Before Owls Nest Capital creates KPIs for each goal, they will need to have many organizational processes in place for this to be effective. Without having the processes in place will render all of the measurement processes of the KPI’s useless wasting time, money, and resources.
Some of the base processes needed to be successful are as follows:
• Strategic & Annual global planning
• Formalizing structures, processes, and roles for all members of the organization
• Identifying clear objectives for each strategic goal and vision for all teams/units
• Creating quantifiable, measurable, detailed, and timely KPIs
• Communicating KPI and clear objectives to all employees from the top down
• Continual strategy meetings based on feedback from KPIs
Strategic and Annual Global Planning
Strategic Planning is one of the MOST important things that management can do for the health of the organization. Planning helps to identify how management objectives are achieved by setting performance goals and creating the means to achieve them. Planning provides the starting point for making the decisions and taking action that build the organization's future.
Formalizing Structures, Processes, Roles for Entire Organization
Formal structures and processes are important in the allocation of decision-making rights and the distribution of information across the entire organization and all members of the company from the top down. Processes must be measurable across the enterprise.
Identifying clear objectives for each strategic goal and vision for all teams/units
The first step to understanding whether the company is headed where it wants to, these goals must be matched into clear objectives. At the departmental level, objectives translate into specific activities that are unique to the work of that department.
Creating quantifiable, measurable, detailed, and timely KPIs
They must be matched to each organizational objective and be quantifiable, measurable, and timely.
Communicating KPI and clear objectives to all employees from the top down
For KPIs to be effectively implemented, an organization must make sure that all managers and employees (top-down) thoroughly understand it. To achieve this, the KPIs must be communicated clearly by distributing clear objectives, activities, and KPIs throughout the organization.
Continual strategy meetings based on feedback from KPIs
The main goal behind KPIs is to discover activities that move a global organization towards its goal of success. This is achieved if the information gathered from KPIs can be effectively traced back, activities, overall strategic plans.
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