Motivation system for designers. Meaningless KPIs: why it’s sometimes better not to measure people’s effectiveness Opportunity to achieve personal and family goals

How to motivate high-quality work of technical staff. The introduction of ratings for employees servicing Internet equipment increased customer satisfaction by 30%
Outsourcing of communication networks appeared on the telecommunications market about five years ago. Broadband Internet access operators are still skeptical about the idea of connecting subscribers, maintaining and upgrading networks by another, independent company. And this is understandable. The technician is the face of the company, live contact with the subscriber. It forms the image of the provider. The operator’s reputation depends on whether he is polite and does his job quickly and efficiently. Giving this contact into the wrong hands is a risk. How to minimize it? How to control quality and increase sales if the entire system is in the wrong hands? What work model will be effective for both the operator and the outsourcer?

Which partner will you agree to work with? One that will not only reduce costs, but also offer a clear and convenient quality control system. Let’s analyze the problem using specific examples from our company’s work.

Management decision

We sign an SLA (ServiceLevelAgreement) with each customer. We have set ourselves a goal: to develop and implement a system of motivation and control of technical personnel, which will automatically lead to the fulfillment of SLAs. Motivate staff to meet these standards. At the same time, all indicators must be simple, calculable, understandable to both our employees and the operator.

To implement this concept, it was decided, within the framework of Gorserv ERP (the company’s own information system), to create a module for automatically calculating the NPS index (Net Promoter Score - an assessment of the level of subscriber loyalty), which is used by some of our customers. The parameters by which the index is calculated should be included in the technicians’ KPIs. Based on these indicators, staff receive salaries. This approach is an opportunity to automatically control employees and motivate them to fulfill the standards set by the operator.

Practical implementation

The company currently has three individual and six group KPI indicators for all technical personnel. Service centers constantly compete to achieve the best group performance. The winners are determined automatically and are stimulated both financially (prizes) and intangibly (cups, certificates). In addition, the income level of each technician is determined by individual KPI indicators.

Figure 1. Motivating technical personnel through the KPI model

To calculate KPIs, we use data from monitoring the condition of networks, indicators of the quality of repairs and maintenance, information about whether the number of repairs is decreasing and whether all services (Internet, television, telephone) are available to subscribers. These are traditional quality indicators that telecom operators used before us, but did not automatically calculate them and did not calculate KPIs based on them.

Based on information about the level of subscriber loyalty (NPS index), at the beginning of the year we launched an additional unique indicator: “Technician Rating”. This is a scale that is formed similarly to the independent rating of drivers in the Yandex.Taxi application. Our specialists are evaluated by subscribers themselves, who submit requests to operators. Employee rating indicators are calculated automatically, based on feedback from the subscriber (call).

After the work is completed, our dispatcher calls the subscriber and asks questions about the script, which is agreed upon with the customer. These are simple, logical questions that concern any person who seeks technical assistance:

Is the service performed well?
Did the specialist take additional money other than the check?
Did he arrive on time, did he look neat?
When did he complete the request and was the problem resolved?
Is the subscriber ready to contact us next time or recommend us?

All conversations with subscribers are recorded and attached to the application, including the final call from the quality control service. Call recordings are stored for the warranty period agreed with the operator. Technicians do not have access to stored information. Recording conversations with subscribers is our insurance when dealing with conflict situations and making claims. This is especially true when fulfilling requests for the “Computer Help” service.

The answer to each question has a certain weight in points. For example, quality of work carries more weight than friendliness. But both indicators are taken into account in the final assessment, albeit with different weights. The collected information is entered into the system. In automatic mode, according to a certain algorithm that takes into account not only the place in the “Technician Rating”, but other KPI indicators (qualification, work speed, number of completed applications), the bonus level is determined at the end of the month.

Of course, we have not abandoned traditional technical supervision. Every month, 10% of applications are checked for compliance with engineering requirements. If they are identified, this also affects the technician’s rating indicator.

If, at the time of the survey, subscriber satisfaction does not exceed 85% of 100%, our quality service considers this a serious service deficiency. We apologize and offer subscribers a guarantee departure or compensation. At the same time, the system automatically blocks the violator’s schedule: deprives him of access to the applications that are assigned to him. A complaint request is created, which the quality department deals with and identifies the culprit. If the technician is found guilty, he will lose his bonus and his rating will be reset. If he is not guilty, then the schedule will be opened for him again. Since technicians work on a piece-rate basis, the closure of the schedule seriously affects earnings.

