KPI (summarizing PowerPoint slides)

aljohani19oq

C-KPI-Slides-final.pdf

Home >Business & Finance homework help >Management homework help >KPI (summarizing PowerPoint slides)

CERTIFIED KEY PERFORMANCE INDICATORS PROFESSIONAL

TOWARDS THE USE OF A RIGOROUS KPI MEASUREMENT FRAMEWORK

Empower the world to achieve performance excellence

VISION

MISSION

Provide integrated performance solutions through rigorous research, educational programs and advisory services

VALUES

ADDED VALUE

COMMON SENSE

BEST KNOW-HOW

EFFICIENCY

DATA AND FACTS

Offering more through innovation and value for money

Through the integration of multidisciplinary global expertise

Fairness, modesty and friendship

Expertise and opinions based on specific data

Key principle for prioritization and getting things done

2004 YEAR OF ESTABLISHMENT years spent on researching KPI best practice

research reports published to date

staff members

14+

220+

55+ 4 OFFICES

Australia

Europe

Middle East

South East Asia

6 CONTINENTS On which we delivered trainings

global partner organizations

countries where we delivered educational programs

countries with research clients

KPI examples published

21,150 Companies registered

51,045 Members on our online communities

88,727 Professional reached

945,800

AGENDA

The World of KPIs

Understanding KPIs

KPI Typology

Data Gathering

KPI Documentation

KPI Selection

Data Visualization

KPIs Alignment

Working with Targets

3 4

7 8

Key learning points Case study Session review

Exercise Video References

LEGEND

LEARNING OBJECTIVES

Differentiate between objectives, KPIs and initiatives;

Apply best practice techniques to KPI selection;

Understand KPI selection in different contexts;

Document KPIs in a standardized template;

Learn when and how to use benchmarking in target setting;

Optimize the KPI activation and data gathering process;

Enhance the use of data through effective data visualization.

LEARNING OBJECTIVES

SESSIONS vs

OBJECTIVES

Differentiate between

objectives, KPIs and

initiatives

Apply best practice

techniques to KPI selection

Understand KPI selection in different contexts

Document KPIs in a

standardized template

Learn when and how to

use benchmarking

in target setting

Optimize the KPI activation

and data gathering process

Enhance the use of data

through effective data visualization

S1: The World of KPIs S2: Understanding KPIs S3: KPI Typology S4: KPI Taxonomy S5: KPI Selection S6: KPIs Alignment S7: KPI Documentation S8: Working with Targets S9: Data Gathering S10: Data Visualization

COMPETENCIES PerformanceManagement Data Analysis Interpersonal

relations System Thinking

Result Oriented

AGENDA

The World of KPIs 1. Challenges in performance measurement 2. The value added by KPIs 3. Organizational levels 4. KPI concept map 5. Governance

1. Identify main challenges in performance measurement; 2. Understand the role of business performance measurement systems; 3. Acknowledge arguments to get buy-in for a KPI implementation project.

Key Learning Points

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

THE VALUE ADDED BY KPIS

Clarity

Improvement

Focus Communication

11The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

THE VALUE ADDED BY KPIS CLARITY • Provide a detailed numerical view of which are the desired results aimed to be achieved

• Facilitate line of sight by mapping contribution to success across organisational levels

FOCUS • Convey what matters • Convey what requires attention

IMPROVEMENT • Objectively evaluate the level of achievement of desired results • Readily available data which accelerates corrective action initiation

ENGAGEMENT • Lead to a sense of ownership through responsibility and accountability • Motivate in achieving better results • Contribute to building a performance culture

COMMUNICATION • Provide common understanding of the numbers that matter

• Enables precise stakeholder communication • Demonstrate interest and ability to use state of the art management concepts

LEARNING • Enable comparison of results in time, to reflect trends • Identify opportunities by comparing to others • Lead to a better understanding of the business

12The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

CHALLENGES IN PERFORMANCE MEASUREMENT

Which is the most challenging aspect of working with KPIs in your organization?

Source: The KPI Institute (2017), State of Performance Improvement and Key Performance Indicator Practice Report

The World of KPIs

2.93

2.98

3.12

3.13

3.14

KPI documentation

Data visualisation

Target setting

KPI selection

Data gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS

14The World of KPIs

Match Description No. Concept

80% 1 Goal # Employees 2 KPI % Customer satisfaction 3 Initiative (project) Customer Service Development Program 4 Metric Complete 50% of the trainings by 30 June 5 Milestone Identify key competencies to improve for Customer Service representatives

6 Mission Statement

Integrity 7 Program Increase customer satisfaction 8 Objective Growth for the business 9 Target Quality 10 Task To be the world’s leading company, focused on maximizing the value we provide to our stakeholders

11 Value Driver

Customer Service Training 12 Value (Corporate

value) To support long-term client partnerships, by delivering high quality services

13 Vision Statement

ISION

ISSION ---- why we exist + impact

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Vision Statement

Mission Statement

Value (corporate) Value Driver Goal Objective Metric KPI Target Program Initiative Milestone Task

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS To be the world’s leading company, focused on maximizing the value we provide to our stakeholders

To support long-term client partnerships, by delivering high quality services.

Integrity

Quality

Growth for the business

Increase customer satisfaction

# Employees

% Customer satisfaction

80%

Customer Service Development Program

Customer Service Training

Complete 50% of the trainings by 30 June

Identify key competencies to improve for CS representatives

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TERMINOLOGY

Term Description Vision Statement Where you want to be Mission Statement Why you exist

Value (Corporate value) Beliefs - influence/drive behaviors

Value driver Characteristics of our activities that reflect how we generate value for our stakeholders - drive objectives

Goals Clustering tool for objectives Objectives Reflection of what we need to achieve as part of our strategy

Metric Something we can measure KPI A metric reflecting performance

Target A specific level we want to achieve in relation to a KPI

Programs Clustering tool for projects Initiative/Projects Activity with start/dates and specific outputs to be generated

Milestone Intermediate stage within a project (early awareness) - mark specific points along a project timeline

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PERFORMANCE MANAGEMENT SYSTEM ARCHITECTURE

18The World of KPIs

Source: The KPI Institute (2018)

Current State

Environmental Scan

Mandate

Performance Dashboard

Portfolio of Initiatives

Performance Scorecard

Desired State of Evolution

Strategy Map

Initiative Description

Project Status Report KPI Trend Analysis

KPI Description

Performance Report

Risk Log

Individual Performance Plans

Budget

KPI Trend Analysis

KPI Description

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DESIRED STATE OF EVOLUTION

Vision

Identity & Purpose

Desired State 2022 Target Achievements

Projection into the external environment

Key Successful factors / Value Drivers / Internal Capabilities

Mission

Values

Safety: the creation and relentless maintenance of a healthy and safe work environment and safe work practices in everything we do. Integrity: do the right things, do things right, say what you do and do what you say. Honesty and openness in communication: ethical and honest dealings with all stakeholders and openness in communication on an informed and need-to-know basis with due regard to privacy and confidentiality. Customer focus: all applicants and employees are entitled to high quality customer service. Excellence: develop and maintain high performance and proficiency standards in all services provided to both employees and applicant. Competence: develop a talented and motivated workforce, mastered through education, mentoring, training and experience.

Our Shareholders • Value generation – Fiduciary responsibility, dividend generation by unlocking value and generating savings. • Sustainable development – Strategic decisions are derived from responses to changes in the environment and long-term thinking aimed to ensure we are sustainable and relevant.

Our People • Management / leadership – Management is committed to working on strategy implementation and coach / advice / guide • Individual and team capabilities – Capabilities are built through formal training programs and mentoring programs. • Organizational culture – Culture of performance

Our Services • Efficiency of processes – We operate reliable, robust services, monitored for quality. • Process efficiency – All operational processes are mapped and optimized to be cost efficient information systems

Our customers • Responsive to customer needs – We understand and partner with internal customers to address their needs. • Competitive services – Our effective solutions provide the organization with good value for money.

Relationships • We partner with specialized recruiting and training companies to deliver value added services.

Value Added • We contribute to the optimization of resources and improved service delivery

Brand We are recognized among the companies that provide excellent working environments.

100% HR processes optimized

95% On-time delivery of HR service requests 80% Internal customer

satisfaction

To play a pivotal role within the organization general setting by nurturing a culture of performance through the development of cost effective and result oriented HR programs.

To provide high quality HR services to support organizational value generation.

Source: The KPI Institute (2018)

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Source: Emirates Emirates Identity Authority (2015), Strategic Plan 2014-2016, https://www.ica.gov.ae/userfiles/assets/tplcqI9U.pdf

DESIRED STATE OF EVOLUTION

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS

21The World of KPIs

Vision Statement

Mission Statement

Value (corporate) Value Driver Goal Objective Metric KPI Target Program Initiative Milestone Task

To support long-term client partnerships, by delivering high quality services.

Integrity Quality

Growth for the business

Increase customer satisfaction

# Employees % Customer satisfaction

80%

Customer Service Development Program Customer Service Training Complete 50% of the trainings by 30 June Identify key competencies to improve for CS representatives

Desired State of Evolution

To be the world’s leading company, focused on maximizing the value we provide to our stakeholders

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

STRATEGY MAP

Customers

Financial

Learning, Growth & Innovation

Internal Processes

Perspectives

Optimize recruitment and retention

Improve HR service delivery capability

Develop workforce skills and

competences

Maintain financial rigour in budget projection and

execution

Maintain high levels of internal customer

satisfaction

Seek efficiencies to minimise cost base

Provide good value for money to the

organisation

Ensure high service delivery standards

Build an environment that fosters creativity and innovation

Theme 2: Efficiency – Achieve more with same or less resources

Maintain high performing motivated employees

Theme 1: Effectiveness – Fulfilling internal customers expectations

Strategic Objectives

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

STRATEGY MAP

Source: Dubai Electricity and Water Authority (2019): https://www.dewa.gov.ae/en/about-dewa/about-us/about-us/corporate-governance-and-strategy

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Vision Statement

Mission Statement

Value (corporate) Value Driver Goal Objective Metric KPI Target Program Initiative Milestone Task

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS To be the world’s leading company, focused on maximizing the value we provide to our stakeholders

To support long-term client partnerships, by delivering high quality services.

Integrity Quality

Growth for the business

Increase customer satisfaction

# Employees % Customer satisfaction

80%

Customer Service Development Program Customer Service Training Complete 50% of the trainings by 30 June Identify key competencies to improve for CS representatives

Desired State of Evolution

Strategy Map

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Vision Statement

Mission Statement

Value (corporate) Value Driver Goal Objective Metric KPI Target Program Initiative Milestone Task

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS To be the world’s leading company, focused on maximizing the value we provide to our stakeholders

To support long-term client partnerships, by delivering high quality services.

Integrity Quality

Growth for the business

Increase customer satisfaction

# Employees % Customer satisfaction

80%

Customer Service Development Program Customer Service Training Complete 50% of the trainings by 30 June Identify key competencies to improve for CS representatives

Desired State of Evolution

Strategy Map

Scorecard and

Dashboard

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PERFORMANCE SCORECARD

Source: The KPI Institute (2018)

Perspective / Goal Strategic Objectives / KPIs

smartKPIs. com #

Standard reporting frequency

Previous Period Results

Current Results

Trend Target % Target complete

KPI Owner

Results Comments

Customer - 1 Strategic Objectives / 2 KPIs Maintain high levels of internal customer satisfaction

% Internal customer satisfaction with HR service levels sK2379 Q 85% 75% 90% 83% Mike S.

