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Several factors should be considered in the design of performance indicators

2018-04-14 04:48:06

Performance theory, as the main content of modern enterprise theory, has been paid more and more attention by enterprises in practical work, and many small and medium-sized enterprises also hope to improve the level of enterprise management through performance theory. However, the principle of performance is a double-edged sword, and if it is not done well, it may lead the enterprise into eternal ruin and constant conflicts. As the most important content of performance appraisal, the setting of performance indicators is particularly important.

Three important factors should be considered in setting performance indicators

Quality Whether the quality of products and services can meet or exceed customer needs and customer expectations, and whether the quality of work can meet the predetermined standards of the enterprise.


Cost Whether the cost of the input required by the process and the cost consumed by the product or service are within the range of the cost borne by the enterprise or the product design cost.


How efficiently the time process delivers the product/service to the customer.