It is profitable to work a lot and efficiently within the framework of such a system. The higher a technician’s place in the employee rating, the more applications this specialist receives and the more he earns. The higher the subscriber’s satisfaction, the more impressive the technician’s bonus. Each specialist sees his rating in his personal account and can immediately begin to improve it on future applications. And the provider, on whose behalf our employees come to the subscriber, can check at any time how the service level agreement is being fulfilled.

Figure 3. Technician’s personal account in the mobile application

results

Already in the first three months of testing the Technician Rating system, we statistically identified the leaders and rewarded them at the expense of outsiders who were fined. We immediately said goodbye to some: 15% of the total number of technicians did not meet our standards and did not want to change the approach. They left our company. Thanks to automatic recalculation, we were able to more effectively redistribute it among specialists without increasing the bonus fund. The average quality score for all techniques increased by 30%.

Assessing staff performance using KPI is an effective means of monitoring and diagnosing services and a strong tool for motivating employees. This is a high-quality way to resolve issues related to maintaining customer requirements at a high level. Standardization of network services according to the most stringent SLAs within the outsourcing company allows even a small provider who decides to use our network outsourcing services to receive high quality services that they could not achieve on their own.

Be careful when choosing a partner: it’s easy to find ways to save money. It is more difficult to maintain quality. It’s even more difficult to increase it!

Improving the motivation of engineering work

Natalya TEREKHOVA

Ivanovo State Energy

University named after V.I. Lenin

The engineering corps, in essence, is a conductor of scientific and technical progress in production, which is due to the content of the activities of this cohort of specialists, which consists of applying scientific knowledge in practice for the purpose of creating, developing and using technology. T. Veblen considered engineers the most progressive social group; he argued that they have an “instinct of mastery”: the initial interest in ensuring the effective functioning of technical devices becomes a principle of behavior for them.

The methodological approach we propose to building a system of motivation for engineering work, taking into account its characteristics and socio-economic content, allows us to most fully determine the system of relations in which engineering work is included in the production process, to identify a system of values, material, moral, cultural, professional needs of this category workers. It is on the desire to satisfy them that the motivation of the latter for highly productive, creative work is based.

Let's start with such a feature of engineering work, which follows from its essence, as a technical orientation, which presupposes its special instrumental equipment. Domestic experts have calculated that only through proper organization of the workplace can an engineer’s labor efficiency be increased by 10-20%; according to corresponding foreign estimates - 1.5 times.

Modern research also shows that access to the latest technologies and a stimulating technical environment motivate engineering professionals to work hard, produce high-quality, creative work. B. Gates, whose professional achievements make one listen to his opinion, argues: the better the tools in the arsenal of specialists, the more effectively they can use their creative abilities. Accordingly, company management, in his opinion, should allocate at least 3-4% of the wage fund of intellectual workers to purchase modern equipment for them.

An important role in activating the labor potential of an engineer is played by the individualization of the means of engineering work, which acts as a condition for the best realization of the employee’s abilities and motivates him through internal rewards - a feeling of satisfaction from convenience, comfort (physical and moral).

As foreign experience shows, in this case, external remuneration for engineering workers also turns out to be quite effective - encouraging rationalization proposals to improve the technical equipment of work and the organization of the workplace (no one knows better how to improve their work than the people who do it). The example of the Sony company is illustrative: the number of proposals received from staff on average per year is up to eight per employee, and most of them relate to improving the technical equipment of the workplace and its organization. And although not all of them are implemented, each proposal is financially rewarded.

N. Blinov, Doctor of Technical Sciences, a former engineer, followed the dynamics of the number of copyright certificates in our country and patents in the USA for the period 1960-1990. In our country it increased 10 times, in the USA - 1.25 times; at the same time, in our country - from 150 thousand to more than 1 million, and in the USA - from 3 million to 4 million; the annual increase in the number of inventions in the countries is almost equal.

An analysis of the reasons for the sharp increase in the number of inventions in our country after 1960 showed that it was caused by the introduction of an incentive fee for each issued copyright certificate. However, this incentive led to the fact that most applications began to be submitted for unproductive ideas. In the USA, the patent service system is built on different principles: no reward is given for a patent; moreover, its holder must pay a significant amount upon issue and make large contributions throughout its validity. As a consequence, applications are submitted only for those ideas that are predicted to promise profit. Today in the United States, the main holders of patents are firms; the author working in it undertakes to transfer his inventions to it, and the company, in turn, pays him additionally for this. Currently in Russia the work of the patent service is organized on the same principles.

An important feature of engineering work is the indirectness of its inclusion in the work of the total employee. Taking this feature into account should be expressed in the creation and use of various organizational forms that represent the total employee at both the macro and micro levels. At the macro level, such forms should be developed and implemented in NGOs, intersectoral scientific and technical complexes (intersectoral scientific and technical complexes), engineering centers (engineering centers), technology parks, technopolises, etc.; at the micro level - in creative teams, initiative target creative groups.

