Key Performance Indicators
by David Parmenter
The new edition of the bestselling guide on creating and using key performance indicators—offers significant new and revised content Key Performance Indicators (KPIs) help define and measure the organizational goals which are fundamental to an organization's current and future success. Having solid KPIs is crucial for companies that are implementing performance management systems, such as balanced scorecards, six sigma, or activity-based management. In many organizations, KPIs are often too numerous, randomly assembled, and overly complex—essentially rendering them ineffectual, or at worse, counterproductive. Key Performance Indicators provides a model for simplifying the complex areas of KPIs while helping organizations avoid common mistakes and hazards. Now in its fourth edition, this bestselling guide has been extensively revised and updated to incorporate practical lessons drawn from major implementations. Fresh content includes a more concise KPI methodology with clear implementation guidance, original insights on how other areas of performance management can be corrected, and new in-depth case studies. A revised starter kit is included to identify critical success factors, and the KPI resource kit contains updated worksheets, workshop programs, and questionnaires. Helping readers to better define and measure progress toward goals, this important guide: Dispels the myths of performance measurement and explains a simple, yet powerful KPI methodologyExplains the 12-step model for developing and using KPIs with guidelinesHelps readers brainstorm performance measures, sell KPI projects to the Board and senior management, and accurately report performanceFeatures the "KPI Project Leaders Corner" which provides readers with essential information and useful exercisesIncludes an array of practical tools—templates, checklists, performance measures—and a companion website Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, 4th Edition is important resource for C-suite executives, senior management, project teams, external project facilitators, and team coordinators involved in all aspects of performance management systems.
Hardcover
English
Brand New
Back Cover
KEY PERFORMANCE INDICATORS FOURTH EDITION "This book, already a performance measurement classic, firmly establishes David Parmenter as the 'King of the KPIs'. His first chapter, a timeless classic, is worth the cost of the book alone." --Harry Mills, subject matter expert on persuasion for the Harvard ManageMentor program Rife with examples, worksheets, practice exercises, templates, and other valuable tools, Key Performance Indicators is truly a field guide. Readers will walk away with an understanding of the what, why, and--most importantly--the how of building appropriate and effective KPIs into organizations of all sizes. Key performance indicators are crucial to defining and tracking your organization's progress toward its goals. Setting up the wrong performance measures can lead to unwanted behaviors across an organization, perhaps even destroying value through misalignment and confusion. If you are building KPIs for your organization, Key Performance Indicators will help you avoid these common mistakes and ensure your efforts result in ownership, empowerment, and fulfillment at all levels. This Fourth Edition has been improved by: Simplifying, reorganizing, and refining the Winning KPI methodology process into a three-stage process Refining the "selling the change" process by incorporating more reference to the psychology behind resistance to change A new chapter on the rules for designing measures New methods David Parmenter has used in KPI implementations A further refined performance measures database
