Motivation of the commercial director: what to do if the head of the department works without enthusiasm title. Motivation of the commercial director: what to do if the head of the department works without enthusiasm Examples of kpi for the head of the tax service

Andrey

Preamble: “Listen, I found out about such a cool thing here! Let's launch!" said our founder, returning from another foreign trip to the distributor forum.

Thus began a two-year epic with the transition to new system wages. In 2010 what is KPI no one in our company knew. I had to read a lot of different literature, of course, Internet resources were studied and outlined.

For some reason, many sources initially misinterpreted the essence of the system of key indicators. Even now, on the Internet, you can often see articles where from the very beginning the system is described as a personnel assessment system.

I remember those debates at planning meetings - department heads arguing about how to correctly understand and calculate these same KPI. The most complex formulas were built in Excel, where the indicators of employees were linked in proportion to the indicators of managers, etc. As a result, it was decided to undergo leadership training.

We were lucky. Since the company was adequate and well versed in its business, after the training everything fell into place.

KPI (Key Performance Indicator)— Key indicators of the enterprise. This is an indicator of the situation in achieving certain goals. It can be said that KPI is a quantifiable indicator of actual results achieved. This is a figure showing the actual cut (in this moment) of the selected indicators. The scorecard itself has nothing to do with motivation and salary. into Russian KPI often translated as "key performance indicator", which is also not true. Efficiency is the ratio of results to costs, and with the help of KPI other options can be displayed. “Key performance indicator” of an enterprise is a more convenient translation for me.

So what is KPI if you figure it out?

Each enterprise has many indicators, each of which someone must constantly monitor, well, or which are simply of interest to someone. For example, the founder of a company is most likely interested in profit and growth in the value of the enterprise. Directors - turnover, marginality, costs. Head of sales department - accounts receivable. Chief Accountant - properly executed documents. The head of the supply department is illiquid, turnover. And so on.

All these are the key indicators of the enterprise. Each company has its own. Everyone has probably seen foreign films where a top manager sits, smoking a cigar, staring at a big screen on which graphs float? Usually these are stock brokers. But in my imagination, an image of a director is drawn, who monitors all the indicators in the same way as the results of the work of the business processes of his enterprise, and when the graphs “redden”, he recruits a responsible person, getting involved in correcting the situation.

Also, often confused KPI and BSC (Balanced Scorecard, Balanced Scorecard). KPI and BSC are of course related in some way, but this is far from the same thing. The BSC is a slice of the "business processes" on which the goals are located. As indicators of the achievement of these goals, indicators of these business processes are often used − KPI. A little chaotic, but the article is not about DSC and I wrote this so that you would not believe everything that they write.

Let's go back to our KPI. For example, we have now implemented monitoring of indicators based on 1C Volgasoft (a separate conversation about this buggy thing for the date of 2012, but which we did not find better) What happens next?

Let's say we have an indicator of "resorting by warehouse" of 1% and this is a problem (by the way, there is good methods identifying company problems), as customers complain that the warehouse does not work well. How can we improve the situation? This is where it comes to mind that the system of indicators can be taken as the basis of the motivation system. And thanks to this, get the opportunity to manage the values ​​​​of indicators. Many here make the mistake of setting a plan for KPI for resort warehouse =0. In 2012, a major paint company, in my opinion, overdid it with KPI in the motivation system, making it difficult to understand and not feasible, as a result, the sales team was destroyed, since the employees did not receive bonuses all year. And, by applying the mechanism in building a system of retro bonuses (motivation built on KPI for the buyer 🙂) has also lost the loyalty of many of its large customers.

So, configured monitoring by indicators makes it possible to influence these indicators. Gradually move them, allowing the staff to get used to it, from the existing fact to the maximum possible result. It is important to understand that this is not a panacea that guarantees 100% service. This is a tool with which employees begin to pay attention to the results of their activities, since their wages depend on it. And when the plan approaches the physical possible value, the same staff begins to look for problems that prevent them from improving the situation, which ultimately also gives a plus.

