Key Performance Indicators (KPI) as an indicator to determine the success

Many people or HRD practitioner who considers that the KPI is unnecessary and only makes the HRD busy, no results have a major impact on the company's progress.

It used to be, it is an ancient mindset that has been abandoned by many practitioners of HRD in Indonesia, today they are well aware that the Key Performance Indicators are needed. Evidenced by the many participants who attended the trainings organized by the HRD Forum.

Current HR practitioners in Indonesia are racing to deepen their knowledge and expertise in making the Key Performance Indicators that matches the work culture at their respective companies.

One of the things they are concerned about is, how to design Key Performance Indicators that can move all of its employees to work together more productively in achieving the targets that have been awarded against the company.

All companies recognize the importance of KPI as an indicator to determine the success of a corporate objective. But not all companies are already making KPIs (especially companies that have not made KPI) ABLE making, designing, selecting and determining and establishing KPI it RIGHT. Less strong basic understanding of the definition, function and role of KPIs makes a lot of companies are not exactly in the making and setting KPI. Errors in setting KPIs include: less optimal selected KPI, not just in determining the KPI, KPI that is not aligned with the objective of the selected KPI, which is not actually set KPI KPI, one of the weighting and others, all such errors will result in a FATAL due to be paid by the company MAHAL, the business processes that are not running toward his objective is FAST & ACCURATE, so Lost Opportunity inevitable both in terms of COST, TIME & PROFIT. In addition to the Lost Opportunity, errors in setting the KPI will lead the company can not measure the success of its correct target and lead to Misleading and False Information to companies, managers and employees ..

The company must have an understanding of the definition, function and role of KPIs in TRUE, armed with this understanding, companies must be able to design a KPI of mutual support, strengthen and drive the business process. Armed with this understanding as well, the company should be able to create a KPI on the corporate level, the Department, as well as employees of units of mutual support, strengthen and move the process toward OBJECTIVE Company's business.

KPIs differ depending on the nature and strategy of the organization. KPI is a key part of a measurable targets consisting of direction, KPI, measures, targets and time frames. For example: "increasing average revenue per customer from 10 thousand to 15 thousand dollars at the end of 2012". In this example, the 'average revenue per customer' is a KPI.