Part of an information managers course covering the integration of information architecture, business strategy, data warehousing etc.

1. The Organisation As A System An information management framework The Performance Organiser Information Delivery – KPI’s

3. The Performance Organiser Key Performance Indicators The Purpose of KPI’s The primary purpose of a KPI is to detect, monitor and illustrate variance in behaviours in processes, with a view to reducing variance to acceptable limits. At the point at which variance is reduced or eliminated, then the process that a KPI is monitoring should be running at optimum efficiency.

8. The Performance Organiser Key Performance Indicators KPI Measurement Principles

12. The Performance Organiser Key Performance Indicators Principles of Measurement Process Inputs Outputs Input change state at the point of entry into a process Output change state at the point of exit from a process Internal changes brought about by work carried out in process related procedures and tasks Measurable transaction points

13. The Performance Organiser Key Performance Indicators Principles of Measurement Triggers best practise investigation Triggers worst practise investigation Process optimisation Moving Range Performance Measurement Achievable mean Best behaviour Worst behaviour Time Qualitative or Quantitative Scale

14. The Performance Organiser Key Performance Indicators Principles of Measurement Distribution Performance Measurement Qualitative Quantitative -ve +ve Achievable mean 1 sd 2 sd 3 sd 1 sd 2 sd 3 sd SD = Standard Deviation Extreme Failure Extreme Success

16. The Performance Organiser Key Performance Indicators Principles of Measurement Reporting Cycle = one year. Score for each month Rolling Averages Example Current Achievable mean = 22 Rolling average cycle = 3 months First rolling average calculation takes place in March And consists of the average of the count for January, February and March ((12 + 36 + 12)/3) = 16 Carry out similar calculations for each cycle segment Possible achievable mean is the average of the rolling averages which is 28.2 The achievable performance target therefore can be raised based on objective evidence Quarterly rolling average J F M A M J J A S O N D 12 36 12 45 23 12 11 36 12 88 23 12 J F M A M J J A S O N D 12 36 12 48 23 12 11 36 12 88 23 12 16 32 27 27 15 19 19 45 41 41

17. The Performance Organiser Key Performance Indicators Principles of Measurement Quarterly rolling average Attach “Red”, “Amber”, “Green” tolerances to rolling averages to give flag state indicators. The aim is to detect variance in average values. J F M A M J J A S O N D 12 36 12 48 23 12 11 36 12 88 23 12 16 32 27 27 15 19 19 45 41 41

19. The Performance Organiser Key Performance Indicators The purpose of dashboards is to provide in context views of organisation performance Board Senior Management Middle Management Shop Floor Strategy Action

20. The Performance Organiser Key Performance Indicators Identify Perspectives or views of organisation activity Economic (Accounting Measures) Efficient (Benchmarking etc.,) Evolution ( Legislation, Modification Programmes ) Effective (Customer Satisfaction )

21. The Performance Organiser Key Performance Indicators Specify KPI’s so that they support a single perspective Qualitative and Quantitative pairs No of widgets Produced No of widgets unfit for purpose

22. The Performance Organiser Key Performance Indicators Identify Cross Perspective Links No of widgets Produced No of widgets unfit for purpose Cost of raw materials

23. The Performance Organiser Key Performance Indicators Identify top down composition of reporting needs which gives the means to identify the level of detail required at each organisational level Board Senior Management Middle Management Shop Floor Strategy Action

24. The Performance Organiser Key Performance Indicators For each indicator provide drill down into single kpi dashboards No of widgets Produced No of widgets unfit for purpose

25. The Performance Organiser Key Performance Indicators Single KPI Dashboard Current achievable mean = 22 Achievable mean = 28 Flag state = RED Qualitative Quantitative Achievable mean Achievable Best Worst Time Qualitative or Quantitative Scale J F M A M J J A S O N D 12 36 12 48 23 12 11 36 12 88 23 12 16 32 27 27 15 19 19 45 41 41 For each indicator provide additional documentary evidence

26. The Performance Organiser Key Performance Indicators To optimise the process, the achievable mean can be moved toward the upper tolerance limit and the lower tolerance can be raised too Qualitative Quantitative Achievable mean Achievable Best Worst Time Qualitative or Quantitative Scale J F M A M J J A S O N D 12 36 12 48 23 12 11 36 12 88 23 12 16 32 27 27 15 19 19 45 41 41 For each indicator provide additional documentary evidence

27. Key Performance Indicators The Performance Organiser Key performance indicators are the performance monitoring and reporting requirements of an information management framework. KPI’s should be specified so that they identify where in the organisation data can be sourced, how data once collected is to be manipulated to produce information and how and with what frequency the resulting information is delivered. KPI’s trigger investigation, but are not normally performance targets.