Seeking Your Insights: How Can We Improve Our Startup's KPIs in Valve Manufacturing?

Request for Feedback on KPIs

We are a startup company in the valve manufacturing industry. We have established Key Performance Indicators (KPIs) for different departments; please review them and provide your suggestions so that we can implement the KPIs for this quarter.

Regards,
Mani

Dear Mani, You have attempted to design KRAs for the various departments. Nevertheless, you need to improve your understanding of the concept of KPI/KRA in a big way. You are a typical person who has yet to understand the difference between KPI and KRA.

Secondly, it is not your job to design the KPIs for every department. It is the job of the HOD. HR is only the facilitator of the PMS process. Why are you getting into this? I have revised the KRAs in the first 1-2 Excel sheets of the workbook. The rest, you need to revise on your own.

For further reading, you may go through my following reply: https://www.citehr.com/494240-perfor...ml#post2150682

Thanks,

Dinesh V Divekar

Dinesh has given you the right advice. You are confusing between KRA (which means Key Result Area) & KPI (which means a measure such as time, quantity, quality, etc.). Defining KRAs & KPIs is not the role of HR. The respective departmental heads are being paid for this job since they are the expert professionals to decide which KRAs are to be allocated to different employees in their department. Also, how the completion of assigned KRAs is to be measured is their responsibility.

Your role as HR is to facilitate this process and coordinate that the KRAs & KPIs are set well before the beginning of the Financial Year so that everyone in the company becomes accountable. The KRA setting process has to start with the CEO setting the KRAs for his direct reports. Then, it travels downwards to achieve alignment across the company. Otherwise, the entire process is a non-starter.

Have a look at 'EmpXtrack' to understand how the Goal Setting & tracking process is managed by different organizations.