Boosting the SME Grade with KPIs

Boosting the SME Grade with KPIs

In SMEs, there is a constant tug of war regarding effectiveness, accountability, human capital growth financial growth. As with large organizations, it is important for SMEs to gauge, benchmark, gauge again and benchmark again. How many SME human resource professionals or SME owners utilize business scorecards? How about HR scorecards? The key to achieving organizational growth is utilizing the numbers to make informed decisions. I have talked about the numbers, HR metrics and now KPIs and scorecards as they remove the guess work from assessing your organization’s current and future position.

As and SME owner, do you wonder what do these tools mean for my SME? Are these effective tools for my SME? You are never too small to grow! Strategic growth entails utilizing tools to make calculated decisions regarding all aspects of business. This also involves utilizing HR tools to make informed calculated business decisions and HR decisions. Successfully growing your SME will require aligning your business scorecard (BSC) with your human resource business scorecard (HRBSC).

Utilizing these tools will set the stage for building an impressive financial wherewithal in your SME. Key performance indicators (KPIs) are numbers that when applied to a HR scorecard, it reveals the current stance of your employee performances. They are key to assessing the current performance management system, if one is in place, as well as gauging needed changes, if necessary. KPIs are also key to assessing if your current employee performances are effectively facilitating your SMEs’ growth.  

Key Performance Indicators (KPIs) are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.

*  SMEs can identify a KPI as the percentage of its accounts receivables derived from return customers.

*  Student graduation rates can act as a KPI for a school.

 *  A KPIs of an organization’s overall customer service 

         department can involve the percentage of customer calls 

                                    answered within the first minute.

                                       * A KPI of a social service organization may be the 

                                             number of clients serviced during a year.

Developing (KPIs) is an essential way to assess your SMEs current HR position, as well as gauge how and when changes should be made to the company’s HR system. Setting KPIs must be relevant, readily available, holistic, clear, simple and understandable, and will work. More importantly, KPIs must be aligned with an organization’s goals.

The numbers derived from a KPIs are one of many strategic tools that will ensure as a SME, you will assess your company’s current position and gauge your HR department’s course of action.

Look for All-4-HR & Business Solutions online seminar: Boosting the SME Grade With KPIs on Wednesday, October 30, 2013.

Until Next Time!

April D. Halliburton, President

All-4-HR & Business Solutions

Organization and Management PhD Candidate

References

Garengo, P., & Biazzo, S. (2012). Unveiling strategy in SMEs through balanced scorecard implementation: A circular methodology. Total Quality Management & Business Excellence, 23(1), 79-102. doi:10.1080/14783363.2011.637800

Manville, G. (2007). Implementing a balanced scorecard framework in a not for profit SME. International Journal of Productivity and Performance Management, 56(2), 162-169. doi:http://dx.doi.org/10.1108/17410400710722653