Performance improvement is on the agenda of most companies at the beginning of each year! But how can we achieve improvements without overburdening the working processes or investing heavily in new tools and technology? How can we make a difference in our organization through small changes with significant impact on performance?

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Latest trends in Performance
Improvement Practices
Facilitator:
Cristina Mihailoaie
Head of Research Programs, The KPI Institute

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AGENDA
1
2 3
4 5
KPIs and decision
making
KPIs data
management –
who and how?
KPIs alignment and
integration in organization
Challenges in improving
performance
Q & A
6
Improvement suggestions and
hands-on recommendations

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KPIS AND DECISION MAKING
The decision making process in the organization
relies on data, rather than on instinct or
managerial experience
KPI performance results are analyzed in
context, not as isolated events
45%
32%
22%
High
to
Very High
Moderate Small
to
Very Small
High
to
Very High
Moderate Small
to
Very Small
45%
33%
22%
Source: The KPI Institute (2017)

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KPIS AND DECISION MAKING
Why is it that we don’t use data more often?
• Data quality issues? • Data availability/timeliness?
• Competency?
• Habit?
• Time pressure? Not time to
consult data?

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KPIS AND DECISION MAKING
Why is it that we don’t use data more often?
• Data quality issues? • Data availability/timeliness?
Source: The KPI Institute (2017)

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KPIS AND DECISION MAKING
Why is it that we don’t use data more often?
• Time pressure? No time to consult data?
• Habit?
Source: Pixabay (2018)
• Competency?

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KPI DATA MANAGEMENT - WHO ?
KPI OWNERS VS DATA CUSTODIANS
Governance of corporate performance
Source: The KPI Institute (2017)
6%
8%
10%
11%
11%
16%
38%
Commercial
Internal Control and Audit
Finance and Accounting
There is no dedicated department/person (CEO)
There is one FTE
There is no dedicated department or person (C-suite)
Strategy / Performance Management Office

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KPI DATA MANAGEMENT – HOW ?
Data quality is outlined among top 3 challenges in managing performance
Technology usage
Source: The KPI Institute (2017)
6%
12%
23%
59%
I don't know
Standard software solution
Customized software solution
Microsoft Office (e.g. Excel, Word)

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KPI ALIGNMENT AND INTEGRATION – KPI ALIGNMENT
Source: The KPI Institute (2017)
Organizational strategy vs.
Employee performance plan
Organizational strategy vs.
Departmental strategy
40%
39%
21%
High
to
Very High
Moderate Small
to
Very Small
High
to
Very High
Moderate Small
to
Very Small
32%
29%
39%

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KPI ALIGNMENT AND INTEGRATION – KPI INTEGRATION
Most integrated processes with KPI measurement, according to our study:
1.Budgeting
2.Quality management
3.Process management
Source: The KPI Institute (2017)
Least integrated processes with KPI measurement, according to our study:
1.Innovation
2.Risk management
3.Project management

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CHALLENGES IN IMPROVING PERFORMANCE
Source: The KPI Institute (2017)
2.83
3
3.01
3.21
3.32
3.57
Performance reporting
Learning from performance results
Data analysis
Decision making
The implementation of performance
improvement initatives
Building and nurturing a performance
culture

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IMPROVEMENT SUGGESTIONS
Source: The KPI Institute (2017)
1. Alignment
“Strategy cascading”
“Link employee goals to corporate goals”
“Setting strategies and align KPIs to it”
“Development of a performance management system aligned to
departmental goals”

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IMPROVEMENT SUGGESTIONS
Source: The KPI Institute (2017)
2. Automation
“Use of dedicated software for data collection”
“Introducing a performance management software”
“Integrate all KPI measurement systems & fully automate it at all levels”
“Give priority to PMS automation”

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IMPROVEMENT SUGGESTIONS
Source: The KPI Institute (2017)
3. Knowledge and skills
“Improve awareness”
“Training of staff who will be responsible for corporate performance”
“Basic education about performance management”
“I would suggest to increase awareness on the importance of
KPIs”
“Greater education of lower level staff”

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IMPROVEMENT SUGGESTIONS
Source: The KPI Institute (2017)
4. Culture and communication
“Getting employees aware of the company’s strategic plans”
“COMMUNICATION”
“Greater transparency among lower level staff”
“Better communication of strategic targets to all employees”
“Transparency and engagement”

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WEBINAR TAKEAWAYS
Source: The KPI Institute (2017)
• Integration and alignment – consider from the start the need of KPIs in all areas of the
organization and create a network of feedback and collaboration between FAs through
them;
• Automation – software may be expensive, but how about process streamlining,
standardization and Excel usage?
• Knowledge and skills – KPI champions, internal educational materials;
• Culture and communication - strategy and performance communication plan.

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