Uniting workers into groups allows you to make maximum use of their creative potential, involving them in the management process. To solve innovative, creative engineering problems, in our opinion, the most effective are target groups (temporary creative teams), which include engineers, scientists and workers. Compared, for example, with “quality circles,” they have clear advantages (since more complex goals are set for the groups, tasks are formulated in advance) and are used both to work through individual organizational or technical issues, and to solve complex problems.

In such “representations” of the total employee, internal motivation is achieved through the moral satisfaction that a person receives from acquired communication skills, involvement in solving creative problems, self-realization in work, taking responsibility for one’s part of the work, and as a result, trust from the team and management , participation in management.

Along with increasing the creative potential of engineering work, the development of organizational forms that represent the total employee makes it possible, in our opinion, to solve a number of other problems.

First, highlight the contribution of engineers in the overall results of labor to establish a clear connection between the amount of effort of the employee and the amount of his remuneration.
Secondly, the organization of engineering work by creating groups, joining them with administrative employees who are obliged to ensure the work of these “associations” smooths out the contradictory nature of the relationships between engineers and other categories of employees of the enterprise, since each employee becomes interested in the effective, creative activities of his colleagues, knowing that his own income is seriously affected by the overall effort.
Thirdly, the creation and development of organizational forms representing the total employee, with a certain degree of freedom in solving organizational and economic issues, is a way to accelerate the introduction of the results of engineering creativity into production.

A necessary element of engineering creativity is the freedom to choose the direction of creativity (forms of co-creation, self-organization of activities, etc.). It is precisely the low degree of freedom of creativity in our country compared to others, the weak “security” of this freedom with remuneration that, according to experts, is an anti-motivator for scientific and engineering activity, the cause of external and internal “brain drain”.

In 1993, which marked the peak of emigration from the Russian Federation, more than 100 former Russians, highly qualified specialists in the field of space research, were employed in the NASA (USA) system alone; up to 90% of the current personnel of the Israeli military-industrial complex are represented by our recent fellow citizens. The potential damage from the emigration from Russia of highly qualified specialists of working age is estimated at 60-75 million dollars per year.

The following indicators do not require comment:

the number of specialists in the field of engineering and technology, including engineers, who were employed abroad, in 1994 - 1997 people, in 1995 - 1279, in 2000 - 6067, in 2001 - 7545, in 2002 - 3969 people;
the number of engineers engaged in servicing computer equipment abroad, in 1994 - 30 people, in 1995 - 51, in 2000 - 145, in 2001 - 130, in 2002 - 6468 people.

The internal “leakage” is characterized by the following figures: from 1989 to 1993, 27% of scientists and engineers moved to various commercial structures, ceasing to engage in their professional activities.

As domestic and foreign practice confirms, freedom of creativity at the micro level is achieved by organizing engineering work in the form of targeted creative groups on the principles of self-government. As the experience of Japan (and our country) shows, the activities of creative self-governing groups bring a great socio-economic effect. Company managers provide self-governing groups with freedom in deciding issues of distribution of work and remuneration, establishing convenient work schedules, and using the financial resources allocated to the group. Thus, at IBM, technical research managers have the right to use 15% of allocated funds for unplanned work.

An engineer creates under conditions of limited time and resources. Therefore, his creativity must be given a clear target orientation. At the macro level, this is the prerogative of the state, which determines (based on the needs of society) priority areas of scientific and technological development (for example, the development of energy-saving technologies, the creation of installations for the treatment of industrial waste, etc.), implementing relevant scientific and technical programs. At the micro level, determining the topics of creative searches (based on the specific needs of the market for new products and the enterprise for the improvement and development of the technical base) is the concern of the company’s management.

To activate engineering creativity, the goal of the work must be clear and specific, correspond to the level of the employee’s creative abilities and, what is very important, clearly and a priori correlate with the final personalized reward for its implementation.

In the book “Made in Japan” A. Morita writes: “If an engineer or scientist is given a clear goal, he will make every effort to achieve it, but when there is no goal, if your company or organization simply gives him a lot of money and says: “ “Invent something,” you cannot expect success.” He gives the following example: the technical director of Sony set a clear goal for the company’s specialists - “to make tape recorders,” when it was not even known what and how to make magnetic tape. A specific goal set the direction for creative activity, motivated specialists, and was ultimately achieved: Sony became one of the world leaders in the production of tape recorders.

