NUMBERSTHAT COUNT6 (cheeky) thoughts on KPIsas a management tool
Ever felt that your peopledid not care about thosenumbers of yours?
If so, you’re missing outon a powerfulleadership tool!
“Leadership is the art ofgetting someone else todo something you wantdone because he wantsto do it”.General Dwight Eisenho...
Here are my 6 thoughts onKPIs as a leadership toolhttp://www.flickr.com/photos/boklm/486677337/sizes/m/in/photostream/
http://www.flickr.com/photos/foradoeixo/8239441790/in/photostream/
Consider…CustomerLifeTimeValueNetPromoterScoreA pile of cash A human being
#2 Beware of
“Whilst Performance Managementwas aimed at altering policingbehaviour with a view toincreasing efficiency […] policeoffice...
Closing rateSales budgetsReducing data registered in CRM system(prospects kept outside system until likelyto close to maxi...
The truth is that everyKPI is a double edgedsword.The good news is thatgaming is easy to spot.If you dare to look for it.
#3. Look for a clearconnection betweeneffort and outcomehttp://www.flickr.com/photos/timg_vancouver/756492323/
Consider…SalesMarketshareGoing slow Leading the field
Try to minimize ”noise”, i.e.factors outside the controlof those being measured.
#4 Focus on aSMALL numberof numbershttp://www.styrbord.com
For the numbers to dotheir part, people mustthink about them. Often.To think about them, theymust be able toremember them.
”We can store only 3 to 9chunks of visualinformation at a time inshort term memory”Information Dashboard Design, StephenFe...
#5 Use Positive Wordingand Visuals
In practice - some do’sand dont’s…Good ideas…Positive angle (net promoterscore rather than number ofcomplaints)Development...
Note! Positive wordingdoes NOT mean thatproblems should be sweptunder the rug.Problems will arise andshould be recognizedw...
Rationalize why a KPI is off-target once and that KPIs isforever a dead duck
#6. Update andCommunicate your KPIs.All the time. Everywhere.
“Students who thought they’dreceive rapid feedbackperformed 22 percentile rankshigher than students whothought they wouldn...
Continous feedbackmeans completing feedback loops all the timeinstead of once a week,once a month or once aquarter…
So. To summarize...#1 Look for numbers with a bit ofsoul#2 Beware of gaming#3 Look for a clear connectionbetween effort an...
Or simpler put…
Always focus on whatmatters the most!Feedback?Getting in touch?My 6 (cheeky) thoughts on businessintelligence?http://www.s...
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Numbers that count

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My thoughts on how KPIs should be applied inside an organisation from a leadership perspective. I believe that when it comes to leadership, theoretically ultimate models can be thrown overboard. Focus on what people care about and are able to keep in mind. And repeat.

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Numbers that count

  1. NUMBERSTHAT COUNT6 (cheeky) thoughts on KPIsas a management tool
  2. Ever felt that your peopledid not care about thosenumbers of yours?
  3. If so, you’re missing outon a powerfulleadership tool!
  4. “Leadership is the art ofgetting someone else todo something you wantdone because he wantsto do it”.General Dwight Eisenhower
  5. Here are my 6 thoughts onKPIs as a leadership toolhttp://www.flickr.com/photos/boklm/486677337/sizes/m/in/photostream/
  6. http://www.flickr.com/photos/foradoeixo/8239441790/in/photostream/
  7. Consider…CustomerLifeTimeValueNetPromoterScoreA pile of cash A human being
  8. #2 Beware of
  9. “Whilst Performance Managementwas aimed at altering policingbehaviour with a view toincreasing efficiency […] policeofficers were employing unethicalpractices designed to meettargets”Performance management, gaming andpolice practice, Patrick Rodger, 2009
  10. Closing rateSales budgetsReducing data registered in CRM system(prospects kept outside system until likelyto close to maximize closing rate)Avoiding competitive situations (raising thebar on when to send in tenders/take salescalls)Discounted (too low) offers to customerstowards end of month/quarter/year to fillquotaIncreased spending (if costs below budget)towards end of period to avoid a reducedbudget next yearCost vs budgetCustomer satisfactionA few random KPIs……and some gamingexamplesManipulating answers (throwing away lowpoint questionnaires or ”forgetting” to givethem to certain customers)Manipulating customers (”if you give meanything less than full score they will thinkyou hated me”)
  11. The truth is that everyKPI is a double edgedsword.The good news is thatgaming is easy to spot.If you dare to look for it.
  12. #3. Look for a clearconnection betweeneffort and outcomehttp://www.flickr.com/photos/timg_vancouver/756492323/
  13. Consider…SalesMarketshareGoing slow Leading the field
  14. Try to minimize ”noise”, i.e.factors outside the controlof those being measured.
  15. #4 Focus on aSMALL numberof numbershttp://www.styrbord.com
  16. For the numbers to dotheir part, people mustthink about them. Often.To think about them, theymust be able toremember them.
  17. ”We can store only 3 to 9chunks of visualinformation at a time inshort term memory”Information Dashboard Design, StephenFew, 2006Don’t expect to beable to occupy allof these seats. Gofor max 3!
  18. #5 Use Positive Wordingand Visuals
  19. In practice - some do’sand dont’s…Good ideas…Positive angle (net promoterscore rather than number ofcomplaints)Development focused(progression, % of target)Action oriented (focus areasrather than problem areas)Relative (% change sinceyesterday)Not so good ideas…Subjective labels(“unsatisfactory”, “inadequate”,etc.)Traffic light metaphors (avoidyellow lights, things on track aregreen and things off track arered)KPIs that signals acceptance ofwhat should not be (“budgetdeficit”)
  20. Note! Positive wordingdoes NOT mean thatproblems should be sweptunder the rug.Problems will arise andshould be recognizedwhen they do.
  21. Rationalize why a KPI is off-target once and that KPIs isforever a dead duck
  22. #6. Update andCommunicate your KPIs.All the time. Everywhere.
  23. “Students who thought they’dreceive rapid feedbackperformed 22 percentile rankshigher than students whothought they wouldn’treceive feedback for severaldays...”David DiSalvo (http://neuronarrative.wordpress.com) on anarticle by Kettle, K., & Haubl, G. (2010). Motivationby Anticipation: Expecting Rapid FeedbackEnhances Performance Psychological Science
  24. Continous feedbackmeans completing feedback loops all the timeinstead of once a week,once a month or once aquarter…
  25. So. To summarize...#1 Look for numbers with a bit ofsoul#2 Beware of gaming#3 Look for a clear connectionbetween effort and outcome#4 Focus on a small number ofnumbers (3)#5 Use Positive Wording andVisuals (but don’t rationalize)#6 Update and Communicate yourKPIs all the time, everywhere
  26. Or simpler put…
  27. Always focus on whatmatters the most!Feedback?Getting in touch?My 6 (cheeky) thoughts on businessintelligence?http://www.slideshare.net/KristofferFredriksso/business-intelligence-6-cheeky-thoughts

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