Many people start a measurement initiative by defining KPIs and metrics first. - BAD mistake!!
Identify your information needs first, THEN derive the proper metrics! And, there are many other pitfalls more...
The document discusses operational excellence and continuous improvement. It defines operational excellence as developing a culture of continuous improvement through applying principles and tools to sustainably improve key performance metrics. The vision is for operational excellence to become the way the organization does business. The mission is to enable value delivery through operational excellence principles and innovative process improvements. Strategic objectives include educating employees on concepts, supporting objectives, identifying opportunities, and developing measures to validate results.
The document discusses the Balanced Scorecard framework. It provides background on how the Balanced Scorecard was developed in the 1990s as a performance measurement approach that expanded beyond solely financial measures. It then describes the key components of a Balanced Scorecard including translating strategy into objectives across financial, customer, internal process, and innovation/learning perspectives. Steps for developing a Balanced Scorecard including clarifying strategy, setting objectives, and defining metrics are also outlined. An example of successful implementation at Mobil is provided. Challenges and best practices for using Balanced Scorecards, including in e-business, are discussed.
The document discusses creating a balanced scorecard to link organizational objectives, initiatives, and measures to its strategy. It provides an overview of what a balanced scorecard is, noting it measures progress toward strategic goals across financial, customer, internal process, and learning/growth perspectives. It outlines the steps to create a strategy map first to clarify the organization's strategy before developing performance measures in a balanced scorecard.
Project managers use Key Performance Indicators (KPIs) and dashboards to monitor and communicate the status of a project. KPIs should be measurable metrics that indicate if objectives are being met. Effective KPIs are specific, measurable, attainable, relevant and time-bound. KPIs can be quantitative or qualitative and should be selected to provide insights without overwhelming stakeholders with too much data. Dashboards consolidate multiple KPIs using visual widgets like charts, tables and gauges to give viewers a quick status update in an easy to understand format.
This document provides an overview of the strategic planning process and the nine steps involved in developing a balanced scorecard system. It discusses each of the nine steps in the process, which are: 1) Assessment, 2) Strategy, 3) Objectives, 4) Strategy Map, 5) Performance Measures, 6) Initiatives, 7) Performance Analysis, 8) Alignment, and 9) Evaluation. For each step, it outlines the key components and outputs. It emphasizes that strategic planning is both an art and a science, requiring strategic thinking as well as change management and communication. The nine steps are presented as an integrated process for developing a strategic management system to plan, execute, and measure strategy across an organization.
Establishing meaningful, challenging goals is an essential skill for any manager. Research shows that such goals motivate employees and improve performance. At this practical, hands-on session, you’ll learn how to develop and articulate goals that set you and your employees up for success. By the end of the session, you’ll come away with a working draft of a set of goals for one of your employees, which you’ll be able to use as a model for writing goals for the rest of your team.
This document discusses key performance ratios (KPRs) and how they can help businesses. It begins by stating the objectives of understanding how to identify KPRs and use them to focus staff on business strategy. It then outlines an agenda covering what KPRs are, why businesses need them, different types of KPRs, how to generate and choose KPRs, and implementing them. The rest of the document provides details on these topics, including examples of KPRs for different industries and guidance on developing KPRs aligned with business goals and strategy.
The document discusses operational excellence and continuous improvement. It defines operational excellence as developing a culture of continuous improvement through applying principles and tools to sustainably improve key performance metrics. The vision is for operational excellence to become the way the organization does business. The mission is to enable value delivery through operational excellence principles and innovative process improvements. Strategic objectives include educating employees on concepts, supporting objectives, identifying opportunities, and developing measures to validate results.
The document discusses the Balanced Scorecard framework. It provides background on how the Balanced Scorecard was developed in the 1990s as a performance measurement approach that expanded beyond solely financial measures. It then describes the key components of a Balanced Scorecard including translating strategy into objectives across financial, customer, internal process, and innovation/learning perspectives. Steps for developing a Balanced Scorecard including clarifying strategy, setting objectives, and defining metrics are also outlined. An example of successful implementation at Mobil is provided. Challenges and best practices for using Balanced Scorecards, including in e-business, are discussed.
The document discusses creating a balanced scorecard to link organizational objectives, initiatives, and measures to its strategy. It provides an overview of what a balanced scorecard is, noting it measures progress toward strategic goals across financial, customer, internal process, and learning/growth perspectives. It outlines the steps to create a strategy map first to clarify the organization's strategy before developing performance measures in a balanced scorecard.
Project managers use Key Performance Indicators (KPIs) and dashboards to monitor and communicate the status of a project. KPIs should be measurable metrics that indicate if objectives are being met. Effective KPIs are specific, measurable, attainable, relevant and time-bound. KPIs can be quantitative or qualitative and should be selected to provide insights without overwhelming stakeholders with too much data. Dashboards consolidate multiple KPIs using visual widgets like charts, tables and gauges to give viewers a quick status update in an easy to understand format.
This document provides an overview of the strategic planning process and the nine steps involved in developing a balanced scorecard system. It discusses each of the nine steps in the process, which are: 1) Assessment, 2) Strategy, 3) Objectives, 4) Strategy Map, 5) Performance Measures, 6) Initiatives, 7) Performance Analysis, 8) Alignment, and 9) Evaluation. For each step, it outlines the key components and outputs. It emphasizes that strategic planning is both an art and a science, requiring strategic thinking as well as change management and communication. The nine steps are presented as an integrated process for developing a strategic management system to plan, execute, and measure strategy across an organization.
Establishing meaningful, challenging goals is an essential skill for any manager. Research shows that such goals motivate employees and improve performance. At this practical, hands-on session, you’ll learn how to develop and articulate goals that set you and your employees up for success. By the end of the session, you’ll come away with a working draft of a set of goals for one of your employees, which you’ll be able to use as a model for writing goals for the rest of your team.
This document discusses key performance ratios (KPRs) and how they can help businesses. It begins by stating the objectives of understanding how to identify KPRs and use them to focus staff on business strategy. It then outlines an agenda covering what KPRs are, why businesses need them, different types of KPRs, how to generate and choose KPRs, and implementing them. The rest of the document provides details on these topics, including examples of KPRs for different industries and guidance on developing KPRs aligned with business goals and strategy.
What are the differences between KPI and OKR frameworks?
OKRs identifies the main objective as well as the key results — the framework and the way to get there. To achieve the objectives identified with OKR, teams must establish measurable actions to take in order to achieve high-level goals. OKRs are often highly ambitious and are designed to align and push the company into full-gear as a cohesive unit, but also give individual contributors autonomy, which encourages innovation on the road to goal achievement.
Agile2016: Stop Using Agile with Waterfall Goals: Goal Agility with OKR Felipe Castro
Slides from my talk during Agile2016. Although we have been using Agile mindset and processes tactically, when it comes to strategy and goal setting the waterfall command&control mindset is still the norm.
Most organizations are still using an annual, waterfall, top-down process to create a static set of goals that conflicts directly with Agile.
This talk shows how to define agile goals using OKR (Objectives and Key Results), the goal setting framework adopted by Google, Twitter, LinkedIn and Dropbox.
In this presentation you will find information about importance of Key Performance Indicators (KPI's) for subscription-based (SaaS) Internet startups.
The full list of metrics mentioned in the presentation, exact formulas, and examles you can find at http://datmachine.co/saas_metrics.
If you have any questions, don't be shy to drop me a line on my email: efremov(at)datmachine.co.
How to create and successfully implement your business planclareevans
Not having a business plan is like setting out on a journey without a map. Find out how to implement your plan and achieve your goals with the minimum of time and effort.
