KPIs permit to measure the performance of a contract. They are often expressed as a ratio or percentage of an agreed reference. How to define it? Quantity = The number of units produced, processed or sold Quality = The quality of work performed: The % of work output that must be redone or is rejected. In a sales environment, the % of inquiries converted to sales. Timeliness = How fast the work is performed. In manufacturing, it might be the number of units produced per hour. Cost-Effectiveness = If the employee has control over costs, the cost of work performed. In a labour contract, it permits to measure the performance of an employee. KPIs focus employee’s attention on the tasks and processes that management deem most critical to the success of the business. It is essential to limit them to factors essential for the organisation.
The Know How of a company might be its most valuable asset. It corresponds to the methods or techniques of doing something, especially something technical or practical. It is really important to protect it as much as possible.