For the KPI projects that did deliver I noticed the following common characteristics.
They committed a complete and thorough exercise to ascertain their organizations’ critical success factors (CSFs) and then ensured that all measures used by the organization relate back to the CSFs. It is the CSFs, and the performance measures within them, that link […]
There is a major problem with reporting. The writers often do not understand enough about the science of reporting. In addition, too many reports have been prepared monthly, which is far too late for prompt action. The reporting framework used in an organization must accommodate the requirements of the different levels in the organization board, […]
I have been writing about performance measures for more than 20 years. In all that time, I have only witnessed minimal advances in the way companies go about using them. All too often, the assessment of measures are treated as an afterthought.They are regarded as a box-filling exercise to demonstrate that we have achieved a […]
Many organizations that have operated with key performance indicators (KPIs) have found the KPIs made little or no difference to performance. In many cases this was due to a fundamental misunderstanding of the issues. Organizations often begin to develop a KPI system by immediately trying to select KPIs without the preparation that is indicated in […]
Many performance measures are created from a flawed process. Frequently the task of finding measures is carried out at the last minute by staff members who do not have a clue about what is involved in finding a measure that will create the appropriate behavioral response. Chapter 12 looks at common reasons why organizations get […]
Many companies are working with the wrong measures, many of which are incorrectly termed key performance indicators (KPIs). I believe it a myth to consider all performance measures to be KPIs. From my research over the last twenty five years I have come to the conclusion that there are four types of performance measures:
1. Key […]
Stacey Barr in her PuMP methodology has pointed out the benefit of showing performance measures on the walls in a room. Visitors from around the company come for a coffee and leave notes about their concerns or issues relating to a particular measure, on post-it stickers. This system is using “Wisdom of the crowd”. An […]
Recently I have realised the importance of distinguishing Internal from external critical success factors. A Board of a charity rightly pointed out that the CSFs tabled (the internal CSFs) were too internally focused. They wanted to see, understandably the external picture, the external CSFs. The Board was naturally looking from outside-in. The Board want to […]
I believe Toyota to be possibly the greatest company in the world. It has 14 principles which are the backbone to its culture and Toyota can embed these principles in all countries it operates within. Its Kentucky plant in the USA exceeded all Toyota expectations with its acceptance of the Toyota way. To understand the […]
In this article, David Parmenter argues that the greatest danger of performance management is dysfunctional behavior and an organization with dysfunctional performance measures would function much better without them. Does your organization need this radical treatment? You can find out by simply using his checklist for assessing the damage poorly designed performance measures may be causing in […]