CORPORATE GOVERNANCE: PERFORMANCE INDICATORS (KPIS)

An important stage in the Strategic Planning process, which occurs after the Strategic Objectives and Projects are defined, is the structuring of the Performance Indicators, as discussed in the article Corporate Governance: Strategic Planning.The Performance Indicators, also known as Key Performance Indicator (KPI), are used to measure and manage company performance. Through the indicators, it is possible to identify the success of a particular area in achieving its Strategic Objectives. The use of KPIs by partners and managers allows for the anticipation of decision-making, through corrective measures aimed at overcoming the deviations found and continuous improvement actions. In some cases, it may even culminate in a change in the company's Strategic Planning. The definition of Performance Indicators must be judicious, including the analysis of factors that directly influence the company's daily life. There are several types of indicators that can be accompanied, such as productivity, financial, quality, etc. The indicators can be divided as follows:

• Strategic Indicators:these are the indicators that will be monitored by the company's Board of Directors. Its objective is to measure, in a simple and objective way, whether the goals and objectives are being met, such as Gross Revenue, EBITDA, Product Development, etc.
• Tactical Indicators:these are the indicators that will be monitored by the company's management. Its purpose is to provide support and basis for Strategic Indicators, such as Customer Billing, Product Billing, Contribution Margin, etc.
• Operational Indicators:these are the indicators that will be monitored by the Analysts of each sector of the company. Its purpose is to provide details and explanations that help explain the Tactical and Strategic Indicators, such as Number of Clients by Business Segment, Medium Term Inventory, etc.

The three levels of action mentioned above are fundamental for the correct assessment and management of KPIs. The participation of the entire company team generates engagement and, above all, allows action plans to be drawn up to assess and correct errors. Ideally, the indicators should be defined with the participation of all sectors of the company, with the objective of mapping the needs and objectives of each of them, considering their peculiarities, and making the result obtained more assertive. However, what is observed in many companies is the definition from top to bottom by the partners and board of directors. In these cases, the company's management may make erroneous decisions, without observing the specificities of each sector, and opting for goals that are difficult to achieve, creating conflicts and demotivating employees. With the participation of the team in defining the indicators, the employees become more engaged, becoming more involved in everyday activities with the objective of achieving the goals and objectives set out in the Strategic Planning. By monitoring the defined KPIs, analyzing the results obtained, it is possible to identify the main organizational problems and map opportunities for improvement. The constant monitoring of these indicators reduces misdirection, giving greater agility to corrective actions, saving time and resources that could be being wasted. Its monitoring can be carried out using management spreadsheets, specialized software, dashboards and tools from Business Intelligence that assist and facilitate the work of the entire team. An example of a Performance Indicator can be seen in the table below, in which it evaluates the performance of a company of software for educational institutions:

*The information presented above is fictitious. The possibility of evaluating, judiciously and quantitatively, the performance of the company's sectors makes the Performance Indicators an important tool that can attest to organizational quality and efficiency. Performance Indicators are fundamental to the professionalization of a company because they make the management of organizational processes more dynamic and efficient. Through this tool, business control and vision become simpler and more objective, increasing the chances of generating better results in the medium and long term.ARTICLE WRITTEN BY PEDRO FENATI — ASSOCIATE OF FC PARTNERSGo to our site: http://www.fcpartners.com.br