CERTIFIED

KEY PERFORMANCE INDICATORS

PROFESSIONAL
TOWARDS THE USE OF A RIGOROUS
KPI MEASUREMENT FRAMEWORK

© The KPI Institute 2020

 IN WORDS

VISION
ADDED VALUE
Empower the world to Offering more through
achieve performance innovation and value for
excellence money
BEST KNOW-HOW
Through the integration of
multidisciplinary global
expertise
COMMON SENSE
VALUES Fairness, modesty and
MISSION friendship
Provide integrated
performance DATA AND FACTS
Expertise and opinions based
solutions
on specific data
through rigorous
research, educational EFFICIENCY
programs and Key principle for prioritization
advisory services and getting things done

© The KPI Institute 2020 2

 IN NUMBERS
“Empower the world to achieve performance excellence”

2004 235+ 16+ 70+

YEAR OF research reports years spent on researching staff
ESTABLISHMENT published to date KPI best practice members

The KPI Institute is a leading global 4 OFFICES

research institute specialized in
business performance. It operates Australia Europe
research programs in 12 practice Middle East South East Asia
domains, ranging from strategy and
KPIs to employee performance and
from customer service to innovation
6 CONTINENTS On which we delivered
trainings
performance.
Insights are disseminated through a
variety of publications, subscriptions 35 global partner
organizations 59 countries where we delivered
educational programs 128 countries with
research clients
services and through a knowledge
platform available to registered
members. Support in deploying these 21,259 56,627 98,769 1,181,697
KPI examples Companies Members on our Professionals
insights in practice is offered globally
published registered online communities reached
through training and advisory
services.

© The KPI Institute 2020 3

 KEY RESOURCES

© The KPI Institute 2020 4

 PUBLICATIONS

TOP KPIs REPORTS

FUNCTIONAL AREAS INDUSTRIES

77 70
Details at: marketplace.kpiinstitute.org/publications.html

© The KPI Institute 2020 5

 EDUCATION
ADVANCE YOUR CAREER WITH THE KPI INSTITUTE`S
CERTIFICATIONS:
Certified KPI Professional
Certified Strategy and Business Planning Professional

Certified Performance Management Professional

Certified Balanced Scorecard Management System Professional

Certified Employee Performance Professional

Certified Data Analysis Professional

Certified Data Visualization Professional

Certified Benchmarking Professional

Certified Supplier Performance Professional

Certified Personal Performance Professional

Certified Customer Service Performance Professional

Certified Innovation Performance Professional

Certified Performance Audit Professional

© The KPI Institute 2020 6

SOFTWARE SOLUTIONS

We help you bring your

performance management
system implementation to life

Expert Advisory Services Configuration Services Quality Assurance

Matching your needs with an Support in deploying the Support and audit the project`s
appropriate software solution. solution of your choice. progress and ensure that the
end results are fit.

Examples of relevant software solutions

QuickScore by Spider Strategies: EPMS by KPISOFT: Pre-populated Excel Templates:

© The KPI Institute 2020 7

 OUR CLIENTS
In-house training and advisory services

Telecommunications Chemicals Public Authority

Aviation Utilities Financial Services

© The KPI Institute 2020 8

 OUR CLIENTS
Open Courses

Manufacturing Chemicals Public Authority

Aviation Healthcare Financial Services

© The KPI Institute 2020 9

CERTIFICATION PROCESS
The entire learning process is estimated to take around 40h, presented below:

Needs assessment Action plan Forum discussions

Recommended 1 week
1 10 11
Recommended within 3 days Recommended within 3 weeks after
before core-course after the core-course the core-course
Estimated duration: 0.5 h Estimated duration: 1 h Estimated duration: 0.5 h
Pre-course evaluation quiz After-course stage 12h
Webinar “Performance
12

Core-course stage 24h

Recommended 1 week 2 Certification Exam
Improvement Essentials”
before core-course 9 Recommended within 3 weeks after
Estimated duration: 0.5 h Estimated duration: 1h
the core-course
Pre-course stage 4h

Estimated duration: 1.5 h

Guidance and schedule Individual Learning Map
Recommended 1 week 3 8 and Exam preparation 13 Online presentation
before core-course Duration: 0.5h / day + 0.5 Recommended within 3 weeks after
prior to the exam the core-course
Estimated duration: 4 h
Forum introduction
Recommended 1 week
4 Participation at the live 14
Additional reading
before core-course 7 session course Recommended within 3 weeks after
Estimated duration: 0.5 h Duration: 4h /day, for 5 days the core-course
Estimated duration: 2 h
Expectations Pre-requisite reading Learning journal
Recommended 1 week Recommended 1 week Recommended within 3 weeks after
before core-course
5 6 before core-course 15 the core-course
Estimated duration: 0.5 h Estimated duration: 2 h Estimated duration: 3 h
The certification process is finalized only when you complete all of the 3 stages of the learning experience. You will receive:
• Certificate of Completion (soft copy): after completing pre-course activities and passing the Certification Exam;
• Certificate of Attendance (soft and hard copy): after participating at the 3 days of on-site training course;
• Certified KPI Professional diploma (soft and hard copy): after you have successfully completed all of the 3 stages of the learning experience.

© The KPI Institute 2020 10

CERTIFICATION PROCESS
The entire learning process is estimated to take around 40h, presented below:
Pre-course stage activities - have an estimated duration of 4h, as follows:
1. Needs assessment: complete a survey so that we identify your current level of interest and usage of a Performance
Management System– 0.5h;
2. Pre-course evaluation quiz: take a quiz to get an overview of the level of knowledge you have on the course topic - 0.5h;
3. Guidance and schedule: analyze a document presenting guidelines on how to maximize your learning experience
4. Forum introduction: introduce yourself on the forum and interact with the rest of participants from the course – 0.5h
5. Expectations: share your expectations regarding the training course on the forum – 0.5h
6. Pre-requisite reading: go through a series of documents to better understand the face to face training content – 2h

Core-course stage activities – have a total duration of 24h, as follows:

7. Participation at the live session training course: attend the 5 days of training course, 4h each day – 20h;
8. Individual Learning Map and Exam preparation: after each course session, 0.5 hours should be allocated to review the
materials and prepare for the following day. Prior to the exam, one final course review should be taken.
9. Certification exam: take and pass the online exam that contains 75 questions; necessary score to pass is minimum 50 - 1h

After-course stage activities, - have an estimated duration of 12h, as follows:

10. Action plan: create a plan for the actions and initiatives you intend to implement after the training-course - 1h;
11. Forum discussions: initiate a discussion and contribute in a discussion opened by another participant - 0.5h;
12. Webinar: watch the Performance Improvement Essentials webinar and share – 1.5h;
• 3 key learning points you got from the webinar
• 1 action you intend to take in order to improve your current activities
13. Online presentation: create and submit a short PowerPoint presentation to present your colleagues the knowledge you
have accessed during the training course (~30 slides) – 4h;
14. Additional reading: go through a series of resources to expand your content related knowledge - 2h;
15. Learning journal: reflect upon your 3 stages learning experience and complete a journal – 3h.
© The KPI Institute 2020 11
AGENDA
DAY 1 DAY 2 DAY 3

1 The World of KPIs 4 KPI Taxonomy 5 KPI Selection

2 Understanding KPIs 3 KPI Typology 6 KPIs in Context

DAY 4 DAY 5

10 Data Visualization
7 KPI Documentation

Working with Targets Data Gathering & Working

8 9 with data custodians

© The KPI Institute 2020 12

LEARNING OBJECTIVES

• Differentiate between objectives, KPIs and initiatives;

• Apply best practice techniques to KPI selection;
• Understand KPI selection in different contexts;
• Document KPIs in a standardized template;
• Learn when and how to use benchmarking in target setting;
• Optimize the KPI activation and data gathering process;
• Enhance the use of data through effective data visualization.

© The KPI Institute 2020 13

LEARNING OBJECTIVES
Learn when
Differentiate Optimize the Enhance the
SESSIONS Apply best Understand Document KPIs and how to
between KPI activation use of data
practice KPI selection in a use
vs objectives,
techniques to in different standardized benchmarking
and data through
KPIs and gathering effective data
OBJECTIVES KPI selection contexts template in target
initiatives process visualization
setting
S1: The World of KPIs
S2: Understanding KPIs
S3: KPI Typology
S4: KPI Taxonomy
S5: KPI Selection
S6: KPIs Alignment
S7: KPI Documentation
S8: Working with
Targets
S9: Data Gathering
S10: Data Visualization

Performance Interpersonal Result

COMPETENCIES Measurement
Data Analysis
Relations
System Thinking
Oriented

© The KPI Institute 2020 14

AGENDA

1 The World of KPIs 1. Challenges in performance measurement

2. The value added by KPIs
3. Organizational levels
4. KPI concept map
5. Governance

Key Learning Points

1. Identify main challenges in performance measurement;

2. Understand the role of business performance measurement systems;
3. Acknowledge 6 arguments to get buy-in for a KPI implementation project.

© The KPI Institute 2020 15

 CHALLENGES IN PERFORMANCE MEASUREMENT
Which is the most challenging aspect of working with KPIs in your
organization?

KPI selection 32%

KPI data gathering 28%

KPI target setting 19%

KPI analysis 14%

KPI documentation 5%

KPI data vizualisation 3%

Source: The KPI Institute (2016)

© The KPI Institute 2020 The

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PERFORMANCE MEASUREMENT VS PERFORMANCE
MANAGEMENT
Performance Measurement = Performance Management =
evaluation and assessment of results. taking action based on the results of the
evaluation to ensure targets achieved.

1. Sub-process of performance 1. The overarching discipline that deals

management with performance.
2. Focuses on the 2. Reflects the approach one entity has
identification of KPIs towards performance
tracking of KPIs 3. Includes sub-processes such as:
communication KPIs results • The formulation of a plan
• Actively monitoring
implementation
• Readjusting the plan
• Performance measurement
• Capability development

© The KPI Institute 2020 The

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THE VALUE ADDED BY KPIS
Improvement

Clarity Focus
Communication

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THE VALUE ADDED BY KPIS
CLARITY • Provide a detailed numerical view of which are the desired results aimed to be achieved

• Facilitate line of sight by mapping contribution to success across organisational levels

FOCUS • Convey what matters

• Convey what requires attention

IMPROVEMENT • Objectively evaluate the level of achievement of desired results

• Readily available data which accelerates corrective action initiation

ENGAGEMENT • Lead to a sense of ownership through responsibility and accountability

• Motivate in achieving better results
• Contribute to building a performance culture

COMMUNICATION • Provide common understanding of the numbers that matter

• Enables precise stakeholder communication
• Demonstrate interest and ability to use state of the art management concepts

LEARNING • Enable comparison of results in time, to reflect trends

• Identify opportunities by comparing to others
• Lead to a better understanding of the business

© The KPI Institute 2020 The

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MAIN ROLES OF BPM SYSTEMS

70%
59%
60%
50%
41% 41% 41%
40% 35%
29%
30% 24%
20% 18% 18%
12% 12%
10% 6% 6% 6%
0%

Source: Adapted from Franco-Santos, M., Kennerley, M., Micheli, P. et al (2007)

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MAIN FEATURES OF BPM SYSTEMS

60%
53%
50%

40% 35%
29%
30% 24%
20%
12% 12% 12% 12%
10%

0%

Source: Adapted from Franco-Santos, M., Kennerley, M., Micheli, P. et al (2007)

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MAIN PROCESSES OF BPM SYSTEMS
60%
53%
50%

40%
29% 29%
30%

20% 18% 18%

12% 12% 12% 12% 12%
10%

0%

Source: Adapted from Franco-Santos, M., Kennerley, M., Micheli, P. et al (2007)

© The KPI Institute 2020 The

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TERMS & TOOLS LINKED TO “PERFORMANCE”
Budgets
Communications
Dashboards
Discussions
Forums
Goals

KPIs A better structure, alignment, integration

Meetings
Objectives and use of what is already in place is the
Performance reviews answer to improve performance
Plans
Projects
management practices.

