• Main office: Pelings House, Ruiru Matangi
  • Call us +254-722-502-584

Key Performance Indicators (KPI)




  • Established and incorporated in January 2006

  • Started as a Corporate Strategy Audit & Assessment Company-specializing in assessment of key performance indicators (KPI) for organizations

  • Based on opportunities identified, Pelings  diversified into PEO business focusing on recruitment, training, labor outsourcing and consulting

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    Initial Preparation/ transition period

    • Agreeing on the principles of collaboration – Clarifying the protocols

    • Scope and duration of contract

    • Determine Long term and short term objectives

    • Determine achievable (Volumes, Material Usage Variance etc)

    • Safety, Health and Environment (SHE) expectations

    • Invoicing  and mode of payment

    • Periodic performance reviews

    • During the transition period one of our senior executives will be attached at our own cost with the shop floor staff at your company to familiarize with the operations

     

    Contract execution

     

    At the onset of the contract/during the transition period

    Deliberate with your company  on

    • Key operators and their functions

    • Caliber/ competence of casuals/ contract staff required

    • Shift rotation program

    • Line layout and staffing requirements

    • Need for shop-floor supervision

     

    KPI responsibilities to the employees

     

    KPI Ltd responsibilities will include but not limited to:

    • Recruit all the staff required

    • Ensure statutory enrollments (NSSF and NHIF)

    • Ensure periodic medical check-ups are done and certificates are up-to-date

    • Identify employee training needs on safety and process

    • Agree on a wage structure

    • Ensure timely payment of wages

    • Provide WIBA and ELI  covers

    • Conflict resolution mechanisms for contracted workers

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      Provide a senior staff who can be reached at all times by the employees

    • Ensure all staff strictly follow Standard  Work Procedures of the company

     

    Your responsibilities will include among others providing;

    • Appropriate uniforms (KPI can provide uniforms in non-critical process areas)

    • Personal Protective Equipment/Clothes (PPE)

    • Reimburse

        • Contracted workers' statutory deductions (NSSF)

        • WIBA

        • Employer liability (EL)

        • Industrial training levy

        • Medical costs

    • Provide weekly plan & ensure availability of equipment in good working condition

    • Provide performance measurement metrics

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    Pelings responsibilities to you

     

    • Ensure required numbers of workers are always available

    • Provide daily/Shift reports of output

    • Document any incidents/ accidents and share them promptly with your Staff.

    • Provide a shift team leader/ supervisor for every shift

    • Any other responsibility that may be jointly agreed between the two companies

     

    Our Clients

    1. Focus Cabs Nairobi – Labor outsourcing

    2. Consumer Reconnect Services Ltd- Labor outsourcing

    3. HRSP Nairobi- Industrial Relations & Training consultancy for Bata

    4. KICC- HR & Marketing Research surveys

     

     

    Notes

     

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

    Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements.

     

    What Are Key Performance Indicators (KPI)

    Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.

    • A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers.

    • A school may focus its Key Performance Indicators on graduation rates of its students.

    • A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute.

    • A Key Performance Indicator for a social service organization might be number of clients assisted during the year.

    Whatever Key Performance Indicators are selected, they must reflect the organization's goals, they must be key to its success, and they must be quantifiable (measurable). Key Performance Indicators usually are long-term considerations. The definition of what they are and how they are measured do not change often. The goals for a particular Key Performance Indicator may change as the organization's goals change, or as it gets closer to achieving a goal.

     

    Key Performance Indicators Reflect The Organizational Goals

    An organization that has as one of its goals "to be the most profitable company in our industry" will have Key Performance Indicators that measure profit and related fiscal measures. "Pre-tax Profit" and "Shareholder Equity" will be among them. However, "Percent of Profit Contributed to Community Causes" probably will not be one of its Key Performance Indicators. On the other hand, a school is not concerned with making a profit, so its Key Performance Indicators will be different. KPIs like "Graduation Rate" and "Success In Finding Employment After Graduation", though different, accurately reflect the schools mission and goals.

     

    Key Performance Indicators Must Be Quantifiable

    If a Key Performance Indicator is going to be of any value, there must be a way to accurately define and measure it. "Generate More Repeat Customers" is useless as a KPI without some way to distinguish between new and repeat customers. "Be The Most Popular Company" won't work as a KPI because there is no way to measure the company's popularity or compare it to others.

    It is also important to define the Key Performance Indicators and stay with the same definition from year to year. For a KPI of "Increase Sales", you need to address considerations like whether to measure by units sold or by dollar value of sales. Will returns be deducted from sales in the month of the sale or the month of the return? Will sales be recorded for the KPI at list price or at the actual sales price?

    You also need to set targets for each Key Performance Indicator. A company goal to be the employer of choice might include a KPI of "Turnover Rate". After the Key Performance Indicator has been defined as "the number of voluntary resignations and terminations for performance, divided by the total number of employees at the beginning of the period" and a way to measure it has been set up by collecting the information in an HRIS, the target has to be established. "Reduce turnover by five percent per year" is a clear target that everyone will understand and be able to take specific action to accomplish.

