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KPIs are important. Again.

Key performance indicators and the performance appraisals were not that important before the financial crisis. The economy was booming and the managers usually succeeded as the income of the organizations were growing and booming as well. It changed. The organization has to focus clearly on its strategic initiatives and it has to be managed properly and efficiently. The managers have to focus on the performance management and they have to set the right goals to employees. They have to focus on KPIs.

The organization has to clearly communicate its business strategy and its key KPIs, which have to be reached in the year. When CEO clearly communicates the targets of the company, the managers and employees can better understand the initiatives, the organization takes. It can be easily a differentiation from the competitors, when the employees know, where the organization is heading and they can monitor the overall progress on their own.

HR is in a driving seat for the performance management process. The top management can expect a lot from Human Resources. The performance management process has to be revised and rebirth by Human Resources as it helps the organization to reach the goals. HR has to set the basic principles for the KPI setting as the whole organization goes the same direction.

Many managers believe, the KPIs are not important, but they have to understand, the real goals for the employees are extremely important as the employees can follow the goals of the organization and they can judge their ideas and they can increase their contribution to the overall results of the organization.

The KPIs are extremely important again as the top management can navigate the whole organization the same direction. The role of Human Resources is about bringing the analysis of the KPI setting process and to manage the whole process as the top management can see, how the top level KPIs are divided among the individual employees as they really contribute to the results of the organization.

KPIs are about the concentrated business strategy into a yearly plan. When the top management sets the top level KPIs on the organization level, the management has to set their own KPIs to show the real results of their units and the goals have to be cascaded to the individual employees as the organization is sure, it will reach the goals, when the predictions of the economy were right. The organization without KPIs is not leading. It just follows the others.