Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, 3rd Edition

Book description

Streamline KPIs to craft a simpler, more effective system of performance measurement

Key Performance Indicators provides an in-depth look at how KPIs can be most effectively used to assess and drive organizational performance. Now in its third edition, this bestselling guide provides a model for simplifying KPIs and avoiding the pitfalls ready to trap the unprepared organization. New information includes guidance toward defining critical success factors, project leader essentials, new tools including worksheets and questionnaires, and real-world case studies that illustrate the practical application of the strategies presented. The book includes a variety of templates, checklists, and performance measures to help streamline processes, and is fully supported by the author's website to provide even more in-depth information.

Key Performance Indicators are a set of measures that focus on the factors most critical to an organization's success. Most companies have too many, rendering the strategy ineffective due to overwhelming complexity. Key Performance Indicators guides readers toward simplification, paring down to the most fundamental issues to better define and measure progress toward goals. Readers will learn to:

  • separate out performance measures between those that can be tied to a team and result in a follow-up phone call (performance measures) and those that are a summation of a number of teams working together (result indicators)

  • look for and eradicate those measures that have a damaging unintended consequence, a major darkside

  • Sell a KPI project to the Board, the CEO, and the senior management team using best practice leading change techniques

  • Develop and use KPIs effectively with a simple five stage model

  • Ascertain essential performance measures, and develop a reporting strategy

  • Learn the things that a KPI project leader needs to know

  • A KPI project is a chance at a legacy - the project leader, facilitator, or coordinator savvy enough to craft a winning strategy can affect the organization for years to come. KPI projects entail some risk, but this book works to minimize that risk by arming stakeholders with the tools and information they need up front. Key Performance Indicators helps leaders shape a performance measurement initiative that works.