# Complaints received sK2038 Q 0 1 0 50% Ron J.

Financial - 2 Strategic Objectives / 3 KPIs Seek efficiencies to minimise cost base

$ Cost per hire sK49 M 400.00 534.00 350.00 153% Mina F.

$ Cost avoidance savings sK262 M 918.00 560.00 500.00 112% Mina F.

Maintain financial rigor in budget projection and execution

% HR budget variance sK479 M -5% -3% 2% -157% Jane T.

Internal Processes - 2 Strategic Objectives / 4 KPIs Optimize recruitment

# Time to fill a vacant position sK688 M 25 19 15 79% Brian A.

% Employees who leave the organization in the first 3 months sK688 M 15% 12% 10% 83% John T.

Improve HR service delivery capability

% HR projects on time, on budget and according to specifications sk2863 M 62% 87% 80% 109% Ana F.

% HR processes optimized sk2284 M 84% 46% 60% 77% Don T.

People, Learning & Growth - 2 Strategic Objectives / 4 KPIs Build an environment that fosters creativity and innovation

# HR employee engagement index sK1836 Q 56 76 65 117% Chris M.

# Ideas for new / improved service from HR employees sK4657 M 14 19 30 63% Chris M.

Develop workforce skills and competences

# Certifications per HR employee sK4659 Q 2.18 1.35 2.00 68% Chris M.

# Training hours per HR full time equivalent (FTE) sK7 M 14 8 8 100% Chris M.



The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PERFORMANCE DASHBOARD

Human Resources Performance Dashboard Period Sep 2019

Recruitment Retention

99% 82% 89% 66% 74% 86% 80% 88% 76%

56% 72% 56% 67%

% Staffing rate Target

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2016 2017

9% 10% 3%

9% 9% 6%

0% 2% 7% 7%

10% 6% 4%

% Succession plans for key positions Target

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2016 2017

0% 0% 0% 0%

55% 91%

65% 83%

0% 50% 100%

Q1 11 Q2 11 Q3 11 Q4 11

% Job offer acceptance rate

4 8 9

6 7 3

6 7 7 8

# Applicant ratio Target

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2016 2017

3% 0%

14% 12% 19%

14% 17%

4% 9% 12% 10% 7%

14%

% Accession rate Target

0 0 0 0

2 3

4 4

0 2 4 6

Q1 11 Q2 11 Q3 11 Q4 11

# Average time to promotion

0 0 0 0

81 64 66

0 50 100

Q1 11 Q2 11 Q3 11 Q4 11

# Employment brand strength

Workforce profile

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2016 2017

Source: The KPI Institute (2018)

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM

Source: The KPI Institute (2018)

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM SIMPLIFIED

Source: The KPI Institute (2019)

The World of KPIs

Unique identification KPI name % Project budget variance

Definition and useage

Definition

Balanced Scorecard perspective

Calculation

Calculation formula (A- B)/B*100

Trend is favorable when (figures are) Within range

Data profile

Targets Target +/- 3% Green threshold (-3 %) - (+3%)

Yellow threshold (-5%) - (-3%); (+3%) - (+5%) Red threshold < -5%; > +5%

Comments

Measures the deviation between the actual and planned project cost upon completion.

Financial

Subordinate measures used for calculation

A = $ Actual cost of the project upon completion B = $ Planned cost of the project

Standard reporting frequency Quarterly

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Vision Statement

Mission Statement

Value (corporate) Value Driver Goal Objective Metric KPI Target Program Initiative Milestone Task

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS To be the world’s leading company, focused on maximizing the value we provide to our stakeholders

To support long-term client partnerships, by delivering high quality services.

Integrity Quality

Growth for the business

Increase customer satisfaction

# Employees % Customer satisfaction

80%

Customer Service Development Program Customer Service Training Complete 50% of the trainings by 30 June Identify key competencies to improve for CS representatives

Desired State of Evolution

Strategy Map

Scorecard and

Dashboard

Portfolio of Initiatives

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PORTFOLIO OF INITIATIVES

Source: The KPI Institute (2018)

Perspective / Objective / Initiative Org. initiative no.

Initiative owner

Initiative coordinator

Priority Status Budget Comments Start Date

End date

No within perspective

Customer Maintain high levels of internal customer satisfaction Quarterly evaluations of the HR department's performance with other departmental managers

Oi1 Anne Smith John McKinney

High Proposed 50000 1

Monthly HR Satisfaction Survey Oi2 Anne Smith John McKinney

High Approved 20000 2

Finance Seek efficiencies to minimize cost base Award for savings generated by HR employees Oi3 Sally Smith Sally Smith High Proposed 100000 1 Maintain financial rigor in budget projection and execution No active initiatives in place Internal Processes Optimize recruitment Employer brand promotion campaigns Oi4 George

Douglas John

McKinney High Approved 60000 1

Improve HR service delivery capability Process optimization initiative Oi5 George

Douglas John

McKinney High In

progress 80000 2

People, Learning & Growth Build an environment that fosters creativity and innovation No active initiatives in place Develop workforce skills and competences HR certification program Oi6 George

Douglas John

McKinney High In

progress 45000 1

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

INITIATIVE DOCUMENTATION FORM

Source: The KPI Institute (2019)

Initiative Documentation Form Unique identification Initiative name Initiative number HRI12 Description and allocation Description Organisational area Human Resources Department Balanced Scorecard perspective Customer Scope Strategic objective Maintain high levels of internal customer satisfaction KPIs % Staff satisfaction Current implementation state 0% Expected outputs

Initiative administration Initiative owner (title) HR Manager Initiative coordinator (title) HR Specialist Initiative owner James Turuk Initiative coordinator Ariana Ming Budget $3,000 Budget source BS02 Priority High Status Approved Implementation details Start date 1-Jan-19 End date 1-Jun-19 Major activities Survey development

Risk profile

Interdependencies Comments

W ith current data gathering systems

Identification of configuration possibilties Decide configuration platform Test survey functionality Disseminate survey Process data Generate report

Monthly HR Satisfaction Survey

Develop a questionnaire in order to identify staff satisfaction level with the service provided by the HR department.

Primary: A monthly report reflecting the state of staff satisfaction and recommendations for improvement Secondary: Survey development and configuration

Medium Budget overrun

The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PERFORMANCE TOOLS OVERVIEW

33The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PERFORMANCE MEASUREMENT VS PERFORMANCE MANAGEMENT

34The World of KPIs

Performance Measurement = evaluation and assessment of

results

1. Sub-process of performance management

2. Focuses on: • identification of KPIs • tracking of KPIs • communication KPIs results

Performance Management = taking action based on the results of the evaluation to ensure targets

achieved

1. The overarching discipline that deals with performance.

2. Reflects the approach one entity has towards performance

3. Includes sub-processes such as: • The formulation of a plan • Actively monitoring

implementation • Readjusting the plan • Performance measurement • Capability development

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI MANAGEMENT FRAMEWORK CONCEPT MAP

Source: The KPI Institute (2017)

The World of KPIs

Measurement

Management

PHILOSOPHY

Effectiveness Performance Efficiency Content Data

Learning Improvement Focus Clarity Communication Engagement

AIMS

Performance culture

Decision making

Reporting

Initiative management

Learning

Data analysis

Data gathering

KPI Documentation

KPI Selection

Data visualization

Building blocks

Hardware

Software

Governance

Processes

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI MANAGEMENT FRAMEWORK GOVERNANCE

Top Management

Department Department Department

Strategy / Performance Office

• Set direction and mandate; • Promote system and ensure buy-in; • Support; • Take decision

• Designs Framework, system and tools; • Implements system across the organization; • Ensures alignment (horizontal and vertical); • Maintains functioning system.

• Assume ownership; • Collect data; • Report data; • Implement decisions; • Take actions.

36The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ARCHITECTURE SKILLS

Research

Analysis Synthesis

Software

MS PPT

MS XLS

Strategy Data visualization

Performance Measurement Architecture

Coaching

Communication

Facilitation

Technology Interpersonal

Performance Management

Data

37The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. Most common challenge: KPI selection

2. Why use KPIs?

• Clarity

• Focus

• Improvement

3. Performance Management Architecture Tools:

1. Desired State of Evolution

2. Strategy Map

3. Scorecard

4. Dashboard

5. KPI Documentation Form

6. Portfolio of Initiatives

7. Initiative Documentation Form

SESSION REVIEW

38The World of KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• Franco-Santos, M., Kennerley, M., Micheli, P., Martinez, V., Mason, S., Marr, B., Gray, D. and Neely, A. (2007), Towards a definition of a business performance measurement system, International Journal of Operations and Production Management, 27(8): 784-801. Available at: https://dspace.lib.cranfield.ac.uk/bitstream/1826/2789/1/Towards%20a%20definition%20of%20busines s%20performance%20measurement%20system.pdf;

• The KPI Institute (2016), The State of KPIs and Performance Improvement Practice Report, available at: https://marketplace.kpiinstitute.org/state-of-performance-improvement-and-key-performance- indicator-practice-report-2016.html.

Images: • The KPI Institute (2017), Human Resources Performance Management Toolkit. Available at:

https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html; • The KPI Institute (2017), KPI Management Concept Map • Dubai Electricity and Water Authority (2019). Available at: https://www.dewa.gov.ae/en/about-

dewa/about-us/about-us/corporate-governance-and-strategy • Emirates Identity Authority (2015), Strategic Plan 2014-2016. Available at:

https://www.ica.gov.ae/userfiles/assets/tplcqI9U.pdf

REFERENCES

39The World of KPIs

https://dspace.lib.cranfield.ac.uk/bitstream/1826/2789/1/Towards%20a%20definition%20of%20business%20performance%20measurement%20system.pdf

https://marketplace.kpiinstitute.org/state-of-performance-improvement-and-key-performance-indicator-practice-report-2016.html

https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html

https://www.dewa.gov.ae/en/about-dewa/about-us/about-us/corporate-governance-and-strategy

AGENDA

Key Learning Points

2 Understanding KPIs 1. KPI related terminology 2. Metrics and KPIs 3. SMART objectives decomposed 4. KPI Lifecycle

1. Define objectives, KPIs and initiatives according to terminology standards; 2. Decompose SMART objectives; 3. Differentiate between initiatives/projects and objectives.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI RELATED TERMINOLOGY • Key Result Areas

(KRAs); • Key Performance

Indicators (KPIs); • Performance

Indicators (PIs); • Measures; • Metrics; • Key Result Indicators

(KRIs); • Analytics; • Evaluation criteria.

OPTION 2 KRAs KPIs PIs Measures

Metrics – to inform decisions KPIs – to evaluate performance

OPTION 1

41Understand KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. % Customer satisfaction

2. % Employee engagement

3. Finalize project by 31st of December

4. % Project schedule adherence

5. # Employees

6. % Projects delivered on time and on budget

7. Quality

8. % Clients from referrals

9. # Employee age

10. Increase market share to 28%

IDENTIFY THE KPIS

KPI Definition: A measurable expression for the achievement of a desired level of results in an area relevant

to the evaluated entity’s activity. (The KPI Institute)

42Understand KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. % Customer satisfaction

2. % Employee engagement

3. Finalize project by 31st of December

4. % Project schedule adherence

5. # Employees

6. % Projects delivered on time and on budget

7. Quality

8. % Clients from referrals

9. # Employee age

10. Increase market share to 28%

IDENTIFY THE KPIS

KPI Definition: A measurable expression for the achievement of a desired level of results in an area relevant

to the evaluated entity’s activity. (The KPI Institute)

43Understand KPIs

% Projects on time % Projects milestones met

% Employee turnover % Positions filled

# Errors, % Defect rate, # Rejections

% Market share

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• % Net promoter score

• % Budget variance

• # System breakdowns per month

• # Time to process requests

• % Defects removal efficiency

• $ Costs savings from Service Oriented Architecture

Source: Spider Strategies (2018) Source: ADRPBF (2015)

KPIS

METRICS • # Air temperature

• # Air humidity

• # Computers

• # Staff members

• # Employee age

• # Working hours per year

• $ Budget

Understand KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

SMART OBJECTIVES DECOMPOSED

Objective

KPI

Target

Time

Owner

• Ensure efficiency in IT services delivery

• % Requests solved within 48 hours

• By financial year end

• 80%

• IT Director

Option 1: Ensure efficiency in IT services delivery, by reaching 80% of % Requests solved within 48 hours by the end of the financial year under IT Director coordination.

