The KPI Institute has partnered with the ECCP Competency Hub, the training arm of the European Chamber of Commerce of the Philippines (ECCP), and business consulting firm HURIS, Inc. for an online forum focused on how organizations can thrive in uncertain business conditions.
The event, titled “The Making of Successful Enterprises in a Volatile Business Environment,” was held on August 12, 2021, and featured speakers who are consultants and experts in human resources and performance management.
Among them was Cristina Mihailoaie, The KPI Institute’s Business Unit Coordinator of Research Programs. She discussed how performance measurement systems and practices changed during the pandemic. Companies shifted their attention to financial KPIs (Key Performance Indicators) that look into cash flow management, profitability, and cost management in an attempt to rescue their business. Investment plans were halted and financial strategies changed. Employee productivity took a different turn, with most corporations adapting to 100% remote work or hybrid systems.
Another point emphasized during the online forum is the importance of performance measurement in organizations. It was concluded that the most effective tool to put everyone on the same page is to use clear objectives, initiatives, and KPIs even if they are short-term oriented. As organizations respond to tight deadlines, they need real-time data and fast, relevant tools to assess and report performance levels.
The participants also learned how to approach risk management by using KPIs. Even small organizations can monitor risks by including leading KPIs or Key Risk Indicators in their scorecards. For instance, setting a red line level for # Days in accounts receivable can help businesses manage better cash flow.
Cristina recommended that the performance criteria used for employee evaluations, whether they involve KPIs or not, should be flexible, easy to adapt to changes, and more focused on the extent to which the role is successfully achieved, compared to looking at operational details. She also recommended the usage of OKRs in monitoring and evaluating employee performance.
The key takeaway of the presentation “Evolving KPIs in the face of the post-pandemic era” is that strategic planning and the usage of KPIs for organizations is more important than ever in order to articulate and communicate a strategic direction for employees, to take informed decisions, and to monitor and mitigate risks.