    Table of contents

    1. Title Page
    2. Copyright
    3. About the Author
    4. Preface
      1. Why This Book Should Interest You
      2. Barriers to KPIs Working Properly
      3. Changes in Winning KPI Methodology
      4. Chief Measurement Officer's Toolkit
      5. Leading and Selling Change
    5. Acknowledgments
    6. Part I: Setting the Scene
      1. Chapter 1: The Great KPI Misunderstanding
        1. Key Result Indicators
        2. Result Indicators
        3. Performance Indicators
        4. Key Performance Indicators
        5. Seven Characteristics of KPIs
        6. Difference between KRIs and KPIs and RIs and PIs
        7. Lead and Lag Confusion
        8. Number of Measures Required—The 10/80/10 Rule
        9. Importance of Timely Measurement
        10. Where Are You in Your Journey with Performance Measures?
        11. Notes
      2. Chapter 2: The Myths of Performance Measurement
        1. Myth #1: Most Measures Lead to Better Performance
        2. Myth #2: All Measures Can Work Successfully in Any Organization, At Any Time
        3. Myth #3: All Performance Measures Are KPIs
        4. Myth #4: By Tying KPIs to Remuneration You Will Increase Performance
        5. Myth #5: We Can Set Relevant Year-End Targets
        6. Myth #6: Measuring Performance Is Relatively Simple and the Appropriate Measures Are Obvious
        7. Myth #7: KPIs Are Financial and Nonfinancial Indicators
        8. Myth #8: You Can Delegate a Performance Management Project to a Consulting Firm
        9. The Myths Around the Balanced Scorecard
        10. Notes
      3. Chapter 3: Unintended Consequence: The Dark Side of Measures
        1. Example: City Train Service
        2. Example: Accident and Emergency Department
        3. Examples from Dean Spitzer's Book
        4. Performance-Related Pay
        5. Dysfunctional Performance Measures Checklist
        6. Notes
      4. Chapter 4: Revitalizing Performance
        1. Five Foundation Stones
        2. The Many Facets of Performance Management
        3. Notes
      5. Chapter 5: Strategy and Its Relevance to Performance Measures
        1. Articulate Your Organization's Mission, Vision, Values, and Lean Management Principles
        2. Create a Strategy That Is Understood by Staff
        3. Ensure That Your Strategy Is Balanced
        4. Monitor Implementation of Your Strategy
        5. Creating the Future
        6. Notes
    7. Part II: Winning KPI Methodology
      1. Chapter 6: Background to the Winning KPI Methodology and Its Migration
        1. The Original 12-Step Process
        2. The New Six-Stage Process
        3. Winning KPI Methodology and Its Migration
        4. An Overview of the Six Stages
      2. Chapter 7: Foundation Stones for Implementing Key Performance Indicators
        1. “Partnership with the Staff, Unions, and Third Parties” Foundation Stone
        2. “Transfer of Power to the Front Line” Foundation Stone
        3. “Measure and Report Only What Matters” Foundation Stone
        4. “Source KPIs from the Critical Success Factors” Foundation Stone
        5. “Abandon Processes That Do Not Deliver” Foundation Stone
        6. “Appointment of a Home-Grown Chief Measurement Officer” Foundation Stone
        7. “Organization-Wide Understanding of the Winning KPIs Definition” Foundation Stone
        8. Notes
      3. Chapter 8: Getting the CEO and Senior Management Committed to the Change (Stage 1)
        1. Obtaining Senior Management Team Commitment
        2. Agree on Timing, Resources, and Approach
        3. Benefits of This Stage
        4. Templates and Checklists
        5. Notes
      4. Chapter 9: Up-Skill In-House Resources to Manage the KPI Project (Stage 2)
        1. Establish a Winning KPI Team Working Full Time on the Project
        2. Establish a Just-Do-It Culture and Process
        3. Benefits of This Stage
        4. Templates and Checklists
        5. Notes
      5. Chapter 10: Leading and Selling the Change (Stage 3)
        1. Leading Change by John Kotter
        2. Learn to Sell by Appreciating the Emotional Drivers of the Buyer
        3. Sales Pitches You Will Need to Make to Get the Go-Ahead
        4. Selling the Winning KPIs to the Organization's Staff
        5. Benefits of This Stage
        6. Templates and Checklists
        7. Notes
      6. Chapter 11: Finding Your Organization's Operational Critical Success Factors (Stage 4)
        1. Operational Critical Success Factors versus External Outcomes
        2. Operational Critical Success Factors—The Missing Link
        3. Rules For Ascertaining the Operational Critical Success Factors
        4. Characteristics of Critical Success Factors
        5. Four Tasks for Identifying Operational Critical Success Factors
        6. Alternative Methodologies
        7. Benefits of This Stage
        8. Templates and Checklists
        9. Notes
      7. Chapter 12: Determining Measures That Will Work in Your Organization (Stage 5)
        1. How to Derive Measures: An Overview
        2. Ascertain the Team Performance Measures
        3. Recording Performance Measures in a Database
        4. Sorting the Wheat from the Chaff
        5. Find the KRIs That Need to Be Reported to the Board
        6. Find the Winning KPIs
        7. Measures Gallery
        8. Benefits of This Stage
        9. Templates and Checklists
        10. Notes
      8. Chapter 13: Get the Measures to Drive Performance (Stage 6)
        1. Develop the Reporting Framework at All Levels
        2. Facilitate the Use of Winning KPIs
        3. Refine KPIs to Maintain Their Relevance
        4. Benefits of This Stage
        5. Templates and Checklists
        6. Notes
      9. Chapter 14: Reporting Performance Measures
        1. The Work of Stephen Few in Data Visualization
        2. Reporting the KPIs to Management and Staff
        3. Reporting Performance Measures to Management
        4. Reporting Performance Measures to Staff
        5. Reporting Performance Measures to the Board
        6. Reporting Team Performance Measures
        7. How the Reporting of Performance Measures Fits Together
        8. Designing Reports Around Current Technology
        9. Notes
    8. Part III: Chief Measurement Officer's Toolkit
      1. Chapter 15: Resources for the Chief Measurement Officer
        1. The CMO Needs a Cluster of Mentors
        2. Guidelines for the External KPI Facilitator
        3. Remember the Fundamentals
        4. Resources
        5. Running Workshops
        6. Implementation Lessons
        7. Templates and Checklists
        8. Notes
      2. Chapter 16: Case Studies on the Critical Success Factor Workshops
        1. Private Sector Case Study #1: An Asian Conglomerate
        2. Private Sector Case Study #2: Medical Company
        3. Private Sector Case Study #3: Forestry Company
        4. Private Sector Case Study #4: Car Manufacturer
        5. Private Sector Case Study #5: Timber Merchant
        6. Private Sector Case Study #6: Investment Bank
        7. Nonprofit Membership Organization Case Study #1: Golf Club
        8. Nonprofit Membership Organization Case Study #2: Surf Life Saving
        9. Government Department Case Study #1
        10. Government Department Case Study #2
        11. Professional Accounting Body Case Study
        12. Charity Case Study
      3. Chapter 17: Common Critical Success Factors and Their Likely Measures
      4. Chapter 18: Comparison to Other Methodologies
        1. Main Differences Between the Balanced-Scorecard and Winning-KPIs Methodologies
        2. Stacey Barr's PuMP
        3. Paul Niven's Balanced Scorecard Work
        4. Notes
      5. Chapter 19: CEO Toolkit
        1. Letter to You, the Chief Executive Officer
        2. Measurement Leadership Has to Come from the Chief Executive Officer
        3. Note
      6. Appendix A: Foundation Stones of Performance-Related Pay Schemes
        1. The Billion-Dollar Giveaway
        2. The Foundation Stones
        3. Notes
      7. Appendix B: Draft Job Description for the Chief Measurement Officer
        1. Outline
        2. Duties/Responsibilities of the Chief Measurement Officer
        3. Skills and Experience
      8. Appendix C: Delivering Bulletproof Presentations
      9. Appendix D: Presentation Templates
      10. Appendix E: Performance Measures Database
      11. Index
    9. End User License Agreement

    Product information

    • Title: Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, 3rd Edition
    • Author(s): David Parmenter
    • Release date: April 2015
    • Publisher(s): Wiley
    • ISBN: 9781118925102