Where to begin?

First you need to describe all the main business processes in the enterprise that we want to control. Find control points for each process (time, quantity).

The following types of key indicators are usually distinguished:
KPI of the result - how much and what result was produced;
Cost KPI - what resources were needed;
KPI of functioning - performance of BP (allows you to track that all algorithms are executed without failures);
Performance KPI - usually the time spent on processes;
KPI efficiency - the ratio of results to costs.

When developing process indicators, the following rules should be followed:

• The set of indicators should contain the minimum required number to ensure full-fledged business process management;
• Each indicator must be measurable;
• The cost of measuring an indicator should not exceed the managerial effect of using this indicator.

KPI can be used to monitor activities, draw up enterprise plans, and motivate staff. Also, the motivation built on this system gives an awareness of the responsibility of each employee who performs his area of ​​work.

Actually, everything is clear with monitoring and plans, I will dwell on the motivation system in more detail.

Standard motivation systems usually include 1 indicator + a system of penalties. For example, the manager has % profit + fines \ bonuses. And often, many positions have no motivation for the result at all. For example, a storekeeper has a premium = 10,000 + fines - shortage.

Motivation built on KPI is fundamentally different from the old schemes. Basically, nothing can change. That is, the percentage of profit, as it was with the manager, remained the same. But then the resulting amount is divided into several parts, each of which forms the basis for assessing the established standards. So, the whole premium is 100%. The premium may be fixed or floating. I will give an example of motivation

Storekeeper:

1%Deviation of shipments, reaching the consumer 30%
2 Knowledge of the goods by the storekeeper 15%
3 Use of barcode or terminal 25%
4 Resorting in the warehouse 15%
5 Goods acceptance rate 15%

Senior storekeeper:

1 Conducting inventories 15%
2 Commodity loss during storage 20%
3 Marking of storage places of goods 15%
4 payroll warehouse 40%
5 Processing speed of detected shortages 10%

manager:

1 Sales volume
2 Accounts receivable10%
3 Gross profit 10%
4 Successful clients 20%
5 Sales by product groups B2B 50%

The percentage is how much of the premium will be valued. By setting it, we either lower the value of the indicator in the RFP or, on the contrary, make it significant. So it is called - "WEIGHT". As you noticed, different positions have different indicators divided by responsibility. When developing a system, it is necessary to take into account a number of factors in order to achieve indicators:

• calculated automatically and were not subjective.
• were easy to understand for employees so that they could realistically evaluate their work.
• The indicators must be achievable, but at the same time, employees need to make some efforts in order to achieve the planned result. If the plan is overestimated, then employees, seeing the unreality of the plans, will not even try to achieve it. If we already set an overestimated plan, then we must provide a tool for its implementation - promotions, discounts, etc.
• Each indicator should carry a meaningful load and be important for the company. For example, the indicator “number of calls” or “number of sales” is often found. How will they help? how can KPI take place, for example, to calculate the load on resources, but in motivation!? I, being a manager, would easily negotiate with clients and make 10 invoices instead of 1, while the amount of shipment and profit would not change.

Introducing such a system, we must be aware that employees will primarily perform those tasks and direct their efforts in those areas on which their salary depends. And if you overdo it, the rest simply won't work. Some especially important indicators can be duplicated for different positions, but I would not get carried away with this, since by doing this we reduce the total number of indicators tied to wages.

Also, it will not be superfluous to motivate employees to exceed the plan. By the way, let's talk about how all the same the plan is put?

To begin with, standards are set. Before forming them, you need to collect the statistics of the existing level.

What are we asking here? The fact that if an employee has fulfilled the plan by 84%, then he will not receive anything for this indicator. if 90% then 60% premium. If he overfulfilled, he can be rewarded with an additional 20%

Next, the manager inserts plans for each indicator. The slave must see at any time the % completed. At the end of the period, the calculation wages based on weight,% of the plan and the established standard.