The results of a sociological study we conducted among engineers at a number of enterprises showed that for 71% of respondents the decisive moment when engaging in innovative activities was “awareness of the final goals of the technical specifications” and for only 2.8% of the surveyed engineers this motive turned out to be insignificant. This factor has even greater weight in the motivational sphere of active innovators - 79%.

The goals put forward to the engineer must correspond to the level of his creative abilities and even exceed them. If they are not complex enough and below the level that the engineer is able to achieve, then, as practice shows, this “discourages” him. The creative potential of an engineer remains the same or even decreases, and a labor motivation system that does not take into account this feature loses its significance: therefore, it ceases to be effective. That is why the Sony manifesto states that the company will “always strive for the unknown.” In this state of affairs, meaningful motivation for the engineer’s work is set and the growth of his creative potential is stimulated.

At all its stages, engineering work is associated with technical information. Accordingly, we consider information support as a motivational tool that can influence the creative activity of an engineer and the effectiveness of his work.

It is known that the effectiveness of a dynamic information system depends on the power of the information flow. Typically, four operating modes are considered - idle, normal, intense and critical. With minimal information overload, the paradox of the idle work mode arises: it seems that if the employee is lightly overloaded, then he performs the work with high quality; however, practice shows the opposite - when there is underload, the employee performs his duties worse than during normal work. The reason, according to experts, is a violation of the employee’s psychological orientation and general work spirit. At maximum load, the picture is exactly the opposite.

Engineering work today is a complex intellectual, scientifically based activity that requires fundamental scientific and general technical education. To form high creative potential of an engineer, it is necessary to reorient the engineering education system from providing students with the necessary professional knowledge to independently searching for it under the supervision of a teacher, analyzing problems and contradictions of an engineering nature, the ability to work in a team, expanding opportunities for scientific work (organizing competitions, scientific student conferences and etc.).

In the West, the model of engineering education was determined by the market. The demand for operating and design engineers led to the introduction of a two-stage training scheme for specialists, and the obvious impossibility of “embracing the immensity” led to the formation of a system of “narrow individual specialization”. Today, a student at the California Institute of Technology or the Paris Technical School in each subsequent year receives increasing freedom in choosing the subjects studied with a fixed minimum total number of hours attended and credited in the semester. When choosing subjects, a Western student usually focuses either on a specific position in a specific company (if he has decided on his plans for work), or on a specific specialization that he likes, in the hope of finding a corresponding vacancy after graduation.

In our country, the inconsistency of the engineering personnel training system with the requirements of industry became obvious by the end of the 70s of the last century. A characteristic indicator of the quality of engineering education is the time required to “bring” a young specialist at an enterprise to the level of a full-fledged design engineer (an average of three to four years), essentially equal to the duration of study at a university and practically does not change. Therefore, with regard to engineering education, it is necessary to solve such an important problem as the creation of some redundant (or rather, reserve) engineering qualifications, which will become an important motive for employee initiative. The specificity of this “excess” is its temporary nature. Knowledge, which at the moment cannot yet be used in the production process, when introducing new equipment and technology, gradually becomes adequate to practical realities and takes on the significance of the necessary qualifications of the employee. The volume of scientific and technical information is growing rapidly; knowledge acquired at a university inevitably becomes outdated. In this regard, over a 30-year period of work, each specialist must increase the starting volume of professional knowledge by 2-3 times.

The development of engineering education and advanced training systems obviously requires government investment. For example, in Japan approximately 16% of GNP is spent annually on these purposes (including 2/3 on the education system, and the rest on the personnel retraining system), in the USA - more than 20% of GNP. For comparison: in Russia, according to experts, the corresponding costs amount to 1.5% of GNP.

Another feature of engineering work is determined by the specifics of its socio-economic content, namely, the economy of living and embodied labor it creates. Taking this feature into account in the engineer’s motivation is the need to direct part of this savings to pay for his labor.

From this article you will learn:

What is KPI

What examples of KPIs for representatives of various specialties can be taken into account?

How to calculate KPI in EXCEL using an example

The method of personnel assessment using key performance indicators KPI (Key Performance Indicator) is based on the methodology of “management by objectives” by Peter Drucker. In Russia it has been used since the early 2000s. In this article we will describe the essence of KPI, give examples of KPI and show the prospects for applying and improving the KPI method at Russian enterprises.

What is KPI with examples

Since July 1, 2016, Russian enterprises have been introducing professional standards as the basis for developing personnel policies. To assess the success of meeting standards, a system for assessing the quality of workers' work is needed.
The criteria that characterize the quality of work are presented in Figure 1.