Reports
Rewards
Scorecards
Targets
Technology
Training

© The KPI Institute 2020 The

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INTEGRATION OF TOOLS WITHIN A PERFORMANCE
MANAGEMENT SYSTEM
Organizational and
Individual Level
Departmental Level

Individual performance
System Map
plans
Desired State of
Evolution Performance
evaluations
Strategy Map
Performance
conversations
Performance Scorecard
Organisational KPI
Catalogue Personal Level
Portfolio of Initiatives
Personal performance
Dashboard plans
Performance review
meetings Performance reviews

Source: http://commons.wikimedia.org/wiki/File:Fleischwolf-zerlegt.jpg
Photo taken by: Kku, Modified by: Rainer Zenz

© The KPI Institute 2020 The

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SYSTEM INTEGRATION

ORGANIZATIONAL STRATEGY

INTEGRATED PERFORMANCE
MANAGEMENT SYSTEM OUTCOMES

OUTCOMES

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 IDENTIFY PERFORMANCE MANAGEMENT TOOLS
Match Description No. Tool
80% 1 Goal
# Employees 2 KPI
% Customer satisfaction 3 Initiative
Customer Service Development Program 4 Metric
Complete 50% of the trainings by 30 June 5 Milestone
Identify key competencies to improve for Customer
6 Mission Statement
Service representatives
Integrity 7 Program
Increase customer satisfaction 8 Objective

Growth for the business 9 Target

Quality 10 Task
To be the world’s leading company, focused on
11 Value Driver
maximizing the value we provide to our stakeholders
Customer Service Training 12 Value Statement
To support long-term client partnerships, by
13 Vision Statement
delivering high quality services.

© The KPI Institute 2020 The

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PERFORMANCE TOOLS OVERVIEW

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ORGANIZATIONAL LEVELS
Organizational

• Overall
organizational Departmental
objectives

Team

• Departmental (operational) or sub- Employee

departmental (team) processes, aligned
to organizational strategy
• Performance
expectations aligned to
departmental and
organizational objectives

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LINKING BUSINESS OBJECTIVES TO DAILY
ACTIONS
Strategic level
• Performance management implemented
• Cascading objectives, KPIs and targets
• Executive engagement and buy-in

Operational level
• Performance management implemented
• Cascading objectives, KPIs and targets
• Constant feedback to higher and lower levels

Individual level
• Performance management implemented
• Understanding the impact of individual work upon the
organizational strategy

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PERFORMANCE MANAGEMENT SYSTEM ARCHITECTURE
Desired State of Strategy Map Risk Log
Evolution
Budget
Current State
Portfolio of Performance
Performance Report
Initiatives Scorecard

Environmental
Scan Initiative Description KPI Description

Project Status Report KPI Trend Analysis

Mandate

Performance
Dashboard

KPI Description

KPI Trend Analysis

Source: The KPI Institute (2020) Individual Performance Plans

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1. DESIRED STATE OF EVOLUTION
Vision
To play a pivotal role within the organization general setting by nurturing a culture of performance through the development of cost effective and result
oriented HR programs.
Desired State
2012 Target Achievements
100% HR processes 80% Internal customer
95% On-time delivery of HR service requests
optimized satisfaction
Projection into the external environment
Relationships Brand
Value Added We are recognized among the
• We partner with specialized
• We contribute to the optimization of companies that provide excellent
recruiting and training companies
resources and improved service delivery working environments.
to deliver value added services.
Key Successful factors / Value Drivers / Internal Capabilities
Our customers Our Services
• Responsive to customer needs – We understand and partner • Efficiency of processes – We operate reliable, robust services,
with internal customers to address their needs. monitored for quality.
• Competitive services – Our effective solutions provide the • Process efficiency – All operational processes are mapped and
organization with good value for money. optimized to be cost efficient information systems
Our Shareholders Our People
• Value generation – Fiduciary responsibility, dividend generation • Management / leadership – Management is committed to
by unlocking value and generating savings. working on strategy implementation and coach / advice / guide
• Sustainable development – Strategic decisions are derived from • Individual and team capabilities – Capabilities are built through
responses to changes in the environment and long term thinking formal training programs and mentoring programs.
aimed to ensure we are sustainable and relevant. • Organizational culture – Culture of performance

Identity & Purpose

Mission To provide high quality HR services to support organizational value generation.

Safety: the creation and relentless maintenance of a healthy and safe work environment and safe work practices in everything we do.
Integrity: do the right things, do things right, say what you do and do what you say.
Honesty and openness in communication: ethical and honest dealings with all stakeholders and openness in communication on an informed and
need-to-know basis with due regard to privacy and confidentiality.
Customer focus: all applicants and employees are entitled to high quality customer service.
Excellence: develop and maintain high performance and proficiency standards in all services provided to both employees and applicant.
Competence: develop a talented and motivated workforce, mastered through education, mentoring, training and experience. Values
Source: The KPI Institute (2020)

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 2. STRATEGY MAP
Theme 1: Effectiveness – Fulfilling internal Theme 2: Efficiency – Achieve more with
Perspectives same or less resources
customers expectations
Maintain high levels
of internal customer
Customers satisfaction
Ensure high service
delivery standards

Provide good value

for money to the
Financial Maintain financial rigour organisation
in budget projection and
Seek efficiencies to
execution
minimise cost base

Internal Improve HR service

Processes delivery capability Optimize recruitment
and retention

Learning, Maintain high

Build an
Growth & performing Develop workforce environment that
Innovation motivated skills and fosters creativity
employees competences and innovation
Strategic Objectives

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3. PERFORMANCE SCORECARD
Perspective / Goal smartKPIs. Standard Previous Current Trend Target % Target Results Comments
Strategic Objectives / KPIs com # reporting Period Results complete
frequency Results
Customer - 1 Strategic Objectives / 2 KPIs
Maintain high levels of internal customer satisfaction
% Internal customer satisfaction with HR service levels sK2379 Q 85% 75% 90% 83%
# Complaints received sK2038 Q 0 1 k 0 50%
Financial - 2 Strategic Objectives / 3 KPIs
Seek efficiencies to minimise cost base
$ Cost per hire sK49 M 400.00 534.00 k 350.00 153%
$ Cost avoidance savings sK262 M 918.00 560.00 500.00 112%
Maintain financial rigor in budget projection and
execution
% HR budget variance sK479 M -5% -3% k 2% -157%
Internal Processes - 2 Strategic Objectives / 4 KPIs
Optimize recruitment
# Time to fill a vacant position sK688 M 25 19 15 79%
% Employees who leave the organization in the first 3 months sK688 M 15% 12% 10% 83%
Improve HR service delivery capability
% HR projects on time, on budget and according to specifications sk2863 M 62% 87% k 80%
60%
109%
77%
% HR processes optimized sk2284 M 84% 46%
People, Learning & Growth - 2 Strategic Objectives / 4
KPIs
Build an environment that fosters creativity and
innovation
# HR employee engagement index sK1836 Q 56 76 k 65 117%
# Ideas for new / improved service from HR employees sK4657 M 14 19 k 30 63%
Develop workforce skills and competences
# Certifications per HR employee sK4659 Q 2.18 1.35 2.00 68%
# Training hours per HR full time equivalent (FTE) sK7 M 14 8 8 100%

Source: The KPI Institute (2020)

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4. PERFORMANCE DASHBOARD
Human Resources Performance Dashboard
Period Sep 2020
Recruitment Retention
# Employment brand strength
% Staffing rate Target
Q4 11 87
99%
Q3 11 66 82% 89% 86% 80% 88% 76% # Average time to
Q2 11 64 66% 74% 56%
72%
56% 67% promotion
Q1 11 81
0
0
0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0 2016 2017 Q4 11 4
0 50 100 Q3 11 4
Q2 11 3
% Job offer acceptance rate # Applicant ratio Target
Q1 11 2
Q4 11 83% 10 0
Q3 11 65% 8 9 8
6 7 6 7 7 0
Q2 11 91% 4
Q1 11 55% 3 3 0
1
0% 0
0% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0% 0 2 4 6
0% 2016 2017

0% 50% 100%
Workforce profile
% Accession rate Target % Succession plans for key positions Target
19% 17%
14% 12% 14% 12% 10% 14%
9% 7% 9% 10% 9% 9% 7% 7%
10%
4% 6% 6% 4%
3% 3% 2%
0% 0%
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016 2017 2016 2017

Source: The KPI Institute (2020)

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5. KPI DOCUMENTATION FORM
Unique identification
KPI name # Employee satisfaction index
smartKPIs.com # sk5912 Organizational measure no. HRKPI044
Definition and usage
Definition Measures the employees' satisfaction and motivation level with aspects regarding the job and working environment: job responsibilities,
team and management, workplace and professional development.

Organizational area HR Balanced Scorecard perspective People / Learning & Growth

Calculation
Subordinate measures used for A = Index calculated based on responses to structured questioning to assess employee satisfaction and dissatisfaction reasons and whether
calculation they find their work motivating.
Calculation formula A, based on survey Trend is good when (figures are) Increasing

Focus
Purpose To indicate the level of satisfaction and motivation of employees, as high levels of satisfaction lower turnover rates, leading to higher
performance and superior customer service.
Strategic Objective objective 20
Measurement focus Satisfaction Measurement type Quantitative
Impact stage Outcome Indicator focus Leading
Level Strategic Presence at other levels Downstream
Data profile
Data capture period Spot Standard reporting frequency Q
Automation fit Not recommended Data integrity Low
Limitations The accuracy of data can be limited by respondents' subjectivity, as the data is based on survey results.
Targets
Target 0 Green threshold 85-100
Benchmarking fit Unsuitable Yellow threshold 65-85
Other intermediate targets targets 20 Red threshold < 65
Measure administration
Measure owner (title) HR Manager Data custodian (title) HR Analyst
Measure owner (name) John McKinney Data custodian (name) George Douglas
Current status Active Activation date (past or future) N/A
Data gathering
Lead time 14 days
Data source (DB name, System...) Survey report
Who maintains DS HR Department When is data produced End of quarter
Comments
Studies suggest a direct correlation between employee satisfaction and increased performance on customer satisfaction, even on financial results.
Source: The KPI Institute (2020)

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6. KPI REPORT FORM
KPI Record
KPI % Staffing rate

Data History

Trend chart 1.5

Increasing
1
0.5
0
Q2 Q3 Q4 Q1
11 11 11 12

Comments Decisions

Mar 2020 Mar 2020

Apr Apr

May May

Jun Jun

Jul Jul

Source: The KPI Institute (2020)

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7. PORTFOLIO OF INITIATIVES
Perspective / Objective / Initiative Org. Initiative Initiative Priority Status Budget Comments Start End No within
initiative no. owner coordinator Date date perspective
Customer
Maintain high levels of internal customer satisfaction
Quarterly evaluations of the HR department's Oi1 Anne Smith John High Proposed 50000 1
performance with other departmental managers McKinney
Monthly spot survey of staff to assess their Oi2 Anne Smith John High Approved 20000 2
satisfaction with the service provided by the HR McKinney
department
Finance
Seek efficiencies to minimize cost base
Award for savings generated by HR employees Oi3 Sally Smith Sally Smith High Proposed 100000 1
Maintain financial rigor in budget projection and
execution
No active initiatives in place
Internal Processes
Optimize recruitment
Employer brand promotion campaigns Oi4 George John High Approved 60000 1
Douglas McKinney
Improve HR service delivery capability
Process optimization initiative Oi5 George John High In 80000 2
Douglas McKinney progress
People, Learning & Growth
Build an environment that fosters creativity and
innovation
No active initiatives in place
Develop workforce skills and
competences
HR certification program Oi6 George John High In 45000 1
Douglas McKinney progress

Source: The KPI Institute (2020)

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8. INITIATIVE DESCRIPTION FORM
Unique identification
Initiative name Quarterly evaluations of the HR department's performance with other
departmental managers

Organizational initiative no. Oi1 Departmental initiative no.

