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If there's one mistake you should avoid when you set KPIs, it's THIS one

by , 18 June 2014
Making mistakes when setting Key Performance Indicators (KPIs) for employees is one of the drivers of poor performance.

So don't shoot yourself in the foot when it comes to KPIs.

Steer clear of THIS one mistake when you set KPIs for your employees - we promise you'll have success when it comes to performance management.

Avoid THIS mistake when you set KPIs for your employees

The biggest mistake employers make is setting too many KPIs!

Setting a hundred or so KPIs could in no way be 'key', says changefactory.com.

According to the site, with too many KPIs, expect your staff to pick the ones that mean something to them to guide their decision making and day-to-day actions. And at worst, your staff won't understand their KPIs. They'll see them for what they are - a mish-mash of wishful thinking divorced from reality – and they'll ignore them.

So how do you solve this dilemma?

How many KPIs should you set?

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When you set KPIs, apply quality over quantity and make sure your KPI support each other

Ten is a good number for KPIs. For every KPI you set above ten, you increase the risk of unintended consequences by way of mutual exclusivity or lack of engagement, says changefactory.com.

The site adds that companies with good KPIs are generally ahead of their competitors when it comes to the utilisation of their assets (financial, physical, intellectual, customers and relationships). They can also detect when changes in internal or external environments are having a positive or negative impact on their organisation's ability to achieve its goal.

There you have it: Never set too many KPIs for your employees if you want your performance management efforts to succeed.

If you want guidance on how to set KPIs for your employees, check out the Practical Guide to Human Resources Management.

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