Picture 1. Structure of labor quality criteria for enterprise employees.
Level I criteria- these are actually the names of the two main classes of criteria.
Level II criteria– generalizations suitable for submission for an award (but not for evaluation).
Level III criteria– unified indicators that allow for an approximate assessment of the effectiveness and reliability of an employee’s work. Almost all known methods of personnel assessment are focused on assessing level III criteria. Depending on the education and literacy of the authors of the methods and consumers, the most often chosen are:

Purely economic KPI criteria. Applicable to managers and specialists directly involved in financial management and product sales.
Questionnaires in the form of forms for experts to assess competencies.
Psychological criteria (Cattell test, etc.) - on the assumption that the quality of work is determined primarily by personal characteristics.
Job profiles based on specialized (mainly psychological) sets of indicators.

Let's consider the most popular assessment technology based on KPIs.

Main idea of KPI– detailing the strategic goals of the enterprise down to the employee level. As a rule, financial and economic indicators act as strategic goals. There are several subgroups of KPIs based on quantitative measures of activity:

Expenses– in value terms.
Performance– percentage of equipment load.
Efficiency. Most often this is the ratio of revenue to cost.
Results. For example, the number of products produced.

Key performance indicators can be operational or strategic.

Operational indicators characterize the current performance results of the enterprise and its divisions. They allow you to quickly monitor technological processes, material support, product quality and adjust control parameters in accordance with changing conditions.
Strategic indicators allow you to monitor the generalized results of the enterprise for a month, quarter, half year and make decisions to ensure that these results comply with the planned ones. Short-term forecasts of the efficiency of departments and profitability for the coming period are calculated.

KPI are numerical indicators of the degree of success in achieving specific goals. This allows you to use the KPI system as the basis for motivating management of employee activities.

Examples of KPIs for representatives of various specialties

KPIs are most convenient for assessing the labor efficiency of administrative and managerial personnel (managers, economists, financiers, etc.).
Key performance indicators of trading activities are calculated based on the following data:

Key production performance indicators are calculated based on:

Specific examples are presented in the following table:

Job title	Index	Estimated value, %
Head of marketing department	Sales plan completion percentage	100, where Q f – actual sales volume, Q pl – planned sales volume
Marketer	Product market share	Data from external marketing agencies
Chief Accountant	Timely filing of tax returns	Federal Tax Service information
Accountant	Timeliness of payments (as a percentage of the total)	100, where Op cp is the number of payment transactions completed on time; Op total – total number of payment transactions
Head of Legal Department	Percentage of cases won (out of total number of cases)	100, where Q in is the number of cases won, Q total is the total number of cases
Lawyer	The amount of money that is collected and retained for the company	Data from the legal department (as a percentage of the plan)

Example of KPI calculation in EXCEL

Each enterprise develops its own KPI assessment system. Key performance indicators are established for each position independently. Their total number for a specific position/workplace is no more than five. At the end of each month (for some enterprises - a quarter), the final individual KPIs of each employee are calculated as a weighted average of private KPIs. The simplest algorithm for combining private indicators of an individual workplace:

where are private performance indicators;
n – number of private indicators ( n≤5) ;
– weights of individual (private) KPIs. Usually
The weights vary because the significance (importance) of individual indicators may not be comparable. Weights are normalized:

Formulas for calculating bonuses based on values K(decision rules) can be expressed as a simple linear or step function TO.
The values of motivational coefficients (that is, conversion factors K bonus) can be determined, for example, according to the following algorithm:

The following figure shows a clear example of calculations using Excel.

Figure 2. An example of assessing the success of an activity.
Explanations:

Salary– fixed part of the salary. It is proportional to the number of hours worked. To simplify the calculation example, the fixed and variable parts of the salary are assumed to be equal.
Percent fulfillment of the sales plan and work plan is calculated based on the ratio of actual indicators to planned ones (as in the above table of calculated values).

Formulas in Excel for calculating KPI for each employee: =(50% × (IF(D3<80 %; 0; ЕСЛИ(D3<90 %; 0,5; ЕСЛИ (D3<100 %; 1; 1,5))))). Влияние показателя 1 и показателя 2 на сумму премиальных считается одинаковым. Коэффициенты тоже равны. В связи с этим для расчета показателей 1 и 2 берутся одни и те же формулы.

The formula for calculating the amount of premium to accrue is =C3 × (F3+G3). The planned bonus is multiplied by the sum of indicator 1 and indicator 2 for each employee.
Salary – salary + bonus.

In order to evaluate the work of employees according to several key performance indicators, a matrix of the following form is compiled:

Figure 3. Worksheet form.