Description

Organizational area Balanced Scorecard perspective Customer

Scope
Strategic objective
Current state
Desired state
Expected outputs
Measurement
KPIs
Current result Target result
Initiative administration
Initiative owner (title) Initiative coordinator (title)
Initiative owner Anne Smith Initiative coordinator John McKinney
Budget 50000 Budget source
Priority High Status Proposed
Implementation details
Start date End date
Major activities

Risk profile
Interdependencies
Comments

Source: The KPI Institute (2020)

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KPI MANAGEMENT FRAMEWORK CONCEPT MAP
Building
Blocks
Performance
Culture

Learning Decision
Making Performance
Hardware Governance Improvement
Initiative
Management

Data Reporting
Analysis
Data
Gathering

Data KPI
Software Visualization Documentation Processes Performance
Measurement
KPI
Selection

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KPI MEASUREMENT FRAMEWORK GOVERNANCE

• Set direction and mandate;

Top • Promote system and ensure buy-in;
• Support;
Management • Take decision

• Designs Framework, system and tools;

• Implements system across the organisation;
Strategy / • Ensures alignment (horizontal and vertical);
Performance Office • Maintains functioning system.

• Assumes ownership;
• Collect data;
Department Department • Report data;
• Implements decisions;
• Takes actions.

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KPI ARCHITECTURE SKILLS
Performance Performance
Data Research Measurement
Architecture Management

Analysis Synthesis Strategy Data visualization

Software MS XLS Coaching Facilitation

Technology MS PPT Communication Interpersonal

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 SESSION REVIEW
1. Most common challenge: KPI selection
2. Why use KPIs?
• Clarity
• Focus
• Improvement
• Engagement
• Communication
• Learning

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 REFERENCES
• Franco-Santos, M., Kennerley, M., Micheli, P., Martinez, V., Mason, S., Marr, B., Gray, D. and Neely, A.
(2007), Towards a definition of a business performance measurement system, International Journal of
Operations and Production Management, 27(8): 784-801. Available at:
https://dspace.lib.cranfield.ac.uk/bitstream/1826/2789/1/Towards%20a%20definition%20of%20busines
s%20performance%20measurement%20system.pdf;
• The KPI Institute (2016), The State of KPIs and Performance Improvement Practice Report, available at:
https://marketplace.kpiinstitute.org/state-of-performance-improvement-and-key-performance-
indicator-practice-report-2016.html.

Images:
• The KPI Institute (2017), Human Resources Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html;
• The KPI Institute (2017), KPI Management Concept Map.

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AGENDA

2 Understanding KPIs 1. KPI related terminology

2. SMART objectives decomposed
3. KPI lifecycle

Key Learning Points

1. Define objectives, KPIs and initiatives according to terminology standards;
2. Develop SMART objectives;
3. Identify the stage of KPI lifecycle.

© The KPI Institute 2020 44

KPI RELATED TERMINOLOGY
• Key Result Areas KPIs – to evaluate performance
(KRAs); OPTION 1
Metrics – to inform decisions
• Key Performance
Indicators (KPIs);
• Performance
Indicators (PIs);
• Measures;
• Metrics;
• Key Result Indicators OPTION 2 KRAs KPIs PIs Measures
(KRIs);
• Analytics;
• Evaluation criteria.

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METRICS – KPIS- KRIS - ANALYTICS

Metrics
Measurement

KPIs KRIs
Performance Risk
Assessment Assessment

Analytics
Decision Making

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METRICS
# Air temperature

# Air humidity

# Air purity

# Square meters per room

# Employees

# Highway kilometres

# Employee age

# Working hours per year

$ Budget

Source: ADRPBF (2015)

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KEY PERFORMANCE INDICATORS
% Net promoter score

% Budget variance

% Hotel occupancy rate

$ Revenues

$ Operating costs

# Time to process requests

# Orders delivered per vehicle

Source: Spider Strategies (2020)

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KEY RISK INDICATORS
• Key risk indicators are metrics used by organizations to provide an early
signal of increasing risk exposures in various areas of the enterprise.
Objective: Manage the collection of accounts receivable to reduce loss due to write-offs
Key Performance Indicator (KPI) Key Risk Indicator (KRI)
Analysis of reported financial results for the company’s 25 largest
Data about write-offs of accounts in most recent month, quarter,
customers or general collection challenges throughout the industry
year.
that highlight trends signaling future collection concerns.

$ Write-offs of accounts % Large customers in financial difficulty

Linking Objectives to Strategies to Risks to KRI’s

Strategic Potential Risk KRI

KPI
Initiative #1
Increase
Revenues Potential Risk KRI
Strategic
KPI
Initiative #2
Potential Risk KRI
Profitability
Strategic
KPI
Initiative #3 Potential Risk KRI
Reduce Costs
Strategic Potential Risk KRI
KPI
Initiative #4

Source: Beasley, M. S., Branson, B. C. and Hancock, B. V. (2010)

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ANALYTICS
Refers to extracting key information from large volumes of data in
order to:
• predict future trends
• identify patterns Support decision making

Source: Google (2020)

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 IDENTIFY THE KPIS
% Employee satisfaction
$ Turnover
Finalise project by 31 December
# Clients from referrals
# Employees
% Projects delivered on time and on budget
Quality
% Defect rate
$ Budget
Increase market share to 28%

KPI Definition:
A measurable expression for the achievement of a desired level of results in an area relevant
to the evaluated entity’s activity.
(The KPI Institute)
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SMART OBJECTIVES DECOMPOSED
Option 1: Increase market share to 28% by the end of the financial year
under Marketing Director coordination.
Option 2:

• Increase market share

Objective
• % Market share
KPI
• 28% 2
Target
• By financial year end
Time
• Marketing Director
Owner

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 ANALYZE PANAMA CANAL AUTHORITY
CORPORATE GOALS 2009
Corporate Goal 1 – To obtain profit before interest, taxes, depreciation and amortization (EBITDA) ≥
B/.1,110 million up to September 30, 2009.

Corporate Goal 2 – To establish a new pricing structure up to September 30, 2009 depending on the phases
established in the work plan.

Corporate Goal 3 – To provide a preliminary report of the Technical Cooperation Project up to September
30, 2009.

Corporate Goal 4 – To implement planned activities for the Third Set of Locks Project up to September 30,
2009, in compliance with the milestones of the established schedule.

Corporate Goal 5 – To make optimal use of the existing plant to meet transit demands, ensuring a service
level compliance average ≥ 85 percent.

Corporate Goal 6 - To adapt the organization through the improvement of the processes identified up to
September 30, 2009.

Source: Panama Canal Authority (2009)

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 ANALYZE PANAMA CANAL AUTHORITY
CORPORATE GOALS 2009
Corporate Goal 7 – To implement 100.0 percent the activities of the Sustainability and Corporate Social
Responsibility Action Plan scheduled for fiscal year 2009.

Corporate Goal 8 – To develop the Monitoring and Evaluation Plan for Sustainable Development and
Integrated Management of Water Resources for the Panama Canal Watershed up to September 30, 2009.

Corporate Goal 9 – To prepare a talent management plan and to provide a generational shift and to meet
emerging needs in the operation up to September 30, 2009.

Corporate Goal 10 – To improve the working environment ≥ 5.0 percent, measured by a satisfaction,
commitment and work climate survey up to September 30, 2009.

Corporate Goal 11 – To ensure that the Corporate Performance Index (CDI) is ≥ 100, up to September 30,
2009.

Source: Panama Canal Authority (2009)

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 ANALYZE PANAMA CANAL AUTHORITY
CORPORATE GOALS 2016
Objective 1 – Develop the business by expanding the portfolio of services and products.

Objective 2 – Increase net profit and productivity in a sustainable manner.

Objective 3 – Implement best practices in terms of business management and corporate governance.

Objective 4 – Ensure the availability and quality of water resources for consumption and for the
Panama Canal operations.

Objective 5 –Transform the organization and develop its capabilities to benefit of new business
opportunities.

Objective 6 – Increase trust and credibility in ACP management.

Objective 7 – Strengthen the relationship with clients and foster business intelligence.

Source: Panama Canal Authority (2016)

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TERMINOLOGY STANDARDS
Objectives KPIs Initiatives
start with start with start with

$ = Value of

Verb # = Number of Noun

% = Percentage of

Increase customer CRM software

$ Revenue per client
satisfaction implementation

# Complaints received

% Customer satisfaction

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KPI LIFECYCLE
KPI lifecycle – Stage 1 KPI lifecycle – Stage 2 KPI lifecycle – Stage 3
Establishment Use Evolution

• Needs identification

• Selection

• Documentation

• Visualization

• Activation • Data gathering

• Analysis • Analysis

• Reporting • Reporting • Maintain

• Decision making • Decision making • Refresh

• Communication • Communication • Conserve/Suspend

• Documentation refresh • Documentation refresh • Supercede

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 SESSION REVIEW
1. KPI definition: a measurable expression for the achievement of a desired
level of results in an area relevant to the evaluated entity’s activity.

2. Terminology standards:
• Objectives - Verb
• KPIs - Symbols (#, %, $)
• Initiatives - Noun.

3. KPI lifecycle:
• Establishment
• Use
• Evolution.

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 REFERENCES
• Beasley, M. S., Branson, B. C. and Hancock, B. V. (2010.), Developing Key Risk Indicators to
strengthen enterprise risk management: How Key Risk Indicators can sharpen focus on emerging
risks. Available at: http://www.coso.org/documents/COSOKRIPaperFull-
FINALforWebPostingDec110_000.pdf;
• Panama Canal Authority (2009), Annual report. Available at:
http://www.pancanal.com/eng/general/reporte-anual/;
• Panama Canal Authority (2016), Annual report. Available at:
http://www.pancanal.com/eng/general/reporte-anual/.

Images:
• ADRPBF (2015), Metrics, KPIs and KRIs – developed in partnership with The KPI Institute. Available at:
https://www.youtube.com/watch?v=dxd_n49U7uw&t=76s;
• Google (2020), Google Analytics. Available at: http://www.google.com/analytics/;
• Spider Strategies (2020), QuickScore. Available at: http://www.integerperform.com/kpi-dashboard-
balanced-scorecard-software/.