Creation of a sale plan is a requirement for any business. Having a structured approach with a definite scope is very much beneficial. Please find this document which will help you structure your thoughts and let you achieve what you aspire.
The document discusses the role of the Chief Operations Officer (COO) in an enterprise organization. It describes the COO as the CEO's problem solver who focuses on daily operations, optimizing performance, and managing risk. The COO owns the business model and vision and is responsible for implementing transformational projects. Typical COO backgrounds include operations director or finance director, and they tend to be senior members of the executive team. The COO manages a team of directors and is responsible for objectives like reducing costs, increasing efficiency, and supporting growth opportunities.
The world is changing – how about your Operations Strategy?
The world is changing rapidly – same goes for your customers and suppliers. You are required to constantly improve your operations. Is optimising your current operating model sufficient or do you need to rethink?
A great Operations Strategy is what makes the sum of all operational capabilities of your business a competitive advantage.
Does your Operations Strategy fit in relation to environmental changes or changes in future customer demand?
This document discusses key performance indicators (KPIs) and how they can be used in a performance management system. It defines KPIs as quantifiable measures of an organization's performance in certain business areas. Examples are provided to illustrate how to identify objectives, KPIs, targets, owners, and timelines. A value flow analysis model is presented to show how inputs, processes, outputs, and outcomes are related. Careful selection of KPIs is important to indicate value generation across these elements.
Stratechi Sales Plan Presentation by McKinsey Alum.pdfStratechi.com
Visit https://www.stratechi.com/sales-plan-template to download the 54-page editable Sales Plan PowerPoint widescreen template created by a McKinsey consultant. The PowerPoint has all you need to get started on your sales strategy with slides packed full of agendas, charts, funnels, plans, timelines, geographic sales maps, images, icons, goals, mission, marketing strategy, account management, org charts, budgets, revenue trends, benchmarking, target customers, value proposition, change management, roadmaps, project plans, SWOT analysis, PESTLE Analysis, competitive advantage worksheet, initiatives, and many other topics necessary to create a winning sales strategy.
The document discusses various business process improvement (BPI) tools and techniques that can be used to analyze, measure, and enhance business processes. It describes tools like process modeling, check sheets, surveys, interviews, brainstorming, and the nominal group technique. Process improvement aims to reduce costs, improve efficiency, enhance quality, and reduce cycle times through methods for analyzing "as-is" processes, defining opportunities, and designing improved "to-be" processes.
Creating GREAT OKRs and a great quarterly planning process7Geese
Creating OKRs is one step in the entire cycle of priority and goal planning within an organization. This deck focuses on 5 main aspects of what makes an OKR great:
1. What goes into a great starting criteria to create a single OKR
2. An understanding of what a great OKR is not as it’s important to understand what not to do, to make sure you’re not going into something blind.
3. How great OKRs come from the right metrics or key performance indicators that match your culture.
4. How you can ensure you’re translating tasks into results and planning out supporting projects properly.
5. And how to get an idea of how you plan to assess progress once it’s all over.
This document outlines a strategy for developing a product. It identifies problems with the current approach such as a lack of focus and direction. It then provides guidance on key elements to include in a product strategy such as defining the target market and their needs, key features, differentiators, and business goals. The strategy should create a shared vision and roadmap to guide development. Validation techniques are discussed to reduce risk and ensure the strategy addresses real customer problems.
Designing Great Products The Power of Design and LeadershipProduct School
The document discusses what makes products great through the lens of design and leadership. It argues great products are inspiring, empowering, and transformative by challenging norms. Great leaders understand that technology enables but design establishes value. They are committed to quality and excellence, and focus on the core idea rather than just form and function. Achieving greatness requires knowing your mission, understanding your audience, embracing challenge through culture, and relentlessly delivering real value through design.
The document outlines a simple balanced scorecard approach developed by Samurai for managers. It discusses establishing a mission, vision, and strategy, then mapping these out on a single page. Key steps include preparing a 1-page summary, communicating it via a 1-slide presentation, and executing the plan on a single page. The balanced scorecard is intended as a management tool to be used in meetings to check measures, achievement, and trends and agree on actions.
Wouldn't it be great if no one could argue with your roadmap? Wouldn't it just rock if you could cut through the endless debates and circular arguments, get to consensus, and just execute?
I'm Bruce McCarthy, Founder and Chief Product Person at UpUp Labs. In 20 years as a product person, I've built a roadmapping methodology on 7 pillars:
* Strategic Goals
* Generate Ideas
* Objective Prioritization
* Shuttle Diplomacy
* Benefit-oriented Themes
* Appropriate Format & Cadence
* Punctuated Equilibrium
At last year's ProductCamp, my standing-room-only session on prioritization was a huge hit with product people. This year I've focused on translating your priorities into a roadmap that will inspire your whole team to buy-in, stick with it, and over-deliver.
The document provides an overview of Agile product management. It discusses the problems with traditional waterfall methodology, introduces Agile concepts like short iterations and frequent reassessment. It outlines Agile roles like product owner, scrum master, and product manager. It also discusses characteristics of effective product managers, including being customer-driven, responsible for product success, and having a positive reputation among coworkers. The document aims to educate others on fundamentals of Agile product management.
Business Plan, Business strategies, marketing plan, marketing strategies, sales plan, sales strategies, executive summary, competitors, small business plan, budget, forecast, business analysis, operations, personnel, mission, vision, jose cintron mba, mba4help.com
LEGO® Serious Play® — For Managers.
Solve Your Business Challenges Playfully & with Fun!
Condensed version of my LSP presentation for managers & C-level.
LEGO® Serious Play® is a structured, facilitated method. It answers questions rephrasing the business topics. The models built and their stories shared by the builders are the answers. It is a playful and still serious way to create new insights and to develop innovative ideas.
Lego Serious Play es una metodología radical de innovación para gestionar problemas complejos y fomentar el trabajo colaborativo. Mario Morales, fundador de Innovare, está certificado por LEGO para facilitar estos talleres y ayudarle a construir el futuro de su empresa.
What are the differences between KPI and OKR frameworks?
OKRs identifies the main objective as well as the key results — the framework and the way to get there. To achieve the objectives identified with OKR, teams must establish measurable actions to take in order to achieve high-level goals. OKRs are often highly ambitious and are designed to align and push the company into full-gear as a cohesive unit, but also give individual contributors autonomy, which encourages innovation on the road to goal achievement.
Agile2016: Stop Using Agile with Waterfall Goals: Goal Agility with OKR Felipe Castro
Slides from my talk during Agile2016. Although we have been using Agile mindset and processes tactically, when it comes to strategy and goal setting the waterfall command&control mindset is still the norm.
Most organizations are still using an annual, waterfall, top-down process to create a static set of goals that conflicts directly with Agile.
This talk shows how to define agile goals using OKR (Objectives and Key Results), the goal setting framework adopted by Google, Twitter, LinkedIn and Dropbox.
In this presentation you will find information about importance of Key Performance Indicators (KPI's) for subscription-based (SaaS) Internet startups.
The full list of metrics mentioned in the presentation, exact formulas, and examles you can find at http://datmachine.co/saas_metrics.
If you have any questions, don't be shy to drop me a line on my email: efremov(at)datmachine.co.
How to create and successfully implement your business planclareevans
Not having a business plan is like setting out on a journey without a map. Find out how to implement your plan and achieve your goals with the minimum of time and effort.
Creation of a sale plan is a requirement for any business. Having a structured approach with a definite scope is very much beneficial. Please find this document which will help you structure your thoughts and let you achieve what you aspire.
