By : DSAJanuary 2014

Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals.

KPI are important to business because they help it focus on common goals and ensure those goals stay aligned within the organization. This focus will help a business to stay on task and work on meaningful projects that will assist in reaching objectives faster.

To determine KPI's for your business or project, first determine the overall goals. This should originate from the organization's mission statement. Decide what to measure, and how to measure it. Be specific.

If you're measuring sales increase, will you be measuring the number of units sold or amount of dollars? Are you subtracting returns? Lay out a specific formula so that everyone get's the same number when calculating.

Bad:

Title of KPI: Increase SalesDefined: Change in Sales volume from month to monthMeasured: Total of Sales By Region for all regionTarget: Increase each monthWhat's missing? Does this measure increases in sales volume by dollars

or units? If by dollars, does it measure list price or sales price? Are returns considered and if so do the appear as an adjustment to the KPI for the month of the sale or are they counted in the month the return happens? How do we make sure each sales office's volume numbers are counted in one region, i.e. that none are skipped or double counted? How much, by percentage or dollars or units, do we want to increase sales volumes each month? (Note: Some of these questions may be answered by standard company procedures.)

Good:

Title of KPI: Employee TurnoverDefined: The total of the number of employees who resign for

whatever reason, plus the number of employees terminated for performance reasons, and that total divided by the number of employees at the beginning of the year. Employees lost due to Reductions in Force (RIF) will not be included in this calculation.

Measured: The HRIS contains records of each employee. The separation section lists reason and date of separation for each employee. Monthly, or when requested by the SVP, the HRIS group will query the database and provide Department Heads with Turnover Reports. HRIS will post graphs of each report on the Intranet.

Target: Reduce Employee Turnover by 5% per year.

Key Performance Indicators Must:Reflect the organization's goalsBe key to it's successBe quantifiable.

Ukuran keberhasilan harus menunjukkan indikator kinerja

yang jelas, spesifik dan terukur (measurable)

Ukuran keberhasilan harus dinyatakan secara eksplisit dan

rinci sehingga menjadi jelas apa yang diukur

Biaya untuk mengidentifikasi dan memonitor Ukuran

Keberhasilan sebaiknya tidak melebihi nilai yang akan

diketahui dari pengukuran tersebut. Hindari pengukuran

yang berlebihan yang tidak banyak memberi nilai tambah.

Guidelines in Formulating the KPIGuidelines in Formulating the KPI

KPI GuidelinesKPI Guidelines

Balanced ScorecardBalanced Scorecard

IdentifyingDefining

MeasuringMonitoring Reporting

Key Key Performance Performance

IndicatorsIndicatorsCompany Company strategystrategy

VisionMissionStrategy

Balanced Balanced ScorecardScorecard

VisionMission

and ValuesStrategy

Finance

Customer

Internal Business Process

Learning

Key Performance Indicators

Key Performance Indicators

Key Performance Indicators

Strategic ObjectivesStrategic Objectives

KPI = Ukuran atau Indikator yang akan

memberikan informasi sejauh mana kita telah berhasil mewujudkan

sasaran strategis yang telah kita tetapkan

Key Performance Indicators (KPI)Key Performance Indicators (KPI)

10 langkah proses cascading

Tujuan Divisi

Relevansi Divisi

Pelanggan Divisi

Aktivitas Divisi

Identifikasi Harapan Pelanggan

Menurunkan SS Perush ke Divisi

Memperhatikan Isu-isu Lokal

Konsolidasi dan Tes Logika

Memilih KPI

Menentukan Target & Inisiatif Strategis

Analisa Visi dan Misi Divisi

Lihat langkah 2,3,4 dan 5 dan kembangkan perspektifPelanggan dan Keuangan, Proses Bisnis dst

Mengidentifikasi Pelanggan Divisi

Mentabulasi output, pelanggan, dan ekspektasi pelanggan

Me-review langkah 1 dan mengidentifikasi SS yg harus diturunkan ke Divisi, lalu menentukan SS tambahan yg diperlukan divisi

