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KPI SENSITIZATION PROGRAMME by Mr. Chesa Okoroafor

The meaning of KPI:

KPI simply means KEY PERFORMANCE INDICATORS. An indicator is like a Pointer, an Evidence, a Benchmark, or Standard that reveals something. When this Pointer or Benchmark beams around the various areas of the operations of an organization, thus enabling the assessment of the level of the conformity of those operational area/activities to the Standards set, then KPI as a principle is said to be in practice.

So, KPI, in the business sense of it, can be defined as one of the PERFORMANCE EVALUATION AND REVIEW SYSTEMS (PERS), whereby activities, actions and/or operations are geared toward pre-determined Standards, and later evaluated based on the level of success achieved in line with the set Standards and Objectives.
KPI is like a Navigational Guide in the hands of the operators, which shapes the activities of the organization around the desired objectives. When this Navigational Guide is fashioned around the key areas of the operations of the organization, it makes the activities involved in those key areas to become focused to the standard aimed to be achieved, in line with the overall goal of the organization concerned, which invariably finds its way into the achievement of the Company's overall Mission Statement.

REASONS FOR KPI:
It makes the company ask itself the question: “Where are we?; where do we want to be?; how are we to get to where we should be and why should we be there?”

It thus makes the company to be able to think out what should be done, how it should be done and at what time, pace and cost.

WHO IS KPI MEANT FOR?
The simple answer to this question is that the KPI principle is meant for anybody who has any role to play in the fulfillment of the company's objectives as broadly defined by its Mission Statement. The implication of this is that the KPI is meant for the Management and the entire staff (as well as every department) of the company, irrespective of the position of the staff or department.

BENEFITS OF KPI:
To the Company:

a. It makes for comprehensive planning and setting of standard and goals:

It focuses activities towards the attainment of set goals, standards and missions.
Performances and results are evaluated in line with the level of the achievement of the set standards, goals and missions.
For a service company, such as ours, the better the application of the KPI principle, the greater the level of efficiency achieved and the more satisfaction the customers get and the better it is for the company.
The KPI principle makes it easy for the bottlenecks, hindrances, infrastructural defects, staff incompetence and other impediments, which make the achievement of the set goals and standards difficult to be identified and corrected.

To the Staff :

a. It is a Navigational Guide for the activities or actions revolving around the staff concerned.

b. It makes the staff get more focused in his duties, actions or activities as he always has his eyes fixed on the set goals, standards and missions at all times.

c. It serves as a means of self-assessment by the staff himself.

KPI MONITORING BY THE COMPANY:

The application of the KPI principle without a feedback mechanism will not achieve the desired aim. It is necessary that the company knows if the set standards are being achieved or not, if the activities are carried out in line with the objectives set, whether the company is operating within the framework of its Mission Statement or not, if an operation is going in accordance with the planned standard or not and so on. Such a feedback mechanism involves close monitoring of the KPI application.

It is, therefore, necessary to state at this juncture that the company intends to monitor very closely the entire operations of the company in line with the KPI principle. To this end, a KPI Monitoring Group has already been set up by the Company.

CHESA OKOROAFOR

DGM (AUDIT SERVICES)

TOWARDS ORGANISATIONAL EFFECTIVENESS IN ABC TRANSPORT

An organisation comprises a group of people in business, who work together in order to achieve set objectives. Effectiveness is that ability of the members of the organisation to accomplish the goals which the organization is set to achieve. Certain theories and concepts have been advanced by many scholars early in the 19th century, notably, Adam Smith and F.W. Taylor, who succinctly propagated ideas on the need for an organization's Apex Managers to harness and effectively use their material and human resources for the accomplishment of set goals; a sure manifestation of qualitative and quantitative results in terms of output.

Buttressing the above, Gullick & Urwick advanced the need for effective organization span of control cum unity of command as it relates to the crucial role of mid-level manpower in the organisation and the need for their effectiveness in the actualization of the organisation's set goals and objectives. The above ideas need to be considered by the ABC Transport Line and Staff, Middle and Management cadre, in their renewed effort to brace up for challenges of internal cohesion and in an effort to conquer problem hinging on organizational effectiveness and hiccups in perfect service delivery. Conquering these impediments will further enhance the desire for further expansion by the Associated Bus Company Plc.

Another important factor is the need for our mid-level manpower to adopt a practical approach in the pursuit of targets as expected by the company through personal challenges, with a positive spirit. However, goals cannot be attained by theories or by sycophancy but rather through practical and systematic approach to management's directives and adherence to the rules of procedure by mid-level manpower, cum departmental level facilitators as well as all Line and Staff of ABC Transport.

Apart from practical approach and personal challenges, a proper analysis of the plan of action as conceived by top management is very crucial. Therefore, line managers have the responsibility of proper integration, organizing, coordinating of their subordinates in order to win their enthusiastic participation, compromise and result-oriented feedback.

It is worthy of note that all levels of management in ABC Transport have equal stake in the pursuit of organizational set goals. Any negligence or insubordination at any level may pose a threat to the larger level of the organization. This negligence and insubordination can only be conquered by imbibing the spirit of self-motivation and love to accomplish and not to gain. Together we stand, divided we fall.

MR. J. I. IWUNZE

Operations, Lagos

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