This document discusses performance management systems (PMS) and key performance indicators (KPIs). It provides an agenda for a workshop on PMS and KPIs, including learning outcomes. The document defines KPIs, discusses why they are important and how to develop them. It provides examples of business KPIs and different types of KPIs, such as leading vs lagging, qualitative vs quantitative, and efficiency vs effectiveness. The goal is to help organizations track progress against strategic goals using objective metrics rather than subjective judgments.

1. Performance Management
System (PMS)
Prepared by :Mohamed M.Marzouk
HR Manager I HR Trainer I HR Advisor

2. What do you know about PMS?
Give a score
1-2-3-4-5

3. Workshop Agenda & Learning
Outcomes

4. Workshop Agenda & Learning
Outcomes

5. Why KPIs are important … ?

6. Subjective Judgment Vs.
Objective Measurement
• Why should we not rely on personal judgment?

7. The most important sources and causes of error in
judgments and personal assessments?

12. What is KPI definition?
1. Simply defined, KPIs are measures that a sector
or organization uses to define success and track
progress in meeting its strategic goals.
2. Key Performance Indicators (KPIs) are
quantitative and qualitative measures used to
review an organization's progress against its
goals.
3. KPIs provide measures that focus on those
aspects of organizational performance that are
the most critical for the current and future
success of the organization.

13. What is KPI definition?

14. The Story Behind KPIs

15. The Story Behind KPIs

16. WHAT ARE KPI’s FOR?
ACTUAL v TARGET
• STRATEGIC LEVEL
• OPERATIONAL LEVEL
• INDIVIDUAL LEVEL
TO DRIVE
IMPROVEMENT BY FACT
NOT GUESSWORK
A CONTINUAL HEALTH
CHECK FOR THE BUSINESS
TO CONNECT THE
CUSTOMER TO THE
PROCESS
TO HELP PRIORITISE
IMPROVEMENT
ACTIVITY

17. Examples of Business KPI’s
• Safety Performance
• Quality Performance
• Cost Performance
• Delivery Performance
• People Performance

18. How To Develop a KPI …. ?

19. How To Develop a KPI …. ?
Example
.1
‫اتخرج‬ ‫ما‬ ‫اول‬ ‫وزير‬ ‫حبقي‬ ‫أنا‬
.
.2
‫المشتري‬ ‫الي‬ ‫حسافر‬ ‫القادم‬ ‫الصيف‬ ‫اجازة‬ ‫في‬ ‫انا‬
.
.3
‫وانجح‬ ‫حذاكر‬ ‫الجامعة‬ ‫ادخل‬ ‫لما‬ ‫أنا‬
.
.4
‫القادم‬ ‫مارس‬ ‫شهر‬ ‫االليتس‬ ‫أمتحان‬ ‫حدخل‬ ‫انا‬
.
.5
‫وزني‬ ‫حنزل‬ ‫انا‬
.
.6
‫وزني‬ ‫حنزل‬ ‫انا‬
30
‫شهر‬ ‫كل‬ ‫السنة‬ ‫اخر‬ ‫علي‬ ‫كيلو‬
3
‫كيلو‬
.

22. How To Develop a KPI …. ?
Components Formula
1. KPI
2. Time Frame
3. Responsibility
4. Strategic Objective
5. Target

23. How To Develop a KPI …. ?

24. How To Develop a KPI …. ?
Quiz
“Increasing customer retention by increasing market
share % by 20% by the end of FY under sales director
leadership.”
- Define the Following:
KPI :
Time Frame :
Responsibility (Owner) :
Strategic Objective :
Target :

25. How To Develop a KPI …. ?
Quiz
“Increasing customer retention by increasing market
share % by 20% by the end of FY under sales director
leadership.”
- Define the Following:
KPI : % market share.
Time Frame : FY.
Responsibility (Owner) : sales director leadership.
Strategic Objective : Increasing customer retention.
Target : 20%.

26. How To Develop a KPI …. ?
Quiz
“Increasing market share to 28 % by the end of FY
under Marketing Director.”

27. How To Develop a KPI …. ?
Quiz

29. Types of KPI’s

30. LEADING VS LAGGING KPIS

31. LEADING VS LAGGING KPIS

32. QUALITATIVE VS QUANTITATIVE
KPIS
• Qualitative data - descriptive data, narrative
• Interviews • Focus groups • Observation sessions
• Quantitative data - numbers and statistics
• Calculation • Surveys

33. EFFICIENCY VS EFFECTIVENESS
KPIS
• Effectiveness = the extent to which a desired
outputs or outcomes is achieved.
Do the right thing!
• KPI examples:
$ Sales
# Customer satisfaction
% Index Compliance with quality standards

34. EFFICIENCY VS EFFECTIVENESS
KPIS
• Efficiency = extent to which time, effort or cost are
well used for the desired results.
Do things right!
• KPI examples:
$ Cost per call
# Time to process requests
% Equipment utilization rate