How to Prepare for KPI Implementation the Kaizen Way

The Japanese people have taught businessmen a lot of things including the kaizen philosophy. This refers to the practices that give focus on change and improvement. The processes in which the kaizen methodology can be utilized involve manufacturing, engineering, management and other business procedures. As of today, not only commercial businesses practice this philosophy. Organizations such as the government, life coaching agencies, banks, healthcare clinics and psychotherapists also use this method. Now, there are a few things connected to businesses that should be supported by the goal to improve or to become better in the future. This includes the process of monitoring the company, which can be done through the use of the key performance indicators or the KPIs. To prepare for KPI implementation with better chances of execution, you may need to employ the kaizen way.

If you have been into key performance indicators deployment, you already know that there are certain processes that should be completed. From the first stage to the last one, there is a need to stay focus on the goals and be able to improve the results. This will help stabilize the performance of the company and be assured that risks and hazards can be solved. The phase in which you prepare for KPI implementation will require you a few changes especially if you will be implementing the kaizen methodology. As a matter of fact, there is what is called the KPI cycle in which the kaizen way is used. The cycle consists of four parts which are planning, measuring, analyzing and changing. These four sections have a few other areas that should be dealt with by the management and should be completed successfully.

The first stage in the KPI cycle in which you prepare for KPI implementation using the kaizen method is to classify and agree on the CSFs or the critical success factors of the business. The CSFs are just like what the name implies. They are crucial to the success of your company and can be determined immediately by the managers and the head of the offices. The next step is to come up with the KPIs that will be used in measuring the performance of the firm. Based upon the CSFs, you will be able to define the KPIs that should be utilized by the company.

Third is to collect and be able to compare the performance results over time. This is a requirement to ensure that the results will improve in the future. Now that you know which among the areas are doing poorly, you will need to identify and discuss the gaps within the performances and be able to benchmark the indicators. The comparison will enable the company to come up with the right decisions as to what they should do in order to correct the mistakes or the deficiency in the performance.

Next is to review the business processes based upon the benchmark KPIs. This will let the company assess and provide resolutions to the gaps that have been found. Maintaining the best practices and addressing problems will allow the company to improve when they prepare for KPI implementation using kaizen.

Source by Sam Miller

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