At the end you should get something like this:

It really works, I speak about it as a person who has tested the system in practice.

We continue the series of materials devoted to KPI performance indicators of top managers responsible for various functions within the company. Theoretical basis The KPI method has been described in previous publications, so this article provides only minimal explanations that contribute to a quick understanding of the material. We draw attention to the fact that all the above examples of KPI managers cannot be used in practice by analogy without appropriate adaptation to the specific conditions of a real enterprise.

In previous publications, we have already noted as a business axiom the fact that any company is interested in the maximum effective sales its products. Motivation of the commercial block is the first thing organizational reforms begin with, and the last thing that ultimately satisfies the heads of the enterprise, undeservedly, but for obvious reasons (from the point of view of the perception of the layman), bypassing almost all other divisions.

Today we will consider the functionality, goals and examples of KPI of a commercial director (CD). The attentive reader will immediately understand that we are talking about companies with active sales, and not passive sales. Actively selling companies work “from the market” and not “from production”, respond faster to changes in taste and demand, and more dynamically organize the activities of commercial divisions.

How to send an employee to

In this case, three different functionalities of the commercial block and, accordingly, KPI-schemes for CA are possible.

The first version of the functionality and KPI of the commercial director

CD is actually sales management. Such a CD-1, most likely, grew out of a sales director and acquired the proud name of "commercial" not so much due to the expansion of its area of ​​responsibility in related areas, but due to an increase in sales volumes and scales. In geographically distributed companies in dynamic industries (for example, retail), CD-1 often leads "sales clusters" - large sales departments consisting of several small departments, each of which is responsible for sales in a certain territory. The “bush” usually covers the whole region, the “bush” is headed by its own sales director, and at the level of the entire company, the CD is responsible for sales activity, to which the “bush” sales directors are subordinate.

In this case, the main task of CD-1 is to develop sales, increase turnover and coverage areas of the company, up to the obligatory presence of its sales outlet of the company in each locality Russian Federation. Even with the most successful product, such a structure will not allow reaching global significance due to the controllability of the CD, but it will completely allow covering all the main economic regions of Russia.

Obviously, the following KPIs will take place in the KD-1 scheme:

• turnover / sales plan / profit;
• increase in quantity outlets for the period or compliance with the company's development plan (if there is a general plan);
• the share of new clients / territorial units in the total turnover;
• share of overdue accounts receivable.

The second option of functionality and KPI KD

CD is wider. In fact, CD-2 will be responsible for all commercial (and not just selling) activities of the company, and then the development and promotion of products will fall within his area of ​​responsibility. Thus, the new product, marketing, advertising and PR divisions will also be under the control of CD-2. Such an expansion of functionality does not mean that now he can breathe easy and forget about sales, their development will remain in his area of ​​​​responsibility in any case. However, adding parcels will result in new KPIs appearing in its schema.

So, CD-2 can have the following indicators:

• profit / sales plan / turnover;
• the number of exclusive contracts with suppliers;
• number of new clients/territories for the period;
• the number of new products for the period;
• the share of new products in the structure of all company products (better monetary terms- in the form of income from the sale of new products, and not in kind);
• the proportion of potential customers who are aware of the company's activities, etc.

World and domestic practice

Sometimes COO is translated into Russian as "Executive Director" (EC), but the current practice of domestic enterprises shows that the EC is more often engaged in auxiliary processes of the enterprise, building its structure, establishing the main business process in terms of management and, to a much lesser extent, directly commercial activities. In essence, COO is responsible for the successful functioning of the entire business with an emphasis on the sales component. The nuances are so subtle that it is not yet possible to give a comprehensive definition of the differences. Russian enterprises are still developing their practice market management, so the mixture of "French with Nizhny Novgorod" in the structures will be found for quite a long time.