The document discusses the role of the Chief Operations Officer (COO) in an enterprise organization. It describes the COO as the CEO's problem solver who focuses on daily operations, optimizing performance, and managing risk. The COO owns the business model and vision and is responsible for implementing transformational projects. Typical COO backgrounds include operations director or finance director, and they tend to be senior members of the executive team. The COO manages a team of directors and is responsible for objectives like reducing costs, increasing efficiency, and supporting growth opportunities.
The world is changing – how about your Operations Strategy?
The world is changing rapidly – same goes for your customers and suppliers. You are required to constantly improve your operations. Is optimising your current operating model sufficient or do you need to rethink?
A great Operations Strategy is what makes the sum of all operational capabilities of your business a competitive advantage.
Does your Operations Strategy fit in relation to environmental changes or changes in future customer demand?
This document discusses key performance indicators (KPIs) and how they can be used in a performance management system. It defines KPIs as quantifiable measures of an organization's performance in certain business areas. Examples are provided to illustrate how to identify objectives, KPIs, targets, owners, and timelines. A value flow analysis model is presented to show how inputs, processes, outputs, and outcomes are related. Careful selection of KPIs is important to indicate value generation across these elements.
Stratechi Sales Plan Presentation by McKinsey Alum.pdfStratechi.com
Visit https://www.stratechi.com/sales-plan-template to download the 54-page editable Sales Plan PowerPoint widescreen template created by a McKinsey consultant. The PowerPoint has all you need to get started on your sales strategy with slides packed full of agendas, charts, funnels, plans, timelines, geographic sales maps, images, icons, goals, mission, marketing strategy, account management, org charts, budgets, revenue trends, benchmarking, target customers, value proposition, change management, roadmaps, project plans, SWOT analysis, PESTLE Analysis, competitive advantage worksheet, initiatives, and many other topics necessary to create a winning sales strategy.
The document discusses various business process improvement (BPI) tools and techniques that can be used to analyze, measure, and enhance business processes. It describes tools like process modeling, check sheets, surveys, interviews, brainstorming, and the nominal group technique. Process improvement aims to reduce costs, improve efficiency, enhance quality, and reduce cycle times through methods for analyzing "as-is" processes, defining opportunities, and designing improved "to-be" processes.
Creating GREAT OKRs and a great quarterly planning process7Geese
Creating OKRs is one step in the entire cycle of priority and goal planning within an organization. This deck focuses on 5 main aspects of what makes an OKR great:
1. What goes into a great starting criteria to create a single OKR
2. An understanding of what a great OKR is not as it’s important to understand what not to do, to make sure you’re not going into something blind.
3. How great OKRs come from the right metrics or key performance indicators that match your culture.
4. How you can ensure you’re translating tasks into results and planning out supporting projects properly.
5. And how to get an idea of how you plan to assess progress once it’s all over.
This document outlines a strategy for developing a product. It identifies problems with the current approach such as a lack of focus and direction. It then provides guidance on key elements to include in a product strategy such as defining the target market and their needs, key features, differentiators, and business goals. The strategy should create a shared vision and roadmap to guide development. Validation techniques are discussed to reduce risk and ensure the strategy addresses real customer problems.
Designing Great Products The Power of Design and LeadershipProduct School
The document discusses what makes products great through the lens of design and leadership. It argues great products are inspiring, empowering, and transformative by challenging norms. Great leaders understand that technology enables but design establishes value. They are committed to quality and excellence, and focus on the core idea rather than just form and function. Achieving greatness requires knowing your mission, understanding your audience, embracing challenge through culture, and relentlessly delivering real value through design.
The document outlines a simple balanced scorecard approach developed by Samurai for managers. It discusses establishing a mission, vision, and strategy, then mapping these out on a single page. Key steps include preparing a 1-page summary, communicating it via a 1-slide presentation, and executing the plan on a single page. The balanced scorecard is intended as a management tool to be used in meetings to check measures, achievement, and trends and agree on actions.
Wouldn't it be great if no one could argue with your roadmap? Wouldn't it just rock if you could cut through the endless debates and circular arguments, get to consensus, and just execute?
I'm Bruce McCarthy, Founder and Chief Product Person at UpUp Labs. In 20 years as a product person, I've built a roadmapping methodology on 7 pillars:
* Strategic Goals
* Generate Ideas
* Objective Prioritization
* Shuttle Diplomacy
* Benefit-oriented Themes
* Appropriate Format & Cadence
* Punctuated Equilibrium
At last year's ProductCamp, my standing-room-only session on prioritization was a huge hit with product people. This year I've focused on translating your priorities into a roadmap that will inspire your whole team to buy-in, stick with it, and over-deliver.
The document provides an overview of Agile product management. It discusses the problems with traditional waterfall methodology, introduces Agile concepts like short iterations and frequent reassessment. It outlines Agile roles like product owner, scrum master, and product manager. It also discusses characteristics of effective product managers, including being customer-driven, responsible for product success, and having a positive reputation among coworkers. The document aims to educate others on fundamentals of Agile product management.
Business Plan, Business strategies, marketing plan, marketing strategies, sales plan, sales strategies, executive summary, competitors, small business plan, budget, forecast, business analysis, operations, personnel, mission, vision, jose cintron mba, mba4help.com
LEGO® Serious Play® — For Managers.
Solve Your Business Challenges Playfully & with Fun!
Condensed version of my LSP presentation for managers & C-level.
LEGO® Serious Play® is a structured, facilitated method. It answers questions rephrasing the business topics. The models built and their stories shared by the builders are the answers. It is a playful and still serious way to create new insights and to develop innovative ideas.
Lego Serious Play es una metodología radical de innovación para gestionar problemas complejos y fomentar el trabajo colaborativo. Mario Morales, fundador de Innovare, está certificado por LEGO para facilitar estos talleres y ayudarle a construir el futuro de su empresa.
Lego Serious Play como metodología para potenciar el diálogo y las conversaciones en las organizaciones para resolver problemas complejos y analizar entornos donde la creatividad y disponer de diferentes visiones enriquece la propuesta.
Lego Serious Play permite generar talleres y dinámicas que atrapan a los participantes fusionando no sólo la creatividad sino también "atrapar" pensamientos e ideas de los participantes a través de razonamientos y reflexiones intrínsecas que se generan a través de la construcción de los modelos.
LSP es un juego serio utilizado en procesos de formación y consultoría estratégica que ayuda a desarrollar competencias profesionales a través de la construcción y representación de soluciones con piezas de LEGO, fomentando la creatividad y la resolución de problemas.
This document provides information about Lego Serious Play, a technique using Lego bricks to facilitate thinking, problem solving, and discussions. Some key points:
- Lego Serious Play uses basic Lego bricks to build metaphors and representations that can uncover insights about individuals, teams, challenges, and visions.
- It is used for team building, innovation, working through shared problems, building shared understandings, and leadership development.
- The process involves building models to represent a topic or challenge, explaining the models, asking questions, and combining elements into group models.
- Warm-up exercises are recommended to build skills in representation, storytelling and collaboration before tackling deeper challenges.
Elevator Pitch: LEGO® Serious Play® — Strategic Decision Making & Problem Re...Michael Tarnowski
LEGO® Serious Play® — Strategic Decision Making & Problem Resolution with Fun!
Elevator Pitch.
LEGO® Serious Play is a facilitated method for strategic decision-making and problem resolution in business environments.
You could use LSP for merger & acquisition (M&A) evaluation, SWAT analysis, strategy or vision definition, product development, organisational design/development, brand design, or developing business, department. or team goals - to name a few.
