HR Blog

3 most common mistakes that managers usually make during the KPI building process

From 24/5 to 26/5, the Certified KPI Professional workshop, by Le & Associates in partnership with the KPI Institute – an international organization specialized in business evaluation, was held successfully in Ho Chi Minh city.

The workshop’s lecturer, Mr. Aurel Brudan – CEO of the KPI Institute, whose deep knowledge is recognized 10 out of 10 in the industry of training and providing solutions related to business performance evaluating. The workshop was held to allow participated directors, and HR managers to update and comprehend details in building performance measurement, improving KPI scorecard, business framework, projects and programs managing, or other measurement systems.

The workshop was designed as an open space to increase the interaction and connection

“The most common mistake that emerged was the establishment of the employee’s KPI based on job description. Ideally, we need to connect employee-leveled KPI to department KPI, and organization-leveled KPI. The best practice is to start with the organization-leveled KPI, then department KPI, and then employee-leveled KPI,” Mr. Brudan shares about the most common mistake that participants usually run into during building KPI evaluation board.

According to Mr. Brudan, the establishment of the employee’s KPI only based on job description is the most common mistake of participants

Mr. Brudan continues, “Other mistake is the lack of collaboration between HR and strategy. Ideally, there should be a strategy team reporting directly to the general manager, or the CEO that oversees the use of the performance management of the organization and department level. This type of “superior” system is supposed to be connected to the employee performance.

The last one would be competences. It is very important that everybody speak the same language, and understand what KPIs are, what objectives are, what goals are. Thus, there is confusion between not only objectives, but also between the KPIs and the project. So there has to be a clearer understanding of each of these concepts.”

How to effectively connect business strategy and the suggested KPI is also a question that many participants concern

Participants are divided into groups to conduct the assignments

Participants converse with Mr. Brudan about difficulties during the process of KPI building in their working field

In order to solve the question of smoothly integrating the business strategy with the KPI, Mr. Brudan shares: “Professionals are often not in-tune with the best practices with the lack of thinking in the field, and they make decisions based on whatever they believe in previous organizations. My advice is to forget about old knowledge in this phase, and embrace new ones. It’s important to focus on competence development in these phases, because it’s the very particular subject matter. It’s a technical field that might seem simple and intuitive, but in actual, it’s a big complex underneath.”

The workshop lasted for 3 days with an enormous amount of updated information, and many world-standard samples are available for the participants to download. After 3 days, the participants received the Workshop Certificate. In return, they must submit the Action Plan, which they had been creating throughout the workshop, to the KPI Institute. This was considered as the “ultimate challenge phase”. Since the workshop’s main purpose had been clearly stated from the beginning, which is to optimize the understanding and implementing of the KPI for the participants.

Le & Associates


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