The third option of functionality and KPI KD

CD is the widest. CD-3 begins to manage the entire product chain - from purchases to sales, however, the production director (DP) usually remains subordinate to the general director (DG). Relations between the CA and the DP in such a scheme are built on the principle of "customer (CD) - contractor (DC)", and the financial director (FD) in this option sometimes falls under the control of the CA. Marketing, PR, a new product are also subordinated to the CD. Thus, the figure of the CD is enlarged almost to the position of the general director. By the way, the CEOs of companies often grow out of CD-3.

In our opinion, the financial block for CA is not always logical, however, due to the frequent acquaintance with such structures in practice, we tried to understand the reasons for such a wide functionality. There is a hypothesis that such a wide functionality of CHs is obtained in those structures that were formed from large international companies. In fact, the functionality described for CD-3 is nothing more than the zone of influence of the COO (Chief Operations Officer), who picks up the entire “operations” while the CEO (Chief Executive Officer) is busy with strategic management issues.

So, the KD-3 scheme includes the following indicators:

• profit (most likely in terms of profit, not turnover);
• implementation of a business development plan (this can include both the opening of retail outlets and territories, and saturation with a new product in the sales structure, and the arrival of new large customers - the nuances depend on the specific goals of the enterprise);
• share of exclusive contracts with suppliers and customers (market maker conditions);
• financial stability (share of equity in relation to borrowed capital, cost borrowed money, volume of overdue receivables, maturity of cash gaps, etc.
• depending on the specific situation)
• profitability of divisions / sales (included in the concept of profit, but when building enterprise processes, it is often taken out as a separate indicator - to focus the manager's efforts on it).

The functionality and indicators of CD-3, in fact, cover almost the entire business (except for some auxiliary processes such as personnel and security management, IT, AHO, etc.), which is why the career of CD-3 usually develops towards general management.

A CEO can grow from several top positions:

• financial director - then it will be the CEO, who rightly believes that money loves an account, skillfully manages costs, but rarely develops a business;
• production director - this CEO will know the product to the smallest detail, develop production and marketing activities;
• marketing director - such a CEO will actively take on everything new, but not finish what he started.

GD - ex-marketers are usually good at startups, but ineffective at solving routine business tasks, which in practice are much more than exciting innovations. We do not recommend bringing the former director of security to the position of the State Duma, because it may turn out that only enemies, dangers and conspiracies lie in wait for you. But KD-3 is more likely to be an effective CEO in competitive industries in dynamic markets.

To evaluate the work of a manager, you can implement a system such as KPI in a company. It has already proven itself well in the West and has been successfully used in Russia for several years now. The system can be used in both small and medium big business. With its help, you can identify the weak links in the company's work and build a long-term development strategy. The work of top managers is one of the most important components of success, and we will look at how the KPI of a leader is measured.

Some Features

It is important that the tasks assigned to the manager be realistically fulfilled. If the requirements are too high, then the manager can simply give up immediately. To accurately assess the achievements of the leader, you need to take a time period equal to one year. it optimal time for which the employee can prove himself and achieve improvements in performance. It is best to combine personal indicators with general ones, so the picture will be much more objective. General indicators are those data that the department shows. And, the higher the level of a manager, the more important it is the general indicators for evaluating his work.

KPIs are always specific values ​​expressed in numbers. But you should not take a lot of indicators at once, otherwise the result will be blurry. It is best to focus on 5 indicators - this number is optimal, according to experts.

Achievement levels

For the top management, certain levels of achievement are established:

1. The minimum threshold below which bonuses are no longer accrued.
2. Target - a bar for paying out bonus money.
3. Exceeding. If the manager exceeds the target threshold, then he is awarded an increased bonus as an incentive.

For the head of the department, indicators can be, for example, as follows:

• How the plan is carried out.
• How the reporting on documents is observed and discipline is maintained in the department.
• How efficient are employees.

Moreover, for the heads of different departments, their own performance indicators should be set, which correspond to the direction of the work of the unit. For example, some managers are engaged in personnel, while others are in sales. For these people, of course, the indicators will differ.