15 tips about lego serious play methodologyPaco Prieto
Este documento proporciona 15 consejos para utilizar la metodología LEGO® Serious PlayTM de manera efectiva. Recomienda seguir los 4 pasos del proceso que incluyen plantear un enfoque, construir modelos con significado, compartirlos y reflexionar. También enfatiza la importancia de construir individualmente, pero compartir en grupo, hacer preguntas al modelo en lugar de a la persona, y confiar en el proceso.
LEGO® Serious Play®. How To Solve Your Business Challenges PlayfullyMichael Tarnowski
LEGO® Serious Play® (LSP) is a structured and facilitated workshop method for strategic decision making and problem resolution in business environments.
LSP answers questions rephrasing the business topics. The models built and their stories shared by the builders are the answers. LSP is a playful and still serious way to create new insights and to develop innovative ideas.
Business analytics workshop presentation finalBrian Beveridge
This document outlines an agenda and presentation for a business analytics seminar for credit union executives and board directors. The presentation will define business analytics, explain how it can help credit unions address key issues like margin compression and regulatory compliance, and provide examples of how analytics can be applied to areas like marketing, risk management, and branch performance. Attendees will learn how predictive analytics can help credit unions retain members, optimize pricing, and streamline operations. The presentation will also cover getting started with business analytics projects.
Performance measures are commonly used to track and improve our facilities operations. But some Facility Managers are not comfortable developing and using them. This presentation outlines some easy to understand ways to develop metrics that are useful. It will also examine ways that well-intended performance measures contribute to the wrong outcomes.
The document discusses Key Performance Indicators (KPIs), which are quantifiable measures used to evaluate factors that are crucial to the success of an organization. KPIs help measure performance against goals. The document outlines what makes a good KPI, such as being business-aligned, actionable, realistic and measurable. It also discusses how to develop KPIs using the SMART framework and provides examples of KPIs for different business functions like IT, marketing, customer service, sales and finance.
This document provides guidance on establishing effective metrics for measuring service desk performance. It recommends focusing on internal metrics that are specific to your organization's goals and environment, rather than relying solely on benchmarks. The document outlines steps to take such as defining critical success factors and key performance indicators, choosing action-based metrics that align with goals and can be tracked over time, and establishing dashboards to monitor and report on metrics. It emphasizes the importance of metrics driving productive improvement and measuring what matters most to stakeholders.
Statistics can provide valuable insights for businesses. Some key areas where statistical analysis can be applied include:
1. Sales and marketing to predict customer purchasing behavior based on variables like past purchases, contact preferences, and advertisements. This allows targeting high-value customers.
2. Project management to correlate actual costs with estimates and factors like contractors, budgets, and timelines. This improves cost predictions and identifies inefficient processes.
3. Developing new offerings by benchmarking clients and suppliers to find cost inefficiencies and opportunities. Statistical modeling reveals areas for improved performance.
Linking Strategy to Metrics - KPI working Group Presentation 5Chikodi Onyemerela
This document discusses the importance of linking strategy to metrics for the British Council. It defines key terms like strategy, metrics, and KPIs. The document provides examples of different types of metrics that could be used by the British Council, including product, market, communication, and new product development metrics. It also discusses frameworks like the balanced scorecard that can be used to link strategic objectives to metrics across key areas like finance, customers, internal processes, and learning/growth. Overall, the document advocates for using the right metrics to measure strategy and ensure resources are focused on achieving organizational goals.
Digital analytics provides insights into customer behaviors online to continually improve the customer experience and drive business outcomes. A complete digital analytics model includes measuring customer actions, reporting on performance, analyzing data through segmentation, testing optimizations, and improving practices based on learnings. Developing a measurement plan is the first step, defining objectives, goals, key performance indicators, targets, and data segments. The plan informs the infrastructure roadmap, implementation plan, activation plan, and maintenance process to evolve analytics over time. Holistic, active, and media-agnostic measurement approaches account for all relevant customer touchpoints across channels and devices.
This document discusses key performance indicators (KPIs). It defines KPIs as quantifiable measures that are critical to an organization's success. KPIs are tied to an organization's strategy and help evaluate progress towards goals. The document outlines steps for selecting KPIs, including clarifying objectives, developing a list of potential indicators, assessing them based on criteria like meaningfulness and practicality, and selecting the best few indicators. It also discusses features of KPIs like being measurable, quantitative, and providing reliable data in a timely manner. Finally, the document notes that KPIs for projects differ and may track estimates, variances, milestones and issues.
This document discusses human capital analytics and provides guidance on understanding and optimizing the impact of an organization's people. It begins with an introduction to the topic and explains that human capital analytics uses data collection and analysis techniques to provide insights into effectively managing employees to help businesses reach goals quickly. The document then outlines why human capital analytics is important, the benefits it provides, what it is and isn't, and how to execute analytics through statistical tools and key approaches. It provides steps to implement a data analytics plan, including identifying outcomes, creating a cross-functional team, evaluating measures, analyzing data, building programs, and measuring and adjusting.
Custom Calculations: Your business is unique — shouldn't your metrics be?Looker
Analytics is about so much more than defining high-level KPIs and building dashboards to amplify them. With a little creativity, you can create custom metrics designed to inform every member of an organization. With this knowledge of their effect on the business, everyone can optimize their impact on company-wide goals.
What you'll learn:
-Why standard KPIs may not be getting you everything you need
-Who can benefit from these new metrics (everyone!)
-How to identify key metrics and roll them out to the entire organization
-Get examples of how other companies are creating custom analytics
Vortrag von Raj Venkatesan und Kim Whitler an der HWZ-Darden Konferenz vom 8. Juni 2017 an der HWZ Hochschule für Wirtschaft Zürich.
https://fh-hwz.ch/conference
The document defines Key Performance Indicators (KPIs) and discusses their importance and use. KPIs are quantifiable measures that help companies gauge performance against strategic goals. They should be linked to objectives and track specific metrics over time. The document outlines different types of KPIs and provides examples. It also discusses best practices for identifying, designing, evaluating and using KPIs to improve performance.
The document discusses performance indicators and key performance indicators (KPIs) which are used to measure and monitor the performance of organizations. It provides examples of KPIs for different business functions such as manufacturing, purchasing, sales, finance, maintenance, and human resources. Some key aspects covered include selecting KPIs based on critical success factors and customer requirements, using a balanced scorecard and performance dashboards to monitor KPIs, and characteristics of effective performance indicators.
Key Performance Indicators webinar Smith & GestelandSmith & Gesteland
The document discusses using key performance indicators (KPIs) to drive business results. It introduces Bill Pellino and Heather Schommer who will present on the topic. They define KPIs and explain how setting and tracking the right KPIs allows management to better monitor business performance and make data-driven decisions. The presenters provide tips on determining goals, selecting important KPIs to measure, communicating KPI data to employees, and using incentives to encourage behavior aligned with KPI targets. A client example is given that illustrates how implementing KPI tracking improved employee engagement, accountability and overall factory operations for a $10M manufacturer.
Similar to Metrics & KPIs. Tips To Setup Your Measurement Initiative Right. (20)
„Ich glaub, ich werd welk“. Zeitdilatation in Agilen Transformationen – Tools...Michael Tarnowski
Die Zeitdilatation ist ein relativistisches Phänomen. Alle inneren Prozesse eines physikalischen Systems laufen langsamer ab, wenn sich dieses System relativ zum Beobachter bewegt.
