Sorting the wheat from the chaff – finding your winning KPIs Presented by David Parmenter waymark solutions limited April 2009 Website: .

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]

http://www.waymark.co.nz/

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

CSF:

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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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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


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


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


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)


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


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


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


% 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

http://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

http://www.bettermanagement.com/

http://www.davidparmenter.com/

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

http://www.davidparmenter.com/

Amazon link on www.davidparmenter.com

John Wiley & Sons have published

Sorting the wheat from the chaff – finding your winning KPIs Presented by David Parmenter waymark solutions limited April 2009 Website: .

Documents

work slide

winning kpis webcasts

david parmenters work

amazon link slide

live web casts

live event

recorded web casts

step process