Eventually

The well-being of the entire company depends on the effectiveness of the work of top managers. Therefore, it is beneficial for the owner to introduce a KPI system in order to monitor the work of their managers and identify all their shortcomings. From this we conclude that the KPI of the project manager is a very important thing.

We are opening a new cycle dedicated to the topic of KPI, launched last year1. This time we will consider the main steps for implementing a personnel motivation system tuned to KPI. Let's focus not on the method as such and general approaches to functionalities, but on key indicators that usually fall into the company's top management scheme. Assimilation of this material will require a certain amount of patience from the reader, because the presentation general principles perceived is always easier than parsing particulars.

Sustainability is progress without impatience.
Nassim Taleb

For top managers, as for all other employees of the company, there are general rules, but there are rules that apply only to a specific position.

How to send an employee to

Usually, the general rules for motivating all managers (including "tops") include the following:

• objective analysis and assessment of the position held - the complexity, area and degree of responsibility of the work performed;
• are taken into account key features and the goals of the employee and the share of their participation in achieving the goals of other employees;
• at least three and no more than five KPIs of employees are taken into account for the main goals of the employee 2 ;
• business processes in which employees participate, the degree of personnel involvement in the main business process are taken into account.

However, along with the general rules, there are also specific rules for each position, taking into account the individual responsibility of the top manager for the area of ​​activity (process, project) he leads and goals.

The specific rules for the CEO (CEO) are usually set by the shareholders of the company, since the CEO is the spokesman for their interests, the “translator” of strategic desires and intuitive expectations from the business into the language operational management. Sometimes shareholders define these specific rules for key top positions, for example, for a commercial director, financial director, production director.

Usually, shareholders indicate what they would like to see as the final result of the company's activities, and it is in connection with this that certain KPI parameters of top managers are called. Often this sounds very general, for example: “All top managers should participate not only in profits, but also in the risks of the company” - translated into KPI language, this is likely to be at least two indicators: by total profit and by profitability across departments. The remaining indicators relate directly to the goal or functionality for which each top manager is responsible.

The CEO is "easiest" because he is responsible for everything. The duty of the State Duma is to ensure the effective functioning of the economic object entrusted to it. And this means that the projections of all goals and processes are reflected in the area of ​​his responsibility. Figuratively speaking, the CEO is responsible for everything he does and for what his top managers do.

If this is taken literally, the KPI diagram of the State Duma will be voluminous and confusing, because it will have to reflect the KPI of all his deputies, as well as his own indicators, since, despite the popular saying “do nothing yourself if there is a good deputy”, The active CEO has a lot to do on his own.

To build a target 2 KPI chart for the CEO, you can go one of two ways.

Method 1 (more correct, but also more complex) - building a Strategic Map of the CEO.

strategic map includes all the goals of the GC (and usually these are all the goals of the top-level company), distributed across four main perspectives: development, processes, customers and finances 3 . At the same time, the goals are not arranged in an arbitrary order, but in a hierarchy, reflecting the connectedness (which goal must be achieved earlier in order to move to the next one) and the strength of the connection (to what extent the achievement of the previous goal is a necessary and sufficient condition for the fulfillment of the next one). An example of a Strategy Map is shown in figure.

The numbers next to the targets indicate their weight. The goal, which includes maximum amount links from other targets has a weight of 1, and the rest of the targets - proportionally. In the figure shown, the most important financial goal for the State Duma - "to increase the capitalization of the company." It includes with an equal weight of 0.5 (equal weight is an assumption to simplify the example) two more goals: the client one “to have at least 70% of the market share in the regions of presence” and the process one “to provide necessary resources for development". The client goal includes three more goals from a process perspective. Their weight is divided proportionally already in relation to the weight of 0.5. The KPIs developed for each goal with SC are reweighted according to the weight of the goal, and only those KPIs that receive a weight of at least 0.1 are left for the final calculation.

