Optimization Design Of Kpi In Performance Management Of Small And Medium-sized Enterprises

In recent years,small and medium-sized enterprises have gradually developed into an important force in the market economy.However,affected by the overall downward trend of the national economy,small and medium-sized enterprises are facing increasing pressure.A good performance management system can effectively improve the level of enterprise management,promote the achievement of expected strategic objectives,and enhance the core competitiveness of enterprises.To a certain extent,a good performance management system based on strategy and KPIs can enhance the driving force of enterprise development,which is crucial for enterprise development.Many well-known enterprises at home and abroad in the process of using performance management based on KPI made many achievements,proved the KPI can enhance the communication between the higher and lower,enhance employees' own ability to work independently,but some companies is not enough mature,on the use of the performance management still exist many problems in performance management work,and these problems restrict the rapid and stable development of the enterprise.Similar with these companies,L since the company set up and use the KPI performance management system,the task division and motivate the staff of the increased responsibilities and work target is clear than before,but there are still many problems need to be solved,such as performance indicators are not clear,management level is not high,imperfect management system,execution implementation does not reach the designated position,etc.,therefore,need to further consider how to use the advanced performance management theory and reasonable performance indicators,and optimize the existing KPI design,makes the index is more practical and scientific.Firstly,this paper adopts the method of theoretical research to study performance management,performance improvement,KPI index setting and optimization,etc.,so as to provide sufficient theoretical basis for the subject research.Secondly,through the collection of relevant enterprise information,employee survey and other analysis to determine the problems existing in the performance management of the company,put forward the demand and significance of KPI optimization: employees have demand for performance management system optimization,and think KPI optimization is necessary.This paper optimizes the KPI design of L company.First,SWOT analysis is used to determine the strategic development objectives of the company,so that the performance management promotion process is highly consistent with the enterprise strategy,and it is more suitable for L company's operation and development needs.The second is to extract 20 key success factors with good reliability and validity test effect from four aspects,including finance,customer,internal operation and learning and growth,based on the strategic objectives of the enterprise with the fishbone diagram method.Third,based on strategic guidance,the company level KPI indicator framework and departmental KPI indicators are established,which are in line with the internal and external environmental factors and strategic objectives of the enterprise's production and operation development,and lay a solid foundation for the stable development and efficient operation of the enterprise.Fourth,according to the business attributes,the method of task division matrix is adopted to design department-level KPI.Fifth,starting from the position responsibility of the staff,taking the production system as an example,the design has formed the indicators and quantified and specific weight indicators for each level of the staff in charge of the general manager,department head,department management personnel and department staff.Sixth,the results of the comprehensive questionnaire survey,in-depth interview and the evaluation team of performance indicators of each system were compared before and after KPI optimization,and the evaluation methods and application of results were improved.The conclusions show that the optimization design of KPI is in conformity with the actual work processes and business requirements,easy to implement,evaluation and validation,after trial run past,proves that the optimized indexes in performance management ability ascension has achieved good effect,can solve problems existing in the performance management process of L company,effectively enhance the management ability of the company as a whole.On the one hand,the research of this paper has certain practical significance for performance management and KPI optimization of L company,and on the other hand,it can provide some effective opinions and experience for smes of the same type and size.