Option 2:

45Understand KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

SMART OBJECTIVES DECOMPOSED

Objective

KPI

Target

Time

Owner 2

• Ensure efficiency in IT services delivery

• % Requests solved within 48 hours

• By financial year end

• 80%

• IT Director

Option 1: Ensure efficiency in IT services delivery, by reaching 80% of % Requests solved within 48 hours by the end of the financial year under IT Director coordination.

Option 2:

46Understand KPIs

Perspective / Objective / KPI Time (RF) Previous Result Current Result Target Owner

Internal Processes

Ensure efficiency of IT service delivery

% Requests solved within 48 hours Monthly 73% 78% 80% IT Dir.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TERMINOLOGY STANDARDS Objectives

start with

Verb

KPIs start with

$ = Value of

# = Number of

% = Percentage of

Initiatives start with

Noun

Increase customer satisfaction $ Revenue per client

CRM software implementation

# Complaints received

% Customer satisfaction

47Understand KPIs

% percentage of customer s Customer % satisfaction

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI LIFECYCLE KPI lifecycle – Stage 1 Establishment

KPI lifecycle – Stage 2 Use

KPI lifecycle – Stage 3 Evolution

• Needs identification

• Selection

• Documentation

• Visualization

• Activation

• Analysis

• Reporting

• Decision making

• Communication

• Documentation refresh

• Data gathering

• Analysis

• Reporting

• Decision making

• Communication

• Documentation refresh

• Maintain

• Refresh

• Suspend

• Supercede

48Understand KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. KPI definition: a measurable expression for the achievement of a desired

level of results in an area relevant to the evaluated entity’s activity.

2. KPI Lifecycle Stages

• Establishment

• Use

• Evolution

3. Terminology standards:

• Objectives - Verb

• KPIs - Symbols (#, %, $)

• Initiatives – Noun

SESSION REVIEW

49Understand KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• Beasley, M. S., Branson, B. C. and Hancock, B. V. (2010.), Developing Key Risk Indicators to strengthen enterprise risk management: How Key Risk Indicators can sharpen focus on emerging risks. Available at: http://www.coso.org/documents/COSOKRIPaperFull- FINALforWebPostingDec110_000.pdf;

Images: • ADRPBF (2015), Metrics, KPIs and KRIs – developed in partnership with The KPI Institute. Available at:

https://www.youtube.com/watch?v=dxd_n49U7uw&t=76s; • Spider Strategies (2018), QuickScore. Available at: http://www.integerperform.com/kpi-dashboard-

balanced-scorecard-software/.

REFERENCES

50Understand KPIs

http://www.coso.org/documents/COSOKRIPaperFull-FINALforWebPostingDec110_000.pdf

https://www.youtube.com/watch?v=dxd_n49U7uw&t=76s

http://www.integerperform.com/kpi-dashboard-balanced-scorecard-software/

AGENDA

Key Learning Points

3 KPI Typology

1. Differentiate leading and lagging KPIs in different contexts; 2. Define efficiency and effectiveness; 3. Use the variety of KPI typologies to enhance the KPI selection process.

1. Leading vs lagging KPIs 2. Qualitative vs quantitative KPIs 3. Objectivity vs subjectivity KPIs 4. Efficiency vs effectiveness KPIs

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING VS LAGGING KPIS

Source: Institute for Evidence Based Change (2017)

Leading indicators = measure things that address what can create future value

Lagging indicators = look back at past performance

Vs.

• “outcomes, forward-looking indicators, are in your control and can lead to success”

Advantage: • Being predictive allows the

organization to take better decisions to address future events.

Challenge: • May be difficult to identify and

capture results.

• “measures events / incidents and consequences, retrospective, are affected by what you do and influence leading indicators”

Advantage: • Easy to identify and to measure /

collect results.

Challenge: • Indicates past performance, does

not reflect current activities.

52KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Task: • Cluster the following examples into leading and lagging

KPIs.

LEADING VS LAGGING KPIS

53KPI Typology

No. KPI examples Leading or lagging?

1 % Employee engagement

2 # Service lead time

3 % Customer satisfaction

4 % Market share

5 $ Profit

6 % Returning customers

7 % Customers from referrals

8 % Staff with competencies at desired level

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING AND LAGGING KPIS

54KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING AND LAGGING KPIS

55KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING AND LAGGING KPIS

56KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING AND LAGGING KPIS

57KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING AND LAGGING KPIS

58KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

LEADING AND LAGGING KPIS

59KPI Typology

Financial

Customers

Internal Processes

People, Learning and Growth

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

QUALITATIVE VS QUANTITATIVE

Source: McGill Qualitative Health Research Group (2017)

Qualitative data - descriptive data, narrative • Interviews • Focus groups • Observation sessions

Quantitative data - numbers and statistics • Questionnaires, Surveys • Indexes, Calculation

Qualitative Data ≠ Qualitative KPIs

Qualitative KPIs ?

All KPIs are quantitative, but they can measure different aspects of an objective, such as: • Volume - # Products sold • Quality - % Products error rate, % Customer satisfaction with products bought • Monetary values - $ Sales

KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

All KPIs reflect quantities (by nature) --- measurable; they are all quantitative.

Some of them reflect quality-related aspects (we quantify the quality):

• Objectivity % Error rate # Defects (no perceptions, opinion)

• Subjectivity (opinions, experiences, perceptions): % Customer satisfaction

61KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Find in the below list the KPIs that reflect quality as perception.

IDENTIFY THE KPIS REFLECTING QUALITY

1. # New employees

2. # Production cycle time

3. # Brand image index

4. % Customer satisfaction

5. % Equipment utilization rate

6. % Stakeholders’ satisfaction

7. % Employee engagement

8. $ Operating costs

9. % Projects delivered on time and on budget

10. # Service quality rating

62KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

# Service backlog

# Requests processed per hour

% Returning customers

% Customer satisfaction

# Orders processed per hour

leading

• % Customer satisfaction is a leading indicator for % Returning customers.

• % Returning customers is lagging indicator for % Cust satisfaction

• % Customers satisfaction is lagging indicator for # Orders processed per hour

• # Orders processed per hour is a leading indicator for % Customer satisfaction

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

EFFICIENCY VS EFFECTIVENESS KPIS

Effectiveness = the extent to which a desired outputs or outcomes is

achieved.

KPI examples:

Sales

Customer satisfaction index

Compliance with quality

standards

Do the right thing!

Efficiency = extent to which time, effort or cost are well used

for the desired results.

KPI examples:

Cost per call

Time to process requests

Equipment utilization rate

Do things in right manner!

64KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

EFFICIENCY VS EFFECTIVENESS KPIS

Source: Australian National Audit Office (2017)

Being effectiveBeing efficient

KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

ANALYZE WESTERN AUSTRALIA POLICE KPIS

Source: Western Australia Police (2017)

66KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. Leading or lagging ? – depends on the context.

2. Qualitative or quantitative? – all KPIs are quantitative.

3. Efficiency – do the things right!

Effectiveness – do the right thing!

SESSION REVIEW

67KPI Typology

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• Australian Federal Government (2011), Department of Climate Change and Energy Efficiency annual report 2010–11. Available at: http://www.climatechange.gov.au/about-us/annual-reports/annual- report-2010-11;

• Australian National Audit Office (2017), ANAO 2017-18 Corporate plan, available at: https://www.anao.gov.au/work/corporate/anao-2017-18-corporate-plan;

• Charted Accountants Professionals Canada (2010), Performance indicators. Available at: http://www.camagazine.com/archives/print-edition/2010/march/regulars/camagazine34812.aspx;

• Eurostat (2010), ESS quality glossary. Available at: http://www.eqavet.eu/qa/gns/glossary/q/quality-indicator.aspx;

• Institute for Evidence Based Change (2017), Measuring success: Leading and lagging indicators for Linked Learning, Linked Learning Convention Oakland 2017. Available at: http://www.linkedlearning.org/wp-content/uploads/2017/02/Measuring-Success-Leading-and- Lagging-Indicators-for-Linked-Learning.pdf;

• Public Record Office Victoria, Australia (2010), Strategic management guidelines: Key Performance Indicators. Available at: http://prov.vic.gov.au/wp-content/uploads/2011/05/1010g3.pdf;

• McGill Qualitative Health Research Group (2017), Qualitative or quantitative research?. Available at: https://www.mcgill.ca/mqhrg/resources/what-difference-between-qualitative-and-quantitative- research;

• Western Australia Police (2017), Annual report 2016. Available at: https://www.police.wa.gov.au/About-Us/Our-agency/Annual-report.

REFERENCES

68KPI Typology

http://www.climatechange.gov.au/about-us/annual-reports/annual-report-2010-11

https://www.anao.gov.au/work/corporate/anao-2017-18-corporate-plan

http://www.camagazine.com/archives/print-edition/2010/march/regulars/camagazine34812.aspx

http://www.eqavet.eu/qa/gns/glossary/q/quality-indicator.aspx

http://www.linkedlearning.org/wp-content/uploads/2017/02/Measuring-Success-Leading-and-Lagging-Indicators-for-Linked-Learning.pdf

http://prov.vic.gov.au/wp-content/uploads/2011/05/1010g3.pdf

https://www.mcgill.ca/mqhrg/resources/what-difference-between-qualitative-and-quantitative-research

https://www.police.wa.gov.au/About-Us/Our-agency/Annual-report

AGENDA

Key Learning Points

4 KPI Selection 1. KPI selection for organizational scorecard 2. KPI selection sources 3. KPI selection techniques

1. Design a well structured KPI selection process; 2. Recognize useful KPI selection sources; 3. Deploy KPI selection techniques.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

ALLOCATE KPIS FOR EACH OBJECTIVE Financial

Increase profitability

Maintain financial discipline

Customer Maintain high levels of customer satisfaction

Serve new market segments profitability

Internal Processes

Ensure quality services

Improve process management capability

People, Learning & Growth Nurture engagement, creativity and innovation

Develop workforce skills and competences

Ensure talent availability

No. KPIs list 1 $ Revenue

2 % Employees meeting professional development requirements

3 # Complaints from customers

4 % Profitable customers

5 % Budget variance

6 # Innovation ideas

7 % Employee engagement

8 # Training hours per full time equivalent (FTE)

9 % Market share

10 % Net profit margin

11 # Procedures reviewed

12 $ Net cash flow

13 % On time delivery of orders

14 # Positions filled

15 % Customer satisfaction

16 % Orders error rate

17 % Critical positions with succession plans in place

18 % Processes improved

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI SELECTION PROCESS AND TECHNIQUES

Scope clarifications KPI expo KPI clustering

Prepare for KPI selection

Facilitate the KPI selection KPI selection workshop Value flow analysis KPI balancing

KPI documentation First performance review meeting

Follow-up on KPI selection

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

SCOPE CLARIFICATIONS

WHAT Defining what needs to be measured:

WHY Channels the selection process on a clear path with specified scope and outputs expected.

