they can control their own KPIs.
Third, Statistics, reports and analysis will be automatically summarized by the system and reports are sent accurately and quickly, helping administrators save time and manage the business more effectively.
Forth, Provides of visual diagrams dashboard of objectives and work outcomes so that the managers have a better understanding of their employees, ensure the visual evaluation, and make adjustments to achieve good results for each strategy.
The problem of how to build and manage KPIs effectively has the answer, but to bring into play the powers of KPIs, the enterprises need continuously evaluate the effectiveness of the application, make improvements in accordance with the actual situation in each stage to optimize the business and maximize profits.
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