The result will be a kind of KPI table that fully takes into account all the nuances, but requires really advanced accounting system enterprises in order to be able to calculate everything in a correct way. We will not give all table, since this is quite a voluminous material for an example, we will limit ourselves to two goals with SC and KPI for them.

The KPI sum is not equal to one, because for the example we did not use all the goals from the CEO's Strategy Map.

Premium / bonus \u003d (BFKRP x A + BF KPI2 x B + ....) x D,

where BF is the maximum bonus fund according to the indicator. The share of each KPI in the total BF is proportional to its weight;

A, B, ... etc. - coefficients for the performance of indicators;

D is a stop factor blocking the bonus payment if the minimum threshold values ​​for each indicator are not reached (these can be different “thresholds” according to different indicators or a single norm for the company, for example, 80% of the plan). Failure to reach the minimum threshold accepted by the company for any of the indicators included in the calculation formula blocks (or significantly reduces) the bonus payment. That is, the value of the coefficient D changes from 0 to 1.

This method is correct, because it allows you to take into account the significance of both goals and KPIs, but it is usually difficult to implement, so it is used when the company does not have a clear understanding of the specific significance of goals, i.e. it is difficult to prioritize their achievement "on the forehead", directly, and it is required to carefully trace the connection, the conditionality of some goals by others, so as not to miss anything in the final KPI scheme.

If the company clearly understands exactly what goals it sets for the foreseeable period and in what sequence, then you can use an easier way to create a KPI chart for the CEO.

Method 2. Development of a KPI map "on the forehead".

When implementing this method, all the goals of the CEO are written out, which are indicated to him by the shareholders (most often it is all the same profit and profitability), KPIs are determined for them, their weight is assigned by an expert (which should be equal to 1 in total) and the conditions under which the bonus is paid in full or reduced amount. The strategic map is not built.

Let's assume that the goals of the CEO, as outlined to him by the shareholders, are measured by the following KPIs:

• Admission Money(PDS).
• Profit.
• Repeated contracts with clients for the period (in kind or in monetary terms).
• Percentage of timely completion of tasks (upper management level).

Revenue per one employee of the company (it can be broken down by departments or separately production personnel and office staff). For each KPI, two threshold values ​​are set: the first - if it is not reached, the bonus is not paid for this particular KPI, and the second - if it is not reached, the bonus is not paid at all, regardless of the percentage of other KPIs. The CEO bonus/bonus formula thus includes five indicators, each with its own threshold value. Then the CEO bonus calculation table might look like the one shown in table 2.

The calculation is made on the basis of those planned and actual values ​​that are entered into the table from the company's accounting system.

The main rules that should be taken into account when linking KPIs to the system of motivation for top managers are as follows:

1. Indicators must be supported by the accounting system.

2. The performance of the CEO should include the performance of other top managers (in fact, the performance of the CEO is the performance of the company).

Indicators should not be more than five or less than three.

3. The weight of the indicator correlates with the share of the bonus fund allocated to the total premium.

4. Each indicator has threshold values ​​at which no bonus is paid for this particular indicator.

Often, a general stop factor 4 is introduced - the minimum value of performance of indicators, failure to achieve which at least one of the indicators cancels or significantly reduces the total bonus, regardless of the percentage of performance of other indicators.

Approval of the scheme of indicators and bonuses to the CEO is usually carried out by shareholders. The general director's bonus scheme serves as the basis for further development of bonus schemes for the rest of the company's top managers.

When building a KPI system for managers, several principles must be taken into account (see also Table 1).

Linking KPI to strategy

Key indicators should depend on the company's goal, on what you want to achieve in a certain period. For example, the objectives may be to achieve a leading position in the market or bargain sale business. Then, in the first case, the KPI will be sales volumes, expanding the customer base, and in the second case, increasing the company's capitalization, obtaining the maximum value for sale.

The goal should be formalized, that is, expressed in writing and broken down into lower-level goals - tasks, the implementation of which will make it possible to achieve main goal. It is advisable to draw a tree of goals and link them to the current one. organizational structure companies.

