The Best KPIs for Your QHSE Management Dashboard
KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions. From finance and HR to marketing and sales, key performance indicators help every business area move forward at the strategic level. If you want to learn more about key performance indicators, keep reading.
What Are Key Performance Indicators?
A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company achieves key business objectives. Organizations use KPIs to evaluate their progress and success at reaching targets. Simply put, a KPI is a goal you work towards achieving.
In businesses, key performance indicators can either be high-level or drill down to a specific department or individual. High-level KPIs typically look at the performance of your business as a whole, like achieving $1M in annual recurring revenue this fiscal year. When you drill down into processes that are specific to departments, teams, or individuals, those are low-level KPIs.
Why Implement Key Performance Indicators?
In order to measure performance indicators, every organization should analyze the effectiveness, efficiency, and performance of its activities at the same time.
KPIs are used by managers and employees concerned to check the effectiveness of actions and to facilitate decision-making accordingly. KPIs are therefore closely linked to the company’s policy and strategy.
How to Choose Your KPIs
A good indicator must be linked to a specific objective: there is no point in defining a panel of indicators with no purpose. Indeed, suppose the objective is too vague (for example, by defining an indicator simply called “improvement of employee well-being”). In that case, the dashboards will not be precise and therefore will not be effective.
In order to assess the employee’s well-being, indicators such as “amount of incidents per supplier”, “incident costs per project”, “amount of reports (per month)”, etc., must therefore be defined.
It is important not to define too many indicators. The number of indicators does not measure the performance of an approach, but the objectives achieved. The KPIs chosen must be easy to achieve and communicate.
How Do You Manage Key Indicators?
If a QHSE manager has to open the spreadsheet to track, report, and consolidate your key data, it means the IMS and/or QMS is not yet fully digitized. However, no need to panic, there is still time to get a dedicated management solution to monitor the processes and key indicators in real time.
With a dedicated platform (like Qooling), all data from the field will generate statistics that are accessible and usable in real time.
Each company and department chooses its KPIs according to its field of activity and its priorities. Given today’s competitive challenges, it is difficult to ensure optimal monitoring of key indicators without digitalizing the management system.
Examples of KPIs You Can Use in QHSE
To give you a better understanding of making use of KPIs in QHSE, we listed a couple of frequently used examples.
- Amount of reports (per month)
- Incident costs per project
- Number of incidents per customer
- Incident costs per customer
- Amount of incidents per supplier
- Costs of poor quality per supplier
- Average incident costs per customer
What Are the Benefits of Using Key Performance Indicators?
KPIs serve as a guidepost to help you and your organization reach your goals. And the pursuit of your goals depends on focused and consistent delivery of results. When you track your KPIs using a dashboard and reporting tool, there are numerous benefits, including:
KPIs Engage Employees
Employee engagement can directly impact your bottom line. KPIs, whether individual or organizational KPIs, is a helpful mechanism to measure performance, which is directly tied to employee engagement. Organizations with an engaged workforce see higher customer engagement, productivity, and 21% higher profitability.
KPIs Make Everyone Accountable for Performance
Traditionally, individual performance management frameworks are about setting objectives, measuring performance, and managing related activities. So why not incorporate KPIs into performance management too?
Performance KPIs will help employees measure their impact and how their daily activities, arguably the foundation of their role, play into the success of larger organizational goals. KPIs set everyone off in the same direction, making everyone a happy contributor to your success.