Top 5 indicators: see the most used KPIs in each business area

Posted by Mereo
at Tuesday January 17th, 2017.

At the end of 2016, Mereo’s consultants’ team carried out a research with over 50 companies of different sizes and segments, regarding the main performance indicators (or KPIs) used to measure their capacity to deliver results.

With this research, we seek to identify the most commonly used practices in companies to measure the performance of processes, areas, and people.

Pesquisa-KPI-Mereo

Also read: Foreseeing the future with HR Analytics

But what are indicators?

Performance indicators, also known as KPIs (Key Performance Indicators) are the metrics that quantify the performance of each area according to their processes and their deliveries to the business.

KPIs are critical to the composition of improvement goals,  and they should be aligned to the strategic planning and routine goals that measure whether if the processes have predictable results and if they’re are under control. Once the KPIs of each area have been established, the management phase of these indicators will begin.

From the time the process starts to “run by its feet” with the proper monitoring, managers will have the necessary subsidies to assist in decision making and the creation of improvement strategies.

Research: “Performance Indicators – The top 5 Business Support Areas KPIs”

Many companies face difficulties in defining the correct performance indicators of their processes, this is mainly for the areas that are not business finalists such as Human Resources, Financial and Information Technology.

 

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As defined by the Porter value chain, primary activities relate to the physical creation, sale, maintenance, and support of a product or service, while support activities assist the good performance of primary activities. Because KPIs in the support areas are harder to define, we’ve developed the search exactly for those areas.

The survey, which was conducted by Mereo’s consultant Mateus Faria, covered a universe of 58 companies from 11 segments and. Check below what are them:

Information Technology

The IT sector is highly complex and the decisions of the area increasingly impact the results with the advancement of artificial intelligence. Actions such as creating “calls” opening channels and collecting data through Business Intelligence are critical to the good performance of the area.

Main KPIs: SLA (Service Level Agreement), Availability, Projects Conclusion, Expenses, Effectiveness.

Human Resoursers

The Human Resources area still faces the challenge of expressing its results through indicators, either by the subjectivity of the data or by the absence of formulas and methodologies capable of measuring their contribution to the business. These indicators justify the attraction of investments to the area through the expressiveness of the results generated, such as increased talent retention for example.

Main KPIs: Expenses, Absenteeism, Completion of projects, Performance evaluation, Rotativity.

Financial

Financial performance indicators are mostly targeted by reflecting their ultimate goals related to the profitability and financial health of the business. They also consolidate the performance of all other indicators.

Main KPIs: Expenses, Project conclusion index, EBITDA, Audit and Revenue

Legal

These indicators verify the good progress of the activities carried out by the legal departments of the companies. They provide the vision of process control and meeting deadlines by the team.

Main KPIs: Expenses, Revision of contracts, Completion of projects, Closing of proceedings, Completion of agreements.

The detailed results (in Portuguese) of this research with the complete list of indicators can be accessed in the material bellow:

ebook-pesquisa-Indicadores-de-desempenho

Download the e-book to find out more!

The performance management tools are the main allies of the managers because they will aid in the decision-making process through facts and data, allowing the proactive attitude and guaranteeing the competitive advantage of the business.

Contact us and learn how a company that has implemented its Management Platform in companies such as Grupo Pão de Açúcar and Banco Intermedium can also help your business reach new management levels!

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