Key indicators A – private KPIs (.
Weights B – .
Base C is the minimum value of the indicator.
Norm D – planned level.
Goal E is the value to strive for. Excessive indicator.
Fact F – actual results of work.
KPI G index – level of result in relation to the norm.

Formula for calculating the KPI index:

An example of filling out a matrix for an office manager is shown in the following figure.

Figure 4. Example of KPI calculation.
The performance coefficient is the result of calculation using formula (1).

How to implement a KPI system in an organization

As can be seen from the above example, the implementation of a system of motivating personnel management based on key performance indicators does not require serious investments and highly qualified developers. No special training is required for HR specialists - the ideology is simple and popular. There are many enterprises that operate semi-automated Excel-based systems. The whole question is how effective personnel management is when using the technology discussed.
As can be concluded from the example, the KPI system is best suited for enterprises with discrete production, for example, mechanical engineering enterprises. For industries with a continuous process (for example, nuclear power plants, chemical plants), the main attention should be paid to the technological component of control, its reliability and safety. In this case, for example, it is impossible for an occupational safety inspector to formulate appropriate assessment criteria related to the financial well-being of the enterprise.

To correct this shortcoming, you can supplement the KPI assessment complex with a competency assessment subsystem. An example of a fairly successful solution is the STP 001.089.010-2005 standard, developed at OAO Irkutskenergo.
At OAO Irkutskenergo, special forms are used to assess competencies, which are filled out by experts - the head of the person being assessed and his colleagues. A sample of such a form is presented in Table 1.
Table 1. Employee competency assessment.

Criteria for evaluation (competencies)	Grade			Average competency score
Criteria for evaluation (competencies)	Supervisor	Colleagues (average score)	Self-esteem	Average competency score
Initiative(willingness and ability to solve professional problems and issues, caring attitude towards work situations, desire to actively participate in work, influence the results of activities)
(ability to set priorities, stick to a task plan)
Knowledge of work(professional literacy, practical knowledge and skills, understanding of the content of the work, knowledge of methods, procedures, rules)
Responsibility(timeliness, integrity and quality of task completion)
Communications with the manager(informing the manager about the degree of completion of work assignments, consultation with the manager on work performance standards)
Communications with colleagues(effectiveness of teamwork)
Discipline(attitude to working time, its use, adherence to working hours)		X
Average score for competencies (Ok)	X	X

Experts assess the employee’s compliance with the job requirements using points. In this case, competency dictionary scales are used. Examples of scaling of two competencies are presented in Table 2.
Table 2. Scaling competencies.
Initiative

*Point*	*Characteristic*
1	Does not show personal initiative when solving production issues
2	Very rarely makes constructive proposals
3	Often makes proposals that are rarely implemented in practice
4	When solving production issues, he constantly makes constructive proposals within the framework of his job responsibilities and brings them to practical implementation.
5	When solving production issues, he constantly makes constructive proposals not only within the framework of job responsibilities, but also concerning the work of the department as a whole. Brings proposals to practical implementation

Ability to plan work effectively

*Point*	*Characteristic*
1	Unable to plan even the simplest work or determine time costs. Doesn't know how to identify stages of work
2	Copes poorly with planning and does not attach importance to the costs of completing a task. Does not know how to break down a task into work stages and set priority for completion. Plans are mostly unviable
3	Doesn't handle planning very well. Makes mistakes when determining costs, priorities, and methods of achievement. Plans very often turn out to be unviable
4	In general, he copes with planning; when drawing up plans, he takes into account the costs of achieving his goals. Typically, all assigned tasks are aimed at achieving the overall goal of the activity.
5	Well determines the costs of implementing the plan. The goal is divided into stages of achievement. Correctly sets priorities at all stages of plan implementation. Always strives for viability and realism of the plan

The attention of managers of enterprises operating complex and expensive equipment is focused (especially during a crisis) on technologies for managing its maintenance and repair. These technologies are based on methodological knowledge and experience in managing organizational and technical systems. For a relatively modest financial investment, they provide significant returns.

Methodology

Enterprise management is usually focused on achieving quantifiable goals. To do this, some process, function, or operation is performed (see Diagram 1). Indicators are selected to determine the extent to which goals are achieved. For each, a criterion is established - a threshold value, the excess of which indicates that the goal has been achieved. Indicators of the degree of achievement of goals are called key performance indicators (KPI, Key Performance Indicators).

Any management system has a hierarchical structure, each level of which has its own goals, and they have indicators of the degree of their achievement:

corporate – used to assess business performance;
financial – calculated for financial responsibility centers;
effectiveness and productivity - characterize the degree of success of individual processes;
tactical - allow you to judge the effectiveness of individual functions or technological procedures;
functional – evaluate the effectiveness of using or maintaining specific equipment.