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AGENDA

3 KPI Typology
1. Leading vs lagging KPIs
2. Qualitative vs quantitative KPIs
3. Efficiency vs effectiveness KPIs

Key Learning Points

1. Differentiate leading and lagging KPIs in different contexts;

2. Define efficiency and effectiveness;
3. Use the variety of KPI typologies to enhance the KPI selection process.

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LEADING VS LAGGING KPIS
Leading indicators = measure
Vs. Lagging indicators = look back at
things that address what can
past performance
create future value

• “outcomes, forward-looking • “measures events / incidents and

indicators, are in your control consequences, retrospective, are
and can lead to success” affected by what you do and
influence leading indicators”
Advantage:
• Being predictive allows the
Advantage:
organization to take better • Easy to identify and to measure /
decisions to address future collect results.
events.
Challenge: Challenge:
• May be difficult to identify and • Indicates past performance, does
capture results. not reflect current activities.

Source: Institute for Evidence Based Change (2017)

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 LEADING VS LAGGING KPIS
Task:
• Cluster the following examples into leading and lagging
KPIs.
No. KPI examples Leading or
lagging?
1 % Employee engagement
2 % Customers from referrals
3 % Customer satisfaction
4 % Market share
5 $ Profit
6 % Returning customers
7 # Service lead time
% Staff with competencies
8
at desired level
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QUALITATIVE VS QUANTITATIVE KPIS
Qualitative data - descriptive data, narrative
• Interviews
• Focus groups
• Observation sessions

Qualitative Data ≠ Qualitative KPIs

Quantitative data - numbers and statistics

• Calculation
• Surveys

Source: McGill Qualitative Health Research Group (2017)

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QUALITATIVE KPIS?
Provide timely high-quality advice Key performance indicator 2010-11 result
Timely high-quality briefing The department provided timely and high-quality briefing which
meeting ministerial expectations and advice meeting ministerial enabled the government to navigate a complex and interconnected
expectations provided in set of policies and issues. In particular, the department provided
• % Advice provided on time relation to the government's extensive and detailed briefing that underpinned the development of
• # Versions for advice reports climate change mitigation the carbon price package―often to extremely tight timeframes.
policies.
• % Satisfaction with advice
National Carbon Offset The NCOS was implemented by 1 July 2010 and 17 Greenhouse
Standard (NCOS) implemented Friendly™ clients were assisted in making the tradition to the NCOS
by 1 July 2010 and Domestic Carbon Neutral Program. A stakeholder workshop to scope an NCOS
NCOS implementation Offsets Integrity Committee review was held and discussion papers were drafted.
established to approve offset
NCAT implementation methodologies. An interim committee was established to consider proposed offset
methodologies, pending the passage of legislation to formally
establish the committee.

National Carbon Accounting The Carbon Farming Initiative Mapping Tool and the Reforestation
Toolbox (NCAT) implemented Modelling Tool were released. Feedback from stakeholders was
Ensure timely and smooth for forestry and agriculture. positive.
processing of applications
Timely and smooth processing The DNA provided, in response to applications received, nine letters
• % Applications processed in of applications to the of approval to Australian companies participating in Clean
Designated National Authority Development Mechanism projects in other countries. Target
SLA (DNA) and a Designated Focal processing times were achieved in almost all cases.
• % Applications processes Point (DFP) to enable
correctly first time Australian industry to establish
offset projects in other
• # Average delay in processing countries.
applications
Source: Australian Federal Government (2011)

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QUALITATIVE VS QUANTITATIVE KPIS
“Quantitative KPIs are likely to be based on system collected statistics such as
number of users whereas qualitative KPIs may be based on more subjective
measurements from user interviews and surveys.”
Public Record Office Victoria, Australia (2010)
“Quality KPIs are statistical measures that give an indication of output quality.
However, some quality indicators can also give an indication of process quality.”
ESS Quality Glossary, European Union (2010)

All KPIs are quantitative, but they can measure different aspects of an
objective, such as:

• Volume - # Products sold

• Quality - % Products error rate, % Customer satisfaction with products
bought
• Monetary values - $ Sales
Source: Public Record Office Victoria, Australia (2010)
Eurostat, European Union (2010)

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 IDENTIFY THE KPIS REFLECTING QUALITY
Find in the below list the KPIs that reflect quality as perception.

1. $ Turnover
2. # Production cycle time
3. # Brand image index
4. # Customer satisfaction score
5. % Equipment utilization rate
6. % Error rates
7. % Employee engagement
8. $ Operating costs
9. % Market share
10. # Service quality rating
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EFFICIENCY VS EFFECTIVENESS KPIS

Effectiveness

Desired
Inputs Processes Outputs Outcomes
output/outcome

Efficiency

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EFFICIENCY VS EFFECTIVENESS KPIS
Being effective Being efficient
Performance measure Target 17

What we did How well we did it

Percentage of auditor's reports issued within three ✔

Percentage of the estimated 250 entities provided an ✔ 1 85%
1 100% months of the financial year end reporting date
auditor's report for tabling in the Parliament

Number of assurance reports presented to the 1 Percentage increase to average cost per audit 0% ✔
1 3 ✔
Parliament

Percentage of assurance audit staff available hours

1 Number of other assurance reports produced 45 1 5% ✔
✔ charged to audit work

2 Number of performance audit reports presented 48 2 Average elapsed time (months) for performance audits ✔
✔

Percentage increase to average cost per performance

Number of appearances and submissions to 2 0% ✔
S 20 ✔ audit
Parliamentary committees

Percentage of requests from parliamentarians for Percentage of performance audit staff available hours
S private briefings or educational sessions that are 100% 2 80% ✔
✔ charged to audit work
undertaken

Source: Australian National Audit Office (2017)

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EFFICIENCY VS EFFECTIVENESS KPIS
Effectiveness = the extent to which Efficiency = extent to which
a desired outputs or outcomes is time, effort or cost are well used
achieved. for the desired results.

KPI examples: KPI examples:

Sales Cost per call
Customer satisfaction index Time to process requests
Compliance with quality Equipment utilization rate
standards

Do the right thing! Do things right!

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 ANALYZE WESTERN AUSTRALIA POLICE KPIS
Key Effectiveness Indicators (a) 2015-16 Target (b)

Outcome: Contribute to community safety and security

Rate of offences against the person (excluding domestic violence incidents) per 100,000 people 810
Rate of offences against property per 100,000 people 6200
Percentage of sworn police officer hours available for frontline policing duties 75%
Percentage of priority 1 & 2 incidents in the metropolitan area responded to within 12 minutes 80%
Percentage of priority 3 incidents in the metropolitan area responded to within 60 minutes 80%
Percentage of family and domestic-related incidents where an offender was processed for an offence against the
75%
person within 7 days
Percentage of offences against the person investigations finalized within 60 days 85%
Percentage of offences against property investigations finalized within 30 days 90%

(a)
Key Efficiency Indicators 2015-16 Target (b)
Service 1: Metropolitan policing services
Average cost of metropolitan policing services per person in the Perth metropolitan area $254
Service 2: Regional and remote policing services
Average cost of regional and remote policing services per person in regional WA $725
Service 3: Specialist policing services
Average cost of specialist policing services per person in WA $162

Source: Western Australia Police (2017)

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 SESSION REVIEW
1. Leading or lagging ? – depends on the context.

2. Qualitative or quantitative? – all KPIs are quantitative.

3. Efficiency – do the things right!

Effectiveness – do the right thing!

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 REFERENCES
• Australian Federal Government (2011), Department of Climate Change and Energy Efficiency annual
report 2010–11. Available at: http://www.climatechange.gov.au/about-us/annual-reports/annual-
report-2010-11;
• Australian National Audit Office (2017), ANAO 2017-18 Corporate plan, available at:
https://www.anao.gov.au/work/corporate/anao-2017-18-corporate-plan;
• Charted Accountants Professionals Canada (2010), Performance indicators. Available at:
http://www.camagazine.com/archives/print-edition/2010/march/regulars/camagazine34812.aspx;
• Eurostat (2010), ESS quality glossary. Available at:
http://www.eqavet.eu/qa/gns/glossary/q/quality-indicator.aspx;
• Institute for Evidence Based Change (2017), Measuring success: Leading and lagging indicators for
Linked Learning, Linked Learning Convention Oakland 2017. Available at:
http://www.linkedlearning.org/wp-content/uploads/2017/02/Measuring-Success-Leading-and-
Lagging-Indicators-for-Linked-Learning.pdf;
• Public Record Office Victoria, Australia (2010), Strategic management guidelines: Key Performance
Indicators. Available at: http://prov.vic.gov.au/wp-content/uploads/2011/05/1010g3.pdf;
• McGill Qualitative Health Research Group (2017), Qualitative or quantitative research?. Available at:
https://www.mcgill.ca/mqhrg/resources/what-difference-between-qualitative-and-quantitative-
research;
• Western Australia Police (2017), Annual report 2016. Available at:
https://www.police.wa.gov.au/About-Us/Our-agency/Annual-report.

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AGENDA

4 KPI Taxonomy
1. Interdisciplinary systemic worldview
2. KPI use case scenarios
3. KPI DNA Map

Key Learning Points

1. Integrate KPIs into the bigger picture;
2. Identify at least 5 different contexts in which KPIs can be used;
3. Understand the multiple facets of measuring objectives.

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INTERDISCIPLINARY SYSTEMIC WORLDVIEW

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KPI USE CASE SCENARIOS
1 Organizational strategy

2 Organizational operations tracking

Strategy Management
3 Departmental strategy

4 Departmental operations tracking

5 Alliances / Joint ventures relationship scorecard

Interlink Level 6 Portfolio management

7 Project management

8 Quality / process management

Operations Management 9 Service level agreements

10 Supplier performance management

Individual Performance 11 Employee performance management

12 Fitness training
Personal Performance
13 Personal performance management

14 Sustainability performance reporting

15 Benefits realization management

Evaluation 16 General strategic / operations reporting

17 Audit

18 Compliance reporting (micro and macroeconomic level)

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1. ORGANIZATIONAL STRATEGY
Context: Scorecards to monitor the achievement of strategy, through KPIs.
Perspective / Goal smartKPIs. Standard Previous Current Trend Target % Target Results Comments
Strategic Objectives / KPIs com # reporting Period Results complete
frequency Results
Customer - 1 Strategic Objectives / 2 KPIs
Maintain high levels of internal customer satisfaction
% Internal customer satisfaction with HR service levels sK2379 Q 85% 75% 90% 83%
# Complaints received sK2038 Q 0 1 k 0 50%
Financial - 2 Strategic Objectives / 3 KPIs
Seek efficiencies to minimize cost base
$ Cost per hire sK49 M 400.00 534.00 k 350.00 153%
$ Cost avoidance savings sK262 M 918.00 560.00 500.00 112%
Maintain financial rigor in budget projection and
execution
% HR budget variance sK479 M -5% -3% k 2% -157%
Internal Processes - 2 Strategic Objectives / 4 KPIs
Optimize recruitment
# Time to fill a vacant position sK688 M 25 19 15 79%
% Employees who leave the organization in the first 3 months sK688 M 15% 12% 10% 83%
Improve HR service delivery capability
% HR projects on time, on budget and according to specifications sk2863 M 62% 87% k 80% 109%
% HR processes optimized sk2284 M 84% 46% 60% 77%
People, Learning & Growth - 2 Strategic Objectives / 4
KPIs
Build an environment that fosters creativity and
innovation
# HR employee engagement index sK1836 Q 56 76 k 65 117%
# Ideas for new / improved service from HR employees sK4657 M 14 19 k 30 63%
Develop workforce skills and competences
# Certifications per HR employee sK4659 Q 2.18 1.35 2.00 68%
# Training hours per HR full time equivalent (FTE) sK7 M 14 8 8 100%

Source: The KPI Institute (2020)

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2. ORGANIZATIONAL OPERATIONS STRATEGY
Context: Dashboards to provide a more detailed overview of corporate performance.

