sorting the wheat from the chaff – finding your winning kpis presented by david parmenter waymark...
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Sorting the wheat from the chaff – Sorting the wheat from the chaff – finding your winning KPIsfinding your winning KPIs
Presented by David Parmenter
waymark solutions limited
April 2009
Website: www.waymark.co.nz
Blog: www.davidparmenter.com
Email: [email protected]
A ‘top ten’ performance management book A ‘top ten’ performance management book on www.amazon.com for over two yearson www.amazon.com for over two yearssee davidparmenter.com for Amazon linksee davidparmenter.com for Amazon link
How familiar are you with David How familiar are you with David Parmenter’s work?Parmenter’s work?
1. First event, and no familiarity with his work
2. First live event, but have listened to some recorded web casts
3. Have listened to a few live web casts and read some of his work
4. Very familiar with his work
How are your measures derived in How are your measures derived in your organisation?your organisation?
1. No idea, haphazard development
2. There is some method to constructing measures albeit there is not full compliance
3. Have a centralised unit that review and approve all measures
The ‘winning KPIs’ webcasts on The ‘winning KPIs’ webcasts on www.bettermanagement.comwww.bettermanagement.com
1. Introduction to winning KPIs2. Implementing KPIs - A 12-Step Process 3. Implementing KPIs in Smaller Orgs (<200 Staff) 4. Finding your organization’s critical success factors5. Balanced scorecard in 16 weeks not 16 months 6. Getting started or restarted with winning KPIs 7. Revitalizing a floundering balanced scorecard with winning KPIs 8. ‘Winning KPIs’ - a question and answer session9. ‘Winning KPIs’ - a question and answer session10. “Sorting the wheat from the chaff – finding your wining KPIs
The combination to unlock ‘winning KPIs’The combination to unlock ‘winning KPIs’
1. Working with the six perspectives
2. Identifying the critical success factors
3. Selling the change and keeping the SMT motivated
4. Getting the four foundation stones in place
5. Keeping it simple by following the basic rules definitions of KPIs, PIs, RIs, KRIs 10/80/10 16 weeks not 16 months full time in-house team avoid BSC applications until you know what you want
6. Past, current and future measures
Relationship between strategy / CSFs and PMs
Linkage of Linkage of strategy to strategy to
measurementmeasurementLearning& Growth
Customer satisfaction
FinancialResults
InternalProcesses
Strategies (issues & Initiatives)
Mission / Vision / Values
Critical Success Factors
Key Result Indicators (max 10)
Performance and Result Indicators (80 or so)
Key Performance Indicators (max 10)
Staff satisfaction
Community& environment
Learning& Growth
Customer satisfaction
FinancialResults
InternalProcesses
Staff satisfaction
Community& environment
KPIs & PIs in a balanced scorecard and KRIs in a dashboard
The success factor listThe success factor list
Success Factor Checklist
Please note that success factors (SFs) do not neatly fit within a perspective, they can often be in more than one perspective
SF environment & community
Positive public perception of organization Yes No
Be seen in the community as an employer of ‘first choice’ Yes No
Supporting minorities through employment Yes No
Minimizing pollution and waste Yes No
Supporting educational institutions (share knowledge via organization’s website)
Yes No
Encouraging voluntary assistance by staff to the local community Yes No
Recognition by industry for environmental endeavours Yes No
Good working relationships with key community organizations Yes No
Brainstorming the “maintain a happy, safe Brainstorming the “maintain a happy, safe and healthy workplace ” SFand healthy workplace ” SF
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Brainstorming the “maintain a happy, safe Brainstorming the “maintain a happy, safe and healthy workplace ” SFand healthy workplace ” SF
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Brainstorming the “maintain a happy, safe Brainstorming the “maintain a happy, safe and healthy workplace ” SFand healthy workplace ” SF
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Brainstorming the “maintain a happy, safe Brainstorming the “maintain a happy, safe and healthy workplace ” SFand healthy workplace ” SF
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Brainstorming the “maintain a happy, safe Brainstorming the “maintain a happy, safe and healthy workplace ” SFand healthy workplace ” SF
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Brainstorming the “maintain a happy, safe Brainstorming the “maintain a happy, safe and healthy workplace ” SFand healthy workplace ” SF
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Brainstorming the “maintain a happy, Brainstorming the “maintain a happy, safe and healthy workplace ” SFsafe and healthy workplace ” SF
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Brainstorming the “maintain a happy, Brainstorming the “maintain a happy, safe and healthy workplace ” SFsafe and healthy workplace ” SF
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““Full utilisation of xxx system” SFFull utilisation of xxx system” SF
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““Full utilisation of xxx system” SFFull utilisation of xxx system” SF
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““Full utilisation of xxx system” SFFull utilisation of xxx system” SF
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Be seen in the community as an ‘employer Be seen in the community as an ‘employer of first choice’of first choice’
Number of employees involved in up-skilling local community organizations
Number of media coverage events planned for next month, months 2-3, 4-6
Number of media press releases planned for next month, months 2-3, 4-6
Number of photos/articles in papers last month, months 2-3, 4-6
Number of sponsorship projects in last 12 months by company
Number of students who have been offered holiday work for the next holiday period
Be seen in the community as an Be seen in the community as an ‘employer of first choice’ #2‘employer of first choice’ #2
