Key Performance Indicators, 4th Edition

CHAPTER 9Designing and Refining Measures

Overview

We need to understand how to run the performance measures workshops, how to record the performance measures in a database and refine them, and, finally, how to help teams select the appropriate measures.

Determining the measures that will work for the organization will have a profound impact on the organization, stimulating timely action and linking day-to-day activities to the strategic objectives of the organization.

This chapter also outlines the worksheets and checklists that are available, free of charge, to assist the KPI project team.

The key learning points from this chapter are:

1. How to run the two-day performance measures workshop.
2. How to derive a mix of past, current, and future-looking measures from the CSFs.
3. The importance of recording all measures collected from the workshop sessions in a database.
4. How to refine and eliminate performance measures from the database.
5. Holding a performance measures gallery to weed out dysfunctional measures.
6. Ascertaining the 10 KRIs that need to be reported to the board.
7. 10 is the upper limit for performance measures for a team.
8. How to ascertain whether a performance measure is a KPI.

Designing and refining measures need a systematic and well-thought-through process to ensure that the measures will promote the desired actions.

Designing and refining measures need a systematic and well-thought-through process to ensure that the measures will promote the desired actions. This ...