Objectives

Processes

Scorecard

Dashboard

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI SELECTION SOURCES

Workshop

KPI Sources

External lists

Management

Board

Industry standards

Benchmarking

Competitors

Historical data

Workshop

Compliance

KPI Selection

SE C

O N

D A

INTERNAL EXTERNAL

P R

IM A

• Strategic development plan (3-5 years)

• Annual business / strategic plan

• Annual reports • Internal operational reports

• Competitor review reports • Printed catalogues • Online catalogues

(http://www.smartkpis.com/) • Annual reports of other

organizations (KPIs in Practice)

• Front-line employees' input • Managers input • Board input

• Suppliers input • Customers input • Expert advice • Questions in discussion

forums

http://www.smartkpis.com/

http://www.smartkpis.com/kpi_examples_in_practice/dashboard/

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI EXPO

WHAT • Collection, curation and presentation of relevant KPI

examples.

WHY

HOW • Consolidating lists from external sources, like smartKPIs.com. • Using internal sources to identify KPIs, like operational

reports.

Informs Educates Inspires

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI EXPO EXAMPLE

The KPI Dictionary Volume 2: Industries

75KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI CLUSTERING WHAT

Grouping KPIs in different categories: • Balanced Scorecard perspectives; • Objectives; • Dashboard sections; • Value Flow Analysis stages; • Process steps.

WHY • Enables alignment and identification of possible gaps.

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI CLUSTERING EXAMPLE

77KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI SELECTION WORKSHOP

KPI Selection

WHY • Channels the selection

process on a clear path with specified scope and outputs expected.

WHO • Clients • Suppliers • Employees

• Board • Management • Facilitators

Agenda (240 minutes) Topics

Context (60 minutes) 5 Agenda and meeting scope review

5 Needs review

10 Terminology and KPI format clarification

20 Selection process and tool review

20 Sample Value Flow Analysis (VFA) as a model Selection activities (140 minutes) 60 Interactive VFA team exercises

60 Consolidation of KPI wall

20 List revision based on filtering criteria Review and closing (40 minutes) 20 Review of draft

10 Answering questions

10 Clarifying next steps

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

VALUE FLOW ANALYSIS WHAT?

• Logical model to indicate the value generation from inputs, process outputs and outcomes.

WHY? • Gain insight into how the objective can be measured

from different perspectives.

• Provides an overview of the process involved by achieving the objective.

• Enables the selection of the most relevant KPIs for the objective.

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

VALUE FLOW ANALYSIS

Improve customer satisfaction with service levels

% Solved inquiries

# Client needs identified

% Customer satisfaction

% Returning customers

INPUTS PROCESSES OUTPUTS OUTCOMESOBJECTIVES

# Customer service representatives

$ Customer engagement budget

# Time to answer an inquiry

# Meetings with key customers

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

INPUT • Measure the quantity/quality of input resources to organizational

activities. • Generally include: human resources, financial resources

infrastructure.

• Examples:  Human Resources: # Employees, # Consultants, # Project team  Financial Resources: $ Budget, # Grants, $ Bank loans  Infrastructure: # Production lines available, # Plants available

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

INPUTS PROCESSES OUTPUTS OUTCOMES

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PROCESS • Measure the quantity/quality of the activities required to provide

certain expected outputs. • Generally include: transformation in terms of time and utilization

rates.

• Examples:  Time: % On time delivery vaccination, # Time to finalize task  Utilization: % Equipment utilization rate, % Transportation

capacity used

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

INPUTS PROCESSES OUTPUTS OUTCOMES

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

OUTPUT • Measure the quantity/quality of the goods or services created or

provided through the use of inputs; • They generally include quantifiable results.

• Examples:  # Patients vaccinated  # Items produced  # Scrap generated  # Facilities built

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

INPUTS PROCESSES OUTPUTS OUTCOMES

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

OUTCOME / IMPACT • Measure the quantity/quality of the results achieved through the

provision of goods and services. • They generally include: added value, impact.

• Examples:  Impact: % Incidence of disease, % Mortality rate, % Graduates

employment rate  Added value: $ Savings generated by innovation ideas, % Customer satisfaction, % Net promoter score

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

INPUTS PROCESSES OUTPUTS OUTCOMES

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

VALUE FLOW ANALYSIS

KPI Selection

Objective INPUT PROCESS OUTPUT OUTCOMES

Ensure population immunization

$ Budget # Doctors

% On time delivery of vaccination programs

# Population vaccinated

% Incidence of disease % Mortality rate

Build a safety working environment

$ Budget # HSSE team

# Time to remediate HSSE audit findings

# Incidents recorded

# Time lost due to safety incidents

Expand production capacity

$ Budget # Contractors # Equipment available

# Time to build a new production facility

# New facilities built

% Production capacity growth

Provide access to electricity services

$ Budget # Power plants # Electricians

# Time to install an electricity facility

# Electricity transmission facilities installed

# Supply (or consumption) of electricity

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Objective: Operate in an environment that fosters creativity and innovation

VALUE FLOW ANALYSIS

Input Process Output Outcome

KPI Selection

1 # Innovation champions in

each area 4

# Staff in the innovation program

team 7

$ Value generated by innovation ideas

10 % Innovation ideas

funded

2 # Innovation focus groups

5 # Time to evaluate

an idea 8

% Ideas evaluated within the SLA target of 2 weeks

11 % Innovation ideas

implemented

3 # Patents 6 $ Budget for

innovation program 9

% Innovation ideas evaluated

12 % Innovation ideas

that generated value

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI BALANCING

KPI Selection

WHY • To avoid focusing on certain

KPIs at the expense of others.

• To provide a wider perspective upon actual performance.

WHAT • Quality assurance

technique consisting in selecting at least 2 KPIs for the same objective.

Leading Lagging Industry

# Incidents of non- compliance

# Fatal accidents Oil & Gas

# Training hours per FTE % Employees with competencies at desired level

Consulting

Efficiency Effectiveness Industry

$ New customers acquisition cost

# New customers Retail

# Call duration % First call resolution rate Call Centre

Quantity Quality Industry

# Maintenance requests resolved

% Maintenance requests resolved within SLA

Manufacturing

# Ideas expressed % Ideas implemented Education

Subjectivity Objectivity Industry

# Customer satisfaction # Customer complaints received

Financial institutions

% Net promoter score # Clients from referrals Professional Services

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Propose KPIs for the below objectives ensuring a balanced approach and respecting the balancing criteria.

KPI BALANCING

KPI Selection

FAs Objectives Balancing criteria Enhance R&D capabilities

$ R&D costs

Enrich an environment that fosters innovation % Innovation ideas evaluated

Develop workforce skills and competences # Training hours per FTE

Increase customer satisfaction levels % Customer satisfaction

Assure a secure working environment

# Lost time injury frequency rate

Customer Relationship

Subjectivity - Objectivity

HSSE Leading - Lagging

R&D Efficiency - Effectiveness

Innovation Leading - Lagging

Human Resources

Quantity - Quality

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI SELECTION CRITERIA Performance criteria found in practice: • Attainable • Complete • Direct • Incentivized • Practical • Reliable • Specific • Tested • Time bound • Useful for management

Relevant

Clearly defined

Balanced

Performance criteria recommended:

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

FOLLOW-UP ON KPI SELECTION

KPI documentation • KPI measurement limitations • Cost benefit analysis

First performance review meeting • Review and reconsider

some KPIs that may prove inefficient to measure and report in practice.

KPI Selection

Source: smartKPIs.com (2018)

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. KPI selection sources: internal and external, primary and

secondary.

2. Main KPI selection techniques: • KPI expo; • KPI clustering; • Value Flow Analysis; • KPI balancing; • KPI selection workshop.

3. KPI selection criteria: clearly defined, balanced, relevant.

SESSION REVIEW

KPI Selection

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• SmartKPIs.com (2018), % Net Promoter Score. Available at: https://smartkpis.kpiinstitute.org/kpi- examples/organisational-context/1303/net-promoter-score;

• Heinrich, H.W. (1931), Industrial accident prevention: A scientific approach. Available at: http://www.worldcat.org/title/industrial-accident-prevention-a-scientific-approach/oclc/3493629.

REFERENCES

KPI Selection

https://smartkpis.kpiinstitute.org/kpi-examples/organisational-context/1303/net-promoter-score

http://www.worldcat.org/title/industrial-accident-prevention-a-scientific-approach/oclc/3493629

AGENDA

Key Learning Points

5 KPIs Alignment 1. KPI alignment approaches 2. KPI Cascading scenarios 3. Cascade objectives and KPIs from organizational

to departmental level

1. Identify different approaches to align KPI within the organization; 2. Understand possible KPI cascading scenarios; 3. Cascade KPIs from organizational level to departmental level.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ALIGNMENT

Organization

Business Unit 1

Business Unit 2

Business Unit 3

Organization

Business Unit 1

Business Unit 2

Business Unit 3

Approaches

WHEN • strategy is more clear at business unit

level (for example diversified companies, holding corporations);

The corporate scorecard is developed based on the scorecards from business units and contains the common KPIs (usually financial and human capital related KPIs);

WHEN • activities are homogeneous and allow

aggregation of strategy and KPIs (for example retail, banking);

The corporate scorecards is transmitted to business units and few transformations are made to customized it at lower hierarchical levels.

KPI Alignment

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ALIGNMENT Approaches

• In practice, many companies find themselves between the two extreme approaches and recur to a combination of tactics.

B o tto

m -u

• The process can start from business units and have an alignment:  bottom-up for corporate scorecard;  top-down for departments within that business unit.

To p -d

o w

KPI Alignment

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ALIGNMENT SCENARIOS

KPI Alignment

Depending on the context, the scenarios (illustrated through colors) can be combined.

KPI Typology KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

EXAMPLE: KPI ALIGNMENT SCENARIOS

Customers

People, Learning and Growth

Objective: Stimulate a performance- oriented organizational culture

% Employees with performance plans in place % Performance discussions within SLA

ORGANIZATION DEPARTMENT: ANY

ORGANIZATION DEPARTMENT: CUSTOMER SUPPORT

Objective: Increase customer satisfaction levels

% Customer satisfaction # Complaints received

Objective: Increase customer satisfaction levels

% Complaints resolution rate # Complaints solved per hour

KPI Alignment

KPI Typology KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

EXAMPLE: KPI ALIGNMENT SCENARIOS

Objective: Improve payments execution timeliness

Objective: Assure a secure working environment

# Accidents registered # Lost time injury frequency rate

# Time to process payments # Pending payments

ORGANIZATION DEPARTMENT: FINANCIAL Internal Processes

KPI Alignment

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

CASCADE FROM ORGANIZATION TO DEPARTMENT

• Scenario: You are the Performance Manager of a technology company operating in automotive, coordinating the PMS implementation. The organizational Scorecard has been compiled, containing objectives and KPIs. At this moment, the organizational Scorecard has to be cascaded to Departmental level. The first to cascade is the Organizational Scorecard to the Human Resources Department. To your support, a list of HR specific KPIs has been compiled. (*Departmental roles; activities; --- JD s)

• Task: The team will have to cascade the objectives and KPIs from the corporate scorecard to department level and add new relevant objectives and KPIs for the department.