Mengidentifikasi kontribusi dan pengaruh Divisi thd Peta Strategi Perush

Mengidentrifikasi tugas pokok (proses inti) Divisi

Menyusun Peta Strategi Divisi

Mengidentifikasi dan mendefisikan KPI utk setiap SS

Menentukan target KPI & Inisiatif Strategis utkSetiap SS

Increase Sales Revenue

Measure Results

• Sales Revenue

Measure Activity

• Jumlah Kunjungan ke Klien Prospektif• Jumlah pameran produk yang dilakukan

Tingkatan Key Performance Indicators

Manage Cost Efficiency

Enhance Long-term Shareholder Value

Increase Revenue Growth

IncreaseCustomer Acquisition

Nurture Customer Satisfaction

Achieve Operational Excellence

Develop Employee Satisfaction

Drive Demand via Customer Relation

Management

Manage Dramatic Growth through

Innovation

Corporate Balanced Scorecard Map - Corporate Balanced Scorecard Map -

An ExampleAn Example

Financial

Customer

Business Process

Learning & Growth

Expand Market Share

Enhance Employee Productivity

Improve Employee Appraisal System

Tabel BSC dan KPITabel BSC dan KPI

Perspektif Sasaran Strategis KPI Target

Financial (bobot 25)

Enhance Long Term Shareholder Value

Profitability (Rp) 5,000

Profitability Growth (%) 10

Increase Revenue Growth

Revenue (Rp) 50,000

Revenue Growth (%) 12

Manage Cost Efficiency Overhead Cost Ratio (%) 8

Customer (bobot 25)

Nurture Customer Satisfaction Customer Satisfaction Index 8

Expand Market Share Market Share per Product (%) 40

Increase Customer Acquisition

Percentage of Loyal Customers (%) 50

Perspektif Sasaran Strategis KPI Target

Business Process

(bobot : 25)

Achieve Operational Excellence Number of Product Defects

100 per 1 million

Drive Demand via Customer Relationship

- Time To Response Customers' Request max 24 hours

- Number of Customer Gatherings 6 per year

Manage Growth via Innovation

- Number of New Products Launch 2 in this year

- Number of New Initiatives Implemented for Continous Improvement 10

Learning (bobot : 25)

Develop Employee Satisfaction - Employee Satisfaction Index 8

Enhance Employee Productivity

- Sales Revenue Per Employee (Rp)

500 per employee

Menyempurnakan Sistem Evaluasi Kinerja

- Persentase Penyelesaian Sistem Manajemen Kinerja Baru

100 % ready in November 2012

Perspektif Sasaran Strategis KPI Target Achievement Score

Financial (25)

Enhance Long Term Shareholder Value

- Profitability 5,000 5,100 102 103 25.80

- Profitability Growth 10 11 110

Increase Revenue Growth

- Revenue 50,000 52,000 104

- Revenue Growth 12 12 100

Manage Cost Efficiency - Overhead Cost Ratio 8 8 100

Customer (25)

Nurture Customer Satisfaction - Customer Satisfaction Index 8 7.80 98 93 23.33

Expand Market Share - Market Share per Product 40 37 93

Increase Customer Acquisition

- Percentage of Loyal Customers 50 45 90

Business Process

(25)

Achieve Operational Excellence - Number of Product Defects 100 per 1 million 100 per 1 million 100 99 24.80

Drive Demand via Customer Relationship

- Time To Response Customers' Request max 24 hours average 25 hours 96

- Number of Customer Gatherings 6 per year 6 100

Manage Growth via Innovation

- Number of New Products Launch 2 in this year 2 100

- Number of New Initiatives Implemented for Continous Improvement 10 10 100

Learning (25)

Mengembangkan Employee Satisfaction - Employee Satisfaction Index 8 7.60 95 95 23.75

Mengembangkan Produktivitas Karyawan

- Sales Revenue Per Employee 500 per employee 450 90

Menyempurnakan Sistem Evaluasi Kinerja

- Persentase Penyelesaian Sistem Manajemen Kinerja Baru

100 % ready in November 2012

100 % ready on time 100 97.68