Number of initiatives implemented to improve perception by local community
Dollars donated to the community in last 12 months
Percentage of local residents in total workforce
Entries to environment/community awards to be completed in months 1-3, 4-6
Number of environmental complaints received last week, last 4 weeks
Delivery in full on time, all the time to our key customers
Late / incomplete deliveries to key customers Key customer enquiries that have not been
responded to within 24 hours Complaints from key customers (notified to CEO) Forecast stock out of any of the Key products
(notified to CEO) Number of Key customer complaints where senior
management needed to instigate remedial action Number of credits/returns from key customers
Delivery in full on time, all the time to our key customers
Key customer complaints not resolved in two hours
Accuracy and completeness of specifications for key customer orders
Manufacturing process quality measures re-work (how many items make it through the process without being reworked at any stage) %
Number of pricing errors to key customer invoices
Delivery in full on time, all the time to our key customers
Downtime due to different types of equipment failure
Engineering changes after design completion Process part-per-million defect rates Number of processes made foolproof Production set-up/changeover time
Increased repeat business from our key customers
Late / incomplete deliveries to key customers Key customer enquiries that have not been
responded to by the sales team (over 24 hours old) Complaints from key customers (notified to CEO) Number of Key customer complaints where senior
management needed to instigate remedial action Number of credits/returns from key customers Key customer complaints not resolved in two hours Accuracy and completeness of specifications for key
customer orders
Increased repeat business from our key customers
Number of pricing errors to key customer invoices Weekly sales to top customers by major product
lines ( no more than five product lines shown) Direct communications to key customers in month
(average number of contacts made with the key customers)
Number of key customer referrals Number of proactive visits to key customers
planned for next month, Date of next visit to key customers (by customer
name)
Increased repeat business from our key customers
Number of visits made to key customers made last month
Number of initiatives completed from the recent key customer satisfaction survey
Service requests outstanding for key customers (faults, works requests)
Timeliness and accuracy of price quotations to key customers
Number of innovations introduced in last 4 quarters (1-3, 4-6,7-9,10-12 months)
Stay, say, strive engagement of staff
Number of employees attending courses to increase reading and math skills
Number of training hours achieved in last 12 months
Number of training hours-booked for next month, months 2-3, 4-6-in both external/internal courses
Dollars saved by employee suggestions Number of staff who have attended the stress
management course Percentage of ‘customer-facing’ employees
having on-line access to CRM
Stay, say, strive engagement of staff
Percentage of rising stars with mentors Number of mentoring meetings held last quarter Number of mentoring meetings to be held in next
1, 2-3 months Total hours employees spend in mentoring Number of employees that have improved skills
during last six months Number of employees with delegated spending
authority Number of leadership initiatives targeted to rising
stars to be completed next month, months 2-3, 4-6
Stay, say, strive engagement of staff
Number of managers who have had performance management training
Number of current users of xxx system Staff trained to use xxx system Number of initiatives implemented from the staff
survey Number of internal promotions in the last quarter Number of level 1 and 2 managers who were
promoted internally Number of new staff (less than three months)
who attended an induction program
Stay, say, strive engagement of staff
% of managers who are women % of teams having a team meeting once a week % of cross-trained personnel per team Number of suggested improvements from
employees by team Suggestions made to suggestions implemented Training days last month, last 3 months Turnover of female staff Number of staff who are aware of new staff
initiative (from staff survey)
Measures that maybe KPIsMeasures that maybe KPIs
Number of recognitions planned for next week, next fortnight
Number of health related training planned for next 1,2-3,4-6 months
Employees who have been sick for over 2 weeks who are not on a back to work programme
Number of new staff (less than three months) who attended an induction program
Number of mentoring meetings to be held in next 1, 2-3 months
Measures that maybe KPIs #2Measures that maybe KPIs #2
Date of next visit to key customers (by customer name)
Date of next social interaction with our key customers
Late / incomplete deliveries to key customers Number of key fields in xxx system that are
incomplete Customers with contracts that are to expire in
the next 0-3,4-6 months Number of runs planned in uneconomic
quantities in next week, fortnight
Measures that may go in the wrong Measures that may go in the wrong direction direction
Linking lost time injuries to performance related pay
% of deliveries made on time Percentage of teams having a team meeting
once a week Time taken to process patient in accident and
emergency Staff with over 10 years of service
These books came out in 07These books came out in 07
www.waymark.co.nz to order, see link to www.amazon.com
Next stepsNext steps
Understand all the resources I have provided you• webcasts and articles on
www.bettermanagement.com• whitepapers and templates can be bought from
www.davidparmenter.com• my KPI book• the workshop outlines
Hold a focus group workshop to find your CSFs
Thank you for participating in this web Thank you for participating in this web seminarseminar
Please keep in touch about your Please keep in touch about your progressprogress
see see www.davidparmenter.com for my for my speaking engagements, white papers speaking engagements, white papers etcetc