Cascade KPI and Link Them to Actions

July 25, 2016
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More and more companies are now aware how they are going to make sure that they respond well to their customers and provide the services that they demand for. The performances of these organizations vary but they only have one goal and that is to ensure that they are offering only the best for their clients. This is because the satisfaction of their clients is their main priority because this will lead to several more benefits when they have assured that they customers are happy with the job in serving their clients. With the key performance indicators that the organizations have discovered they are able to provide excellent services and products to their customers. Cascade KPI is a process that allows them to define the right goals at the precise levels.

KPIs can be both organizational and just meant for a single department or individual. In order for a company to check that their indicators are truly effective. To achieve this, there is a need to determine the key factors that the KPIs should cover. These are known as the success factors, which are all critical to the efficiency of the indicators. In this regard, it is important for companies to know how to cascade KPI from being a business KPI into an individual one. Once again, it is vital that the authorities know how to design the measures and processes that are essential to the KPIs.

So how do you cascade KPI? This is not one of those easy tasks but many people will find it simple to learn. The first thing that the company owners will have to do is to link the performance management strategies to the KPIs. This way, they can create a plan that is suitable for the entire organization and not just a single department. Next is to actually cascade the organizational key performance indicators into the particularized KPI. Then the manager will have to set the latter KPIs and target them to the processes and procedures that contribute to the success of the organization. Later, the organization will have to design new KPIs that are meant for the whole company and they will have to connect them to the compensation process.

Now that you have successfully finished the cascade KPI process, it is appropriate that you understand how important it is to ensure that you have performed the necessary actions for the indicators. Cascade metrics into the defined goals for the corporation and you will be able to align them correctly with the strategies and plans of the company. This process involves the fact that you will have to cascade the KPIs into certain levels that will meet the requirements for the objectives to be attained. You can show in your strategy map what will happen when a certain action is performed. This is shown by means of causal relationship drawings. Help the employees understand that there is dire need for the comprehension of each of the goals and assist them in grasping the meaning behind the importance of the key performance indicators.