Grasping the meaning and importance of KPIs in promoting common development, in recent years, many Vietnamese enterprises have been embarking on the development and application of KPIs. But only a few businesses have been successful. Learning and analyzing the causes of failure will draw experiences and lessons to avoid failure and increase the likelihood of success when applying KPIs to your business.
Grasping the meaning and importance of KPIs in promoting common development, in recent years, many Vietnamese enterprises have been embarking on the development and application of KPIs.
However, not many units get the desired results when developing and applying KPIs. So what are the reasons for this failure? With many practical studies and experiences drawn from theory, experts have drawn some of the main reasons below:
1 – Due to incorrect understanding, leading to asynchronous and complete execution
Many businesses have embarked on the implementation and application of KPIs as a mere evaluation tool to establish and measure the work completion results of employees at the end of each evaluation period. In fact, the essence of KPI is a set of criteria established for strategic management from setting goals - monitoring the implementation process - warning performance for improvement - adjusting goals in a timely manner.
2 – There is no consistency from leadership in the application and implementation of KPIs
Deploying KPI is essentially giving a common goal and allocating it to each department and individual so that everyone knows what their task is, what they need to do to realize the common goal and strategy. of the whole organization. Therefore, it is necessary to understand correctly and unify from top to bottom. However, there are many businesses that do not pay attention to this when applying KPIs, leading to employees and organizations not understanding KPIs correctly, they will feel this is a monitoring tool, leading to dissatisfaction and no spirit of contribution, work.
3 – Lack of determination of leaders and organizations
Because they have not been advised to properly understand the essence of KPI implementation, the importance of KPIs for the overall development of the business, underestimate or not pay attention, high determination to put all efforts and determination. implementation, completely leaving subordinates to deploy while KPI is a common goal, unified and requires synchronous determination and efforts of the whole team.
4 – The capacity and coherence of responsibilities of the implementation team is not strong enough
Often in each company when embarking on KPI implementation, the implementation team is drawn from excellent employees of different departments. Therefore, when completing the KPI, this group usually breaks up and returns to normal work. Meanwhile, KPI always needs to have a dedicated person or group to monitor and synthesize, to give timely warnings, it is impossible to wait until the end of the new period to "alert" will be meaningless.
5 – Enterprises lack preparation and focus resources to implement KPI
Because of misjudging, seeing KPIs as just a set of measures and assessments to control employee performance leads to no collection of the organization's total resources to coordinate implementation.
The above are the basic reasons leading to the failure of KPI implementation in many businesses that have been gathered by the opinions of experts with the desire to share good knowledge so that managers can have more useful equipment. useful on the way to fulfill its mission. Please leave your comments so that we can improve our knowledge treasure to share and spread positive values to the community.