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(by Choong Ewe Lee)


Most of the KPI oriented companies may not encounter the issue of KPI synchronization, until the moment they link KPI to their Bonus/Salary Increment Exercise. Why ? Even though KPI is result oriented & measurable, but the KPI owner could still set easy KPI target, to achieve higher KPI score. Let’s say, Mandy, a conservative person may set achiveable target (2% higher than last year achivement), and Ken, an ambitious person may set challenging target (20% higher than last year achivement). Eventually, Mandy may possibly achieve higher KPI Score than Ken. Is that meant, Mandy is more capable or perform better than Ken ? This is always being debated during my consultation of Bonus/Salary Increment Project.
  Any solution for this currently ? Yes. After several years of research, we have finally found out the solution. We can use KPI Synchronization Approach to defining & synchronize the Challenging Level of each Dept KPI. Let’s say, Sales Dept may have 4 KPIs, we will rate the challenging level of each KPI by Struggling, Challenging or  Achievable. With this, we can quantify the challenging level of Sales Department, and compare it with other departments to ensure that the KPIs set are equally challenging within certain acceptable tolerance level.   
This approach has greatly assisted us to reduce the grievances while distributing bonus or salary increment due to the different challenging level of KPI set among departments. Let’s say, those department with uncontrollable KPI set (i.e. Sales Target) may get lower bonus, as compare to those department who has more % of controllable KPI set (i.e. supporting department).
  We would have more detail explanation of the KPI Synchronization Approach during our KPI At Work Training Workshop. Hopefully, it will be beneficial to you.  
  Next Issue:
Build a Team based KPI is very crucial, else there will be no cohesiveness of KPI among the dept. Next issue is, “Building A Team based KPI” Please read our next issue. 
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