What is feedback used for in the consultation process 9 WORKBOOK 2016 YOUNG

2. What is feedback used for in the consultation process?

9 WORKBOOK | © 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | OPERATIONAL PLANNING_V2.4 1.3 – Ensure details of the operational plan include the development of key performance indicators to measure organisational performance Key Performance Indicators (KPIs) will assist you in the planning process. They will provide you with quantifiable measurements that will reflect the success factors of the organisation. To be successful, KPIs must reflect the organisation’s goals, they must be to the organisation’s success, and they must be quantifiable. KPIs to reflect organisational goals If an organisations goal is to “obtain a five percent increase in our market” they will have key performance indicators to not only increase profit, but also to increase sales and/or service. These KPIs reflect the organisation’s performance and gives staff a target to work towards. KPIs to be quantifiable If a KPI is not quantifiable, it is useless. KPIs such as “Increase sales” or “Increase customer retention” need to specify an amount. Instead of Increase sales, you could have increase sales by five percent or increase customer retention by seven percent. Even though you set targets for the key performance indicator, it does not make them the key to the success of the organisation. Limit the KPIs to the specific goals that will lead to the organisations goals. To ensure that your focus remains on the organisation, do not have too many KPIs. How to write a Key Performance Indicator The operational plan will usually contain a list of key priority areas for the coming area. Actions and strategies will usually address these priority areas. This is where the KPIs start. 1. Once a manager has formulated the department’s objectives in line with its vision, mission, strategies and objectives. 2. KPIs have four components which are the: a. Objective that tells what you aim to do. Example: To increase sales b. Measurement is the measurement we use. Example: Sales growthc. Target is what we want to achieve and when. Example: increase sales growth by 20% in 2011d. Initiatives is a set of all of the above actions, Example: (a)To increase sale (b) growth (c) by 20% in 2011 3. These KPIs should be passed to their appropriate subordinates. 4. The KPI is then monitored usually directly by the manager to ensure that the KPIs have been met.

10 WORKBOOK | © 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | OPERATIONAL PLANNING_V2.4 Achievement of the KPI can be rated into scales. Example: 3=Exceeds requirements 2=Meets requirements 1=Not meet requirements 0=Unsatisfactory. Achievement of the KPI is used by management to give rewards such as bonuses, yearly incremental and promotion of their subordinates.

11 WORKBOOK | © 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | OPERATIONAL PLANNING_V2.4 Activity 1.3 Individually or in pairs, research the following: 1. What are the two key successful factors for a KPI?