This document provides an overview of key performance indicators (KPIs) and performance management systems. It discusses what KPIs are, how to establish goals and objectives, different types of KPIs, using the balanced scorecard approach, and the benefits of implementing a performance management system. The document contains several sections that define concepts, provide examples, and outline best practices for setting up an effective KPI and performance management system.
Here's a link to the full resolution PDF http://static.klipfolio.com/ebook/intro-to-kpis-slides.pdf
In today’s ultra competitive business ecosystem, only the strong survive. In order to keep your team on top of their game, you need to cultivate a data-driven culture by sharing the right performance indicators and business metrics with your team.
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.
Here's a link to the full resolution PDF http://static.klipfolio.com/ebook/intro-to-kpis-slides.pdf
In today’s ultra competitive business ecosystem, only the strong survive. In order to keep your team on top of their game, you need to cultivate a data-driven culture by sharing the right performance indicators and business metrics with your team.
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.
To get the best results from implementing RESULTS.com, we recommend that you start by getting clear on the key numbers that will drive your success.
Research shows that (unfortunately) 92% of companies do a poor job of measuring Key Performance Indicators (KPI's). If that sounds like you, we can definitely help!
What are the key numbers that will drive and predict the success of your current business model? Your teams? Your key people?
Choosing the right KPI's (and making them visible) tells your people what they need to pay attention to. In other words, KPI's drive the right behaviors.
This workshop will help you choose the key numbers that will help you identify problems early, and solve them fast. If you get these numbers right, they will drive better financial results!
Definition of the Key Performance Indicators + infographics, explaining types of KPIs and data visualization.
Originally posted here with the article: https://www.kpi.com/blog/2016/02/03/intro-to-key-performance-indicators-infographic/
Strategy to Execution: Tips to Execute Your Strategy With Excellence.Avi Mizrahi, MBA, BBA.
Strategy is sexy. Execution is really difficult. Perhaps that's why so many strategic initiatives fail. I believe that transitioning from strategy to execution is the biggest challenge facing today's organizations. Execution is a leader's job and this presentation will lay out a practical approach to ensure your strategy is executed with excellence.
How to build a Key Performance Indicator (KPI) - Consider Elevator ManagementAxel Marrocco
What exactly is a KPI. This lesson was developed to help consider how to evaluate the effectiveness of a problem / solution proposal. Elevator Management is used, since it provides a topic almost all can relate with. The focus is not to development an understanding of Critical Success Factors, but to concentrate on elements necessary in constructing a Key Performance Indicator (KPI) of a proposal's effectiveness.
Developing Metrics and KPI (Key Performance IndicatorsVictor Holman
Get a FREE performance management kit and access to all of Victor's full videos at:
www.lifecycle-performance-pros.com
This presentation covers the basics of developing successful performance metrics, from developing winning KPIs, learning how to develop the right metrics, the rules of developing KPIs and metrics and common performance metrics for managing a successful organization.
Key Performance Indicators (KPIs) should be used to understand performance and drive better decision-making. However, most companies struggle to find the vital few KPIs. Here is a list of the 25 top KPIs is use today.
To get the best results from implementing RESULTS.com, we recommend that you start by getting clear on the key numbers that will drive your success.
Research shows that (unfortunately) 92% of companies do a poor job of measuring Key Performance Indicators (KPI's). If that sounds like you, we can definitely help!
What are the key numbers that will drive and predict the success of your current business model? Your teams? Your key people?
Choosing the right KPI's (and making them visible) tells your people what they need to pay attention to. In other words, KPI's drive the right behaviors.
This workshop will help you choose the key numbers that will help you identify problems early, and solve them fast. If you get these numbers right, they will drive better financial results!
Definition of the Key Performance Indicators + infographics, explaining types of KPIs and data visualization.
Originally posted here with the article: https://www.kpi.com/blog/2016/02/03/intro-to-key-performance-indicators-infographic/
Strategy to Execution: Tips to Execute Your Strategy With Excellence.Avi Mizrahi, MBA, BBA.
