Calculation of KPI for managers depends on the specifics of the business and position. For each position, appropriate metrics are selected. Let's consider the definition of KPI for key management positions.
KPI of the executive director
This employee carries out operational management to achieve specific objectives. His area of responsibility includes tactical issues of implementing the strategy developed by the CEO or founders of the enterprise.
Let's look at some examples of KPIs for a CEO at a sportswear company:
Increase profitability by 10%.
Reduction of logistics costs by 15%.
Reduction in the numbe uganda email list of customer complaints about clothing quality by 10%.
Expansion of production capacity by 11%.
Increase in the volume of investments in the organization by 7%.
KPI of the executive director
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The salary calculation for the CEO and other managers can be done using the formula that was used in the CEO example:
Salary = Salary + Bonus (Base x KPI Coefficient)
Let's assume that the executive director has a salary of 160,000 rubles (40%), and the maximum bonus is 240,000 rubles (60%).
If the KPI reaches 86%, then his salary will be as follows:
160,000 + (240,000 x 86/100) = 366,400 rubles.
Deputy Director's KPI
As a rule, the deputy director is responsible for routine tasks from various areas of the enterprise's activities. This allows reducing the workload of the general manager. For him, KPIs can be determined not only based on the level of achievement of goals in percentage, but also taking into account the actual fulfillment or failure to fulfill tasks within the established deadlines.
In the context of the example under consideration, the KPIs for the deputy director will be as follows:
search for new suppliers of raw materials to replace those who have stopped supplying products to Russia;
implementation of a new CRM system;
reducing the time of product delivery from the start of production to the buyer by 10%;
creation and implementation of a new KPI system for sales department employees;
purchase of equipment for production.