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Key Performance Indicators. Developing, Implementing, and Using Winning KPIs. Edition No. 4

  • Book

  • 384 Pages
  • November 2019
  • John Wiley and Sons Ltd
  • ID: 5828987

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.

Table of Contents

About the Author xiii

Acknowledgments xv

Introduction xvii

Chapter 1 The Great KPI Misunderstanding 3

The Four Types of Performance Measures 3

Number of Measures Required: The 10/80/10 Rule 13

Difference between KRIs and KPIs and RIs and PIs 15

The Lead and Lag Confusion 16

Have a Mix of 60 Percent Past, 20 Percent Current, and 20 Percent Future-Oriented Measures 17

Importance of Timely Measurement 20

Where Are You in Your Journey with Performance Measures? 21

Chapter 2 The Myths of Performance Measurement 25

The Myths Surrounding Performance Measures 25

The Myths around the Balanced Scorecard 30

Chapter 3 Background to the Winning KPI Methodology 41

Winning KPI Methodology 41

Seven Foundation Stones of the Winning KPIs Process 46

Implementation Variations and Shortcuts for Small to Medium-Sized Enterprises 56

Chapter 4 Leading and Selling the Change 63

Steve Zaffron and Dave Logan: Why So Many Initiatives Fail 63

Harry Mills: The Importance of Self-Persuasion 64

John Kotter: How to Lead Change Successfully 65

Learn to Sell by Appreciating the Emotional Drivers of the Buyer 67

Selling the KPI Project 70

Selling the Winning KPIs to the Organization’s Staff 75

Delivering Bulletproof PowerPoint Presentations 79

PDF Download 83

Chapter 5 Getting the CEO and Senior Management Committed to the Change 85

CEO and Senior Management Commitment 85

Guidelines for the External KPI Facilitator 91

PDF Download 94

Chapter 6 Up-Skill In-House Resources to Manage the KPI Project 97

Establishing a Winning KPI Project Team 97

PDF Download 111

Chapter 7 Finding Your Organization’s Critical Success Factors 115

Why Critical Success Factors Are So Important 118

Relationship between CSFs and KPIs 123

Common Misunderstandings 124

Task 1: Wording the Success Factors and the External Outcomes 127

Task 2: Determining the Critical Success Factors in a Two-Day Workshop 130

Task 3: Presenting the Critical Success Factors to the Staff 141

Task 4: Get the CSFs on the Wall in Every Workplace 143

PDF Download 144

Chapter 8 Characteristics of Meaningful Measures 149

Common Measurement Traps 149

Wisdom on Measures from Other Authors 149

Rules for Designing Measures 154

Suggested Exercises to Improve Measure Design 156

PDF Download 165

Chapter 9 Designing and Refining Measures 167

Running the Two-Day Performance Measures Workshop 169

Refining Performance Measures after the Workshops 181

Teams Select Their Relevant Performance Measures 185

Finding the KRIs That Need to Be Reported to the Board 187

The KPI Team Ascertaining the Winning KPIs 190

PDF Download 191

Chapter 10 Reporting Performance Measures 195

Develop the Reporting Framework at All Levels 195

The Common Faults with Reporting 196

Designing an Appropriate Reporting Regime 197

Reporting the KPIs to Management and Staff 206

Reporting RIs and PIs to Management 210

Reporting Performance Measures to Staff 215

Reporting Performance Measures to the Board 216

Reporting Team Performance Measures 221

The Performance Reporting Portfolio 223

PDF Download 224

Chapter 11 Ongoing Support and Refinement of KPIs and CSFs 227

Facilitate the Ongoing Support and Refinement of KPIs and CSFs 229

PDF Download 235

Chapter 12 Implementation Case Studies and Lessons 237

Recent Case Studies 237

Previously Reported Case Studies 243

Implementation Lessons 256

Comparison to Other KPI Methodologies 267

PDF Download 273

Appendix Performance Measures Database 275

Index 323

Authors

David Parmenter Waymark Solutions, Wellington, New Zealand.