Strategy is sexy. Execution is really difficult. Perhaps that's why so many strategic initiatives fail. I believe that transitioning from strategy to execution is the biggest challenge facing today's organizations. Execution is a leader's job and this presentation will lay out a practical approach to ensure your strategy is executed with excellence.
How to build a Key Performance Indicator (KPI) - Consider Elevator ManagementAxel Marrocco
What exactly is a KPI. This lesson was developed to help consider how to evaluate the effectiveness of a problem / solution proposal. Elevator Management is used, since it provides a topic almost all can relate with. The focus is not to development an understanding of Critical Success Factors, but to concentrate on elements necessary in constructing a Key Performance Indicator (KPI) of a proposal's effectiveness.
Developing Metrics and KPI (Key Performance IndicatorsVictor Holman
Get a FREE performance management kit and access to all of Victor's full videos at:
www.lifecycle-performance-pros.com
This presentation covers the basics of developing successful performance metrics, from developing winning KPIs, learning how to develop the right metrics, the rules of developing KPIs and metrics and common performance metrics for managing a successful organization.
Key Performance Indicators (KPIs) should be used to understand performance and drive better decision-making. However, most companies struggle to find the vital few KPIs. Here is a list of the 25 top KPIs is use today.
How does one decide if a Metric qualifies as a Key Performance Indicator? and if so, what are the characteristics of an excellent online marketing KPI?
From WTF to KPI: Demonstrating the Business Value of Public RelationsShonali Burke
For years, PR has been plagued by the perception that it is not a strategic business function - though all the textbooks say it is. This presentation, created for a webinar for PRSA, examines PR's business value, and how to integrate best practices into your work to show the value you bring to your organization.
-- Buy slides at www.tools4management.com --
The Performance Management and Balanced Scorecard overview presentation is a comprehensive walkthrough of what Performance Management and Balanced Scorecard is and how you implement it at your company or your customer company. The nice looking slides are easy to incorporate into your own presentation and are designed by professionals to both give you an inside into the subject and give a professional presentation to your stakeholders. The PowerPoint slides are:
Slide 1: What is The Balanced Scorecard
Slide 2: The barriers to implementing Strategy
Slide 3: The Balanced Scorecard 4 perspectives
Slide 4: Rationale for the Balanced Scorecard
Slide 5: Signs that you may need a new performance measurement system
Slide 6: Balanced Scorecard Team Roles and Responsibilities
Slide 7: Balanced Scorecard Project Plan and Timeline
Slide 8: A simplified Communication Plan for your Balanced Scorecard project
Slide 9: Translating with the Balanced Scorecard
Slide 10: The Balanced Scorecard should contain a mix of lag and lead measures of performance
Slide 11: Cause-and-effect linkages in the Balanced Scorecard
Slide 12: Mapping Initiatives to Objectives
Slide 13: “Cascading” the Balanced Scorecard
Slide 14: The Cascading Process
Slide 15: Linking the Balanced Scorecard to Budgeting
Slide 16: Public-Sector Balanced Scorecard
Slide 17: Commonly used Financial Measures
Slide 18: A sample of customer Measures
Slide 19: Internal Process Measures
Slide 20: Employee Learning and Growth Measures
Identify and define top management’s
responsibility for the QMS, including
establishing policies and objectives, setting
organization-wide goals, and supporting
quality initiatives.
The #DROOS_FLGAWDA channel is dedicated to providing scientific content that effectively contributes to building knowledge among interested and quality workers as well as manufacturers and service providers so that they can achieve their products better, faster and at the lowest cost.
Simply channel #DROOS_FLGAWDA... will change your life for the better
JOIN-US FOR FREE
https://goo.gl/4S8PQ8
Successful strategy execution has two basic rules:
understand the management cycle that links strategy
and operations, and know what tools to apply at each stage of the cycle.
