How do you measure the performance of the individual projects of your company, as well as the overall performance of the company itself? With regards to pre-established goals, key performance indicators (KPIs) are measurements used to see how effective a project’s performance is. You may not have used KPIs in the past but perhaps, now is time to employ them.
CSF Before KPI
Now, before you identify the KPIs that you can use, you have to determine the critical success factors (CSF) of your company. A critical success factor may be, for example, a number of satisfied clients. Based on this list of CSF, you can then identify the KPIs that may help in measuring the project success.
Team-Based
You can apply KPIs to the entire company, as well as to the individual teams. But again, with regards to individual teams, you still have to determine the CSFs of each team in relation to the CSFs of the company. Once you have your team-based CSFs, you can now define the KPIs that may accurately measure each team’s performance.
Company Strategy
Once you’ve learned how to employ KPIs throughout the entire company —including the individual teams or departments — you can start strategizing to further optimize the services you render to the customers. You can use Six Sigma, a widely-used project management strategy, to improve your company’s processes and product excellence.
Six Sigma Effects
Six Sigma basically cuts down on costs and improves customer satisfaction. At the same time, it cuts down on defects, waste, and time that may affect the quality of your products and services. However, adopting Six Sigma may require you to adjust your CSFs and KPIs. To help you monitor such changes and the subsequent measuring, of these KPIs, KPI Fire recommends the use of KPI software.
Whether your company belongs in the healthcare, mining, or technology industry, you can benefit from the use of KPIs and Six Sigma. After all, these tools and strategies can improve a lot about your company, from your overall performance to the efficiency of your individual teams or departments.