ClarityKPI

Oddly enough, often people are afraid to show their ignorance in any issue and are ready to work without even understanding the task. I observed the setting of tasks in one large holding. At meetings with the first person, employees nodded their heads, listening to the tasks, and leaving the room, they asked each other what the boss had in mind.

It is necessary to clearly state what you mean by each term of the KPI system. The company must have a regulation on KPI, approved by the company's authority (CEO, board of directors, board). In the provision, it will not be superfluous to give examples and calculation formulas. If possible, all terms should be linked to articles accounting. If you use Russian accounting standards, then rely on them, if IFRS, then use the terms and calculated indicators from this system. If you use two reporting systems, then clearly indicate which system will be used to calculate a particular indicator. For example, not all tangible assets accounted for in IFRS are also reflected in Russian standards.

Hold one or two meetings where you explain the content of the KPI statement. Let each top manager calculate his bonus (for example, based on the previous year's data). Give it a few days, and then call everyone again and sort out the mistakes. Sometimes after such meetings it is necessary to make changes in the situation.

Limit number of indicators

When approving KPIs, determine the maximum number of indicators that will be set for each manager. I believe that a person can simultaneously control no more than five to seven indicators.

Real Reachability

A big mistake is made by those who set inflated KPIs, guided by the principle "chase the sun - you will catch a firefly, chase a firefly - you will not catch anything." A top manager, given a task that is obviously impossible or extremely difficult to complete, simply stops making efforts to complete it.

KPIs are calculated once a year - this is the minimum sufficient period to evaluate the achievements of a top manager. What to do if a top manager got a job within a year? To answer this question, I will cite the Insol group of companies (Moscow) as an example. The variable part of the salary is calculated there as follows. The work plan includes indicators that are based on an analysis of the achievements of the manager according to similar criteria for previous years with the addition of 20% (the planned percentage of development per year, established executive director). If the manager was recently admitted to the company, then when drawing up the plan, the performance indicators of his predecessors are studied, and then 20% is also added to the average value. The amount of the bonus depends on the level of implementation of this plan. For example:

• 50% bonus if the indicator obtained is higher than planned;
• 30% if the planned indicator is received;
• 10% if the indicator obtained is lower than planned;
• the variable part is not paid if an unacceptably low indicator is received.

Combination of personal and general indicators

In the KPI system, it is better to combine personal and general indicators. General - these are indicators of work structural unit, which is managed by your top manager (enterprises in a group of companies, branch, department, department). General indicators will help ensure teamwork, the manager's interest in the final result. The proportions of personal and general indicators depend on the specifics of the industry, the specific company and the position of the person for whom KPIs are set. The higher the position of a person, the lower the share of personal indicators. For a top manager, personal indicators can be 10-20% or even completely absent. Examples of personal KPIs of the head of the company can be obtaining qualification certificates of a specialist financial market(mandatory for some companies), preparation of a successor.

Result that can be calculated

KPI must be expressed in specific digital indicators. For example, for a HR director, such an indicator as providing the company with highly qualified personnel is unacceptable. Several mistakes were made at once: the term, number, composition of personnel are not clear. In addition, the evaluation category "highly qualified" is given. The HR Director and the General Director may not agree on whether qualified or highly qualified personnel have been selected.

It is necessary to determine how the indicator will be calculated. It is wrong if you need to buy expensive information for the calculation, involve third-party organizations or spend a lot of your own time for the calculation. For example, if the marketing director sets the indicator "brand awareness", then you need to understand that you will have to order an expensive study to evaluate this indicator.

For each KPI, it is better to set achievement levels: threshold (below which the bonus is not accrued), target (at which the provided bonus is paid) and maximum (above which the increased bonus is paid).

The ability of the manager to influence the indicator

There are some general indicators on which the influence can be indirect, but in personal indicators there should be a direct connection between the action and the result. For example, for the CFO, you cannot set the KPI "the presence of cash gaps" if the decision on the timing of payment, the provision of commodity loans and payment to one counterparty or delay to another is made personally by the General Director.

