Key Performance Indicators, 4th Edition

Book description

The new edition of the bestselling guide on creating and using key performance indicators—offers significant new and revised content

Key Performance Indicators (KPIs) help define and measure the organizational goals which are fundamental to an organization’s current and future success. Having solid KPIs is crucial for companies that are implementing performance management systems, such as balanced scorecards, six sigma, or activity-based management. In many organizations, KPIs are often too numerous, randomly assembled, and overly complex—essentially rendering them ineffectual, or at worse, counterproductive. Key Performance Indicators provides a model for simplifying the complex areas of KPIs while helping organizations avoid common mistakes and hazards.

Now in its fourth edition, this bestselling guide has been extensively revised and updated to incorporate practical lessons drawn from major implementations. Fresh content includes a more concise KPI methodology with clear implementation guidance, original insights on how other areas of performance management can be corrected, and new in-depth case studies. A revised starter kit is included to identify critical success factors, and the KPI resource kit contains updated worksheets, workshop programs, and questionnaires. Helping readers to better define and measure progress toward goals, this important guide:

  • Dispels the myths of performance measurement and explains a simple, yet powerful KPI methodology
  • Explains the 12-step model for developing and using KPIs with guidelines
  • Helps readers brainstorm performance measures, sell KPI projects to the Board and senior management, and accurately report performance
  • Features the “KPI Project Leaders Corner” which provides readers with essential information and useful exercises
  • Includes an array of practical tools—templates, checklists, performance measures—and a companion website (

Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, 4th Edition is important resource for C-suite executives, senior management, project teams, external project facilitators, and team coordinators involved in all aspects of performance management systems.

Table of contents

  1. Cover
  2. About the Author
  3. Acknowledgments
  4. Introduction
    1. Overview
    2. Why You Should Be Interested in This Book
    3. Unintended Behavior: The Dark Side of Performance Measures
    4. The Three Major Benefits of Ascertaining an Organization's Critical Success Factors
    5. The Burning Platform in Performance Management
    6. Suggested Chapter Reading by Reader Designation
    7. Why Owners of My Previous Editions Should Buy the Fourth Edition
    8. PDF Toolkit
    9. Notes
  5. CHAPTER 1: The Great KPI Misunderstanding
    1. Overview
    2. The Four Types of Performance Measures
    3. Number of Measures Required: The 10/80/10 Rule
    4. Difference between KRIs and KPIs and RIs and PIs
    5. The Lead and Lag Confusion
    6. Have a Mix of 60 Percent Past, 20 Percent Current, and 20 Percent Future-Oriented Measures
    7. Importance of Timely Measurement
    8. Where Are You in Your Journey with Performance Measures?
    9. Notes
  6. CHAPTER 2: The Myths of Performance Measurement
    1. Overview
    2. The Myths Surrounding Performance Measures
    3. The Myths around the Balanced Scorecard
    4. Notes
  7. CHAPTER 3: Background to the Winning KPI Methodology
    1. Overview
    2. Winning KPI Methodology
    3. Seven Foundation Stones of the Winning KPIs Process
    4. Implementation Variations and Shortcuts for Small to Medium-Sized Enterprises
    5. Notes
  8. CHAPTER 4: Leading and Selling the Change
    1. Overview
    2. Steve Zaffron and Dave Logan: Why So Many Initiatives Fail
    3. Harry Mills: The Importance of Self-Persuasion
    4. John Kotter: How to Lead Change Successfully
    5. Learn to Sell by Appreciating the Emotional Drivers of the Buyer
    6. Selling the KPI Project
    7. Selling the Winning KPIs to the Organization's Staff
    8. Delivering Bulletproof PowerPoint Presentations
    9. PDF Download
    10. Notes
  9. CHAPTER 5: Getting the CEO and Senior Management Committed to the Change
    1. Overview
    2. CEO and Senior Management Commitment
    3. Guidelines for the External KPI Facilitator
    4. PDF Download
    5. Notes
  10. CHAPTER 6: Up-Skill In-House Resources to Manage the KPI Project
    1. Overview
    2. Establishing a Winning KPI Project Team
    3. PDF Download
    4. Notes
  11. CHAPTER 7: Finding Your Organization's Critical Success Factors
    1. Overview
    2. Why Critical Success Factors Are So Important
    3. Relationship between CSFs and KPIs
    4. Common Misunderstandings
    5. Task 1: Wording the Success Factors and the External Outcomes
    6. Task 2: Determining the Critical Success Factors in a Two-Day Workshop
    7. Task 3: Presenting the Critical Success Factors to the Staff
    8. Task 4: Get the CSFs on the Wall in Every Workplace
    9. PDF Download
    10. Notes
  12. CHAPTER 8: Characteristics of Meaningful Measures
    1. Overview
    2. Common Measurement Traps
    3. Wisdom on Measures from Other Authors
    4. Rules for Designing Measures
    5. Suggested Exercises to Improve Measure Design
    6. PDF Download
  13. CHAPTER 9: Designing and Refining Measures
    1. Overview
    2. Running the Two-Day Performance Measures Workshop
    3. Refining Performance Measures after the Workshops
    4. Teams Select Their Relevant Performance Measures
    5. Finding the KRIs That Need to Be Reported to the Board
    6. The KPI Team Ascertaining the Winning KPIs
    7. PDF Download
    8. Note
  14. CHAPTER 10: Reporting Performance Measures
    1. Overview
    2. Develop the Reporting Framework at All Levels
    3. The Common Faults with Reporting
    4. Designing an Appropriate Reporting Regime
    5. Reporting the KPIs to Management and Staff
    6. Reporting RIs and PIs to Management
    7. Reporting Performance Measures to Staff
    8. Reporting Performance Measures to the Board
    9. Reporting Team Performance Measures
    10. The Performance Reporting Portfolio
    11. PDF Download
    12. Notes
  15. CHAPTER 11: Ongoing Support and Refinement of KPIs and CSFs
    1. Overview
    2. Facilitate the Ongoing Support and Refinement of KPIs and CSFs
    3. PDF Download
  16. CHAPTER 12: Implementation Case Studies and Lessons
    1. Overview
    2. Recent Case Studies
    3. Previously Reported Case Studies
    4. Implementation Lessons
    5. Comparison to Other KPI Methodologies
    6. PDF Download
    7. Notes
    1. Performance Measures Database
  18. Index
  19. End User License Agreement

Product information

  • Title: Key Performance Indicators, 4th Edition
  • Author(s): David Parmenter
  • Release date: October 2019
  • Publisher(s): Wiley
  • ISBN: 9781119620778