Doch neben dem Higgs-Boson („Gottesteilchen“) und den Gravitationswellen haben Forscher inzwischen entdeckt, dass selbst in Systemen, die sich relativ zum Beobachter überhaupt nicht bewegen, die Zeit langsamer abläuft, ja sogar stillsteht. Vor allem dann, sobald Agile-Coaches durch die Türen nicht agiler Unternehmen treten.
Lessons Learned:
Humoristischer Versuch, die Frage „Wieso ist Agile nicht Agile?“ zu beantworten. Der Referent zeigt, welche Wirkungen Culture Hacking bei einem Kunden hat, den er seit mehr als zwei Jahren bei seiner agilen Transition begleitet.
This document provides an introduction to systems thinking concepts and diagrams. It begins with definitions of systems thinking from thinkers like Peter Senge and Jay Forrester. It then explains common systems thinking diagrams like causal loop diagrams, system archetypes, and variables. Specific concepts discussed include balancing and reinforcing feedback loops, goals and reactions, delays, and extreme effects. Guidance is provided on conventions for modeling systems diagrams. The document concludes with links to additional systems thinking content.
Product Owner Challenge - Agile in the City Manchester 2017Michael Tarnowski
Product owner challenge is an agile game with Lego bricks. It supports organisations in transitioning from waterfall to agile. The game illustrates the agile mindset to a waterfall-driven product development culture: stop micro-management and communicate face-to-face clear objectives, requirements and product vision.
What is Agile & Agile Project Management?. Introduction to Plan-based vs value-driven development; Scrum framework and roles and ceremonies; self-organised team, agile values. and leadership
This document describes two different processes - Waterfall and Agile - for a product owner challenge. Under the Waterfall process, there are 4 phases: 1) upfront planning, 2) defining requirements, 3) building the product, and 4) testing the product. The Agile process involves the product owner explaining the product vision through user stories, estimating story sizes, defining sprints to finish stories, building and testing the product, and adjusting planning as needed. A time-keeper will record metrics like time spent on each phase and number of defects for each process.
Challenge your product development department by a challenging contest with LEGO bricks: "Who Delivers Value First?" - Agile or Waterfall?
Product Owner Challenge is an agile game w/ Lego bricks. Its about challenging the product development to communicate clear objectives, requirements, and vision.
Slidedeck contains playing instructions, examples, and further info.
Material needed: (a) "Presentation User Stories for POChallenge", (b) "Process Cards for POChallenge" - both on my SlideShare account
It's a card game.
It addresses agile themes and topics in weird, morbid, and political incorrect question.
It was created by @UdoWiegaertner, @AnjaStiedl, @M_Tarnowski, et.al. inspired by a open space session of @JordannGross at Play4Agile16
Free download: http://bit.ly/p4a16-AgileBlackStories
Presentation at: Agile Games Night Tools4AgileTeams2016
The Prime Directive. How To Charter Your Team Best (With LEGO Serious Play)Michael Tarnowski
Team chartering is generally used at the start of a project only, and team charters tend to be quite general and abstract.
In this hands-on session of Agile Cambridge Conference 2015, we will use the 'Lego Serious Play' method to develop a team-specific team charter, which fits individual team goals and can be adapted continuously.
Innovation Games — The Seriously Fun Way to Do Work!Michael Tarnowski
Innovation Games are a set of originally market research oriented, facilitated and directed games. They are focussed, on real-time collaborative games as means of engaging customers and stakeholders to reveal what really matters to them and to get breakthrough ideas.
Use Innovation Games for such things as portfolio management, requirements management and any number of tasks that require innovative thinking, priorisation, brainstorming and cross-functional collaboration.
Product Owner Challenge - User Stories ready to playMichael Tarnowski
Epics, and user stories w/ acceptance critieria to integrate agile mindset into Product Owner Challenge game (POC).
POC is an agile game w/ Lego bricks. Its about challenging the product development to communicate clear objectives, requirements, and vision.
User stories for LEGO Creator Series: 6910 (Sports Car), 31000 (Pick-up truck), and 5761 (Digger, front loader)
Drama babe! – Theatre Stage Experience for AgilistsMichael Tarnowski
I presented this workshop at “Walk the Talk – Talk the Walk” #WTTW, Annual Conference Agile Consortium NL, 10.Sept.2014. – The presentation gives you a broad toolbox of communication skills:
* How to set the narrative structure your presentation
* How to prepare your stage: onstage, offstage, and audience space
* How to use light, sound, costumes, and props properly
* How to rehearse & improve your presentation
* How to use your body language
I structured my workshop as a theatre playbook:
Prologue
Who is your Performer?Why do Agilists need Theatre Stage Experience?
Act I – Scripting the Performance
Act I, Scene 1 – Write the Playbook,
Act I, Scene 2 – Set the Stage
Act I, Scene 3 – Set the Pose
Act I, Scene 4 – Direct the Performance
Act II – Staging the Performance
Act II, Scene 1 – Build the Stage
Act II, Scene 2 – Onstage & Backstage, Entrances & Exits
Act II, Scene 3 – Set the Light
Act II, Scene 4 – Set the Sound/Music
Act II, Scene 5 – Set the Costumes & Props
Act III – Performing the Performance
Act III, Scene 1 – Rehearse
Act III, Scene 2 – Find proper Emphasis
Act III, Scene 3 – Create Meaning
Act III, Scene 4 – Create Emotions and Authenticity
The presentation provides the background for "The Drama Game”.
Integrate your customers by casting them in a Quest story with your product dev team as one of the characters.
“The Drama Game” is a story telling game to create within all stakeholders - customer & project team - a shared understanding of crucial situations ("incidents") happened in a product development project. You should play the game during your project in retrospectives or as post-mortem analysis after.
The presentation contains playing instructions and material for "The Drama Game”.
“The Drama Game” is a story telling game to create within all stakeholders - customer & project team - a shared understanding of crucial situations ("incidents") happened in a product development project. You should play the game during your project in retrospectives or as post-mortem analysis after.
The presentation contains posters illustrating "The Drama Game”.
“The Drama Game” is a story telling game to create within all stakeholders - customer & project team - a shared understanding of crucial situations ("incidents") happened in a product development project. You should play the game during your project in retrospectives or as post-mortem analysis after.
Product Owner Challenge is an agile game w/ Lego bricks. Its about challenging the product development to communicate clear objectives, requirements, and vision.
Slidedeck contains playing instructions, examples and further info.
Short introduction to Innovation Games® and examples of their application in Lean and Lean StartUps: Reduce Waste, Value Stream Mapping, and Minimum Viable Product.
Xing User Group Agile Rhein-Main: Innovation Games™Michael Tarnowski
Michael Tarnowski from Plays-In-Business.com gave a presentation of a Teaser Event on Innovation Games™ for the Xing User Group Agile Rhein-Main (https://www.xing.com/net/pria952a0x/agilerheinmain/).
What are Innovation Games and for what you can use them... Questions over questions... Here you get the answers!
Presentation on Innovation Games ™ - What are Innovation Games and for what you can use them... Questions over questions... ;-)
Here you get the answers!
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
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United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
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Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
[To download this presentation, visit:
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This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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3 Simple Steps To Buy Verified Payoneer Account In 2024
Metrics & KPIs. Tips To Setup Your Measurement Initiative Right.
1. www.plays-in-business.com
Metrics & KPIs.
Tips To Setup Your Measurement Initiative Right.
Picture Credit: newsong, Pixabay.com, https://pixabay.com/en/measuring-tape-inches-sewing-953422/
Michael Tarnowski, Plays-In-Business.com
2. www.plays-in-business.com
Metric Patterns & Anti-Patterns
Pattern Anti-Pattern
• Define the information needs and goals of
your measurement inintiative first.
