Benchmarking Partnerships

PROPOSAL for DISCUSSION

Having the Right KPIs for Your Organisation

Many organisations select KPI’s without a strategic framework and systems understanding, collect data on KPI’s without really understanding the strategic need and relevance because ‘that’s the way it’s been done before!’

Some organisations have difficulty deciding on the number of KPI’s and how they connect(cascade) to meaningful measures at the team /workplace for individuals or connect (aggregate up) and contribute through to the strategic statements/goals for your organisation.

Other organisations are challenged to develop cross-functional KPI’s in a climate of process owner complexity and/or dynamic on-going changes for the business where the goal posts are continuing to move.

There are individuals who seems to know the right KPI’s for business but struggle to get ‘buy-in’ to influence or to make effective changes to the KPI’s and performance measurement system.

If you think your organisation has ALL of this under control, then that’s great! and we can still help you in reconfirming and testing your KPI selection with our systems thinking, strategy mapping methodology. This is simple, and  is well proven over many years of Benchmarking Partnerships working with many clients to ensure their KPI’s are effective within an optimum performance measurement system and a supportive leadership culture. 

If you think you can see some improvement with your KPI’s already- then you are in for a real treat!

This invitation outlines broadly how we at Benchmarking Partnerships can help you review and / or develop your Key Performance Indicators (KPIs).

Possible Overall Plan
  1. Facilitated systems view looking at a high level Vision, account for / review your Mission and develop first cut KPIs for your organisation as a whole; or to review your existing KPIs or develop KPIs relevant to your strategic plan and business operations
  2. Development of aligned KPIs for Specific Roles/Projects/ Departments
  3. Performance Management and Recognition to realise benefits and targets

We would facilitate a small team of your people to produce these outcomes. We will also draw on the best practices from our international benchmarking amongst our 5,000 customers to assist your organisation. (Read “Organisation” as Department, Business Unit, Team or whole organisation.)

1. Systems View and your Overall KPIs

This would provide a systems view of your business and Vision, take into account or review your existing Mission, and develop first cut (or review)  KPIs based on the needs of your stakeholders or as required by your strategy and operations.

The systems view framework is shown in the diagram below.

SIPOC

The Systems view (or SIPOC) – examines Suppliers and their Inputs, core Processes and their Outcomes delivered for Customers and other stakeholders. By examining the needs of Stakeholders, the SIPOC analysis is able to quickly identify the desired Outcomes and KPIs, and confirm the Core Processes that your organisation uses to deliver the Outcomes. It will also enable identification and rationalisation of your Suppliers and their Inputs required at a future date if required. The SIPOC analysis and KPI results can then enable identification at a strategic level of the gaps or improvements needed to progress towards the Vision and to operationalise the Mission more productively. This SIPOC analysis can be carried out at the organisational level, departmental level or process levels.

2. Specific Roles / Projects/ Departmental  KPIs

The overall KPIs will then be mapped to relevant KPIs for specific projects or departments and people so that they are contributing to the overall success of the organisation and know when they have done a good day’s work. We call this strategy mapping.

After describing what higher order outcomes and KPIs are needed or are critical for the ‘success’ of your organisation (in Section 1 above) we then identify what lower order outcomes are important for the success of these higher order outcomes, then what KPI outputs are important to the success of these lower order outcomes, then what processes are required for the success of the outputs, then what inputs are important for the success of the processes. Effectively what we are doing is mapping the key dependencies to determine a diagrammatic view of what’s important ‘upstream’ that gives insights on what to measure.

It is important to measure the right things and not what is simply convenient to measure. Often physical measures such as the numbers of transactions or the quantity of  ‘widgets’ etc are easy to see but are perhaps not KEY in delivering value to your project. It is also important to concentrate on a few but most important KPIs for any one group of people eg Sales. An example of a Strategy Map for motor vehicle fleet safety is shown below.

 

Fleet Safety 

In this example a measure of “Zero Harm” is the overall organisational KPI while the measure of “Improved Driver Behaviour and Awareness” may rest with drivers. “Improved Vehicle Selection” and “Lower Incident Rates” may rest with the Fleet Manager, and Training and Recruitment with HR.

It is not necessary to pigeon hole the names ‘higher order outcomes’, lower order outcomes’, ‘outputs’, ‘processes’ and ‘inputs’ etc as fixed terms in your mapping. These dependencies are only a useful guide. Some organisations also use a concentric view map to map most critical area outcomes in the centre circles and those supporting the success of those critical outcomes towards the perimeter. The main message here being the focus on the strategic areas of the success and those areas that support it.

Once the KPI measures have been described as per above then a formula can be developed to quantify them from raw data.

3. People Performance Management and Recognition

After developing the KPIs we will then discuss how to manage performance and recognise contributions by people to your organisation’s success. Processes will be developed for your organisation that will also be aligned to your performance measurement framework. This day is really about ensuring the KPI will be effective when deployed in the workplace. This day deals with buy-in and integration into your performance management system, communications, reporting and monitoring processes as well as recognition processes for performance.

Draft Program

For a smaller organisation, there will be 3 days of facilitating your team, ideally the Executive Team at least for Day 1. There is an option to facilitate a specific department group of people or project team on Day 2 instead to produce their own KPIs aligned to overall your KPIs (from Day 1).

Day 1

Systems View and Overall organisational KPIs. We facilitate an innovative systems thinking process  with your team, building up on your whiteboard and flip charts a systems model, which clearly identifies (amongst inputs, suppliers, processes, outputs, outcomes, relationships, customers and stakeholders) the high level KPI’s. This can be done at an organisational, business unit, team or project level.

Day 2

Two Department KPIs or a complete Project set of KPI’s. Optional extra days for other Departments / Roles. Specific areas are ‘strategy mapped’ with your team to reveal the cascading and aggregated KPI’s at an input, process, output and outcome level, which in balance with clients/stakeholders, both lead and lag indicators are determined, showing the connections, dependencies and so people know when they have done a good day’s work.

Day 3 (optional)

People Performance Management, Communications and Recognition. This day is really about ensuring the KPI’s will be effective when deployed in your workplace. This day deals with buy-in and integration into your performance management system, communications, reporting and monitoring processes as well as recognition processes for performance.

Commercial Proposal

Rates (in Australian Dollars) $690 plus GST per person per day - minimum investment is 4 people . This investment does not include tailoring or IP transfer for on-use within your organisation apart from use within your organisation only by course participants. Please contact us for a special discounted quote for a large number of people. A 25% security deposit will need to be paid upon agreement to proceed. Pre-agreed travel and accommodation for our facilitator/s will be invoiced at cost. Simply complete the expression of interest form below, and we will contact you to discuss your needs, thankyou.  

Conditions

Your organisation to provide the venue and catering including equipment like computer projector, electronic whiteboard, post it notes, flip charts and pens. Your organisation to print materials provided by us prior to the workshop in electronic form. Your organisation to capture notes / outcomes from each day via a scribe.

We trust this meets your needs and we are happy to customise this proposal further  to suit specific requirements.

Please click here to proceed to the registration form, to order or to express interest

Topic: Having the Right KPI’s for your Organisation
Training workshop date: In House

Phone: Bruce Searles 0418 267 794 or Anton Benc: 0409 145033

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