Human Resources Performance Dashboard

Period Sep 2020
Recruitment Retention
# Employment brand strength
% Staffing rate Target
Q4 11 87
99%
Q3 11 66 82% 89% 86% 80% 88% 76% # Average time to
Q2 11 64 66% 74% 56%
72%
56% 67% promotion
Q1 11 81
0
0
0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0 2016 2017 Q4 11 4
0 50 100 Q3 11 4
Q2 11 3
% Job offer acceptance rate # Applicant ratio Target
Q1 11 2
Q4 11 83% 10 0
Q3 11 65% 8 9 8
6 7 6 7 7 0
Q2 11 91% 4
Q1 11 55% 3 3 0
1
0% 0
0% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0% 0 2 4 6
0% 2016 2017

0% 50% 100%

Source: The KPI Institute (2020)

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3. DEPARTMENTAL STRATEGY
Context: Scorecards to monitor strategy at operational level.
ALL FM Departments
Current Previous Four Months Current Month Score
Current Metric Fiscal
Performance Metric Month
target Status YTD Dec Nov Oct Sep
Score EB HS StPW Central Energy
Safety Meeting Attendance (bi-monthly) 95+% - - 99% - 99% - - - - - -
Lost Time Injuries 0 3 Y - 2 1 2 2 0 1 1 1 0
Preventive Maintenance - FLS 100% 93% R 97.3% 96% 95% 100% 99% 86% 98% 98% 33% 94%
ALL FM

Preventive Maintenance - Non-FLS Critical 90% 64% R 80.5% 77% 77% 85% 95% 68% 84% 61% - 39%
Preventive Maintenance - Non-FLS Non-
Critical 85% 76% Y 86.4% 92% - - - 94% 81% 49% - -
Customer Work Order Response Time 85% 77% Y 78.7% 77% 76% 78% 85% 74% 80% 77% 72% 50%
Customer Initiated Work 85% 47% R 46.4% 49% 42% 43% 55% 49% 51% 49% 28% 36%
FM Initiated Work 85% 55% R 55.3% 55% 56% 57% 58% 58% 49% 55% 40% 72%

Campus Energy Report Card <95% 97% Y - 98% 107% 107% 107% 97% 114% 89%
Energy
Utility Outages 0 2% R - 1 0 5 5 - - - - -

Custodial Projects Completed On-Time 85+% 92% G - 77% 69% 80% 62% - 56% 99%
Districts Custodial Quality Assessment Counts 100% 97% Y - 98% 88% 93% 98% 100% 100% 89%
Custodial Quality

Service Centre Answer Time 90+% 91% G - 92% 95% 90% 93%
Central
Elevator Entrapments N/A 6 N/A - 5 7 8 4

Positive aspects: Detailed information on past months. Traffic lights are used to enable
immediate understanding of performance data.
Recommendations: Link KPIs to more specific strategic objectives, not only to activity areas.
Source: University of Minnesota (2014)

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4. DEPARTMENTAL OPERATIONS TRACKING
Context: Dashboards to offer visibility into key processes.
Positive aspects: KPIs Executive Dashboard Sales Marketing Products Logistics Operations

are visualized in both 

Metric
Sum - Profit
Value
$17.51M
#$1
#
Change
$2.18M
Net Sales (M)

tables and graphs with  Sum of Net Sales (M) $216.55M # $34.42M

the purpose to enhance  Sum of Gross Sales (M) $265.92M # $43.10M

data meaning.
 Gross Margin 25.25% # 0.03%

 Employee Satisfaction 89 # 4

 Markdown % 9.50% $ 0.50%

$0.0 $17.5
Recommendations:  Markup % 7.10% $ -0.10%
0M $17,51M 15M
 Average Discount (%) #
Cluster KPIs around key
18.38% 0.16%
Dec-05
 Sum of Cost (M) $199.04M # $32.25M

processes or activities.
Turnover Summary Alerts
Do Action Display : Default View

Comments: Dashboard’s 200

! / Subject Date
Implementary
interactivity enables users 150 Turnover R Customer Satisfaction Warning 12/7/2005
R
to access different data 100 Transfer European Sales Target Reached 12/7/2005
! R Inventory Alert 12/7/2005

sets with ease, supporting 50

Voluntary
Turnover
! /
/
Sales below budget (Planning)
4Regional Discount Trend Warning
12/7/2005
12/7/2005
timely decision making.
0
0 1 2 3 4 5 6 7 8 9


Source: Godrejinfotech.com (2010)

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5. ALLIANCES / JOINT VENTURES RELATIONSHIP
SCORECARD
Context: Scorecards to monitor performance of alliances or other business
partnerships.
Best
Unit Of Target Actual Indicator
Sr. Relationship Objectives Performance Measure In
Measure
2003 2003 Class

A Relationship Value

Average PQR Index Index

Improve engagement predictability by ensuring that each engagement meets its
A1 No. of engagements meeting stated Q&P
stated quality and productivity goals (#)/(##)
goals
Improve schedule adherence to ensure that all engagements meet the No. of milestones delivered as per plan (#/(##)
A2
committed milestones as planed % Change request serviced %
A3 Reduce cost of IT management for DC by effectively leveraging the global Estimated cost saving to DC $ Mn
delivery model and maximizing offshore content Onsite-offshore ratio Ratio
Anticipate and effectively manage risk associated with IT implementation No. of projects with effective risk
A4 #
through proactive mitigation planning mitigation plans

B Relationship Strength

Improve DC's satisfaction with the deliverables and relationship and address Client satisfaction index (7point scale) (#)/7
B1
operational issues effectively Critical issues pending beyond SLA %
Proactively respond to DC's requirements and needs by developing an DC managers' satisfaction with
B2 (#)/7
understanding of critical business issues responsiveness
No. of services leveraged by client (#)/(##)
B3 Build in key opportunities to leverage Infosys capabilities
No. of IT solutions under discussion #

Positive aspects: KPIs are linked to clear objectives established for the alliance.
Recommendations: Standardize KPI names and allocate a section to comment KPI results.
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6. PORTFOLIO AND PROJECT MANAGEMENT
GSG Portfolio Profile
Project State
Context: KPIs to monitor the
Introduction
performances in terms of managing The purpose of this report is to provide various 17%
snapshots of the GSG Projects Portfolio from Active
more projects. different angels. This enables a better
7%
Postponed
understanding of the projects mix and highlight Proposed
potential bottlenecks. 4 Cancelled
8%
67% Closed
Positive aspects: KPI results are Portfolio Update
> At 10 Oct 2007 the GSG project portfolio
displayed through graphs, in the comprised 60 projects.
1%
> 100% of these projects are tracked using EPM.
format of a dashboard. Project State - identifies the current lifecycle
of projects
Notes:
Half of all active projects are managed by the Active = Projects being actively managed
Strategy and Planning Tower. Portponed = On hold pending availability of
Recommendations: Replace pie charts, There is an almost equal split between projects budget, resources of policy decision, etc
subject to PMO governance and other GSG projects Proposed = An initiative under discussion but
with more effective data visualization using a lighter governance model. not approved as a project
Cancelled = Formally discontinued by a PCB
tools; Organization Closed = Delivered project

SP 20 Project Clusters
Comments: Dashboards are very useful PT
SD 2
18 20
17

in managing a portfolio of projects as 0 10 20 30

15

they provide key information in order 10

6 5
3 3 3
to ensure initiatives are finalized on Organisation - groups projects by the organisational 5
tower responsible with delivery
2 1

time, within budget and resources are ST = Strategy Tower

PT = Projects Tower
0

used efficiently. SD = Service Delivery Tower

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7. PROJECT MANAGEMENT

Source: smartKPIs.com (2020)

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8. QUALITY / PROCESS MANAGEMENT
Context: KPIs to measure quality and compliance with standards, as well as to
support process optimization.
Steps 1 2 3 4

Positive aspects: Responsibility

Process mapping is used Identify critical

Start Establish performance
to standardize activities activity to be Establish performance
Identify process goal(s) or standards measurement(s)
measured

and to support process

11
optimization. Are new YES
goals
NO needed?
NO

Recommendations: Are
corrective Compare actual Analyze/report Identify
Collect
Establish KPIs to assess
Make changes to bring
actions performance to actual responsible
back in line with goal data
necessary? goals performance parties

the quality of processes.

Database

10 9 8 7 6 5

Source: Adapted from Oak Ride Institute for Science and Education (2005)

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8. QUALITY / PROCESS MANAGEMENT
Process improvement

Wait Time (non

value add)
Before

Work Time (value After

add)

✓Capacity

✓Cost ✓Cash flow

✓Defects ✓Customer satisfaction

✓Lead time ✓Customer responsiveness

✓Inventory ✓On time delivery

✓Space ✓Productivity

✓Waste! ✓Profit
✓Quality

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9. SERVICE LEVEL AGREEMENT (SLA)
Context: KPIs to ensure the quality of services delivered – whether is about third
party providers (suppliers) or internal providers (departments, divisions).
Incident Response

Positive aspects: Acknowledgement Response Time (not

Target
Target% of
Calls
Urgency Effect Resolution
resolution time) Resolved
Clear targets are established Time
on Time

for each performance measure. The system is not available; there is an

Response time within one half (1/2) hour.
TR will work on resolution until completed
interruption of an important
and provide timely updates after the initial
component or a critical business
Urgent response. TR will continue problem <=4 hrs 90%
process for one or several business
resolution efforts beyond standard service
Recommendations:
units that cannot be remedied by a
hours. (Production systems are technically
workaround.
covered 7X24.)

Standardize KPI names for more A significant effect on the business is

caused by a failure of a critical Response time within 1 hours and TR will
clarity. High process or function (e.g., printing or
interface), however a workaround is
communicate a plan to bring this function <=8 hrs
back to operation
90%

available.

