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The Japanese have taught businessmen many things, including the kaizen philosophy. This refers to practices that focus change and improvement. Processes where kaizen can be used involve manufacturing, engineering, management, and other business procedures. Today, not only commercial companies practice this philosophy. Organizations like the government, life coaching agencies, banks, health clinics, and psychotherapists also use this method. Now, there are some things related to companies that must be supported by the objective of improving or being better in the future. This includes the company’s monitoring process, which can be done through the use of key performance indicators or KPIs. To prepare for the implementation of KPIs with better chances of execution, you may need to use the kaizen way.
If you’ve been around implementing KPIs, you already know that there are certain processes that need to be completed. From the first stage to the last, there is a need to stay focused on the goals and to be able to improve the results. This will help stabilize the performance of the business and ensure that risks and hazards can be resolved. The phase where you prepare for KPI implementation will require some changes, especially if you will implement the kaizen methodology. In fact, there is what is called the KPI cycle in which the kaizen way is used. The cycle consists of four parts that are planning, measurement, analysis and change. These four sections have a few other areas that need to be dealt with by the administration and must be completed successfully.
The first stage in the KPI cycle where you prepare for KPI implementation using the kaizen method is to rank and agree on CSFs or critical business success factors. CSFs are just as 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 generate the KPIs that will be used to measure the performance of the company. Based on the CSFs, you will be able to define the KPIs that the company should use.
The third is to collect and be able to compare performance results over time. This is a requirement to ensure that the results improve in the future. Now that you know which of the areas are performing poorly, you will need to identify and discuss the gaps in performance and be able to compare the indicators. The comparison will allow the company to make the right decisions about what to do to correct errors or poor performance.
The next thing is to review the business processes based on the reference KPIs. This will allow the company to evaluate and provide solutions to the gaps that have been found. Maintaining best practices and addressing issues will allow the business to improve when preparing for KPI implementation using kaizen.