KPI Alignment

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

CASCADE FROM ORGANIZATION TO DEPARTMENT

100KPI Alignment

Organizational Scorecard HR Departmental Scorecard Financial

Customer

Internal processes

People, Learning & Growth

Financial Achieve profit growth $ Gross profit $ Revenue Optimize costs structure $ Operating costs $ Cost per service Customer Maintain high levels of customer satisfaction % Customer satisfaction # Complaints received Increase customer base # Possible customers due to new campaigns % Market share Internal processes Increase production quality # Units produced % Scrap rate Maintain a safe working environment # Non-compliances with safety regulations # Lost time injury frequency rate Minimizing waste, energy and water usage # Energy consumption # Waste generated People, Learning & Growth Build an environment that fosters creativity and innovation % Employee engagement # Innovation ideas Develop workforce skills and competences # Training hours per full time equivalent % Employees certified in heavy industry operations

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

101

No. List

1 # Time to fill a vacant position 2 # Campaigns realized for Employer Branding 3 $ Cost per hire 4 # Employer brand awareness index

5 % Job positions filled 6 $ Cost avoidance savings 7 % HR processes optimized 8 % On-time delivery of service requests

HUMAN RESOURCES (HR) KPIS

KPI Alignment

AGENDA

102

Key Learning Points

6 KPI Documentation

1. KPI documentation form functions 2. KPI documentation form design 3. KPI documentation process 4. Organizational KPI library development

1. Design a KPI documentation form; 2. Identify sources of information to document a KPI; 3. Create and maintain an organizational KPI library.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM FUNCTIONS

Ensure understanding of KPI measurement

Facilitates communication through standardisation

Activation prerequisite

Automation enabler

Knowledge management

Educates stakeholders (KPI owners, data custodians)

Contributes to buy-in by involving the stakeholders

KPI Documentation

103

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM DESIGN

KPI Documentation

104

Form sections Fields

Identification Name, number, functional area

Definition and usage Definition, BSC perspectives

Calculation Sub-metrics, formula, trend

Orientation Meaning, impact, implementation level, metric type

Purpose Purpose, link to strategic objective

Data profile Automation, frequency, time-lag, integrity, limitations

Targets Intervals, benchmarking fit

Administration Owner, custodian, source

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM (1)

Source: The KPI Institute (2017)

KPI Documentation

105

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM SIMPLIFIED (1)

106

Source: The KPI Institute (2019)

Unique identification KPI name % Project budget variance

Definition and useage

Definition

Balanced Scorecard perspective

Calculation

Calculation formula (A- B)/B*100

Trend is favorable when (figures are) Within range

Data profile

Targets Target +/- 3% Green threshold (-3 %) - (+3%)

Yellow threshold (-5%) - (-3%); (+3%) - (+5%) Red threshold < -5%; > +5%

Comments

Measures the deviation between the actual and planned project cost upon completion.

Financial

Subordinate measures used for calculation

A = $ Actual cost of the project upon completion B = $ Planned cost of the project

Standard reporting frequency Quarterly

KPI Documentation

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM (2)

Source: Ontario Buys (2009)

KPI Documentation

107

Positive aspects: A comprehensive 2-3 pages documentation form;

Recommendations: A table format for the document is recommended.

Comments: Other fields, besides the ones present in the right image are:

• Rational (the need for this KPI); • Benefits; • Underlying leading practices; • Relevancy; • Target considerations (establishment and impact

with other metrics); • Related metrics and standards; • Implementation (calculation parameters, formula,

what to include and exclude ) • Data accessibility; • Data source; • Implementation challenges.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM (3)

Source: HSE (2012)

KPI Documentation

108

Positive aspects: Proper display of information – using a 1 page table, while providing the critical information for KPI measurement.

Recommendations: Standardize KPI names.

Comments: • The use of predefined checklist, to

standardize response options;

• The insert of hyperlinks in the documents to redirect the reader to additional information;

• Provides direct contact details, such email addresses.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION FORM

Source: The KPI Institute (2018)

• Organizations use on average 12 different fields to document a KPI

• The most popular fields are:

KPI Documentation

109

41 34

27 26 19 17 17 16 16

32%

29%

39%

Very small to small extent

Moderate extent

High to very high extent

• All KPIs are documented in a standardized form:

Source: The KPI Institute (2018)

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DOCUMENTATION PROCESS

Review internal literature

Review external resources

Consult with staff collecting or using the data

Present to KPI owner for approval

Review and approve by KPI architect / SME / Strategy Manager

Approve by management team

Add to organizational KPI library

KPI Documentation

110

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

PRACTICE KPI DOCUMENTATION

KPI Documentation

111

Unique identification KPI name

Definition and useage Definition Balanced Scorecard perspective

Calculation

Calculation formula Trend is favorable when (figures are)

Data profile

Target and Thresholds Target Green threshold

Yellow threshold Red threshold

Comments

Subordinate measures used for calculation

Standard reporting frequency

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. KPI documentation form functions are to: • Provide an easier understanding of KPIs; • Facilitate communication; • Prepare KPIs activation; • Enable automation; • Ensure knowledge management; • Educate stakeholders; • Contribute to buy-in.

2. Important fields in a KPI documentation form: name, definition, calculation formula, target, data source, data owner, data custodian.

3. Most important field in the KPI Documentation form is Target.

SESSION REVIEW

KPI Documentation

112

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• Aberdeen Group (2011), Enterprise performance management. Available at: http://www.aberdeen.com/Aberdeen-Library/6659/RA-enterprise-performance-management.aspx;

• The KPI Institute (2015), KPI documentation forms research study; • The KPI Institute (2016), The State of Performance Improvement and KPIs. Available at:

https://marketplace.kpiinstitute.org/state-of-performance-improvement-and-key-performance- indicator-practice-report-2016.html.

Images: • HSE (2012), KPI guidelines. Available at:

http://www.hse.ie/eng/services/Publications/corporate/performancereports/kpiguidelines2012.pdf; • Khaled, A., Sanjoy, K. P., Ripon, K. and Salahuddin A. (2011), Selection of suppliers through different

multi-criteria decision making techniques. Available at: journalofbusiness.org/index.php/GJMBR/article/download/479/426;

• The KPI Institute (2017), Human Resources Performance Management Toolkit. Available at: https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html;

• Ontario Buys (2009), Performance measurement. Phase II - User guide. Available at: http://www.doingbusiness.mgs.gov.on.ca/mbs/psb/psb.nsf/Attachments/BPSPerformMeasurePhaseII- UserGuide-pdf-eng/$FILE/perf_meas_userguide-eng.pdf;

• smartKPIs.com (2018), Net promoter score. Available at: https://smartkpis.kpiinstitute.org/kpi- examples/organisational-context/1303/net-promoter-score

REFERENCES

KPI Documentation

113

http://www.aberdeen.com/Aberdeen-Library/6659/RA-enterprise-performance-management.aspx

https://marketplace.kpiinstitute.org/state-of-performance-improvement-and-key-performance-indicator-practice-report-2016.html

http://www.hse.ie/eng/services/Publications/corporate/performancereports/kpiguidelines2012.pdf

https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html

http://www.doingbusiness.mgs.gov.on.ca/mbs/psb/psb.nsf/Attachments/BPSPerformMeasurePhaseII-UserGuide-pdf-eng/$FILE/perf_meas_userguide-eng.pdf

https://smartkpis.kpiinstitute.org/kpi-examples/organisational-context/1303/net-promoter-score

AGENDA

114

Key Learning Points

7 Working with targets

1. Locate KPI target sources; 2. Experiment target setting for a KPI; 3. Address negative behaviors caused by target setting.

1. Target setting process 2. Approaches 3. Thresholds 4. Target setting sources 5. Negative behaviors caused by target setting

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

WORKING WITH TARGETS

• Show the desired result level for KPIs

• Represent the starting point in the measuring and analysis process (comparing to actual / desired level)

• Impact behavior

WHY The Goal Setting Theory (Ed Locke, Gary Latham)

Working with Targets

115

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TARGET SETTING PROCESS

Consultations in target setting should start with the top management. As KPIs are active and data

is gathered, targets may be reviewed and recalibrated Targets need to be

adjusted periodically as the internal and external environment of the company is in a permanent change.

Working with Targets

116

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TARGET SETTING APPROACHES Top-down

Working with Targets

117

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TARGET SETTING APPROACHES Bottom-up

# Turn time 15 min

Pre-flight check 5 min.

Meal & beverage provisioning

5 min.

Passenger boarding and

deplaning 10 min.

Cargo loading and unloading 10 min.

Cabin grooming 3 min.

Fuelling 5 min.

• Some activities can take place in the same time like cabin grooming and cargo loading or unloading, allowing the process to be more efficient

Working with Targets

118

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TARGET SETTING APPROACHES Establishing thresholds

Set target value

Determine trend

• Increasing • Decreasing • Within range

Establish thresholds

• Above target • In tolerance range • Below target

Define each threshold

Working with Targets

119

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPIS TREND

Increasing

Within range

Decreasing

Working with Targets

120

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI THRESHOLDS Perspective / Strategic Objectives / KPIs SRF Actual result Target Thresholds Status Financial Ensure financial stability

$ Revenue M 10,500 10,000 >10,000

9,000-10,000 <9,000

Customers Maintain high level of customer satisfaction

% Customer satisfaction Q 65% 80% >80%

70-80% <70%

Internal Processes Ensure efficient production

# Production cycle time M 28 30 <30

30-35 >35

People, Learning and Growth Develop staff competencies

# Training hours per employee Y 30 24 24-28

20-24; 28-32 <20; >32

Working with Targets

121

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI THRESHOLDS Popular methodologies to express thresholds

Traffic light: • 2 points scale  Meets or exceeds target  Below target

• 3 points scale  Meets or exceeds target  Acceptable range  Far below target

• 4 points scale  Above target  Meets target  Acceptable range  Far below target

Working with Targets

122

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

TARGET SETTING SOURCES

Contextual Analysis

Internal Benchmarking

External Benchmarking

External analysis (market trends)

Historical records

Working with Targets

123

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Scenario 1: • You are the division manager of an automotive company that has recently

developed an electric car production line. The company is an average player in the industry in terms of turnover and company size.

• After the annual strategic planning session, the Board has decided that the target of 5 % for % Market share should be revised.

Task: • Based on the 4 sources of information provided you are requested to

propose a new target for % Market share.

ESTABLISH TARGETS

Working with Targets

124

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Historical data ESTABLISH TARGETS

% Market share

Current target: 5%

Another division that operates on a similar market size registered the following results for % Market share:

Internal benchmarking

2019 Q1 7.5% Q2 8% Q3 9% Q4 9% Average 8.4%

Current target: 8%

Working with Targets

125

2015 2016 2017 2018 2019 Q1 5.5% 7% 7.3% 6% 6% Q2 5.6% 7% 7.2% 6.1% 6.5% Q3 5% 6% 7% 5.7% 6.8% Q4 5% 4.5% 7% 5.7% 5.5% Average 5.3% 6.1% 7.1% 5.9% 6.2% Total average 6.1%

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

External benchmarking ESTABLISH TARGETS

Market analysis • The governmental initiative to reduce environmental impact of gas emissions within the country is

progressing according to schedule and the budget for 2020 has increased compared to 2019.

• Furthermore, the government is implementing a new program containing several incentives for consumers who choose to purchase electric cars instead of fuel-based ones.

• The number of electric car charge points is also on the rise, having doubled compared to last year. Thus, plug-in vehicles are becoming more affordable and potential owners lose their fear of being unable to recharge.

Working with Targets

126

% Market share National level Market leader 20% 2nd 18% 3rd 17% Average players 8%

% Market share International level

Market leader 30.0% 2nd 25% 3rd 24% Average players 10%

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Scenario 2: • You are the Call Center Manager of a company operating in IT business.

• You are responsible for managing the inbound Call Center Division A and in the last quarters, performance results indicate that the current target of 10% for % Call abandon rate should be reconsidered.

Task: • Based on the 2 sources of information provided, you are requested to

propose a new target for % Call abandon rate.