• Do not ask for goals or purpose of the
improvements. – All metrics are arbitrary.
• Create a shared understanding of all
stakeholders involved.
• In any event, upper management has their
own views – which are mutually completely
incompatible.
• Derive from the needs and goals
measureable parameters which may provide
relevant data.
• Throw in your metrics right at the beginning.
– Goals and purposes are irrelevant (see 1).
• Metrics come last! – More important is
shared understanding of what and how to
measure.
• Metrics matter. – Do not ask for relevant
reasonable arguments.
• For each measure define upper lower
thresholds and corrective actions.
• Do not define any follow-up action for a
metric status change. – To develop any
potentially helpful action will exceed all your
organizational intellectual capacities.
• Metrics and KPIs are indicators only for
positive or trends in an organization. Ist up to
management to follow the trend or steer
against in a reaonable and controlled way.
• Nobody cares about reasonable follow-up
actions for a metric status change. –
Management is satisfied by immediate and
spontaneous reactions only. – The more the
best, since it shows business agility to react
fast as its best.
3. www.plays-in-business.com
Metric Patterns & Anti-Patterns
Pattern Anti-Pattern
• Take the simplest as possible metric. –
Remember, managers must understand
them unambigously. ☺
• Do not thrive for simplicity. – Metrics
stemming from rocket science attest you
being an egg head.
• Present reports and visuals in an easy to
undesrtanding way.
The readers should imidiately be able to
chosse the corrective action needed; not to
ask for help in interpreting the data.
• Only the dashboards must be appealing,
nothing else. – Nobody questions the data if
they are presented in a colorful way (see 1.).
• Management is not by colors or charts;
management is by insights
• Data and information relevance are totally
overestimated (see 1.).
• Don‘t use one measure to satisfy multiple
needs. – Needs are specific, so data must be
specific.
• Satisfy the finance guys only. – KPIs are
always only about money and costs only.
• It depends… ☺ • KPIs about scheduling and timing are
neglectable. – The customer is always willing
to negotiate.
• It depends… ☺ • Totally ignore the KPIs about quality. –
Forget these pale QA guys sitting in the
cellar, in a dark room. They only whine at the
end when nothing can't be rescued anymore.
The finance guys instead, are more
important since they whine right from the
beginning.
4. www.plays-in-business.com
Metric Patterns & Anti-Patterns
Pattern Anti-Pattern
• Use less metrics as possible. – Collecting
data takes ist time, reporting takes ist time,
understanding the reports takes ist time…
• Define as much KPIs as possible. – All
people preaching KPI modesty are wimps.
The more your dashboard is cluttered the
best and you will be the Hero.
• Measuring and collecting data are additional
work coming on top. Make the workflow
seamless as possible and automate most as
possible.
• Make the data collecting process for your
employees as cumbersome as possible. –
Your employees will love you when they
waste half of their work time in addition to
only measure useless data nobody cares
about.
• Make the workflow seamless as possible and
automate most as possible.
Each superflous hand-overs might introduce
potentisl errors.
• Introduce as many incompatible KPI tracking
tools as possible. – Your employees will be
happy being waked up from their office naps
and be asked to synchronize tediously
inconsistent values coming from
incompatible data sources
5. www.plays-in-business.com
■ “A Key Performance Indicator should immediately
inform the reader how the business is performing
which in turn should suggest what actions need
to be taken.”– http://unilytics.com
■ “A Key Performance Indicator is a calculated metric
showing progress of an established tactic.” – http://unilytics.com
■ “A KPI is something that can be counted and
compared; it provides evidence of the degree
to which an objective is being attained over a
specified time.” – http://intrafocus
■ “A Key Performance Indicator (KPI) is a
measurement with a given purpose.”
■ “Key Performance Indicators (KPIs) are a set of
quantifiable measures that a company or industry
uses to gauge or compare performance in terms
of meeting their strategic and operational goals.”
https://pixabay.com/en/measurement-millimeter-centimeter-1476919/
Definitions of “Key Performance Indicators”
6. www.plays-in-business.com
Measurement, Metrics, and Key Performance Indicators
A measurement is a quantitative
observation of one of the following:
■ something relevant to the
decision you have to make;
■ information you have to report
regarding the progress (of
development);
■ effects of progress
improvement.
A metric is a recurring measurement that has informational, diagnostic,
motivational, or predictive power of some kind..
https://pixabay.com/en/diet-calorie-counter-weight-loss-695723/
7. www.plays-in-business.com
A Key Performance
Indicator (KPI) is a
measurement with a given
purpose.
David Nicolette 2015: Software Development Metrics.
A Key Performance Indicator should immediately inform the reader how the
business is performing which in turn should suggest what actions need to be taken.
Measurement, Metrics, and Key Performance Indicators
https://pixabay.com/en/diet-calorie-counter-weight-loss-695723/
8. www.plays-in-business.com
Key Performance Indicators
■ Key Performance Indicators (KPIs)
are a set of quantifiable measures that
a company or industry uses to gauge
or compare performance in terms of
meeting their strategic and operational
goals.
■ From the business perspective KPIs
have to be directly linked to overall
company goals.
■ From the technical perspective –
data collection – they are
measurements to define and track
specific business goals and objectives.
Graphic adapted from http://unilytics.com/kpi-analysis/
Goal
Measures
Metrics
KPI
9. www.plays-in-business.com
Logical Structure Of Decision Making
• Understanding what to measure
begins by appreciating the
logical structure of decision
making.
• It starts by knowing the concepts
and inter-relationship of goals,
strategies, critical success
factors, tactics and KPIs (key
performance indicators).
flickr: https://www.flickr.com/photos/webel/136757257/
A, B, or C ?
10. www.plays-in-business.com
Logical Structure Of Decision Making
https://pixabay.com/de/planung-planen-anpassung-620299/
• A Goal is “what” you want to
accomplish. It is a broad desired
outcome rather than how you will get
there.
• A Strategy is “how” you plan to
achieve the goal. It is a long-term plan
of actions.
• A Critical Success Factor (CSF) is
vital to achieve the strategy. It is
always a measurable amount set over
a defined period of time.
• A Tactic is a short-term action, tasks,
taken to achieve a critical success
factor. For every critical success
factor, there are a number of tactics.
12. www.plays-in-business.com
Logical Structure Of Decision Making
Goal Strategy CSF Tactic KPI
http://unilytics.com/key-performance-indicators-a-measure-of-success/
(Critical Success Factor)
13. www.plays-in-business.com
Setting Up Key Performance Indicators
1. Set a Goal
First, the problem needs to be stated.
Goals are only meaningful if they are
well defined and a clear plan of action
is outlined to achieve them.
Goal
KPI
14. www.plays-in-business.com
Setting Up Key Performance Indicators
2. Identify Critical Success
Factors to achieve the Goal
Critical Success Factors represent key
performance areas (things that must be done) that
are vital for an organization to accomplish its stated
goals.
Without such factors, an organization has no
roadmap by which to navigate their operations.
Stating CSFs allows management to stay on course
instead of being distracted by daily non-strategic
problems.
The purpose of the CSF is to make sure we are on
track.
As long as we meet the CSF, we should achieve the
stated goal; it’s not guaranteed, but likely.
Goal
KPI
15. www.plays-in-business.com
Setting Up Key Performance Indicators
3. Set CSF Targets
Specific targets for Critical Success
Factors (CSFs) need to be achieved
over a set period of time and measured to
make sure the organization is on track.
This informs if the organization is
executing successfully, but because they
are summaries of many activities, they
don’t provide precise insight or direction
into the Actions required to improve the
results.