The reward must be substantial.

If the share of the bonus is insignificant in the total income of the manager, then he will not devote enough time to achieve strategic goals, but instead will plunge into solving "urgent" current problems. The bonus of a top manager must be at least 100% of the fixed part of the salary (for ordinary personnel - at least 20%).

The amount of remuneration must be fair

Your employees will perceive as fair those indicators that are no more than 30% different from the indicators in the industry. Therefore, when developing KPIs, study the experience of colleagues.

The next important issue is the fair order of KPI calculation. Imagine that a certain amount of profit was set as a KPI for top managers, and at the end of the reporting period it turned out that only 50% of the indicator was achieved, which, in accordance with the KPI regulation, is not rewarded. At first glance, everything is correct. However, if we take into account that this year was a crisis and more than 50% of the companies in the industry went bankrupt, and the rest with difficulty went to zero or received minimal profit, it turns out that the management of this company, having received 50% key indicator, accomplished a feat and, of course, deserves an award. To avoid such a problem, it was necessary to link indicators to industry-wide ones.

Table 1

An example of a KPI for a top manager - General Director

Case study 1. KPI for a store manager

I will give an example trading house"People's" (Bishkek, Kyrgyzstan). In this company, the following KPIs are set for store directors.

KPI 1. Implementation of the sales plan. It is expressed as the ratio of the actual store revenue for the reporting period to the planned revenue. The sales plan for the reporting period is approved by the General Director in agreement with the financial and commercial directors. The assessment of this key indicator is carried out by a company analyst (see. tab. 2).

table 2

KPI 1 of the store director "Fulfillment of the sales plan"

KPI 2. Compliance with reporting and performance discipline. It is expressed in the timely preparation of reports, the transfer for payment of invoices for utilities, filing documents in the archive, exchanging data, fulfilling the orders of the General Director, fulfilling the norm for inventory, following corporate standards observance of reporting and performing discipline. The evaluation of the indicator is carried out by the commercial director of the company. One violation - one point. (cm tab. 3).

Table 3

KPI 2 store director "Compliance with reporting and performance discipline"

KPI 3. Work of subordinate personnel. Personnel assessment is carried out by the curator according to the approved parameters with the recalculation of violations into points. For example, parking and the entrance to the store must comply with engineering and technical sanitary requirements. Mismatch - 2 points (cm tab. four).

Table 4

KPI 3 of the director of the store "Work of subordinate personnel"

Case study 2. KPI for the director of the Russian division of a large holding company

Initially, KPI was tied to EBITDA in the company. Then the business moved to the next stage of development. At the same time, incomes grew, but there was no corporate discipline.

The Divisional Director has four tasks:

• minimization of the company's expenses;
• preservation of the achievements of previous periods;
• compliance with the procedure for making decisions in accordance with the standards of the parent holding company;
• minimization of losses.

In order to encourage the director to achieve these goals, four KPIs are set for him. Upon achievement of planned indicators, a remuneration in the amount of 150% of the annual salary is paid.

KPI 1. At least one of the outlets that have been operating for more than a year has been at a loss for more than three months. The fulfillment of this indicator is assessed by the board of directors or the audit committee on the basis of the operating profit report. The weight of KPI 1 in the bonus is 0.3 (that is, 30% of the bonus).

KPI 2. Failure EBITDA during the reporting period. The fulfillment of this indicator is assessed by the board of directors or the audit committee on the basis of the income statement. The weight of KPI 2 in the bonus is 0.3.

KPI 3. Violation of internal normative documents about the decision-making process. The presence or absence of precedents is fixed by the board of directors. The weight of KPI 3 in the bonus is 0.2.

KPI 4. Failure to comply with the decisions of the board of directors. The presence or absence of precedents is fixed by the board of directors. The weight of KPI 4 in the bonus is 0.2.