In businesses, human resources play an important role because they can help businesses increase productivity and profits effectively. In this economic era, to survive and thrive, businesses not only use financial KPIs but also track non-financial metrics. such as the time it takes for the system to receive a signal or the quality of the product. In addition, there are external metrics such as customer satisfaction, brand preference, employee satisfaction, maintenance and succession planning.

KPIs are the main goals of the business, and are often tied to the business strategy. KPIs are also assessed using a performance management tool such as the Balanced Scorecard (BSC).

In business, goals are achieved not only by the efforts of one person, but by many people in many different departments. Performance managers believe that stratifying and systematically setting goals between individuals creates a "shared responsibility" and this is one of the factors that contribute to success in the business. Besides, the business will then use the core performance indicators as the foundation for analyzing, monitoring performance and making fundamental important strategic decisions related to personnel and resources.

The implementation of the balanced scorecard core performance indicators BSC usually consists of four steps:

• The business will change its vision into measurable performance goals and communicate it to employees in a reasonable and clear way.
• Goals will be linked to KPIs to measure individual performance assessed on an established periodic basis.
• Internal processes are established to meet and/or exceed strategic goals and customer expectations.
• Finally, the key performance indicators will be analyzed to evaluate and from there make recommendations to improve the company's performance in the future.

Here are some benefits of using indicators KPI through the Balanced Scorecard method BSC To measure the success of the business:

• Employees and managers have a holistic view of the overall goals of the business. From there, each individual can adjust his capacity and goals to match the overall goals of the company.
• Motivate employees to set their goals with others in the business to create shared responsibility among employees
• It's easy for managers to keep up with employee progress during the goal-to-goal phase, thereby, providing immediate improvement to keep performance and deadlines on track.
• Create an open, interactive environment through quality feedback regarding goals and progress

Set up a transparent strategic system for the business     

Set up a goal system so that the business ensures all employees share a vision of the business strategy and ensures everyone is focused on key business goals.

In addition, the system allows to translate high-level strategic goals into detailed goals for every business unit to create a clear vision. Thereby, each employee can clearly see his contribution to the success of the business.

More importantly, every employee has the ability to develop his or her goals against the goals of the business to foster strategic understanding, create commitment, and foster personal accountability.

Source: successfactors.com