A minor effect on the business is

Comments: Medium
caused by a failure of a non-critical
process or a function. No significant
Response time within 2 hours and TR will
communicate a plan to bring this function <=24 hrs
effect on the business is expected and back to operation
80%

Internal SLAs can be used for a workaround is available

both internal and external Low

A general improvement in the system
is required
1 business day
3 business
days
80%

providers. Service
5 business
1 business day days-7 80%
request
calendar days

Source: Texas State University (n.d)

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10. SUPPLIER PERFORMANCE MANAGEMENT
Context: KPIs to monitor performance of supplier, for a streamlined supply chain.
a) 3 Perspectives b) 8 Categories c) 24 Indicators
Compliance with client requirements
Outcomes Quality and severity of defects
The objectives of the engagement were achieved

Outcome performance Timely delivery schedule

Schedule Ability to meet interim milestones
Ability to complete work within agreed upon budget
Ability to control costs / Cost improvements over time
Budget
Value for money / Competitiveness of pricing
Provides effective and timely communication
Service and product delivery problems were quickly resolved
Communication
Documentation requirements / Understanding of business requirements
Innovative in helping delivering solutions
Delivery performance
Value add/Innovation Understanding of the client’s business processes and practices
Understanding of the industry and market and how it applies to VG
Technical skills and experience
Delivery capability Personnel quality (i.e. independence and thoroughness)
Overall project management
Reasonable negotiations and contract, ease of doing business
Effective, accurate and efficient billing system
Responsiveness /
Account Management Flexible, accessible and responsive to inquiries
Service excellence
Overall satisfaction with vendor deliverables and services
Professional and cooperative behaviour with the client personnel
Client satisfaction Work ethic, flexibility and responsiveness

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11. EMPLOYEE PERFORMANCE MANAGEMENT
Context: KPIs and scorecards to evaluate performance of each employee in the
organization.
Strategic perspectives with assigned objectives and Standard Current
KPIs for individual level reporting Previous Target Status Comments
results
frequency results
1. Customer
Maintain high levels of customer satisfaction
% Customer requests solved in standard time M 85% 80% 98%
2. Internal processes
Deliver services in a timely manner
% Confirmation letters sent in standard time M 95% 95% 98%
% Reports submitted on time M 97% 93% 98%
Provide quality services
# Reports with factual errors M 2 0 0
% Accuracy of quotations issued Just began to learn how to
M 80% 55% 100% calculate quotations
3. People, learning and growth
Build a performance oriented culture
% Employee performance data up to date M 100% 100% 100%
Add value through knowledge sharing and innovation
# Improvement ideas submitted Q 3 3 2
Overall individual performance evaluation
Self assessment comments

Manager assessment comments

Source: The KPI Institute (2017)

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12. FITNESS TRAINING
Context: KPIs to track performance of athletes.

Positive aspects:
The dashboard allows target
setting for KPIs and enables
you to visualize progress in
time.

Comments:
A clear perspective on current
fitness performance
contributes to better planning
workouts.

Source: Body Media Fit (2015)

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13. PERSONAL MANAGEMENT
Context: KPIs to monitor personal achievements, to track daily activities, to
improve time management.

Positive aspects: It provides an instant

overview upon the performance achieved in
several personal areas.

Recommendations: Structure the KPIs

under objectives and assign specific targets
that need to be attained.

Comments: Common personal areas to be

monitored are finances, household
management, professional development,
time management, social activity –
interactions with friends and family.

Source: Felton, N. (2013), Annual report

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14. SUSTAINABILITY PERFORMANCE REPORTING
Context: KPIs to assess the environmental impact Commute Alternatives
Program Results
of activities. Results are presented in sustainability
Commute Program
scorecards or in dedicated performance reports.
61%
increase in
participation
Positive aspects: there is a trend in representing
performance data in annual reports through infographics. CO2 Emission savings
Renewable energy

Recommendations: Structure the KPIs under

30,000,000
sustainability objectives and outline specific targets that Kilograms
are desired. Reduction in packaging

2007 iPhone

Comments:
Transparency in KPI results can positively contribute to
brand image.
2011 iPhone

Source: Apple (2011)

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15. BENEFITS REALIZATION MANAGEMENT
Context: Benefits realization is an important part of project management and
should rely on KPIs that clearly outline expected benefits.
A. Estimated transactions in a full year (SOURCE Deliverable A) 1,300,000

Positive aspects: B. Estimated transaction time saving with new policy

C. Assume only 50% of transactions have a saving
1 hr
50%
KPIs are accompanied by target D. Assume most buying is done at admin officer $28

values. Calculation (AxBxCxD)

Estimated Total Benefit Per Annum (Rounded) $18,000,000
Part Year Effect $9,000,000
Recommendations: KPI names
A. Average cost of calling and awarding a contract based on a level
should be standardized. 6 salary
- RFT $5,000 per contract
- RFQ $3,000 per contract
Comments: Benefits realization B. Cost Difference $2,000 per contract

management through KPIs C. Number of contracts between $50K and $100K p.a.
Calculation (BxC)
800 p.a.
$1,600,000
provides the necessary visibility Estimated Total Saving Per Annum from New Tendering Threshold $1,600,000
in assessing investment projects. Part Year effect (since August 2004) $1,450,000
D. Estimated savings in moving from written to verbal quotes $1,000 per contract
E. Number of contracts 1,500 p.a.
Calculation (DxE) $1,500,000
Estimated Total Saving Per Annum from New Quoting Threshold $1,500,000
Part Year effect (since August 2004) $1,375,000
Source: Western Australia Department of Treasury and Finance (2005)

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16. GENERAL OPERATIONAL REPORTING
Context: KPIs are commonly used by departments or teams to report the
performance of their activities.
Positive aspects: KPI results are accompanied by comments to facilitate
understanding of current performance level.
Table 1
Recommendations:
IT Help-Desk Services, Sample of Summary Metrics
Structure the KPIs
under sustainability MIT Stanford
FY02 FY03 Change FY02 FY03 Change Comments
objectives and outline Cases per Help-Desk 1,595 1776 11% 1,614 1,786 11%
Case volume increased; staffing
specific targets that are Full-Time-Equivalent
(FTE) Employee
remained relatively constant

desired. Cases Resolved in Less Than

One Day (MIT)
78% 76% 62% 67$
Steady performance despite
increased case workload
or at First Tier (Standford)
n/a 4.5 n/a 4.2

Comments: Overall Client Satisfaction (1-

5; 50 surveys per week)
Began measurement in Jan. 2003;
good performance despite increasing
volumes
Operational reporting
12% 12% 17% 9%
must be focused on Abandon Rate
(phone only)
Successfully driving customers to use
electronic submission
providing essential data $42 $40 -5% $55 $56 2%
Help-Desk Expenditures per Further reduction expected as
for decision making. Case changes bear fruit in FY04

Source: Clebsch, B., Dougherty, J. D., and Anderson, G. (2004)

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17. AUDIT
Context: KPIs can be used to assess the quality of the audit department, but also
to analyze how an organization is coordinated.
Qualitative Quantitative
• The checklist from the Entity /
Program
Example of a Typical Deliverable Indicator Indicator
Target
provided?
provided? provided?
example is used to Customs Regulate and facilitate international
evaluates the KPIs used Program 1.1 passengers through assessment of passengers
and crew on arrival including, through
by a set of deployment of detector dogs and real-time ü û û
officer assessment and response activities.
organizations to track if
their projects deliver Program 1.4 Northern Waters surveillance ACV Triton
(patrol days).
û ü û

the expected outputs. FWA Orders relating to industrial action-good faith

û û û
Program 1 bargaining.
Program 1 Dispute resolution, minimum wages, orders
û ü ü
and approval of agreements.
• The audit aims to NFSA Australian feature length films acquired.
ü ü ü
identify the mix Program 1.1
Program 1.1 New media works acquired (new separate
between qualitative KPI).
ü ü ü
RET Timely processing of applications for offshore
and quantitative KPIs Program 2 petroleum and mineral titles and promotion ü û û
of offshore petroleum acreage release.
and whether they had Program 4 Provision of accurate, timely and effective
clear targets assigned. policy advice to the Minister and Australian
Government on tourism related issues.
ü û û

Source: Australian National Audit Office (2011)

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18. COMPLIANCE REPORTING
Metric Number Performance Metric High Low Mean

Context: KPIs are commonly used to STAGE 1 1

Governance and Process
Proportion of items Under Contract 99.7% 10.8% 76.0%
Core Supply 2 Purchasing Response Time from Requisition to Purchase Order 15.0 3.5 9.1
report compliance with regulations. Chain
Operations
(PO) Release

STAGE 2 1 Compliance with Group Purchasing Organization (GPO) Contracts 100.0% 55.0% 88.8%
Emerging

Positive KPIs aspects:

are Supply Chain
Practices
Financial
clustered on different perspectives. STAGE 1
Core Supply
1
2
Cost to Issue a Purchase Order
Inventory Turnover
$106.12 $12.93 $43.93
40 11 18
Chain
Operations
Transactions and Technology
Recommendations: KPI names STAGE 1
Core Supply
1
2
Proportion of Rush Purchase Orders
Number of Purchase Orders Placed per FTE per day
5.7%
33.0
0.5%
5.9
2.1%
18.1

should be standardized.
Chain
Operations 3 Average Lines per Purchase Order 5.0 2.4 3.4
4 Number of Purchase Orders Placed per Supplier per Week 30.0 1.4 6.1

STAGE 2 1 Proportion of Electronic Requisitions 100.0% 0.0% 48.1%

Emerging 2 Proportion of Electronic Purchase Orders (EDI) 28.0% 2.0% 11.8%

Comments: Reporting to Supply Chain

Practices Proportion of Electronic Purchase Orders (auto fax or e-mail) 100.0% 60.0% 82.7%

governmental institution can also 3

4
Proportion of Invoices Received Electronically

Proportion of Invoiced Paid via EFT (Electronic Funds Transfer)

2.0%

3.0%
0.0%

0.0%
0.3%

0.6%

serve for organizations as a Customers

Stage 1 Core 1 Stock-Out at the Cart Level 1.1% 0.3% 0.7%
benchmarking technique if results Supply Chain
Operations 2 Fill Races to END Users 98.9% 95.0% 97.9%

are published.
3 Proportion of Items Added to the Master File (Collected as # of 622 1 185
Items in One Month)
4 Proportion of Items Added to the Master File (Collected as # of 3327 0 508
Items in One Month)
Suppliers
Stage 1 Core 1 Proportion of Invoiced Paid within Due Date 100.0% 0.0% 58.5%
Supply Chain
Operations 2 Supplier Performance (Proportion of On-Time and Complete 98.4% 87.3% 93.5%
Deliveries for Top 10 Suppliers)

Source: Ontario Buys (2010)

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 KPI DNA MAP
Scenario:
• You are part of the management team in your organization.
Based on the context provided, you have to recreate the KPI
taxonomy of two divisions in the organization.

Task:
• Read carefully the reports provided and identify examples
of KPIs that you can use to populate the taxonomy given.

• You can also come up with your own examples of relevant

KPIs for those clusters.

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 KPI DNA MAP
Production – Performance report for the 4th Q of 2017
• Production costs seem to have increased by 10% during the last quarter,
negatively influencing the cost per item, as well. A possible cause for these
financial results is the low production capacity utilization rate and a low
productivity in terms of units per man-hour and items produced per hour.

• Furthermore, direct costs for material variance has increased as well to $ 1

million due to changing the main supplier.

• All these events negatively impacted the results for budget variance, although
the production output stayed the same.

• A positive trend was noticed in terms of production quality as the defect rate was
reduced to 2% and less waste was generated.

• Regarding timeliness, the production cycle and production schedule attainment

targets were met.
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 KPI DNA MAP
PRODUCTION
Costs Timeliness
Expenses Planning Duration Schedule adherence

Quality Quantity
Scrap Meeting standards Volume Productivity

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 KPI DNA MAP
CUSTOMER SERVICE – Performance report for the 4th Q of 2017
• The latest performance results point out that customer satisfaction with customer service has
increased to 89%, while no complaints with customer service were registered during the last
quarter.