Satu pendekatan baru dalam latihan keusahawanan diMalaysia.
Pendekatan ini lebih kuantitatif lagi strategik.
Kemenangan dapat dipertingkatkan dalam pasaran bersaing sekarang.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
2. Contents of this talk
1. What is KPI
2. Key Result Areas or critical success
factors
3. How to set performance targets
4. Bench markings to the best
5. Performance measuring system.
6. How could KPI improve performance;
7. Conduct Gap Analysis
8. Application of KPI system
9. Pitfalls in KPI implementation;
Arriffin KPI management 2
5. What is Diagnosis?
• Diagnosis is the process of understanding how the
organization is currently functioning, and it provides
information necessary to design change interventions.
• It is also a collaborative process between organization
members and the OD (organization development)
consultant to collect pertinent information, analyze it, and
draw conclusions for action planning and intervention.
6. Before Training
• Build transfer of training into supervisory
Manager performance standards
• Collect baseline performance data
• Involve supervisors and trainees in needs
analysis process
• Involve trainees in program planning
• Brief trainees on the importance of the training
(course objective, content, process, and
application on the job)
• Review instructional content and materials
• Plan to participate in training sessions
• Encourage trainees attendance at all sessions
7. Before Training
• Align the training plan with the organization's
Trainer strategic plan
• Systematically design instruction
• Provide proactive opportunities
• Design a peer coaching component for the
program and its follow-up activities
8. Before Training
• Provide input into program planning
Trainee • Actively explore training options
• Participate in advance activities
9. During Training
• Prevent interruptions
Manager • Transfer work assignment to others
• Monitor attendance and attention to training
• Recognize trainee participation
• Participate in transfer action planning
• Review information on employee in training
• Plan assessment of transfer of new skills to the
job
10. During Training
• Develop application-oriented objectives
Trainer • Answer the “WIIFM” question
• Manage the unlearning process
• Provide realistic work-related tasks
• Give individualized feedback
• Provide job performance aid
11. During Training
• Maintain an ideas and application notebook
Trainee • Participate actively
• Form support groups
• Plan for applications
• Create behavioral contracts
12. After Training
• Plan trainees’ reentry
Manager • Provide opportunities to practice new skills
• Have trainees participate in transfer-related
decisions
• Reduce job pressures initially
• Give positive reinforcement
• Schedule trainee briefings for co-workers
• Set mutual expectations for improvement
• Arrange proactive (refresher) sessions
• Provide and support the use of job aids
13. After Training
• Provide follow-up support
Trainer • Conduct evaluation surveys and provide
feedback
• Develop and administer recognition system
• Provide refresher/problem-solving sessions
14. After Training
• Practice self-management
Trainee • Review training content and learned skills
• Develop a mentoring relationship
• Maintain contact with training ‘buddies’
15. What is KPI?
Stands for Key Performance Indicator
Is a measure of efficiency or effectiveness
Efficiency is a ratio of output divided by input
which are generally financial in nature
However there are also non-financial KPIs
Arriffin KPI management 15
16. Key Performance Indicators
• KPI was introduced by Peter Drucker
when he envisaged “management by
objectives” a situation where defining a
clear objective is paramount in effective
management.
Arriffin KPI management 16
17. What is a KPI system?
• A framework consisting of processes,
measures, and targets that are used to
communicate, monitor and manage
performance as well as align resources to
achieve the objectives of the organisation
"
Arriffin KPI management 17
22. Definition of performance
management
An umbrella term used to describe
the methodologies, metrics,
processes and systems used to
monitor and manage the business
performance of an enterprise.*
Arriffin KPI management 22
23. Another definition of PMS
• It is a systematic, integrated management
approach that links enterprise strategy to
core processes and activities. By
providing planning, budgeting, analysis
and reporting capabilities, PMS allows the
business to be "run by the numbers" and
measurement to drive management
decisions.
