KPIs and CSFs

3101, 2013

The 7 Deadly sins of performance measurement- Brilliant Article

By |January 31st, 2013|0 Comments

Micheal Hammers article written in Spring 2007 MIT SLOAN MANAGEMENT REVIEW is simply brilliant  I rated in my top 10 articles I have ever read.

Open this link and print it today.Please read it asap.

2711, 2012

Performance bonuses- the foundations stones part 3

By |November 27th, 2012|0 Comments

PBSs should be ‘road tested’ on the last complete business cycle
When you think you have a good scheme test it on the results of the last full business cycle, the period between the last two recessions.  View the extent of the bonus on the net profit.

You need to appraise the PBS as you would a […]

2711, 2012

Performance bonuses- the foundations stones part 2

By |November 27th, 2012|0 Comments

PBSs should avoid any linkage to share price movements
No bonus should be pegged to the stock market price as the stock market price does not reflect the contribution staff, management and CEO has made.

Only a fool believes that the current share price reflects the long term value of an organisation.  Just because a buyer, often […]

311, 2012

Performance bonuses- the foundations stones part 1

By |November 3rd, 2012|0 Comments

(extract from “The leading-edge Manager’s guide to success – strategies and better practices”.  The book is available Amazon, see link on

 By David Parmenter

 Performance bonuses give away billions of dollars each year based on methodologies where little thought has been applied.  Who are the performance bonus experts? What qualifications do they possess to work […]

311, 2012

Adapting and applying the balanced scorecard model in the contemporary business environment

By |November 3rd, 2012|0 Comments

The balanced scorecard (BSC) was one of the major breakthroughs in the nineties.  The groundbreaking work of Kaplan and Norton brought to management’s attention the fact that strategy had to be balanced, needed to be implemented and performance should be measured using a more holistic approach.

Unfortunately many performance-related initiatives have failed and the BSC has […]

2210, 2012

A table without any legs – a critique of the balanced scorecard methodology

By |October 22nd, 2012|0 Comments

An extract from my “Implementing Winning KPIs whitepaper” which can be acquired from

Nobody has done more than Kaplan & Norton (K&N) to ensure that strategy is balanced, well thought through and is implementation is monitored and managed.

The Harvard business school paper was a master piece and the follow on book “Translating strategy into action […]

2405, 2012

The myths of KPIs numbers 16 & 17

By |May 24th, 2012|0 Comments

Myth 16: Indicators Are Either Lead (Performance Driver) or Lag (Outcome) Indicators

I have lost count the number of times I read Kaplan and Norton’s original masterpiece “The Balanced Scorecard: Translating Strategy into Action” to try and understand the lead lag indicators argument until I realized my difficulty in understanding lead lag indicators was a result […]

1705, 2012

The myths of KPIs numbers 13 to 16

By |May 17th, 2012|0 Comments

Myth #13: Monitoring Monthly Performance Measures Will Improve Performance

Show me a monthly performance measure and I will show you a result indicator, a key result indicator or a performance indicator. It will never be a KPI! How can it be key to your business when you are looking at the measure well after the damage […]

1505, 2012

Communicate the Organization’s Critical Success Factors (CSFs) clearly to the Staff

By |May 15th, 2012|0 Comments

Truly great companies know their critical success factors (CSFs) and communicate these to their staff (Drucker called these key performance areas). Yet many organizations have not distinguished their critical success factors from the myriad success factors. Teams are thus often travelling in a direction very different from the intended path.

As Exhibit 1 shows even though […]

1005, 2012

The myths of KPIs numbers 10 to 12

By |May 10th, 2012|0 Comments

Myth 10: There Are Only Four Balanced Scorecard Perspectives

For almost 20 years the four perspectives listed in Kaplan and Norton’s The Balanced Scorecard: Translating Strategy into Action (Financial, Customer, Internal Process, and Learning and Growth) has been consistently reiterated by them.

I recommend that these four perspectives be increased by the inclusion of two more perspectives […]