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Who's responsible for KPIs

Good morning! I am wondering what everyone's belief on who is ultimately responsible for setting KPIs for various divisions / departments? I am the VP Finance, and have been asked to come up with and set KPIs for the HR department (who I am not directly responsible for). I understand that I should be working with the operational units to help them come up with something that works for them, however, I am not sure if I should be telling the other departments what they should be measuring. Any insight would be very much appreciated.

Answers

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

There should be cross functional collaboration to accept / validate the KPI will drive the business objectives. The heads of the operational units should "know" the cost and value drivers that roll-up / directly tie to the KPIs. Working with support/enabling functions like HR / Finance/ IT/ Marketing, a operational plan is established to execute to the KPI. No silos...every stakeholder having skin in the game. Hope this helps.

Topic Expert
Jaime Campbell
Title: Chief Financial Officer
Company: Tier One Services, LLC
(Chief Financial Officer, Tier One Services, LLC) |

I agree with a collaborative approach. We are experts in measuring, in processes related to measuring, and in asking the questions which help someone really focus in on what is worth measuring.

They provide the meat.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

In simple terms.........YOU TRANSLATE AND PROVIDE CONTEXT! You do NOT provide the text!

If you have to provide the text, then you have bigger problems. The KPIs are a unit of measure or the notches on a yardstick. It is a collaborative effort in the sense that they provide the text.

Anonymous
(Vice President - Finance) |

I agree that we have 'bigger problems' ... thank you for the confirmation of exactly where my thought process is at.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

I would agree and add that the top down approach is rarely accepted well and will not create buy in. People need to feel that their opinion matters rather than being told this is how you will be measured. If they can participate in creating the KPIs they will own them. You can take some suggestions in case someone is struggling with coming up with something. I will typically have a few in mind that I think may be good ones, and suggest them only if I am getting blank stares.

Topic Expert
Jaime Campbell
Title: Chief Financial Officer
Company: Tier One Services, LLC
(Chief Financial Officer, Tier One Services, LLC) |

I quite agree with my colleagues Emerson and Christie. This applies to department members as well as heads of other departments. Furthermore, in addition to the product being valuable (the set of KPIs), the process itself can awaken others to the specific and positive impact they can have on something larger than themselves.

One of the top dangers is in measuring things that don't matter. Leading indicators are fine, and helpful, but if you get TOO many steps away from actual impact, room for creativity decreases and it's more busy work than anything else.

Anonymous
(Vice President - Finance) |

Thanks for the feedback ... confirmed to me what I thought was correct. Very much appreciated!

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