• These improvements were generated by an increased percentage of customer tickets solved

on time and the productivity of the agents in terms of customer tickets processed per hour.
The percentage of emails replied in Service Level Agreement (SLA) reached 95%. And the first
call resolution rate was improved given the training sessions delivered to Customer Service
Representatives.

• Given the processes mapping initiative in the department, the time to solve customer tickets
was reduced as well as the after call working time.

• The volume of customer tickets solved increased and also the accuracy in processing of
tickets, reflected in the number of errors in processing tickets per agent as the new
technology installed enable agents to better manage their tasks.

• Another improvement was noticed in terms of productivity, as the volume of calls received,
increased as well as the customer calls answered per agent.
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 KPI DNA MAP
CUSTOMER SERVICE
Costs Timeliness
Expenses Planning Duration Schedule adherence

Quality Quantity
Meeting standards Satisfaction Volume Productivity

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KPI DNA MAP
The KPI taxonomy can be consolidated into a matrix, integrating
also the concepts of efficiency and effectiveness.

Customer Service (CS) example:

Efficiency Effectiveness

Costs $ Cost per call $ Customer Service costs

Timeliness # Time to solve customer tickets % Customer tickets solved on time

# Errors in processing tickets per

Quality % Customer satisfaction with CS
agent

Quantity % Customer tickets solved per hour # Customer tickets solved

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 SESSION REVIEW
1. 18 different scenarios / contexts to use KPIs.

2. Building a KPI taxonomy can be a useful pre-requisite

before starting the KPI selection process.

3. The KPI taxonomy can be consolidated into a matrix -

Efficiency and effectiveness:
• Costs;
• Timeliness;
• Quantity;
• Quality.

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 REFERENCES
• Apple (2011), Environmental responsibility. Available at: http://www.apple.com/environment/;
• Australian National Audit Office (2011), Development and implementation of Key Performance Indicators to
support the outcomes and programs framework. Available at:;
http://www.anao.gov.au/~/media/Uploads/Audit%20Reports/2011%2012/201112%20Audit%20Report%20No%205
.pdf
• Body Media Fit (2015), Activity Manager. Available at: http://www.bodymedia.com/?whence=;
• Clebsch, B., Dougherty, J. D., and Anderson, G. (2004), Management by fact: Benchmarking university IT
services. Available at: http://www.educause.edu/ero/article/management-fact-benchmarking-university-it-
services;
• Felton, N. (2013), Annual report. Available at http://feltron.com/FAR13_11.html;
• Godrejinfotech.com (2010), Products. Available at:
http://www.godrejinfotech.com/godrej/godrejinfotech/offerings/products/sap/pro_sap_busiObj.html;
• Oak Ride Institute for Science and Education (2005), Performance measurement process. Available at:
http://www.orau.gov/pbm/handbook/1-1.pdf;
• Texas State University (n.d.), Global service level objectives. Available at: http://www.tr.txstate.edu/ser-
cat/sc-object.html;
• The KPI Institute (2017), Retail Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/retail-performance-management-system-toolkit.html;
• The KPI Institute (2017), Individual Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/individual-performance-management-toolkit.html;
• smartKPIs.com (2020), Project management KPIs. Available at: https://smartkpis.kpiinstitute.org/;
• University of Minnesota (2014), Facilities management monthly operations scorecard. Available at:
http://www.facm.umn.edu/prod/groups/uservices/@pub/@uservices/@fm/documents/content/uservices_cont
ent_471610.pdf;
• Western Australia Department of Treasury and Finance (2005), 2004-05 Procurement Reform benefits realisation
report.

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AGENDA

5 KPI Selection
1. KPI selection for organizational scorecard
2. KPI selection sources
3. KPI selection techniques

Key Learning Points

1. Design a well structured KPI selection process;

2. Recognize useful KPI selection sources;
3. Deploy KPI selection techniques.

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 ALLOCATE KPIS FOR EACH OBJECTIVE
Financial No. KPIs list
Increase profitability
1 $ Operating expenses
% Employees meeting professional development
Maintain financial discipline 2 requirements
3 # Complaints from customers
4 % Profitable customers
Customer
Maintain high levels of customer satisfaction 5 % Budget variance
6 # Innovation ideas
Serve new market segments profitability 7 # Employee engagement index
8 # Training hours per full time equivalent (FTE)
Internal Processes 9 % Market share
Ensure quality services 10 % Net profit margin
11 # Procedures reviewed
Improve process management capability 12 $ Net cash flow
13 % On time delivery of orders
People, Learning & Growth 14 # Positions filled
Nurture engagement, creativity and innovation
15 % Customer satisfaction
16 % Orders error rate
Develop workforce skills and competences
17 % Critical positions with succession plans in place
18 % Processes improved
Ensure talent availability
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KPI SELECTION PROCESS AND TECHNIQUES
Scope clarifications
1
Prepare for KPI selection KPI expo
1
KPI clustering

KPI selection workshop

2 Facilitate the KPI selection Relevant questions framing
2
Value flow analysis
2 KPI balancing

KPI documentation
Follow up on KPI selection First performance review
33 meeting

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SCOPE CLARIFICATIONS
WHAT
1
Defining what needs to be measured:
2

Objectives Scorecard
3

Processes Dashboard

WHY
Channels the selection process on a clear path with
specified scope and outputs expected.

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KPI SELECTION SOURCES

Workshop

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KPI SELECTION SOURCES

1
• Competitor review reports
• Strategic development plan
• Printed catalogues
(3-5 years)

SECONDARY
2 • Online catalogues
• Annual business / strategic
(http://www.smartkpis.com/)
plan
3 • Annual reports of other
• Annual reports
organizations (KPIs in
• Internal operational reports
Practice)

• Suppliers input
• Front-line employees input

PRIMARY
• Customers input
• Managers input
• Expert advice
• Board input
• Questions in discussion forums

INTERNAL EXTERNAL

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 KPI EXPO
WHAT
1 • Collection, curation and presentation of relevant KPI
examples.
2

WHY
3

Informs Educates Inspires

HOW
• Consolidating lists from external sources, like smartKPIs.com.
• Using internal sources to identify KPIs, like operational reports.

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 KPI EXPO
Scenario: No. KPI examples
• Before stepping into the KPI
1
selection workshop, it is useful
2
to create a KPI expo which
inspires participants to come 3
up with other examples as 4
well. 5
6
Task: 7
• Think about the department or 8
the organization that you
9
currently work for and list
some of the most important 10
KPI examples in the following
table:

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KPI CLUSTERING
WHAT
1
Grouping KPIs in different categories:
2 • Balanced Scorecard perspectives;
• Objectives;
3 • Dashboard sections;
• Value Flow Analysis stages;
• Process steps.

WHY
• Enables alignment and identification of possible gaps.

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 KPI CLUSTERING
Scenario:
1
• You are part of the management team operating in a
niche industry.
2
• The board asks you to present 5 KPIs you will be using
to track the performance of the organization.
3

Task:
• Write down 5 KPIs you would recommend.
• Use one single post-it note for each KPI (5 post-it notes
per team).

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RELEVANT QUESTIONS FRAMING
WHY?
1
• Focus on the importance and relevancy of context.

2
Examples:
• What numbers will demonstrate the objectives
3 achievement?

• What process are we going through and how long will it

take?

• What will we learn from the data?

• What matters?

• So what?
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RELEVANT QUESTIONS FRAMING
During the KPI selection Questions to prepare in
FAQs
workshop case they are asked
1
What will we do with KPI
What are the most relevant How many KPIs should we
results?
sources for KPI selection? select?
2
What is the order of
What efforts are required for
importance in which the KPI What is the procedure for
data gathering for each KPI?
3 selection sources should be validating the KPIs selected?
analyzed?
What process are we going
4 Who should participate in What will we learn from the
through and how long will it
the KPI selection process? data?
take?
What figures will reflect the
What is the ideal format for How do we link KPI results
achievement of company
KPI selection process? with bonuses?
objectives?
What sort of data we need to
What are the most relevant
keep track of to ensure
criteria for the KPI selection?
informed decision making?
What are we trying to What matters?
achieve by setting up KPIs?

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VALUE FLOW ANALYSIS
WHAT?
1
• Logical model to indicate the value generation
2
from inputs, process outputs and outcomes.

3 WHY?
• Gain insight into how the objective can be measured
from different perspectives.

• Provides an overview of the process involved by

achieving the objective.

• Enables the selection of the most relevant KPIs for the

objective.
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VALUE FLOW ANALYSIS

OBJECTIVES INPUTS PROCESSES OUTPUTS OUTCOMES

# Customer # Time to % Solved % Net Promoter

service answer an inquiries Score
representatives inquiry
Improve
# New clients
customer
from referrals
satisfaction with
service levels
% Customer
$ Customer # Meetings with satisfaction % Returning
engagement key customer index customers
budget

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INPUT METRICS
• Measure the quantity/quality of input resources to organizational
activities.
• Generally include: human resources, financial resources
infrastructure.

• Examples:
➢ Human Resources: # Employees, # Consultants, # Project team
➢ Financial Resources: $ Budget, # Grants, $ Bank loans
➢ Infrastructure: # Production lines available, # Plants available

INPUTS PROCESSES OUTPUTS OUTCOMES

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

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PROCESS METRICS
• Measure the quantity/quality of the activities required to provide
certain expected outputs.
• Generally include: transformation in terms of time and utilization
rates.

• Examples:
➢ Time: % On time delivery vaccination, # Time to finalize task
➢ Utilization: % Equipment utilization rate, % Transportation
capacity used

INPUTS PROCESSES OUTPUTS OUTCOMES

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

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OUTPUT METRICS
• Measure the quantity/quality of the goods or services created or
provided through the use of inputs;
• They generally include quantifiable results.

• Examples:
➢ # Patients vaccinated
➢ # Items produced
➢ # Scrap generated
➢ # Facilities built

INPUTS PROCESSES OUTPUTS OUTCOMES

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

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OUTCOME / IMPACT METRICS
• Measure the quantity/quality of the results achieved through the
provision of goods and services.
• They generally include: added value, impact.

• Examples:
➢ Impact: % Incidence of disease, % Mortality rate, % Graduates
employment rate
➢ Added value: $ Savings generated by innovation ideas,
# Customer satisfaction index, % Net promoter score

INPUTS PROCESSES OUTPUTS OUTCOMES

Source: Adapted from Performance monitoring indicators handbook - World Bank Technical Paper, No 334

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VALUE FLOW ANALYSIS
Objective INPUT PROCESS OUTPUT OUTCOMES
Ensure population $ Budget % On time # Population % Incidence of
immunization # Doctors delivery of vaccinated disease
vaccination % Mortality rate
programs

Build a safety $ Budget # Time to # Incidents # Time lost due to

working # HSSE team remediate HSSE recorded safety incidents
environment audit findings
Expand $ Budget # Time to build a # New % Production
production # Contractors new production facilities capacity growth
capacity # Equipment facility built
available

Provide access to $ Budget # Time to install # Electricity # Supply (or

electricity # Power plants an electricity transmission consumption) of
services # Electricians facility facilities electricity
installed

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 VALUE FLOW ANALYSIS
Objective: Operate in an environment that fosters creativity and
1 innovation

# Innovation # Staff in the

$ Value generated by % Innovation ideas
2 1 champions in 4 innovation program 7 10
innovation ideas funded
each area team

3 # Innovation # Time to evaluate % Ideas evaluated within % Innovation ideas

2 5 8 11
focus groups an idea the SLA target of 2 weeks implemented

% Innovation ideas % Innovation ideas

3 # Patents 6 $ Budget 9 12
evaluated that generated value

Input Process Output Outcome

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 VALUE FLOW ANALYSIS
Scenario:
1 • Select one objective of your choice.