Goal
Strategy
Critical Success
Factors
Tactic
Measures
Metrics
KPI
16. www.plays-in-business.com
Setting Up Key Performance Indicators
4. Identify Specific Actions
Very specific Actions need to be
identified to achieve the CSF of
creating all these new units and in the
required timeframe.
That means that if we are missing the
targets we set for the actions,
everyone knows what needs to be
done differently.
Likewise, we can then identify
activities that are particularly
successful in driving results.
Goal
Strategy
Critical Success
Factors
Tactic
Measures
Metrics
KPI
17. www.plays-in-business.com
Setting Up Key Performance Indicators
5. Measure and Track Actions
using Key Performance
Indicators
KPIs are calculated metrics of the Actions
we are taking and monitoring them allows
us to make corrections. The plan is that if
we meet or exceed our KPIs, we will meet
or exceed the CSF and ultimately our goal.
These Actions are considered to be critical
to the success of your organization. KPIs
are important because they directly track the
work being done.
Goal
Strategy
Critical Success
Factors
Tactic
Measures
Metrics
KPI
18. www.plays-in-business.com
Key Performance Indicator Types 1/3
Process KPI – measure the
efficiency or productivity of
a business process;
e.g. Cycle Time Of Coding,
Shipping Days Of Order
Input KPI – measure assets
and resources invested in
or used to create business
result; e.g. Project Budget
Output KPI – measure financial an non-financial results of
business; e.g. Revenue, Nmbr Of New Customers Acquired.
https://pixabay.com/en/balance-swing-equality-measurement-2108022/
19. www.plays-in-business.com
Key Performance Indicator Types 2/3
■ Leading KPI – measure
activities having significant
effect on future performance.
■ Lagging KPI – measure
impact of an event in the past
(mostly failure).
■ Outcome KPI – measure
overall result or impact of
business activity; past
oriented.
https://pixabay.com/en/balance-swing-equality-measurement-2108025/
20. www.plays-in-business.com
Key Performance Indicator Types 3/3
■ Qualitative KPI – measure a
descriptive characteristic, an
opinion, a property or a trait:
e.g. Employee Satisfaction
through surveys which gives
a qualitative report.
■ Quantitative KPI – a measurable
characteristic, resulted by
counting, adding, or averaging
numbers.
E.g. Units per man-hour.
https://pixabay.com/en/balance-swing-equality-measurement-2108024/
21. www.plays-in-business.com
Building Blocks Of KPIs
■ Goal – Broad desired outcome. It states “what” we
want to accomplish but not “how.” It states where
you are going rather than how you will get there.
■ Critical Success Factor – Something that is
vital to successfully achieve the Goal.
■ Phase – Stage or state we are addressing. For
SW-Development, it’s one of the phases:
Requirements Elicitation, Design, Coding,
Component and System Testing.
■ Segment – Targeted audience or function being
focused on. For SW-Development, it can be based
on existing customers, plant / production, field, etc..
■ Approach – Short-term plan taken to achieve a
critical success factor. It’s what you do, and for every
critical success factor, there are a number of approaches.
■ Action – Precise activity or business process required to be performed to attain stated goal.
■ Key Performance Indicator – Calculated value that is critical to the business and to attaining
stated goal. Should be expressed as Ratio, Average, Percentage or Rate.
■ Target – Value assigned to Metric or KPI.
http://unilytics.com/not-the-top-10-kpis/
https://pixabay.com/en/target-goal-success-dart-board-1955257/
23. www.plays-in-business.com
Must have
Should have
Could have
Won’t have
Guidelines to Prioritize Goals, KPIs, …
https://pixabay.com/get/e834b8062bf7013ed1534705fb094491e777e5d104b0154893f9c27ca0e9b2/russia-1199330_1920.jpg
24. www.plays-in-business.com
Guidance For KPIs – The 3A
If you are forced to define KPIs and Metrics the 3 A’s are
a guidance:
■ Actionable Metrics – actionable metrics tell the
story of what action needs to be taken to meet your goals.
■ Accessible Metrics – this means metrics that
make sense. A smart metric needs to be accessible to
pretty much everyone: precise enough for the
technical team, visual enough for marketing, and
grounded in real-world behavior for any member of
your team to understand.
■ Auditable Metrics – Auditable metrics mean that ideally any member of your
team could find the source data and reproduce your report.
This means simple report generation.
https://pixabay.com/de/zentimeter-ausr%C3%BCstung-zoll-15656/
25. www.plays-in-business.com
KPIs – Monitoring Specific Activities
■ Things like increasing revenue or profit,
or improving customer service are not
performance indicators – they are not
specific enough to tell you what to
change if the numbers are not met.
■ They are instead Results Indicators.
■ They show how we are doing due to
many activities.
KPIs should monitor only very specific activities,
so when the values change you know what to do about it.
https://pixabay.com/de/entscheidung-hilfe-antwort-1548097/
26. www.plays-in-business.com
Select KPIs Based On Your Goals
■ There are potentially thousands of
KPIs and various nuances of each
leaving you with an unlimited number.
■ KPIs that work for one organization
may not work for yours. The factors
impacting their performance may or
may not apply in your situation.
■ A well-known and established
approach to define KPIs is the Goal-
Question-Metric method by Basili and
Weiss.
http://unilytics.com/not-the-top-10-kpis/
https://pixabay.com/en/mindmap-brainstorm-idea-innovation-2123973/
27. www.plays-in-business.com
How To Define KPIs – Goal Question Metric 1/3
Goal-Question-Metric-Approach (GQM) has been
proposed 1984 by Basili and Weiss in NASA projects.
GQM is based on two assumptions:
• Measurement programs should be “goal-
based” not “metrics-based”, and
• The way both goals and metrics are defined
should be customized to an individual
organization’s needs.
28. www.plays-in-business.com
• Goals – They define what the organization
wants to improve
• Questions – They refine each goal to a
more quantifiable way.
• Metrics – They indicate the measurements
required to answer each question.
How To Define KPIs – Goal Question Metric 2/3
29. www.plays-in-business.com
How To Define KPIs – Goal Question Metric 3/3
Image based on V. Basili, G. Caldiera, D. Rombach: “The Goal Question Metric
Paradigm“, 1994
Conceptual Level
Measurement goals involve products,
processes, and/or resources
Quantitative Level
Associated with every question is a set of
data – either subjective or objective – that
helps to provide a quantitative answer.
Operational Level
Question try to characterize the object of
measurement in the context of a qualified
issue from a particular viewpoint
Goal 1 Goal 2
Q1 Q2 Q3 Q4 Q5
M1 M2 M3 M4 M5 M6
Definition
AnalysisandInterpretation
31. www.plays-in-business.com
Abuse Metrics – Vanity Metrics
Vanity metric make you feel good, but
they don’t offer clear guidance for what
to do.
-- Eric Ries, The Lean Startup
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Abuse Metrics – Vanity Metrics
■ Vanity metrics – data that
are easily manipulated, are
biased toward the short-term,
often paint a rosy picture of
program success, or do not
help campaigners make wise
strategic decisions.
■ Vanity metrics are things that
look great but say nothing about
business results. They are
measurements and calculations
that are designed to be impressive
as opposed to actionable or relevant
to core business goals such as revenue and operating margins.
Example:
Nmbr of Tests performed – can easily be manipulated by running “similar” tests.
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Vanity vs. Actionable: What’s the difference?