Arriffin KPI management 23
24. Objective of PMS
• The objectives of an effective performance
management system are to realize
improved performance -- increased
profitability, growth, competitiveness,
quality and customer satisfaction, to name
a few.
Arriffin KPI management 24
25. Components of PMS
At minimum, the critical components of PMS include the following:
2. A set of well-defined, measurable, and published corporate
performance objectives that act as the focal point for developing
performance measures in functional areas within the company.
3. A set of standard metrics that are used to define and describe the
relative contribution or influence that business functions within the
organization have on the performance objectives.
4. The first two components provide a common framework for
measurement, collaboration and cross- functional understanding
of the effect of each area's performance on the overall company
objectives, as well as the influence each organization has on the
performance of other organizations within the enterprise.
5. The ability to predict outcomes based on the common framework
for understanding and collectively managing performance -- from
high-level objectives to operational activities.
Arriffin KPI management 25
26.
27. The Star
Tuesday May 17, 2005
Nor Mohamed wants GLCs to
start implementing growth
strategies
SECOND Finance Minister Tan Sri Nor Mohamed Yakcop wants
government-linked companies (GLCs) to start implementing growth
strategies this year, saying that this is “the year of implementation for the
GLCs”.
Arriffin KPI management 27
28. Establishing goals – (1)
1. Targets have been established for improving current levels of
performance.
2. Targets are achievable, but they may require changes to
existing processes.
3. Targets are quantifiable so that the target communicates if
the expected performance was met.
4. Longterm Targets (3 to 5 years) stretch the organization
towards its strategic goals.
5. Longterm Targets are established first before short term
targets.
6. Financial related targets are established first before non
financial targets.
Arriffin KPI management 28
29. Establish Goals and objectives
Criteria for
Define Goals
Criteria Menu Defining Goals
Marketplace
Industry Trends
Technology
Competition
Past
Performance
___________
___________
___________
___________
We will increase revenues by 40% over the
Past Performance
EXAMPLE -> next three years
Arriffin KPI management 29
30. SMART(ER) Objectives
• Specific: clear, unambiguous, straightfordward,
understandable
• Measurable: can be related to quantified or qualitative
performance measures
• Achievable: Objective should be realistic and within
known resources
• Relevant: Linked to operational/service plan
• Timebound: Building in target date & review dates
• Extending Capabilities: Stretching team performance
• Recognition: Acknowledgement of team achievement,
reflection, learning
Arriffin KPI management 30
31. The Challenge…
Improving Performance
Turning Management (PM)
Data
Into
Actionable
Information
Arriffin KPI management 31
32. Strategic Focused Management Process
Strategy
Balanced Scorecard
PMS
Align organization to
strategy
Translate strategy
into operating terms
Mobilize change
starting at the top
Make strategy a
continuous process
Make strategy
everyone's job
Arriffin KPI management 32
33. Key result areas
• Drucker also introduced the concept of
key result areas where minimum effort is
directed and focus which would generate
maximum impact to the objectives.
• KRA has a strong causal relationship with
the objectives.
• Other ways of identifying KRA is sensitivity
analysis, pareto and root cause analysis
Arriffin KPI management 33
34. What is a Key Result
Areas? – (2)
A key area where satisfactory performance
is required for the organization to achieve its
goals
A means of identifying the tasks and
requirements needed for success
At the lowest level, KRAs become concrete
requirements
A means to prioritize requirements
Arriffin KPI management 34
36. PMS ensures that performance
is measured at all levels?
Organizational
Objectives
Divisional
Objectives
Departmental
Objectives
Individual
Objectives
Arriffin KPI management 36
37. More Difficult Specific Goals
Goals Lead Lead to
To Higher Better Results
Performance
Does PMS
Work?
Support from
Top Participation
Management Is Key
Is Critical
Arriffin KPI management 37
39. Performance Analysis
• Take input output data of before and after
performance.
• Using the ratio O/I calculate targeted KPI
and compare against actual KPI.
