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

Chapter 7Foundation Stones for Implementing Key Performance Indicators

Overview

There are seven foundation stones that need to be laid before we can successfully develop and utilize key performance indicators (KPIs) in the workplace. Success or failure of the KPI project is determined by the presence or absence of these seven foundation stones. In this chapter I explain the seven foundation stones, which are: (1) Partnership with the staff, unions, and third parties; (2) Transfer of power to the front line; (3) Measure and report only what matters; (4) Source KPIs from the critical success factors; (5) Abandon processes that do not deliver; (6) Appointment of a home-grown chief measurement officer; (7) Organization-wide understanding of the winning KPIs definition.

There are seven foundation stones that need to be laid before we can successfully develop and utilize key performance indicators (KPIs) in the workplace. When building a house, you need to ensure that all the building is undertaken on solid foundation stones. Success or failure of the KPI project is determined by the presence or absence of these seven foundation stones (see Exhibit 7.1). They are so important that I can guarantee you will have limited success without them in place. I have witnessed far too many projects where well-meaning and talented individuals have compromised these foundation stones only to later suffer the fate of an underperforming KPI platform.

Exhibit 7.1 The Seven Foundation Stones ...