OPEXCON 2013, Measuring Right: Case Study: KPI's & Performance metrics to sustain change. Operational Excellence. KPIs and Performance metrics to sustain change. Choosing the right KPIs and Metrics for your transformation. Tracking your performance and adjusting accordingly to sustain change.

1. Measuring Right:
Case Study: KPIs &
Performance metrics to
sustain change.
Ivan Broodryk
DIRECTOR QUALITY ASSURANCE, EMEA

2. Objectives
 KPIs and Performance metrics to sustain change.
 Choosing the right KPIs and Metrics for your
transformation.
 Tracking your performance and adjusting accordingly to
sustain change.
Measuring Right

3. Index
 Introduction
 Terminology
 Statement of the Case Study
 OGSM Framework
 KPIs & Metrics Selection
 SWOT Analysis
 Questions

4. About Me
 Director Quality Assurance EMEA at Ecolab
 Lead the EMEA Integrated Management System, and the Supply Chain Quality Teams in Multiple
Plant Locations (26) in Europe, Middle East and Africa.
 Our company is a trusted partner at more than one million customer locations, Ecolab is the
global leader in water, hygiene and energy technologies and services that provide and protect
clean water, safe food, abundant energy and healthy environments. Founded in 1923 and
headquartered in St. Paul, Minn., Ecolab serves customers in more than 170 countries across North
America, Europe, Asia Pacific, Latin America, the Middle East and Africa. Our global workforce of
44,000 associates helps protect people and vital resources by delivering comprehensive solutions
to meet the unique needs of customers in the food, energy, healthcare, hospitality and industrial
markets..
 I hold a Bachelor of Commerce, specializing in Business Management from University of South
Africa. I partcipated in various management development programs throughout my career, and are still
learning.
 My career reflects career growth through diverse industry sectors and international business
environments.
 I focus my energy on observing the world, and in generating ideas and possibilities, and active
participation in making a change. I place a great importance on honesty and integrity. I generally
take things seriously, but have a definite offbeat sense of humor and can be a lot of fun...

5. Terminology
KEY PERFORMANCE INDICATOR:
 A performance indicator or key performance indicator (KPI) is a type of
performance measurement.
 Are quantifiable measurements, agreed to beforehand, that reflect the critical
success factors of an organization.
METRIC:
 Standards of measurement by which efficiency, performance, progress, or
quality of a plan, process, or product can be assessed.
OGSM
 Objective, Goals, Strategies and Measures.
 OGSM Framework forms the basis for strategic planning and execution as well
as subsequent reviews

6. Terminology
LEADING INDICATOR
 A measurable factor that changes before the economy starts to follow a
particular pattern or trend.
 Leading indicators are typically input oriented, hard to measure and easy to
influence.
 Leading indicators are often related to activities undertaken by employees,
associates.
LAGGING INDICATOR
 A lagging indicator is one that follows an event.
 Lagging indicators are typically “output” oriented, easy to measure but hard to
improve or influence

7. Statement of the Case Study
 26 Manufacturing Facilities
in 17 Different countries
 Increase coverage of
Performance Scorecard due
to Mergers / Acquisitions.
 Drive transformational
change in quality by
implementing the Regional
Quality Strategy.
 Enhance System to be
auditable, data-driven, and
support the regions focus on
improvement, and resolution
of key issues.

9. Why OGSM
 Identify strategic priorities
 Capture market opportunities
 Optimize resources
 Enhance speed and execution
 Align team members

10. OGSM (our framework)

11. Cascade of OGSM
15 July 2010, Slide 11

13. 13
KPIs & Metrics Selection

15. Ensure Shareholder Value
Deloitte Map abbreviation….

16. Criteria for evaluation of metrics
 Strategic: Put simply, the best KPIs originate from the central objectives of the
organization – particularly those considered critical to the survival of the
enterprise.
 Applicability: Refer back to the objectives – do the metrics and indicators help
you to understand whether the objectives have been met? Designed to show
whether processes are improving
 Importance: Are you measuring the things that really matter? tell you what you
need to know. Designed to add value
 Ease: Does the measurement ‘flow’ from the activity being monitored?
Economical and easy to collect
 Actionable: Can the metric initiate appropriate actions?
 Consistent and stable
 Personalized: Developed by the people who will use them

17. Selection KPIs and Metrics
Application of OGSM Framework LAGGING
LEADING

18. Selection KPIs and Metrics
Application of OGSM Framework LAGGING
LEADING

19. KPI Sheet – „Story“ on one page

20. OGSM – Step by Step
Define Measures
for each Strategy
and Tactic
Set Targets to
make it
ACTIONABLE

22. SWOT Analysis - STRENGHTS
characteristics that give it an advantage over others
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23. SWOT Analysis - WEAKNESSES
characteristics that place the system at a disadvantage relative to
others
© Copyright Showeet.com

24. SWOT Analysis - OPPORTUNITIES
external chances to improve performance in the environment
© Copyright Showeet.com

25. SWOT Analysis - THREATS
external elements in the environment that could cause trouble
© Copyright Showeet.com

26. Critical Elements
 Network-Wide Culture
 Regional Process, Tools, Metrics
 Top-Down Leadership and Engagement in Process.
 Clearly defined and linked roles & responsibilities; accountability
 Consistent Methods for establishing, targets and reporting
performance
 Consistent Criteria for prioritizing issues and aligning resources
 Recognition of Positive Behaviour and Performance

27. 27
KEY MESSAGES

33. 33
Questions?
Ivan Broodryk
DIRECTOR QUALITY ASSURANCE, EMEA
ECOLAB DEUTSCHLAND GMBH
Ecolab-Allee 1, D-40789 Monheim am Rhein
T +49 217 35991882
M +49 172 2916 905
E ivan.broodryk@ecolab.com
LinkedIN : de.linkedin.com/in/ivanbroodryk

34. Acknowledgements
 OGSM Planning
http://www.agenttech.com/newsletter/200901_BusinessPlanningLikePG.html
 OGSM Model http://www.archpointconsulting.com/articles/strategic-planning-works-
archpoint-ogsm-model
 Deloitte Enterprise Value Map
http://public.deloitte.com/media/0268/enterprise_value_map_2_0.pdf
 http://www.aryng.com/blog/data-doesnt-speak-it-
responds/?utm_source=Forbes&utm_medium=Partner&utm_campaign=Art
 SWOT analysis format © Copyright Showeet.com