• Eliminate the impact of extra input.
• Calculate the pure performance output as
a result of efficiency or competency.
Arriffin KPI management 39
40. Measures
Measuring overall MARKETING DEPARTMENT
Return on Sales Sales Turnover Return on assets
Standard Standard Standard
Assets
Sales Assets
Performed Performed Performed
Profits Sales Profits
Arriffin KPI management 40
42. Types of KPIs
• Lead and lag
• Input output process and outcomes
• Drivers and enablers
Arriffin KPI management 42
43. Balanced Scorecard
Chain of Causality of Performance Measures
Drivers Moderators Outcomes
(lead indicators) (lag indicators)
Cycle Times Customer ROA
Satisfaction EVA
• Customer order
fulfillment EPS
• Product assembly
cycle time Manufacturing
Quality Unit Costs
• Defect rate
• Scrap rate
Arriffin KPI management 43
44. Internal Business Process Measures
(Source: Kaplan & Norton, 1996)
Model of Internal Business Process Logistics
Customer Innovation Operations Post-Sale Customer
Need Process Process Service Need Satisfied
Identified Process
Identify Create Build Deliver Service to
Market Product Product Product the
Customer
• Development • Quality • Delivery • Service
Relevant Cycle Time Defects Cycle Satisfaction
Metrics:
Time
• MCE
Arriffin KPI management 44
46. Performance Network
Profit/Capital Employed
Profit/ Revenue Revenue from Sales/
from Sales × Capital Employed
Revenue from Labor Cost/ Labor Cost/
Sales/ Total Cost ÷ Total Cost × Capital Employed
Arriffin KPI management 46
47.
48. What is so special about
the PMS?
Arriffin KPI management 48
49. What so special about PMS
• It is personal yet organisational
• Performance goal is objective yet
collective
• Leadership, teamwork and synergy
• Learning and coaching take place at all
times
• Continous improvement through
innovation and best practises
Arriffin KPI management 49
50. Balanced Scorecard Perspectives
New Focus:
Balanced measurement of 4 equally important criterias or dimensions
CUSTOMER
EMPLOYEE & GROWING
RELATIONSHIP BIGGER & STRONGER / FINANCIAL
ACHIEVE GOP
INTERNAL
PROCESSES
Arriffin KPI management 50
51. THE benefits of PMS?
• Improve your organisation / structure
• Improve communication (Internal / External)
• Link strategy towards operation and towards
measured performance
• Focus on results
• Strategies are integrated into total management
• New approach to measure performance
• Diverse / complete measurement with benefits for
all stake holders
• Use the PMS as a team-building tool
Arriffin KPI management 51
52. Reasons for PMS
1. Focus on traditional financial accounting
measures such as ROA, ROE, EPS gives
misleading signals to executives with
regards to quality and innovation. It is
important to look at the means used to
achieve outcomes such as ROA, not just
focus on the outcomes themselves.
Arriffin KPI management 52
53. Reasons for PMS
2. Executive performance needs to be
judged on success at meeting a mix of
both financial and non-financial measures
to effectively operate a business.
3. Some non-financial measures are drivers of
financial outcome measures which give managers
more control to take corrective actions quickly.
(Example: controls in jet cockpit for pilot)
Arriffin KPI management 53
54. Reasons for PMS
4. Too many measures, such as hundreds
of possible cost accounting index
measures, can confuse and distract an
executive from focusing on important
strategic priorities. The balanced
scorecard disciplines an executive to
focus on several important measures that
drive the strategy.
Arriffin KPI management 54
55.
56. Key Result Areas
1. There are no more than five strategic themes.
2. Strategic themes are realistic and achievable within the
organization
3. Themes support and connect with strategic goals.
4. Themes convey a positive impact upon the organization.
5. Themes place focus and direction on what is important.
6. Each theme is distinct and different.
8. Themes are strategic in scope and not tactical day to day.
9. Themes are consistent with the mission and vision of the
organization.