TOPO process management KPIs

Efficiency– the maximum possible increase in the time in good condition (equipment availability factor) with a fixed maintenance budget, or the maximum possible decrease in the budget for a given increase in the time in good condition.

Efficiency– reducing the share of emergency work, reducing the preparation time for emergency work, reducing the number of defects and failures that occur, increasing the service life of equipment, etc.

Economical– reduction of emergency and minimum stock standards, reduction of the cost of working capital “frozen in inventories”, reduction of the purchase cost of materials and services, reduction of personnel costs, etc.

KPIs are also classified into financial and non-financial indicators. The former can be calculated on the basis of documented primary data. The latter are assessed using qualitative measurement scales.

Every well-organized process has its own “master”, who is responsible for its “output”. To assess the effectiveness of its activities, it requires indicators characterizing the internal efficiency of the process. At the same time, any process is built into a higher-level system: the goals of the team’s activities are subordinated to the goals of the site’s activities, the goals of the latter are subordinated to the goals of the workshop, etc. Thus, along with indicators of internal efficiency, indicators are required that allow us to evaluate the “output” of the process from the point of view of its “customer” - indicators of external efficiency.

Goals determine plans, and plans determine the resources that need to be attracted, that is, the “inputs” of the process. Attracting resources is also a process that takes place under certain conditions and is influenced by various factors.

In general, if the process of equipment maintenance and repair (MRO) receives as its “input” resources of appropriate quality at average market prices and these resources exactly cover the planned needs and are involved without violating the law, then we can talk about the economy of the process. That is, the concept of efficiency provides an assessment of the effectiveness of attracting resources.

As a result of the transformation of the “input” within the process, an “output” is obtained, which can be considered both from the point of view of its internal and external efficiency. Output in terms of internal efficiency is usually multi-vector and determines the results of the process. These are compared with process objectives to enable evaluation effectiveness– the effectiveness of the process itself.

The main “output”, compared with the “input”, allows us to judge the effectiveness from the point of view of the “customer” of the process. It is this indicator that is an indicator of the efficiency of the process in the narrow sense of the word.

When managing a process, it is important to take cost-effectiveness, efficiency, and effectiveness into account. However, performance indicators must take precedence, since the existence of a process in an organization can only be justified and justified if it produces a useful “output” for either an internal or external customer.

An effective process must be both efficient and cost-effective. An effective process may not be economical or efficient. Economy is more a prerequisite for efficiency than for effectiveness.

Indicators of effectiveness and efficiency are used primarily by middle management, while efficiency indicators are used at the top level of management. Efficiency indicators are calculated on the basis of data characterizing the “input”, and efficiency and effectiveness indicators are calculated on the basis of data characterizing the “output” of the process (see Diagram 2).

Practice

Application of KPI methodology for maintenance management requires answers to the following questions:

How to classify indicators?
How to organically integrate the use of indicators into the maintenance process management mechanism?
What exactly is the benefit of using indicators for employees involved in maintenance management?

On the one hand, this is an auxiliary business process that serves production and is often financed on a residual basis. On the other hand, the share of maintenance costs in the structure of the cost of production of certain capital-intensive industries can reach up to 60–70%.

It turns out that although the process plays a subordinate role, due to the need for significant material costs it should be the object of close attention of managers.

In addition, it must be taken into account that the curve of the dependence of production losses on the amount of maintenance costs has an optimum. That is, increasing the cost of maintaining equipment in good condition is effective only up to a certain limit. If it is exceeded, a significant increase in maintenance costs results in a very insignificant increase in the time the equipment is in good condition.

Management of the maintenance process can provide maximum returns if the routine part of the work is assigned to an automated management information system (MAS).

Firstly, the system allows for real-time monitoring of all indicators necessary for effective operation. Managers have the opportunity to influence the process and its “input” when an unfavorable trend can be eliminated with little effort.

Secondly, the system makes it possible to perform more accurate, reasonable and timely multi-variant detailed planning. If you have a plan, you know what work needs to be done and within what time frame and what results should be expected.

Thirdly, AMS allows you to implement multi-stage hierarchical control of the process: starting from monitoring incoming spare parts and materials for compliance with planned needs and desired purchase prices and ending with plan-actual control of costs based on the results of work.

The hierarchy of control procedures is that the system allows managers at all levels - from the repair shop foreman to the chief engineer - to track and compare with the plan the values of those indicators for the achievement of which they are personally responsible.

For example, by accumulating statistics on the quality characteristics of spare parts received from specific suppliers and subsequent monitoring of the reliability of their operation throughout the entire life of the equipment, the system allows you to determine the most reliable suppliers.