ESTABLISH TARGETS

Working with Targets

127

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Historical data ESTABLISH TARGETS

2015 2016 2017 2018 2019 Q1 10% 11% 12.3% 13% 10% Q2 9% 12% 13.2% 12% 8% Q3 9.5% 11.5% 12% 10% 8% Q4 10% 11.9% 11% 11% 7% Average 9.6% 11.6% 12.1% 11.5% 8.3% Total average 10.6%

% Call abandon rate

Current target: 10%

External benchmarking Inbound Call Center 1 2% Inbound Call Center 2 3% Inbound Call Center 3 5% Outbound Call Center 1 3% Outbound Call Center 2 5% Outbound Call Center 3 7% Average inbound 3.3% Average outbound 5.0%

Working with Targets

128

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Scenario 3: • You are the Marketing Manager of a distribution company that provides

delivery services nationally and internationally.

• Following the strategic planning for 2020, you are requested to activate the objective under your ownership: Increase customer advocacy. The KPI used to measure this objective is % Net promoter score (NPS).

• This KPI needs to be activated until the next month and all the KPI documentation is prepared except one field: the target.

Task: • There is no historical data for this KPI and no reliable benchmarking data.

Under these circumstances you are requested to propose a target for % NPS.

ESTABLISH TARGETS

Working with Targets

129

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

% Net Promoter Score Start target: 10%

% Unplanned leave days (at organizational level) Target: 10

# Training hours per year per employee (at organizational level) Target: 24

% Budget variance (at organizational level) Target: +/- 3%

% Employee satisfaction Red<65% Yellow 65-75% Green>75%

TARGETS EXAMPLES – BASED ON TKI RESEARCH

130Working with Targets

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

CHALLENGES IN WORKING WITH TARGETS Technical • Historical data does not

exist;

• Accuracy of forecasts or analysis on which targets are set;

• The use of benchmarking data.

Social • Targets are perceived

either too high or too low;

• Targets are imposed, not established collaboratively;

• Negative behaviors driven by target setting.

Working with Targets

131

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Allocate the correct number in front of each statement.

NEGATIVE BEHAVIORS ASSOCIATED TO THE TARGET SETTING PROCESS

Match Description No. Behavior

2 Establishing lower targets than the realistic level estimated as possible.

1 Gaming

Looking after the achievement of own targets, without consideration of the implications for other areas in the organization.

2 Sandbagging

4 Disregarding environmental and safety considerations in the process of meeting targets.

3 Tunnel

behavior

1 Influencing results through unapproved means to ensure target achievement.

4 Unethical behavior

Working with Targets

132

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

NEGATIVE BEHAVIORS ASSOCIATED TO THE TARGET SETTING PROCESS

Working with Targets

133

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. Checklist for working with targets:

• Based on data (historical, internal and external benchmarking, market analysis);

• Ambitious, but achievable standards; • Clear and specific; • No delta targets; • No conflictual targets; • Thresholds; • Discussed, not imposed.

SESSION REVIEW

Working with Targets

134

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• Philips Hotel (2011), Net promoter score at Philips. Available at: https://www.youtube.com/watch?v=lckcJeae5Ds;

• Bain & Company, Satmetrix Systems (2013), Measuring your Net Promoter Score. Available at: http://www.netpromotersystem.com/about/measuring-your-net-promoter-score.aspx.

Images: • Arcan, A. (2011), Performance measurements and metrics: An analysis of supplier evaluation. Available

at: http://scm.ncsu.edu/scm-articles/article/performance-measurements-and-metrics-an-analysis-of- supplier-evaluation;

• Effectory International (2014), Global Employee Engagement Index. Avaliable at: http://www.employee-engagement-index.com/;

• Eneco (2013), Performance report 2012. Available at: http://annualreport2012.eneco.com/progress/strategic-kpis;

• Harvard Kennedy School, Center for Public Leadership (2012), A national study on confidence in leadership. Available at: http://www.centerforpublicleadership.org/images/pdf/NLI/cpl_nli_2012.pdf;

• Lehigh University (2013), GPS weighting factors handout 2013. Available at: https://hr.lehigh.edu/sites/hr.lehigh.edu/files/GPS_WeightingFactors_2013.pdf;

• Lindsey, M. (n.d.), Supplier performance ratings - Scorecards, rankings, and awarding business. Available at: http://www.asq-qm.org/resourcesmodule/download_resource/id/348/;

• The KPI Institute (2015), Material extracted from consultancy projects.

REFERENCES

Working with Targets

135

http://www.netpromotersystem.com/about/measuring-your-net-promoter-score.aspx

http://scm.ncsu.edu/scm-articles/article/performance-measurements-and-metrics-an-analysis-of-supplier-evaluation

http://www.employee-engagement-index.com/

http://annualreport2012.eneco.com/progress/strategic-kpis

http://www.centerforpublicleadership.org/images/pdf/NLI/cpl_nli_2012.pdf

https://hr.lehigh.edu/sites/hr.lehigh.edu/files/GPS_WeightingFactors_2013.pdf

http://www.asq-qm.org/resourcesmodule/download_resource/id/348/

AGENDA

136

Key Learning Points

8 Data gathering 1. Data quality dimensions 2. KPI reporting data sources 3. KPI activation tools 4. KPI activation techniques 5. Working with data custodians 6. Data collection methods

1. Identify data quality dimensions; 2. Use KPI activation techniques and tools; 3. Address challenges in data gathering.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

IDENTIFY DATA QUALITY ISSUES

KPI Name Actual Result

Department Data Custodian Position Submission date

Submission deadline

# Time to fill a vacant position 35 HR Allan Smith Finance Manager 20-05-19 01-06-19

% Employee satisfaction 89% HR Allan Smith Finance Manager 18-04-19 01-06-19

% Return on capital employed (ROCE)

5% Finance Allan Smith Finance Manager 05-05-19 01-06-19

# Units per man-hour 55 Production Dan McKenny Production Manager 20-05-19 01-06-19

% Net promoter score Marketing Joe Linch Marketing Manager 25-05-19 01-06-19

% Customer retention 10% Marketing Joe Linch Marketing Manager 18-05-19 01-06-19

% Deals closed 234 Sales Julien Harrison Sales Manager 18-06-19 01-06-19

# Production plants functional 4 Production Dan McKenny Production Manager 25-05-19 01-06-19

$ Time to produce 1 item 30 Production Dan McKenny Production Manager 21-05-19 01-06-19

% Brand awareness 50% Marketing Joe Linch Marketing Manager 17-05-19 01-06-19

% Production uptime 10% Production Dan McKenny Production Manager 17-05-19 01-06-19

You have received the following data to compile a report. You are requested to perform a quick data audit and identify possible issues.

137Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA QUALITY DIMENSIONS Most common challenges:

Completeness Availability

AccuracyTimeliness

138Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA GATHERING GOVERNANCE

KPI Owner

• Responsible to reach KPI targets

Data Custodian

• Responsible to gather data for KPIs

Report Generator

This role can be taken by: • Data custodian • KPI owner • A third party within the organization (e.g.

data analyst, strategy/performance manager)

139Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DISCOVER DATA CUSTODIAN ROLES

140Data Gathering

1. Get involved in the analysis for KPI measurement options 2. Reach the targets for the KPIs 3. Contribute to KPIs documentation, if requested 4. Select KPIs 5. Get involved in the KPI activation process 6. Take decisions based on KPI results 7. Cascade KPIs to lower organizational levels 8. Get involved in identifying solutions for inactive KPIs 9. Ensure quality of data gathered: compliance with

measurement methodology, accuracy and timeliness of submission

10. Update KPI documentation forms, if requested

= Yes

= No

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI DATA GATHERING SOURCES

SourcesSurveys

ERP

Internal Operations

Benchmarking reports

External entities (accreditations,

ratings)

# Customer satisfaction # Employee engagement

Universities Hospitals

SAP Oracle

Production reports HSSE observation sheets

External benchmarking reports

141Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION TOOLS Data gathering process map

Data gathering template

Source: The KPI Institute (2016)

142Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION TOOLS Data gathering process map

Source: The KPI Institute (2017)

143Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION TOOLS Data gathering template

Source: The KPI Institute (2017)

144Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION / GATHERING TECHNIQUES

Meeting KPI data custodians in person

Involving data custodians in a community of practice

Sending reminder email

After KPI activation, involving data custodians in a community of practice and sending a reminder email become part of an on-going process to gather data.

145Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION TECHNIQUES Meeting KPI data custodians in person

Maritz Institute - 3 main benefits for conducting face to face meetings:

Source: EQAVET (n.d.)

Inspires a positive attitude

Strengthens human networks

and business relationships

Captures attention

146Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION TECHNIQUES Involving data custodians in a community of practice

Source: EQAVET (n.d.)

• Provides a common platform for data custodians to communicate and share work related experience;

• Stimulates learning by supplying a medium for sharing best practices and tutoring;

• Creates collaborative processes that add value and maximize data custodian efficiency.

147Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

KPI ACTIVATION TECHNIQUES

Custodian name # KPIs to report

# KPIs already reported on

KPIs not reported on yet Due date Status Comment

John Doe 8 8 none 13-Jun-17 Submitted

Ann Smith 9 8 % IT budget out of total operational budget

13-Jun-17 Outstanding

Emory Lafayette 5 3 % Profit rate, $ Revenue seat per kilometer

13-Jun-17 Outstanding

Carlos Mendoza 6 5 % Profitable routes 13-Jun-17 Outstanding

Ahmed Alsaudi 5 3 # Staff per passengers, # Staff per flight

13-Jun-17 Outstanding

Luis Ramirez 4 3 # Fuel consumption per flight

13-Jun-17 Outstanding

Anthony Gleason 2 0 # Service quality rating, % Ticket price variance from market average

13-Jun-17 Not submitted

Mike Myers 1 0 % Market share 13-Jun-17 Not submitted

Sending reminder email 1

148Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA COLLECTION METHODS

Source: Gartner (2018, 2019)

149Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA COLLECTION METHODS

Source: Gartner (2020, 2021)

150Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

SOFTWARE SPOTLIGHT

151Data Gathering

Source: Tableau (2017) Source: Microsoft (2017)

TABLEAU MICROSOFT – POWER BI

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

SOFTWARE SPOTLIGHT

152Data Gathering

QLIK SAP

Source: Qlik (2017) Source: SAP (2016)

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Source: Spider Impact (2021), Spider Strategies

SOFTWARE SPOTLIGHT

153Data Gathering

SPIDER STRATEGIES - Spider Impact

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. Data quality dimensions: completeness, validity, accuracy,

consistency, integrity, timeliness.

2. KPI activation tools:

• Data gathering process map;

• KPI documentation form;

• Data gathering template.

3. KPI activation techniques

• Meeting KPI data custodians in person; • Involving data custodians in a community of practice; • Sending reminder email.

