In many organizations, both on top level and team level KPI’s are the most important measure for success. However if you measure the wrong things you will experience failure.
In Performance Management / Human Resources
HR is one of the areas where good KPI’s are most difficult to set. Both because historically HR has been perceived as “soft” and thus have no hard values and because the important aspects: “Do we have the right employees?” are difficult to measure.
Here is a an example of a bad and a good KPI for HR
- BAD: Number of people who have completed the People Development Dialogue
Because: The success of the organization is not affected by the completion ratio – while it is better for HR if all dialogues are completed, it is better to measure:
- GOOD: Ratio of High Performers in the organization
The cartoon was created by Zach Weiner (www.smbc-comics.com).