Due to the fact that all equipment in the system is carefully classified, and when registering a defect, it is identified using a whole set of characteristics, responsible managers will be able to identify the most common defects of the same type of equipment, in order to then adjust its repair cycles and the scope of necessary work.

The management of the repair service always has the opportunity to compare the repair program of the enterprise and the budget allocated for it in various sections, and use the work plans generated by the system to justify the costs of maintenance in the following planning periods. It also becomes possible to analyze costs by type of work, centers of origin and cost items. The information obtained contributes to the formation of plans in which preventive measures, including those carried out on the basis of the actual condition of the equipment, will have the highest priority.

Project organizations, the result of which is the product of intellectual work, should be interested in retaining specialists and reducing staff turnover. Every year, an employee engaged in intellectual activity becomes more experienced and more professional. A person adapts more and more to the team, to the behavior of colleagues, and leadership styles. Employee value increases at all levels.

When drawing up a motivation system for designers, it is necessary to take into account time periods, the passage and completion of which are unique bifurcation points in a specialist’s career. Passing such key points can significantly influence a specialist’s decision to change jobs. It is at these key moments that adjustments to both the material and non-material components of motivation are necessary.

To increase this indicator, you should use the model of 7-year cycles (3+1+3) of human development as a system in collective relations.

Let’s consider the cyclical development of a person in a new place of work using the 3+1+3 model:

1 year of work has passed.

During the year of work, the specialist became familiar with his professional duties, he developed or did not develop relationships with colleagues and management, the feeling of comfort or discomfort from work acquired a complete psycho-emotional state.

Management has a general impression of the employee, his key competencies and weaknesses.

Upon completion of a year of work, it is recommended to make the first adjustment to the fixed part of the salary and add up to 5% to it. In the non-material motivational part, adjustments are also possible. This is the best time to train an employee.

3 years of work have passed.

Over the course of 3 years, the employee had a lot of interesting work, which allowed him to strengthen and develop his professional competencies and prove himself to be a professional. During this time, he became an integral part of the team, implemented several successful projects, received incentives and bonuses from management.

Perhaps everything went according to a different scenario... The work was monotonous, several projects “went into the trash,” there were many comments from the customer, complaints from management, constant rework, etc.

Some intermediate option is also possible. Elementary fatigue has accumulated from monotony, some unresolved problems, misunderstandings from management, from the corporate culture accepted in the company or the lack thereof. All this, with a cumulative effect, pushes the employee to think about changing jobs.

Over a period of 3 years, some social changes in the employee’s life are also possible. – change in marital status, birth of children, care of loved ones, change of housing, moving to another area with an increase in time and costs for transport, etc. Such social changes can influence a person's internal motivational emphases.

Despite the fundamental differences, all the options considered are equally difficult from the point of view of retaining an employee in the company... The 4th year of the relationship between the company and the employee in this sense is the most risky in terms of further investments in the development of the employee.

The employee requires close attention from personnel development specialists and adjustments to the motivational scheme are required. The determining factor for dismissal may be non-material motivation - a change of job in order to improve working conditions, a change of job “closer to home”, a natural desire to change the subject area and a switch of consciousness to a new area of intellectual work. Depending on the age and ambitions of a person and the impossibility of moving up the career ladder within the company, it is possible for this employee to move to another company to a higher position.

7 years have passed.

The completion of a seven-year cycle for an employee is a time for summing up and assessing the economic indicators of the employee’s individual value. This is an assessment of the total amount of costs that the company incurred to maintain a given employee, investments made in training, and other costs, including transaction ones. This is an assessment of production results in tangible and intangible terms that the company has achieved with the direct contribution of this employee to the common cause.

The result of summing up the results of the seven-year cycle is a final summary for the employee, which records the value of his realizable value and, as a consequence, the future prospects of his work.

Of course, if for 7 years an employee has not had significant incentives and tangible production successes, promotions and other factors indicating the importance of keeping this employee in the company, managers should think about the meaning of further cooperation with this person.

Retaining successful employees with high realizable value is a non-trivial task, since it must combine a set of material and intangible motivational mechanisms. To maintain the material component - an increase in the fixed part of income to 20-30%, large bonuses, the opportunity to purchase company shares. Intangible – moving to a managerial position or moving to another division of the company to a promising position.

In fact, the company at the end of the 7-year period must create a new reality for the employee.

The completion of 7-year cycles is also accompanied by transition processes in a person’s worldview, values and life priorities.

As an example, various classifiers can be used to work with motivational factors. One of the most successful (from the author’s point of view) is the classification created by researchers Sheila Ritchie and Peter Martin.