BRAINPERFORMANCE
You will be surprised how far
we'll go for you !

CAN WE MEASURE KPI OF SUPPORTING DEPARTMENT?
(by Choong Ewe Lee)
(choong@brainperformance.com.my)

   
 
     
 

During my initial approach to new consulting clients, I am always encountered the question that, “It is easy to measure the KPI of Sales & Operations Department, but it is not that easy to measure the KPI of Supporting Dept, such as Finance, HR, Admin and IT !” Always with my gentle smile, I would reply that, “If we want to measure the KPI of supporting department easily & effectively, the secret is to focus on the concept of “Result based KPI” (refer to previous article), and use the QQCT Approach!” In fact, QCCT Approach is the method we use to measure the key results of supporting department based on the 4 dimensions, namely Quantity, Quality, Cost & Timeliness.
 
  The pre-requisite to set KPI is to generate your KRA (Key result Area). By referring to your KRA, we could develop our KPI based on the questions as per QQCT below :
•    Quantity: How many we shall achieve?
•    Quality: How good we shall achieve?
•    Cost: How much we shall save/ achieve?
•    Timeliness: How long we shall take to achieve defined result?
 
 
This has recalled me a KPI consulting case for a Finance Controller, Agnes Foo. Her 1st question is, “Is there any KPI that I could set for my financial department ?” My short reply with a question, “Of course, what is your Key Result Area (KRA) ?” She said, “Let’s say, Cost of Financing as my KRA !” I said, “It is rather easy. We could measure through QQCT approach that I have thought during KPI Training”. Then, I listed down the KPI based on QQCT for our further discussion as below :
•    Quantity : % of loan amount over business revenue
•    Quality : % of loan amount with interest rate below market rate
•    Cost : Amount of financial cost saved per year
•    Timeliness : Dateline of achieving ratio of loan amount over business revenue at x figure
 
  Of course, while setting the KPI, it is on case-to-case basis to meet the client business requirements. For the case as per above, the current financial issues faced by the Agnes Foo, the priority of financial issues to be solved in current year, the financial goals set to support the Business Strategy shall be taken into consideration.
 
  Next Issue:
KPI Tracking, KPI Reporting and KPI Improvement are the next focuses of our bosses. However, for employees, their concern is, “Would KPI link to our Performance Appraisal ?” I would discuss it in my next topic.
 
  Should you have any comments/inputs/topics that wish us to put in this Sharing Session, please feel free to drop
us a mail.
 
 
For more information, please visit our Our Articles, Photo Gallery, or our  website @ www.brainperformance.com.my
 
  Please feel free to forward the above articles to whoever that may find it useful. If they are interested to subscribe the above articles, they are most welcome to email admin@brainperformance.com.my for the above subscription.
 
 
Copyright © 2011. Brain Performance Consultants Sdn Bhd (853925-W). All Rights Reserved.