10. Themes have an impact on the financial objectives of the
organization.
Arriffin KPI management 56
57. Key Result Areas Guidelines
s Those 4 to 6 major areas wherein performance is
essential during the coming year.
s Include both financial and non-financial areas.
s Will not cover the entire organization—will
identify the critical few areas where priority
efforts should be directed.
s Most will require cross-functional effort.
s Each will be limited, generally, to 2 or 3 words
and will not be measurable as stated, but will
contain factors that could be measurable.
Arriffin KPI management 57
58. 4 key result areas
Financial Customer ->
• ROI • Quality
• EVA
• Revenue
• Service
• Earnings • Pricing
• Capital • Time
• Cash Flow • Image
• Relations
Arriffin KPI management 58
59. Key Result Areas
• Internal Processes ->
• Production Learning ->
• Delivery
Employee
• Marketing
• Operations HR Capital
• Knowledge LEARNING
Quality Control
• Service Dept Technology
• R&D
Best Practices
•
Intangibles
•
Arriffin KPI management 59
60.
61. The Benefits of KPIs
• More clearly defined objectives
• Better quality of services rendered
• Objective evaluation of performance.
• Strategies clearly communicated to
all levels within the organisation.
• Performance improvement strategies
identified.
Arriffin KPI management 61
62. Some example of KPIs
Under the heading of the 4
perspectives
Arriffin KPI management 62
63. KPIs in a typical private firms
Customer Perspective: KPI or measures include:
1. % of revenue from new customers
2. Customer retention rate
3. Market share
Financial Perspective: KPI or measures include:
• Profit ÷ revenue
• Revenue ÷ total cost
• ROI and/or ROA
Arriffin KPI management 63
64. Relating to the Balanced Scorecard (typical private
firms)
Internal Business Perspective: KPI or
measures include:
1. Inventory turnover
2. On-time delivery
3. Production yield
Learning and Innovation Perspective: KPI or
measures include:
1. % of staffs who have not been trained for the past 12 months
2. % of revenue from new products
3. Product mix
Arriffin KPI management 64
65. Types of Measurements or KPIs
Measure Type Definition Example
Intermediate outcomes that predicts or
Leading Employee turnover rate
drive bottom-line performance results
Bottom-line performance results resulting
Lagging Employee satisfaction rating
from actions taken
Amount of Investments, assets, equipment,
Input Number of cashiers
labor hours, or budget dollars used
Units of a product or service rendered - a
Output Number of Value Meal orders fulfilled
measure of yield
Resulting effect (benefit) of the use or
Outcome Customer satisfaction rating
application of an output
Objective / Empirical indicators of performance Wait time
Quantitative
Subjective / Perceptions and evaluations of major Customer complaints received as a % of
Qualitative customers and stakeholders total customers served
Arriffin KPI management 65
66. Define the elements of the program or project in a table.
WHAT and WHY
- HOW - WHO Outcomes
Resources/
Inputs Activities Outputs Customers Short-term Intermediate Long-term
Reached (Changes in Attitude) (Changes in Behavior) (Changes in Condition)
Program
outcomes
related to
factor(s)
Arriffin External Influences: KPI management 66
67.
68. Comprehensive Model for Diagnosing Organization
A. ORGANIZATIONAL LEVEL
Inputs Design Components Outputs
Strategy
- General
Structure Culture Organization
Environment
Effectiveness
- Industry
Structure Human Technology
Resources
B. GROUP LEVEL
Inputs Design Components Outputs
Goal Clarity
Team
Task Group
- Organization Effectiveness
Structure Functioning
Design e.g., quality of
Group Group work life,
Composition Norms performance
C. INDIVIDUAL LEVEL
Inputs Design Components Outputs
Skill Variety Individual
- Organization Effectiveness
Design Task Identity Autonomy
e.g., job
- Group Design
- Personal satisfaction,
Characteristics Task Feedback personal
Significance about Results development
69. Types of Intervention
Human Process
Intervention
Structural
Intervention
Types of
Intervention Human Resource
Management Intervention
Strategic
Intervention
70. Intervention
Characteristics:
This involves the extent to which intervention
Goal Specifity goals are specific rather than broad.