    Next: KPI Must be Key To Organizational Success

    Performance Management and KPIs

    Linking Activities to Vision and Strategy


    Is your team's performance reaching company targets?

    Managers talk a lot about employee performance. There's constant pressure to achieve performance targets, to reach higher performance levels, and to ensure that people's work supports and furthers the organization's goals.

    Performance management is the process used to manage this performance. The key question asked is, "How well is an employee applying his or her current skills, and to what extent is he or she achieving the outcomes desired?"

    The answer has traditionally been found in the performance evaluation process, where managers look for hard data to tell how well an employee has performed his or her duties.

    What is often missing from this evaluation, however, is the part about making sure that the employee is doing the right thing. After all, you may have a very hard-working and dedicated team member, but if he or she is not working on things that advance the organization's purpose, what is the point?

    This is where key performance indicators come into play, and they apply both at the organizational and individual levels. At an organizational level, a Key Performance Indicator (KPI) is a quantifiable metric that reflects how well an organization is achieving its stated goals and objectives.

    For example, if your vision includes providing superior customer service, then a KPI may target the number of customer support requests that remain unsatisfied by the end of a week. By monitoring this, you can directly measure how well your organization is meeting its long-term goal of providing outstanding customer service.

    If your KPI is inappropriate or naive, however, the resulting behaviors may be counterproductive. For example, using the same goal of providing superior customer service, the first KPI that often comes to mind is the number of customer complaints received. Intuitively, you may feel that the fewer complaints you receive, the higher the customer service you're offering. This is not necessarily true: You may be getting fewer complaints because you have fewer customers, or because customers are not able to access your support services.

    Taking this a step further, while it is important for organizations to choose the correct KPIs for business performance, it is equally useful if managers and employees define KPIs for members of their teams. In fact, an ideal situation is where KPIs cascade from level to level in the organization (in reality, this may be impractical if there are many levels to the organization.) This helps people work in such a way that their activities are aligned with corporate strategy.

     

    Employee Goals and KPIs

    So part of performance management is setting goals with members of your team. This may be done within the formal appraisal process, but it doesn't have to be. The important factor is that the goals that are set are aligned with the department's strategy, which in turn is aligned with the overall strategy of the organization.

    This follows the common adage in management that says, "What is measured gets done." If you set a goal around a certain outcome, the chances of that outcome occurring are much higher, simply because you have committed to managing and measuring the results.

    When an employee's goal is defined in terms of an organizational KPI, it ensures that what the employee is doing is well aligned with the goals of the organization. This is the critical link between employee performance and organizational success.

    Let's take an example of how an individual employee's goal is linked to organizational strategy:

    • Organizational Vision

      – To be known for our superior customer service and satisfaction.

    • Organizational Objective

      – To reduce the number of disatisfied customers by 25%.

    • Organizational KPI – The number of customer complaints that remain unresolved at the end of a week.

    • Team Member's Goal

      – To increase the number of satisfactory complaint resolutions by 15% this period.

    Taken to the next level, each employee goal should have at least one associated KPI. How will you specifically measure, on a regular basis, whether or not this person is meeting his or her goal?

    • Team Member KPI – The weekly percentage difference in complaints handled that result in satisfied customers versus unsatisfied customers.

    Tip:
    For a detailed discussion on setting strategic direction, see the Strategy Tools section of Mind Tools. Of particular relevance is the article on Critical Success Factors (CSFs) as KPIs are essentially a way of making CSFs measurable..

    Use the following questions to help you work towards defining effective KPIs:

    Understanding the context

    • What is the vision for the future?

    • What is the strategy? How will the strategic vision be accomplished?

    • What are the organization's objectives? What needs to be done to keep moving in the strategic direction?

    • What are the Critical Success Factors? Where should the focus be to achieve the vision?

    Defining KPIs

    • Which metrics will indicate that you are successfully pursuing your vision and strategy?

    • How many metrics should you have? (Enough, but not too many!)

    • How often should you measure?

    • Who is accountable for the metric?

    • How complex should the metric be?

    • What should you use as a benchmark?

    • How do you ensure the metrics reflect strategic drivers for organizational success?

    • How could the metrics be cheated, and how will you guard against this?

    • What negative, perverse incentives would be set up if this metric was used, and how will you ensure these perverse incentives are not created?

    KPIs and Rewards, Recognition, and Development

    When you are satisfied that you have meaningful metrics for measuring organizational or employee performance, you now have to make sure that the supporting elements of employee performance are aligned as well.

    Just as what gets measured, gets done; so does what gets rewarded!

    When you are establishing your rewards and recognition practices, make sure that what you are rewarding ties directly to the KPIs you set. For example, if you are measuring people on how well they deal with customer complaints, then rewarding them for lowering numbers of complaints confuses the message you're trying to send.

    Conversely, if your organization wants to attract new customers, then you might have a KPI that measures how many new customers are attracted each week. Depending on the situation, a well-aligned performance system may reward employees based on the number of new customers they personally help to attract.