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KEY PERFORMANCE INDICATORS FOURTH EDITION "This book, already a performance measurement classic, firmly establishes David Parmenter as the 'King of the KPIs'. His first chapter, a timeless classic, is worth the cost of the book alone." --Harry Mills, subject matter expert on persuasion for the Harvard ManageMentor program Rife with examples, worksheets, practice exercises, templates, and other valuable tools, Key Performance Indicators is truly a field guide. Readers will walk away with an understanding of the what, why, and--most importantly--the how of building appropriate and effective KPIs into organizations of all sizes. Key performance indicators are crucial to defining and tracking your organization's progress toward its goals. Setting up the wrong performance measures can lead to unwanted behaviors across an organization, perhaps even destroying value through misalignment and confusion. If you are building KPIs for your organization, Key Performance Indicators will help you avoid these common mistakes and ensure your efforts result in ownership, empowerment, and fulfillment at all levels. This Fourth Edition has been improved by: Simplifying, reorganizing, and refining the Winning KPI methodology process into a three-stage process Refining the "selling the change" process by incorporating more reference to the psychology behind resistance to change A new chapter on the rules for designing measures New methods David Parmenter has used in KPI implementations A further refined performance measures database
Table of Contents
About the Author xiii Acknowledgments xv Introduction xvii Chapter 1 The Great KPI Misunderstanding 3 The Four Types of Performance Measures 3 Number of Measures Required: The 10/80/10 Rule 13 Difference between KRIs and KPIs and RIs and PIs 15 The Lead and Lag Confusion 16 Have a Mix of 60 Percent Past, 20 Percent Current, and 20 Percent Future-Oriented Measures 17 Importance of Timely Measurement 20 Where Are You in Your Journey with Performance Measures? 21 Chapter 2 The Myths of Performance Measurement 25 The Myths Surrounding Performance Measures 25 The Myths around the Balanced Scorecard 30 Chapter 3 Background to the Winning KPI Methodology 41 Winning KPI Methodology 41 Seven Foundation Stones of the Winning KPIs Process 46 Implementation Variations and Shortcuts for Small to Medium-Sized Enterprises 56 Chapter 4 Leading and Selling the Change 63 Steve Zaffron and Dave Logan: Why So Many Initiatives Fail 63 Harry Mills: The Importance of Self-Persuasion 64 John Kotter: How to Lead Change Successfully 65 Learn to Sell by Appreciating the Emotional Drivers of the Buyer 67 Selling the KPI Project 70 Selling the Winning KPIs to the Organization's Staff 75 Delivering Bulletproof PowerPoint Presentations 79 PDF Download 83 Chapter 5 Getting the CEO and Senior Management Committed to the Change 85 CEO and Senior Management Commitment 85 Guidelines for the External KPI Facilitator 91 PDF Download 94 Chapter 6 Up-Skill In-House Resources to Manage the KPI Project 97 Establishing a Winning KPI Project Team 97 PDF Download 111 Chapter 7 Finding Your Organization's Critical Success Factors 115 Why Critical Success Factors Are So Important 118 Relationship between CSFs and KPIs 123 Common Misunderstandings 124 Task 1: Wording the Success Factors and the External Outcomes 127 Task 2: Determining the Critical Success Factors in a Two-Day Workshop 130 Task 3: Presenting the Critical Success Factors to the Staff 141 Task 4: Get the CSFs on the Wall in Every Workplace 143 PDF Download 144 Chapter 8 Characteristics of Meaningful Measures 149 Common Measurement Traps 149 Wisdom on Measures from Other Authors 149 Rules for Designing Measures 154 Suggested Exercises to Improve Measure Design 156 PDF Download 165 Chapter 9 Designing and Refining Measures 167 Running the Two-Day Performance Measures Workshop 169 Refining Performance Measures after the Workshops 181 Teams Select Their Relevant Performance Measures 185 Finding the KRIs That Need to Be Reported to the Board 187 The KPI Team Ascertaining the Winning KPIs 190 PDF Download 191 Chapter 10 Reporting Performance Measures 195 Develop the Reporting Framework at All Levels 195 The Common Faults with Reporting 196 Designing an Appropriate Reporting Regime 197 Reporting the KPIs to Management and Staff 206 Reporting RIs and PIs to Management 210 Reporting Performance Measures to Staff 215 Reporting Performance Measures to the Board 216 Reporting Team Performance Measures 221 The Performance Reporting Portfolio 223 PDF Download 224 Chapter 11 Ongoing Support and Refinement of KPIs and CSFs 227 Facilitate the Ongoing Support and Refinement of KPIs and CSFs 229 PDF Download 235 Chapter 12 Implementation Case Studies and Lessons 237 Recent Case Studies 237 Previously Reported Case Studies 243 Implementation Lessons 256 Comparison to Other KPI Methodologies 267 PDF Download 273 Appendix Performance Measures Database 275 Index 323
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