This involves the degree to which the
Programmability
changes can be programmed or the extent to
which the different intervention characteristics
can be specified early in advance to enable
socialization, commitment, and reward
allocation.
71. Intervention
Characteristics:
This concerns the extent to which the change
Level of
target is the total organization, rather than a
Change Target
department or small work group.
This refers to the degree to which there is an
Internal
internal support system to guide the change
Support
process.
72. Intervention
Characteristics:
This concerns the presence of a powerful
Sponsorship
sponsor who can initiate, allocate, and
legitimize resources for the intervention.
73. The Strategic Map
Linking the 4 perspectives
Arriffin KPI management 73
74. TRANSLATE THE STRATEGY TO
OPERATIONAL TERMS
The Strategy
Financial Perspective
Measurement is the
"If we succeed, how will
language that gives we look to our
shareholders?”
clarity to vague
concepts. Customer Perspective
"To achieve my vision,
how must I look to my
customers?”
Measurement is used to
communicate, not to Internal Perspective
control. "To satisfy my
customers, at which
processes must I excel?”
Strategy can be Organization Learning
"To achieve my vision,
described as a series of how must my organization
cause and effect learn and improve?”
Arriffin
relationships KPI management 74
75. Basic Scorecard Terminology
(Southwest Airlines Example)
Strategy Map
Strategic Theme: Objectives: Measures: Targets: Initiatives:
Operating Efficiency What the How success The level of Key action
Profits and strategy is or failure performance programs
Financial RONA
trying to (performance) or rate of required to
Grow achieve against improvement achieve
Fewer planes
Revenues objectives is needed targets
Attract & monitored
Customer Retain More
Customers
On-time Lowest
Service prices
Internal Objectives Measures Targets Initiatives
Fast ground • On Ground Time • 30 Minutes • Cycle time
turnaround
• Fast ground
turnaround • On-Time • 90% optimization
Departure
Learning
Ground crew
alignment
Arriffin KPI management 75
76. Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
Stakeholder
More rapid and
Improved Returns on
accessible services
Investments
Internal Process
Economic Reduce Re-Activities Establish Web Based
Model Process thru ABC/M Self Services
& Growth
Learning
Expand Global Leadership Knowledge
Facility Reach Development Management
Investments
Facilities and IT Infrastructure
Fixed Assets Human Capital
Arriffin KPI management 76
79. Some pitfalls in installing KPIs
• Goals and Objectives not clearly defined
• Wrong Key Result Areas identified to
achieve the goals set.
• KPIs used are not suitable for proper
performance evaluation
• Performance targets are not achieveable
and not integrated with that of the
organisation.
Arriffin KPI management 79
80. Organizational benefits of
performance management
• Common approach to setting goals and
reviewing performance & development
• Aligning individual plans with organizational
goals
• Ongoing dialogue between employees and
supervisors on performance & development
• Links to corporate learning & development,
career & succession planning, rewards &
recognition
Arriffin KPI management 80
81. Integrated performance management
framework - elements & linkages
Gov’t Strategic Plan,
Ministry Plan, Branch Plan
Individual Start of year
Performance
Management
Plan
Review • Goal Setting Corporate
Outcomes Opportunities
•Recognition
Review •Career Plan
mechanisms
(e.g.informal and • Results Focus •High Potential
formal rewards and • Feedback to • Progress and •Succession Plan
recognition,
development, base develop new realignment •Learning Needs
pay, pay for
En plan g & Courses
performance do oin
fy ng
Arriffin ea KPI management O 81
r
Competencies
82. PMS in summary
• Define performance objectives
• Establish Key Result Areas
• Key Performance Indicators
• Performance Targets and Standards
• Performance Record Keeping
• Variance or gap analysis
• Strategic Interventions
Arriffin KPI management 82
83.
