Last week we talked about the importance of developing a performance measurement system. Here's some pointers on how to do this:
1. Clearly define your mission statement (normally part the business plan).
2. Identify strategic objectives and goals using your mission statement as a guide.
3. Catalogue exactly what your company does as a set of inter-connected business processes.
4. Develop a KPI for each process that measures how well the business is doing in that particular area. (It should be simple to understand, easy to respond to and credible in the eyes of its users. It should also facilitate learning and therefore continuous improvement.)
5. Measure regularly and use the performance results to locate areas of opportunity and improvement.
6. Provide feedback to all levels of the organisation.
At Paul Martin Chartered Accountant Ltd we can discuss this with you and provide greater insight into developing a performance measurement system to suit your business. Call us on (09) 576 4166.