SESSION REVIEW

154Data Gathering

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• EQAVET (n.d.), Mission. Available at: http://www.eqavet.eu/gns/about-eqavet/mission.aspx; • Gartner (2015), CIO Agenda insights. Available at:

http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights2015.pdf; Images: • Gartner (2017), Magic Quadrant. Available at:

https://blogs.microsoft.com/blog/2017/02/16/microsoft-breaks-gartner-magic-quadrant-business- intelligence-analytics-platforms/

• Gartner (2018), Magic Quadrant. Available at: https://powerbi.microsoft.com/en-us/blog/gartner- recognizes-microsoft-as-a-leader-in-analytics-and-bi-platforms-for-11-consecutive-years/

• Gartner (2019, 2020, 2021), Magic Quadrant. Available at: https://www.qlik.com/us/gartner-magic- quadrant-business-intelligence

• Microsoft (2017), Power BI - Service dashboards. Available at: https://powerbi.microsoft.com/en- us/documentation/powerbi-service-dashboards/;

• Qlik (2017), Nprinting. Available at: http://www.qlik.com/us/products/nprinting; • SAP (2016), SAP Crystal Dashboard Design 2016. Available at:

https://www.sapstore.com/solutions/99046/SAP-Crystal-Dashboard-Design-2016; • Spider Strategies (2021), SpiderImpact. Available at: https://www.spiderstrategies.com/tour/ ; • Tableau (2017), Pediatrics Dashboard. Available at:

https://www.tableau.com/solutions/gallery/pediatrics-overview; • The KPI Institute (2017), Call Center Performance Management Toolkit. Available at:

https://marketplace.kpiinstitute.org/call-center-performance-management-system-toolkit.html.

REFERENCES

155Data Gathering

http://www.eqavet.eu/gns/about-eqavet/mission.aspx

http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights2015.pdf

https://blogs.microsoft.com/blog/2017/02/16/microsoft-breaks-gartner-magic-quadrant-business-intelligence-analytics-platforms/

https://www.adaptiveinsights.com/analyst-report/gartner-2018-magic-quadrant-cloud-fpa-solutions

https://powerbi.microsoft.com/en-us/blog/gartner-recognizes-microsoft-as-a-leader-in-analytics-and-bi-platforms-for-11-consecutive-years/

https://www.qlik.com/us/gartner-magic-quadrant-business-intelligence

https://powerbi.microsoft.com/en-us/documentation/powerbi-service-dashboards/

http://www.qlik.com/us/products/nprinting

https://www.sapstore.com/solutions/99046/SAP-Crystal-Dashboard-Design-2016

https://www.spiderstrategies.com/tour/

https://www.tableau.com/solutions/gallery/pediatrics-overview

https://marketplace.kpiinstitute.org/call-center-performance-management-system-toolkit.html

AGENDA

156

Key Learning Points

9 Data visualization 1. Usability of graphs for dashboard design 2. Best practices for scorecard design 3. Usability in terms of visual design

1. Identify good practices in data visualization; 2. Design appealing and efficient data visualization elements; 3. Choose the right visual representations for the performance

scorecard and dashboard.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Scenario: Your work colleague, John has just contacted you to ask for advice. John is the Sales Manager of the company and given the recalibration of the current performance management system, he is in charge with developing the specifications for the sales dashboard.

Tasks: • Analyze the sample of examples from the dashboard John has already

prepared.

• Offer at least 5 recommendations of what should be improved in terms of the graphics used to display data.

• Discuss about what should be used in the future for more effective data visualization and what should be avoided.

DASHBOARD DESIGN

157Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DASHBOARD DESIGN

158Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DASHBOARD DESIGN

159Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. ……………………………………………………………………………………………………….

2. ……………………………………………………………………………………………………….

3. ……………………………………………………………………………………………………….

4. ……………………………………………………………………………………………………….

5. ……………………………………………………………………………………………………….

6. ……………………………………………………………………………………………………….

7. ……………………………………………………………………………………………………….

8. ……………………………………………………………………………………………………….

9. ……………………………………………………………………………………………………….

10. ……………………………………………………………………………………………………….

DASHBOARD RECOMMENDATIONS

160Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES

161Data Visualization

Graphs usability

1. Bar charts – to compare individual values

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Thresholds (Under target, within tolerance limits, above targets)

Source: Adapted from Centrelink (2010)

2. Bullet graphs - to compare actual results with targets

% Community satisfaction

% Pharmacist satisfaction

0% 20% 40% 60% 80% 100%

Target

Actual performance

DataData Visualization

162

DATA VISUALIZATION GUIDELINES

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES

Source: Adapted from http://dashboard.virginiadot.org/default.aspx

163

3. Dial charts - Useful for signalling threshold values

Data Visualization

http://dashboard.virginiadot.org/default.aspx

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES

164Data Visualization

4. Line charts – to track and analyze trends

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Net profit margin (%)

1,000

2,000

3,000

4,000

5,000

6,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Net profit (EUR million)

Source: Adapted from Unilever (2013)

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES

Source: Adapted from United States Office of Personnel (2012)

165

5. Sparkline - Useful for showing data trends in a condensed manner

Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES

166Data Visualization

6. Sparklines & Bullet graphs

• To enhance data visualization and space usage, in a table format dashboard;

• Enables trend analysis and assessment of results against targets.

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES DOs  Ensure graphic suitability for the data;  Graphical representations should have titles;  Make sure no data is mission;  Clear outline of axes;  There scales for all axes included;  The scale for the ax should start from zero;  All tags should be correctly associated with the graph’s elements;  Space is used efficiently;  Backgrounds are light and clear;  Colors are not used in excess.

167Data Visualization

Data Visualization

HEICHERT SUCCESS RULE POSTER

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES DONTs X 3 Ds; X Crowded data in one graph; X Pie charts; X Spaghetti charts; X Strong color background; X Strong background grids; X Background patterns; X Icons, pictures or any other visual representations to “enrich”

design; X Large diversity of colors; X Forget to insert graphic legend.

168Data Visualization

Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Scenario: You have been contacted by your friend Mike, who asked for your advice given your experience in working with scorecards. Mike is the manager of a fancy Italian restaurant in the city center. Although, he was successful at identifying relevant business objectives and KPIs, he seems to be having difficulties in creating an effective data visualization tool. The first version of his scorecard received negative feedback from his boss and he is pressured by time to come up with a better version of this tool.

Tasks: • Analyze the scorecard sample, from the tool Mike has already prepared.

• Offer at least 5 recommendations of what should be improved in terms of the displaying data in table formats.

• Discuss about what should be used in the future for more effective data visualization and what should be avoided.

SCORECARD DESIGN

169Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Current data display

SCORECARD DESIGN

170Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

1. ……………………………………………………………………………………………………….

2. ……………………………………………………………………………………………………….

3. ……………………………………………………………………………………………………….

4. ……………………………………………………………………………………………………….

5. ……………………………………………………………………………………………………….

6. ……………………………………………………………………………………………………….

7. ……………………………………………………………………………………………………….

8. ……………………………………………………………………………………………………….

9. ……………………………………………………………………………………………………….

10. ……………………………………………………………………………………………………….

SCORECARD RECOMMENDATIONS

171Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Recommended data display

SCORECARD DESIGN

172Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES DOs  Provide a title for the table;  Delineate and group data into logical clusters (strategic themes,

perspectives, objectives);  Numerical guide (to show if data has been shrink, if this is the

case);  Display legend;  Eliminate and minimize grids;  Outline status of results ( ≥target, acceptable range,<target);  Align characters appropriately;  Use optimal size font for easy reading.

Source: CLIMB (n.d.)

173Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES DONTs X Use strong outlines of the table; X Embed icons, pictures or other graphic representations that can

distract the reader; X Create an endless list of data; X Use a variety of colors; X Provide all existing data, stick to essential information.

Source: CLIMB (n.d.)

174Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

DATA VISUALIZATION GUIDELINES

Source: The KPI Institute (2018)

175Data Visualization

Heichert

Succruleses s poster

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

176

1. Scorecards use tables to visualize data, therefore: • It keeps tables simple; • No grids, no strong color combination; • Clusters data based on strategic themes, perspectives or objectives.

2. Dashboards: • Bar charts: to compare individual values; • Bullet graphs: to compare actual results to targets; • Dial charts: to indicate threshold values; • Line charts: to track trends; • Pie charts: to compare different parts of a whole; • Sparkline: to show trends in a condensed manner.

3. Avoid using: • 3D graphs: distort data • Pie and donut charts: inefficient use of space; • Crowded graphs: data is no longer visible; • Strong colors for backgrounds: hinder visibility.

SESSION REVIEW

Data Visualization

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• Adecco Group (2013), Annual report 2013. Available at: http://annualreport2013.adecco.com/fileadmin/user_upload/redakteure/ar2013/pdf/Adecco_Group_A R2013.pdf;

• Astra Zeneca (2012), Annual report 2011. Available at: http://www.astrazeneca- annualreports.com/2011/documents/pdfs/annual_report_pdf_entire.pdf;

• Centrelink (2010), Annual report 2009-10, available at: http://www.humanservices.gov.au/spw/corporate/publications-and-resources/annual- report/resources/0910/centrelink-annual-report-0910-full-report.pdf;

• Digital Inspiration (2012), Choose the right chart type for your data, available at: http://www.labnol.org/software/find-right-chart-type-for-your-data/6523/;

• Domo (2011), How Fort Worth Police Department uses domo. Available at: https://www.youtube.com/watch?v=pKbakXit9H4;

• Equinox Center (2014), Quality of life dashboard. Available at: http://www.equinoxcenter.org/assets/files/2014%20Final%20Dashboard%281%29.pdf;

• Fusion Charts (2013), Line & area charts, available at: http://www.fusioncharts.com/demos/gallery/#line-and-area;

• Hichert (2006), Skalen ud deren manipulation, available at: http://www.hichert.com/downloads/success/check/Skalenmanipulation_2006-11.pdf;

• MuRata (2014), Investor relations. Available at: http://www.murata.com/ir/information/sales_product/index.html;

REFERENCES

177Data Visualization

http://annualreport2013.adecco.com/fileadmin/user_upload/redakteure/ar2013/pdf/Adecco_Group_AR2013.pdf

http://www.astrazeneca-annualreports.com/2011/documents/pdfs/annual_report_pdf_entire.pdf

http://www.humanservices.gov.au/spw/corporate/publications-and-resources/annual-report/resources/0910/centrelink-annual-report-0910-full-report.pdf

http://www.labnol.org/software/find-right-chart-type-for-your-data/6523/

https://www.youtube.com/watch?v=pKbakXit9H4

http://www.equinoxcenter.org/assets/files/2014%20Final%20Dashboard(1).pdf

http://www.fusioncharts.com/demos/gallery/

http://www.hichert.com/downloads/success/check/Skalenmanipulation_2006-11.pdf

http://www.murata.com/ir/information/sales_product/index.html

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

• SA Health (2013), Emergency department dashboard. Available at: http://www.sahealth.sa.gov.au/wps/wcm/connect/public+content/sa+health+internet/about+us/our+p erformance/our+hospital+dashboards/about+the+emergency+department+dashboard/emergency+depar tment+dashboard;

• Spider Strategies (2017), QuickScore. Available at: http://www.integerperform.com/kpi-dashboard- balanced-scorecard-software;

• The KPI Institute (2017), KPIs Infographic. Available at: https://library.kpiinstitute.org/key- performance-indicators-infographic-976.html.html;

• Tufte, E. (1983), The visual display of quantitative information. Cheshire, CT: Graphics Press; • Tufte, E. (2001), Presenting data and information, One-day course, September 17, 2001. New York; • Unilever (2013), Making sustainable living commonplace, available at:

http://www.unilever.com/images/ir_UNI_10-Year_Charts_2013_030314_tcm13-384260.pdf; • United Stated Census Bureau (2008), Housing vacancies and homeownership, available at:

http://www.census.gov/hhes/www/housing/hvs/qtr407/graph407.html; • United States Government (2014), US Federal Budget Pie. Available at:

http://www.usgovernmentspending.com/federal_budget_pie; • United States Office of Personnel (2012), Annual performance report 2011. Available at:

https://www.opm.gov/about-us/budget-performance/performance/2011-annual-report.pdf • World Bank (2014), Data. Available at:

http://data.worldbank.org/indicator/GC.XPN.TOTL.GD.ZS/countries/1W-DE?display=default;