84. 400 INTERNAL PROCESS
INPUT PROCESS OUTPUT OUTCOME
Material variances
Labour
Overhead Efficiency Quantity Average
ratios produced cost per
transaction
Research Productivity Value ROI
dev ratios produced
expense
Inventory Average Average
turnover lead time Prodn cost
Waste Reduction
84
85. 900 HRM
INPUT PROCESS OUTPUT OUTCOME
Incentives variances Turnover ratio
Hours Efficiency No Profit per
ratios produced employee
Training Productivity Value ROI
ratios produced
Salary Average Turnover Revenue per
lead time employee
Skill Waste Reduction Employee Value added per
competenc productivity employee
y
85
86. 500 MARKETING
INPUT PROCESS OUTPUT OUTCOME
Material Response rate No of customers
Labour Marketing costs % Sales volume
Overhead Efficiency ratios Customers
Profitability
Research Productivity Product ROA marketing
dev ratios profitability
expense
Average cost per Customer Return on Sales
transaction acquisition
Inventory turnover Average lead time Customer
retention
Price rel to comp Waste Reduction Revenue growth 86
87. 400 INTERNAL PROCESS
INPUT PROCESS OUTPUT OUTCOME
Material variances
Labour
Overhead Efficiency Quantity Average
ratios produced cost per
transaction
Research Productivity Value ROI
dev ratios produced
expense
Inventory Average Average
turnover lead time Prodn cost
Waste Reduction
87
89. PERFORMANCE CYCLE
Business
objectives Critical
Success
Change
Factors
Performance Key Result
Actuals Areas
Strategic Performance
initiatives Indicators
Performance
standards
89
Arriffin KPI management
90. Training Need Analysis (TNA)
TNA is a tool to
Existing identify the gap Required
• Skills • Skills
• Knowledge • Knowledge
• Attitudes • Attitudes
90
91.
92. Strategy Map Framework
Long-term Shareholder
Value
Cost Efficiency Revenue Growth
Financial
Price Quality Service Availability Brand
Customer
Regulatory
Operations Customer Innovation
and Social
Management Management Processes
Processes
Processes Processes
Internal Process
Learning & Growth
Human Capital Organization Capital Information Capital
93. Strategic Objectives in Financial
Long-term
Shareholder Value
Cost Efficiency Revenue Growth
Improve Cost Structure Expand Revenue
Opportunities
Increase Asset Utilization Enhance Customer Value
94. Strategic Objectives in Customer
Customer Retention Customer Profitability
Customer Satisfaction Market Share
Customer Acquisition
Price Quality Service Availability Brand
95. Strategic Objectives in Internal Process
Operations Customer Regulatory
Innovation
Management Management and Social
Processes
Processes Processes Processes
Processes that Processes that Processes that Processes that
produce and enhance customer create new improve
deliver products value products and communities and
and services services the environment
• Supply • Selection • New Ideas • Environment
• Production • Acquisition • R&D Portfolio • Safety &
• Distribution • Retention • Design/ Health
• Growth Develop • Employment
• Launch • Community
96. Strategic Objectives in
Learning & Growth
Organization Information
Human Capital
Capital Capital
• Skills • Culture • Systems
• Knowledge • Leadership • Database
• Attitude • Organization • Networks
Development
97. Strategy Map Template
Enhance Long-term
Shareholder Value
Improve
Increase Revenue Growth
Cost Efficiency
Financial
Build High Expand Enhance
Performance Products Market Share Brand Image
Customer
Achieve Drive Demand Implement Good
Manage Dramatic
Operational through Customer Environmental
Growth through
Excellence Relation Policy
Innovation
Management
Internal Process
Learning & Growth
Develop Strategic Build Learning Expand Capabilities with
Competencies Culture Technology