KPI or Key Performance Indicators help an organization define and measure how well they are doing in relation to their organizational goals. A KPI indicates to the stakeholder whether the company is on track.
After an organization has identified its mission statement and listed its objectives, it needs some measure or indicator that will tell it how it is progressing. This is what the KPI does.
The KPI differs depending on the organization.
A school might have a KPI that indicates the number of students graduating with distinction each year, or the number of students who land a job on campus each year.
An IT organization's KPI might be the number of projects delivered on time and to the client's satisfaction, every quarter.
A tailoring shop could base the KPI on the number of tailored garments produced each week.
Some more examples:
Training department of an organization - % of employees provided with refresher course, Average training cost per employee, Number of courses offered in a quarter
Production KPI – Defects per million, Average production cost, Scrap value %, etc.
The KPI must reflect an organization's goals. An IT major might be involved in several philanthropic activities, but its KPI will not be the number of underprivileged children fed each day, since that is not its basic objective, but just something they do on the side. Its KPI will be more on the lines of profit and customer satisfaction.
A KPI must be quantifiable. "Be the best takeaway in town" is not a valid KPI, because there is no way you can measure it, and be sure that it is indeed the best in town. On the other hand, "Number of repeat customer orders," "Total value of orders processed each day," makes more sense, and gives a better indicator of the kind of work it is doing, and will give a fair idea of the popularity of this takeaway as compared to the competition.
It is a quick and easy way of checking out the actual performance, and aids in quicker decision-making.
KPIs on your resume: It is very important to discuss KPIs on your resume.For one, prospective employers are pleased to know that you are concerned about how your performance affects the company's success. Two, when you are aware of the KPIs, it shows that you are committed to making your performance count.
When listing out your job profile, write down a few significant KPIs. Then talk about your specific action that contributed towards that KPI.
Example 1: If you are in a maintenance team that has to track, log and fix errors quickly, and if these errors tend to pile up and create a huge backlog, and you have developed a new system to bring these errors back onto the priority list, this is what you can do:
Reduced error backlog time. Developed a new program to assign high priority to logged errors older than 3 days, resulting in an increase in the rate of error fixing by 50%
Here, rate of error fixing is the KPI, and you have shown that your actions aided this KPI.
Example 2:
Reduced turnaroud times: Used a new system of switching turntables that sets up the next item on the assembly line immediately, hence reducing turnaround time by 75%.
In this example, Reduced turnaround time is the KPI.
Using KPIs effectively in your resume will strengthen it immeasurably. Be prepared to talk about KRAs and KPIs in your interview too! It is a surefire way to impress your prospective employer!
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