Vanity metrics: Numbers or
stats that look good on paper, but
don’t really mean anything
important.
vs
Actionable metrics: Stats that
tie to specific and repeatable
tasks you can improve and to the
goals of your business
https://pixabay.com/en/action-art-backlit-doors-indoors-1854117/
Eric Ries 2010: Entrepreneurs: Beware of Vanity Metrics, Harvard Business Review, February 08, 2010,
https://hbr.org/2010/02/entrepreneurs-beware-of-vanity-metrics
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Misuse of KPIs 1/4
■ Driving incentives, not learning. “… the
primary function of KPIs is to promote
organizational learning, a mission that will
certainly be undermined when indicators
are used for incentives” – Kevin Kaiser,
INSEAD,
http://www.iedp.com/articles/destroying-value-
and-the-misuse-of-indicators/
■ Missing the forest for the trees. One
common misuse of a KPI is when the KPI,
which is the means, becomes more
important than the end. "The KPI is the
thermometer. It is not the temperature".
KPI is just an indicator of a performance,
not THE performance.
■ Maslow's Hammer. Maslow said “if the only tool you have is a hammer, you tend to treat
everything as if it were a nail".
There's an over-reliance on KPIs as the tool to fix almost everything.
https://www.linkedin.com/pulse/7-most-common-misuses-key-performance-indicators-kpis-lama-a-makarem
https://pixabay.com/en/fear-domination-bully-victim-981384/
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Misuse of KPIs 2/4
■ A Sea of metrics. Do we really need so many
KPIs to measure the same results? Having too
many KPIs defeats the meaning of the word
"Key" in KPI and just adds confusion and wastes
time. – “More is less”
■ Over-complication. Do I really need a
complicated KPI to tell me how some things are
obviously doing? Tools are produced to help
finding solutions rather than creating problems.
■ Mixing up the "Cause" with the "Effect". Is a
KPI a cause or an effect? Is a KPI a question or
an answer? KPIs are just the start, they’re not
the end. You can't stop once you find them. You
only start there.
https://pixabay.com/en/fear-domination-bully-victim-981384/
https://www.linkedin.com/pulse/7-most-common-misuses-key-performance-indicators-kpis-lama-a-makarem
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Misuse of KPIs 3/4
■ Not starting with the end in mind. What results
are we really interested in measuring? Are we
measuring the right thing? And if so, are we
using the right KPI?
■ Forgetting that KPIs have owners. Behind
every KPI, there is a team driving it. The people
are more important...take care of them first so
they can take care of their KPIs. KPIs are means
to identify potential improvements and should
result in 'performance improvement' initiatives,
rather than a tool to beat up or penalize
someone.
https://pixabay.com/en/fear-domination-bully-victim-981384/
https://www.linkedin.com/pulse/7-most-common-misuses-key-performance-indicators-kpis-lama-a-makarem
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Misuse of KPIs 4/4
■ Pushing employees too hard towards working for
KPIs (KPI itself becomes a target)
■ Linking incentives to the KPIs and not validating
them later
■ Inventing KPIs on the top and mandating them to
the bottom, skipping the discussion phase
■ Setting the target value for an indicator, but not
discussing an action plan
■ Focusing on the destination, but forgetting about
quality/value aspect. https://pixabay.com/en/fear-domination-bully-victim-981384/
https://www.linkedin.com/pulse/7-most-common-misuses-key-performance-indicators-kpis-lama-a-makarem
38. www.plays-in-business.com
Measuring Can Be Hazardous
In using metrics, be aware of the following potential pitfalls:
■ The KPI inflation – using to many KPIs.
■ The „Pick-a-KPI“ trap – adopting KPIs without
considering context.
…and be aware, the usage using of metrics is additionally
guided by three very important laws:
“When a measure becomes a target, it ceases to be a
good measure.”
– Goodhart's Law
“Measures tend to be corrupted / gamed when used
for target-setting.”
– Campbell's Law
“Monitoring a metric may subtly influence people to
maximize that measure.”
– Hawthorne Effect aka The Observer Effect
https://pixabay.com/de/fehler-mouse-trap-t%C3%B6richt-verletzt-2344150/
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Mind The KPI Inflation
■ You should not begin with all the metrics you
might need. – Start with only one or two.
■ Drop a metric when it outlives its usefulness.
■ Don't accumulate a huge set of metrics, lest
you frustrate your teams.
■ Consider an expiration date for each metric
on which to evaluate whether you will
continue to use it.
Define less KPIs as possible
https://pixabay.com/en/measure-scale-double-m-accuracy-629659/
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Mind The „Pick-a-KPI“ Trap
■ Don’t fall into the trap of picking your
KPIs because they are the ones used
by others or on someone’s Top 10 KPI
list.
■ KPIs need to be consistent with your
particular needs and always driven by
your unique business goals.
■ Picking from a “list” assumes your
activities are the same as another
company’s for a given goal.
■ They will always be different. https://pixabay.com/en/checklist-clipboard-questionnaire-1622517/
Don’t use KPIs without considering their context
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Goodhart's Law
“When a measure
becomes a target,
it ceases to be a
good measure."
- Charles Goodhart, British economist
“Goodhart’s law […] states that when a feature of the economy is picked as an indicator of the economy, then it inexorably
ceases to function as that indicator because people start to game it.”
Mario Biagioli, (12 July 2016). "Watch out for cheats in citation game". Nature. 535 (7611): 201. doi:10.1038/435201a.
PMID 27411599.
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Campbell's Law
Once a metric has
been identified as a
primary indicator for
success, its ability to
accurately measure
success tends to be
compromised.
- Donald T. Campbell, American social scientist
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Hawthorne Effect
Individuals modify
their behavior in
response to their
awareness of being
observed.
The term was coined in 1958 by Henry A. Landsberger, when analyzing earlier experiments from 1924–32 at the
Hawthorne plant (a Western Electric factory outside Chicago).
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Further Reading
■ David Nicolette 2015: Software Development Metrics. Manning Publ., 2015.
■ Christopher W. H. Davis 2015: Agile Metrics in Action. Manning Publ., 2015.
■ Daniel S. Vacanti 2015: Actionable Agile Metrics for Predictability. An Introduction. Leanpub.
■ Encyclopedia of Software Development Life Cycle Metrics,
https://sites.google.com/site/sdlcmetrics/,sdlcmetrics.org, http://www.sdlcmetrics.org/
■ KPIlibrary.com/, http://kpilibrary.com/
■ Victor Basili, David Weiss 1984. A Methodology for Collecting Valid Software Engineering Data.
IEEE Journal Transactions on Software Engineering, Vol. SE-10, No6, Nov. 1984.
https://www.cs.umd.edu/~basili/publications/journals/J23.pdf
■ Victor Basili, Gianluigi Caldiera, Dieter Rombach 1994: Goal Question Metric Paradigm, John Wiley,
1994. https://www.cs.umd.edu/~basili/publications/technical/T89.pdf
■ Rini van Solingen, Ergon Berghout 1999: The Goal Question Metric - A Practical Guide For Quality
Improvement Of Software Development, McGraw Hill, 1999.
https://courses.cs.ut.ee/MTAT.03.243/2015_spring/uploads/Main/GQM_book.pdf
■ Eliyahu Goldratt 1984: The Goal: A Process of Ongoing Improvement. North River Publ., 2014.
■ Eric Ries 2010: Entrepreneurs: Beware of Vanity Metrics, Harvard Business Review, February 08,
2010, https://hbr.org/2010/02/entrepreneurs-beware-of-vanity-metrics
■ Alexander Novkov 2017: Actionable Analytics for Lean Project Management. infoQ Jun 3 2017.
https://www.infoq.com/articles/actionable-analytics-lean
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