REFERENCES

178Data Visualization

http://www.sahealth.sa.gov.au/wps/wcm/connect/public+content/sa+health+internet/about+us/our+performance/our+hospital+dashboards/about+the+emergency+department+dashboard/emergency+department+dashboard

http://www.integerperform.com/kpi-dashboard-balanced-scorecard-software/

https://library.kpiinstitute.org/key-performance-indicators-infographic-976.html.html

http://www.unilever.com/images/ir_UNI_10-Year_Charts_2013_030314_tcm13-384260.pdf

http://www.census.gov/hhes/www/housing/hvs/qtr407/graph407.html

http://www.usgovernmentspending.com/federal_budget_pie

https://www.opm.gov/about-us/budget-performance/performance/2011-annual-report.pdf

http://data.worldbank.org/indicator/GC.XPN.TOTL.GD.ZS/countries/1W-DE?display=default

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

Images: • CLIMB (n.d.), Best practices in designing tables. Available at:

http://www.northwestern.edu/climb/resources/written-communication/Best-Practices-Tables.html; • Equinox Center (2014), Quality of life dashboard. Available at:

http://www.equinoxcenter.org/assets/files/2014%20Final%20Dashboard%281%29.pdf; • Franklin Lakes (2014), Performance dashboards. Available at:

http://dashboard.revelstonelabs.net/entities/281; • Medicare Australia (2010), Annual report 2009-10. Available at:

http://www.humanservices.gov.au/spw/corporate/publications-and-resources/annual- report/resources/0910/centrelink-annual-report-0910-full-report.pdf;

• The KPI Institute (2017), Human Resources Performance Management Toolkit. Available at: https://marketplace.kpiinstitute.org/medical-practice-performance-management-system-toolkit.html;

• The KPI Institute (2017), Medical Center Performance Management Toolkit. Available at: https://marketplace.kpiinstitute.org/medical-practice-performance-management-system-toolkit.html;

• The KPI Institute (2017), Performance Healthogram. Available at: http://kpiinstitute.org/research/about- performance-management/performance-healthogram/;

• Victoria Government Procurement (n.d.), Supplier performance scorecard. Available at: http://www.procurement.vic.gov.au/CA2575BA0001417C/WebObj/KPIandSupplierPerformanceScorecardTool(Ap pendix6)/$File/KPI%20and%20Supplier%20Performance%20Scorecard%20Tool%20(Appendix%206).XLS;

• World Bank (2014), World Bank global scorecard. Available at: http://siteresources.worldbank.org/CSCARDEXT/Resources/2014_WBG_corporate_scorecard_e-version.pdf;

• University of California (2013), Division of Hospital Medicine Faculty Balanced Scorecard FY 2012. Available at: http://hospitalmedicine.ucsf.edu/bsc/fy2012.html.

REFERENCES

179Data Visualization

http://www.northwestern.edu/climb/resources/written-communication/Best-Practices-Tables.html

http://www.equinoxcenter.org/assets/files/2014%20Final%20Dashboard(1).pdf

http://dashboard.revelstonelabs.net/entities/281

http://www.humanservices.gov.au/spw/corporate/publications-and-resources/annual-report/resources/0910/centrelink-annual-report-0910-full-report.pdf

https://marketplace.kpiinstitute.org/medical-practice-performance-management-system-toolkit.html

http://kpiinstitute.org/research/about-performance-management/performance-healthogram/

http://www.procurement.vic.gov.au/CA2575BA0001417C/WebObj/KPIandSupplierPerformanceScorecardTool(Appendix6)/$File/KPI%20and%20Supplier%20Performance%20Scorecard%20Tool%20(Appendix%206).XLS

http://siteresources.worldbank.org/CSCARDEXT/Resources/2014_WBG_corporate_scorecard_e-version.pdf

http://hospitalmedicine.ucsf.edu/bsc/fy2012.html

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

180

10 takeaways to implement in your organization:

1. Connect your KPIs to strategy. 2. Articulate the KPI selection process – apply techniques like

KPI selection workshop, KPI clustering, VFA and KPI balancing.

3. Avoid measuring what is easy to measure or familiar for the organization.

4. Use a balanced approached of performance measurement – Balanced Scorecard.

5. Use both scorecards and dashboards.

COURSE REVIEW

Course Review

KPI Selection KPI Alignment

KPI Documentation

Working with Targets

The World of KPIs

Data Visualization

Course Review

Data Gathering

181

10 takeaways to implement in your organization:

6. Cascade the performance measurement framework down to employee level.

7. Develop the performance measurement capability in the organization.

8. Involve stakeholders in the KPI implementation project. 9. Avoid making irrelevant comparisons through flawed

benchmarking. 10. Analyze objectives and KPIs in correlation, not as isolated

elements.

COURSE REVIEW

Course Review

Headquarters Melbourne Office Life.lab Building 198 Harbour Esplanade, Suite 606, Melbourne Docklands, VIC 3008, Australia T: +61 3 9028 2223 M: +61 4 2456 8088 [email protected]

Middle East Division Dubai Office Regalia Business Centre, 1st floor, Office 101 – Suite 11, Baysquare Building 3, Business Bay, 213297, Dubai, UAE T: +971 4 563 7316 M: +971 55 787 6427 [email protected]

European Division Sibiu Office Sibiu City Center Somesului Street, No. 3 550003 - Sibiu, Romania T: +61 3 9028 2223 M: + 40 7 4706 0997 [email protected]

SE Asia Division Kuala Lumpur Office Wisma UOA II Level 14, Unit 13, no 21, Jalan Pinang, 50450 Kuala Lumpur, Malaysia T: +60 3 2742 1357 M: +60 11 3303 2135 [email protected]

Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
AGENDA
Slide Number 7
LEARNING OBJECTIVES
LEARNING OBJECTIVES
AGENDA
THE VALUE ADDED BY KPIs
THE VALUE ADDED BY KPIs
Slide Number 13
IDENTIFY PERFORMANCE MANAGEMENT Concepts
Slide Number 15
IDENTIFY PERFORMANCE MANAGEMENT Concepts
TERMINOLOGY
Performance Management System Architecture
DESIRED STATE OF EVOLUTION
Slide Number 20
IDENTIFY PERFORMANCE MANAGEMENT Concepts
STRATEGY MAP
STRATEGY MAP
IDENTIFY PERFORMANCE MANAGEMENT Concepts
IDENTIFY PERFORMANCE MANAGEMENT Concepts
PERFORMANCE SCORECARD
PERFORMANCE DASHBOARD
KPI DOCUMENTATION FORM
KPI DOCUMENTATION FORM simplified
IDENTIFY PERFORMANCE MANAGEMENT Concepts
PORTFOLIO OF INITIATIVES
INITIATIVE Documentation FORM
PERFORMANCE TOOLS overview
PERFORMANCE MEASUREMENT VS PERFORMANCE MANAGEMENT
KPI MANAGEMENT FRAMEWORK CONCEPT MAP
KPI MANAGEMENT FRAMEWORK GOVERNANCE
KPI ARCHITECTURE SKILLS
SESSION REVIEW
REFERENCES
AGENDA
KPI RELATED TERMINOLOGY
IDENTIFY THE KPIs
IDENTIFY THE KPIs
KPIs
SMART OBJECTIVES DECOMPOSED
SMART OBJECTIVES DECOMPOSED
TERMINOLOGY STANDARDS
KPI LIFECYCLE
SESSION REVIEW
REFERENCES
AGENDA
LEADING VS LAGGING KPIs
LEADING VS LAGGING KPIs
LEADING AND LAGGING KPIs
LEADING AND LAGGING KPIs
LEADING AND LAGGING KPIs
LEADING AND LAGGING KPIs
LEADING AND LAGGING KPIs
LEADING AND LAGGING KPIs
QUALITATIVE VS QUANTITATIVE
Slide Number 61
IDENTIFY THE KPIs REFLECTING QUALITY
Slide Number 63
EFFICIENCY VS EFFECTIVENESS KPIS
EFFICIENCY VS EFFECTIVENESS KPIS
ANALYZE WESTERN AUSTRALIA POLICE KPIs
SESSION REVIEW
REFERENCES
AGENDA
ALLOCATE KPIs FOR EACH OBJECTIVE
KPI SELECTION PROCESS AND TECHNIQUES
SCOPE CLARIFICATIONS
KPI SELECTION SOURCES
KPI EXPO
Kpi expo �example
KPI CLUSTERING
KPI CLUSTERING EXAMPLE
KPI SELECTION WORKSHOP
VALUE FLOW ANALYSIS
VALUE FLOW ANALYSIS
INPUT
PROCESS
OUTPUT
OUTCOME / IMPACT
VALUE FLOW ANALYSIS
VALUE FLOW ANALYSIS
KPI BALANCING
KPI BALANCING
KPI SELECTION CRITERIA
FOLLOW-UP ON KPI SELECTION
SESSION REVIEW
REFERENCES
AGENDA
KPI ALIGNMENT
KPI ALIGNMENT
KPI alignment scenarios
Example: KPI alignment scenarios
Example: KPI alignment scenarios
CASCADE FROM ORGANIZATION TO DEPARTMENT
CASCADE FROM ORGANIZATION TO DEPARTMENT
Slide Number 101
AGENDA
KPI DOCUMENTATION FORM FUNCTIONS
KPI DOCUMENTATION FORM DESIGN
KPI DOCUMENTATION FORM (1)
KPI DOCUMENTATION FORM simplified (1)
KPI DOCUMENTATION FORM (2)
KPI DOCUMENTATION FORM (3)
KPI DOCUMENTATION FORM
KPI DOCUMENTATION PROCESS
PRACTICE KPI DOCUMENTATION
SESSION REVIEW
REFERENCES
AGENDA
WORKING WITH TARGETS
TARGET SETTING PROCESS
TARGET SETTING APPROACHES
TARGET SETTING APPROACHES
TARGET SETTING APPROACHES
KPIs TREND
KPI THRESHOLDS
KPI THRESHOLDS
TARGET SETTING SOURCES
ESTABLISH TARGETS
ESTABLISH TARGETS
ESTABLISH TARGETS
ESTABLISH TARGETS
ESTABLISH TARGETS
ESTABLISH TARGETS
Targets examples – based on TKI research
CHALLENGES IN WORKING WITH TARGETS
NEGATIVE BEHAVIORS associated to the target setting process
NEGATIVE BEHAVIORS associated to the target setting process
SESSION REVIEW
REFERENCES
AGENDA
IDENTIFY DATA QUALITY ISSUES
DATA QUALITY DIMENSIONS
DATA GATHERING GOVERNANCE
DISCOVER DATA CUSTODIAN ROLES
KPI DATA GATHERING SOURCES
KPI ACTIVATION TOOLS
KPI ACTIVATION TOOLS
KPI ACTIVATION TOOLS
KPI ACTIVATION / GATHERING TECHNIQUES
KPI ACTIVATION TECHNIQUES
KPI ACTIVATION TECHNIQUES
KPI ACTIVATION TECHNIQUES
DATA COLLECTION METHODS
DATA COLLECTION METHODS
SOFTWARE SPOTLIGHT
SOFTWARE SPOTLIGHT
Slide Number 153
SESSION REVIEW
REFERENCES
AGENDA
Dashboard design
Dashboard design
Dashboard design
Dashboard recommendations
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
SCORECARD design
SCORECARD design
SCORECARD recommendations
SCORECARD design
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
DATA VISUALIZATION GUIDELINES
SESSION REVIEW
REFERENCES
REFERENCES
REFERENCES
COURSE REVIEW
COURSE REVIEW
Slide Number 182