2 Tasks:
• Write at least 2 input, 2 process, 2 output and 2 outcome

3
metrics.
• Select from these metrics 2-3 KPIs to measure the achievement
of the objective.
• Propose 1-2 initiatives to address the implementation of the
objectives.

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KPI BALANCING
WHAT
1
• Quality assurance technique consisting in
2
selecting at least 2 KPIs for the same objective.

WHY?
3
• To avoid focusing on certain KPIs at the expense of
others.
• To provide a wider perspective upon actual
performance.

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 KPI BALANCING
Write the correct KPI number under each objective, in order
1 to assure a balanced approach.
FAs Objectives No. KPIs
2 A. Ensure R&D efficiency 1 $ R&D costs
R&D 2 % IT software updated within SLA
% Core areas of expertise covered at
3 3 desired level
B. Improve investments activity 4 # Complaints logged
Investments 5 # New products developed
6 % Profitable investments
C. Maintain updated systems 7 # Training hours per FTE
Information
Technology 8 # Investment initiatives proposed
9 # IT software updates
D. Develop workforce skills and % Customer satisfaction with service
10
Human competencies level
6 Resources

E. Increase customer satisfaction

levels
Marketing

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KPI BALANCING
Leading Lagging Industry

1 # Incidents of non-
# Fatal accidents Oil & Gas
compliance
% Employees with competencies at
2 # Training hours per FTE Consulting
desired level

Efficiency Effectiveness Industry

3 $ New customers acquisition
# New customers Retail
cost

# Call duration % First call resolution rate Call Centre

Quantity Quality Industry

# Maintenance requests % Maintenance requests resolved

Manufacturing
resolved within SLA

# Ideas expressed % Ideas implemented Education

Subjectivity Objectivity Industry

# Customer satisfaction # Customer complaints received Financial institutions

% Net promoter score # Clients from referrals Professional Services

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KPI BALANCING
1 Mayor
Accident
with Possible
1
Deaths

30 Accidents with Injuries

2 300 Accidents without Injuries
600 Minor Incidents

3 3,000 Risky Behaviours

4 4
Retained $1,000
Costumers Benefits
generated
6 Contracts signed
10 Proposals 2 Ideas generating
25 Meetings arranged value
60 Prospects 6 Implemented ideas
100 Contacted leads 18 Evaluated ideas
100 Qualified leads
150 Leads 20 Proposed ideas

Source: Heinrich, H.W. (1931)

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KPI SELECTION WORKSHOP
WHY WHO
1
• Collective intelligence • Clients
insights
2 • Suppliers
• Learning
• Employees
• Buy-in
3 • Board
• Management
• Facilitators

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KPI SELECTION WORKSHOP
Agenda
1
Topics
Context (60 minutes)
2
5 Agenda and meeting scope review
5 Needs review
3 10 Terminology and KPI format clarification
20 Selection process and tool review
20 Sample Value Flow Analysis (VFA) as a model
Selection activities (140 minutes) 240 minutes
60 Interactive VFA team exercises
60 Consolidation of KPI wall
20 List revision based on filtering criteria
Review and closing (40 minutes)
20 Review of draft
10 Answering questions
10 Clarifying next steps

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FOLLOW UP ON KPI SELECTION
KPI documentation:
1
• KPI measurement limitations;

2 • Cost benefit analysis.

3
First performance review meeting:
• Review and reconsider some KPIs that may prove
inefficient to measure and report in practice.

Source: smartKPIs.com (2020)

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KPI SELECTION CRITERIA
Performance criteria Performance criteria
found in practice: recommended:
• Attainable
• Complete
• Direct Relevant

• Incentivized
• Practical Clearly
• Reliable defined
• Specific
• Tested
Balanced
• Time bound
• Useful for management

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 SESSION REVIEW
1. KPI selection sources: internal and external, primary and
secondary.

2. Main KPI selection techniques:

• KPI expo;
• KPI clustering;
• Value Flow Analysis;
• KPI balancing;
• KPI selection workshop.

3. KPI selection criteria: clearly defined, balanced, relevant.

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 REFERENCES
• SmartKPIs.com (2020), % Net Promoter Score. Available at: https://smartkpis.kpiinstitute.org/kpi-
examples/organisational-context/1303/net-promoter-score;
• Heinrich, H.W. (1931), Industrial accident prevention: A scientific approach. Available at:
http://www.worldcat.org/title/industrial-accident-prevention-a-scientific-approach/oclc/3493629.

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AGENDA

6 KPI in Context
1. KPI alignment approaches
2. Select KPIs for corporate scorecard
3. Cascaded KPIs to functional area

Key Learning Points

1. Identify different approaches to align KPI within the organization;
2. Select KPIs for corporate scorecard;
3. Cascade KPIs from organizational level to departmental level.

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CASCADING & ALIGNMENT
Corporate
“I can see my value
How
Strategy contribution to the Employee
organizational success” Engagement
Objectives Corporate
Scorecard

What KPIs How

Targets

Initiatives Objectives Department

Scorecard

What KPIs How

What I Do
Targets

Initiatives Objectives Individual

Scorecard

What KPIs

Targets
Performance
Plan Tasks

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KPI ALIGNMENT
Approaches WHEN
• activities are homogeneous and allow
aggregation of strategy and KPIs (for
Organization example retail, banking);

Business Business Business The corporate scorecards is transmitted

to business units and few transformations
Unit 1 Unit 2 Unit 3 are made to customized it at lower
hierarchical levels.

WHEN
• strategy is more clear at business unit
Organization level (for example diversified
companies, holding corporations);

Business Business Business The corporate scorecard is developed

Unit 1 Unit 2 Unit 3 based on the scorecards from business
units and contains the common KPIs
(usually financial and human capital
related KPIs).
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 KPI ALIGNMENT
Approaches

Bottom-up
Organization
• In practice, many companies
find themselves between the
Business
Unit 1
Business
Unit 2
Business
Unit 3
two extreme approaches and
recur to a combination of
tactics.

Top-down
Department 1.1 Department 1.2 Department 3.1

Department 3.2

• The process can start from business units and have an alignment:
➢ bottom-up for corporate scorecard;
➢ top-down for departments within that business unit.

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CASCADING
1. Business unit objectives can be cascaded at departmental level as
they are, with the same or different KPIs:

• Same objectives – same KPIs;

• Same objective – same KPI + specific KPI;
• Same objective – specific KPIs.

2. The same objective can be cascaded to more departments, each of

them measuring it through different KPIs.

3. Some organizational objectives may not be cascaded to lower levels.

4. Organizational objectives are supported by specific objectives

established at departmental level, selected based on a contribution
analysis.

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 EXAMPLE: KPI ALIGNMENT SCENARIOS

ORGANIZATION DEPARTMENT: ANY

People, Learning and Growth

Objective: Stimulate a performance- Objective: Stimulate a performance-

oriented organizational culture oriented organizational culture
% Employees with performance plans in place % Employees with performance plans in place
% Performance discussions within SLA % Performance discussions within SLA

ORGANIZATION DEPARTMENT: CUSTOMER SUPPORT

Customers
Objective: Increase customer satisfaction Objective: Increase customer satisfaction
levels levels
% Customer satisfaction % Complaints solved
# Complaints received # Complaints solved per hour

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 EXAMPLE: KPI ALIGNMENT SCENARIOS

ORGANIZATION DEPARTMENT: FINANCE & ACCOUNTING

Financial
Objective: Maximize profitability Objective: Improve payments execution
timeliness
% Net Profit Margin # Time to process payments
$ EBITDA # Pending payments

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 SELECT KPIS FOR CORPORATE SCORECARD
• Scenario:
As the new management team of the organization you have
reviewed the strategy and reflected it in the corporate balanced
scorecard. Given the significant changes adopted in terms of
objectives, a new KPI selection process is necessary.

• Task:
Based on the list of KPIs specific for the industry in which you
operate, you must choose the most relevant KPIs for the strategic
objectives already agreed upon.

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 SELECT KPIS FOR CORPORATE SCORECARD
Corporate Scorecard
Financial
Achieve profit growth

Optimize costs structure

Customer
Maintain high levels of customer satisfaction

Increase customer base

Internal processes
Maximize capacity utilization

Minimizing our waste, energy and water usage

People, Learning & Growth

Build an environment that fosters creativity and innovation

Develop workforce skills and competences

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 SELECT KPIS FOR CORPORATE SCORECARD
Examples of KPIs
% Bookings conversion rate from # Innovation ideas received from
1 11
website employees
2 % Canceled reservations 12 # Length of stay in hotel
3 # Customer satisfaction index 13 $ Net cash flow
4 # Energy consumption 14 # New guest
5 % Employees certified in hospitality 15 $ Operating costs per room
6 # Employee engagement index 16 $ Revenue per guest
7 $ Gross profit 17 $ Revenue per available square meter
8 # Guests per employee 18 # Rooms available
9 % Hotel occupancy 19 # Room order serving mistakes
10 # Hotel waste generated # Training hours per full time
20
equivalent

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 CASCADE KPIS TO FUNCTIONAL AREA
Scenario:
• You are part of the organization’s Human Resources team. Given the
strategy review that took place at corporate level, you will have to align
the departmental strategy to the new changes.

Task 1:
• Cascade the objectives and KPIs from the corporate balanced
scorecard to department level.

Task 2:
• Add new relevant objectives and KPIs for the department, based on the
lists with examples provided.

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 CASCADE KPIS TO FUNCTIONAL AREA
Customer

Internal Processes

People, Learning & Growth

Financial

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 CASCADE KPIS TO FUNCTIONAL AREA
Examples of objectives
No. List
O1 Ensure high service delivery standards
O2 Ensure timely order deliveries
O3 Expand customer base
O4 Improve HR service delivery capability
O5 Increase revenues
O6 Maintain high levels of internal customer satisfaction
O7 Optimize recruitment
O8 Optimize call response time
O9 Provide good value for money to the organization
O10 Seek efficiencies to minimize departmental costs

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 CASCADE KPIS TO FUNCTIONAL AREA
Examples of KPIs
1 # Certifications per HR employee % HR projects on time, on budget
11
2 # Complaints with HR services and according to specifications
3 $ Cost avoidance savings 12 % HR operating expense rate
4 $ Cost per hire # Innovation ideas received from HR
13
# Employee complaints resolution employees
5
timeliness % On-time delivery of HR service
14
6 # Employee engagement index requests
7 % Employee retention rate 15 # Open requisitions
8 # FTEs per HR department FTE 16 # Time to fill a vacant position
% HR customer satisfaction with # Training hours per HR full time
9 17
service levels equivalent (FTE)
10 % HR processes optimized 18 % Turnover
19 % Succession plans in place
20 % Voluntary separation rate

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AGENDA

7 KPI 1. KPI documentation form functions

Documentation 2. KPI documentation form design
3. KPI documentation process
4. Organizational KPI library development

Key Learning Points

1. Design a KPI documentation form;

2. Identify sources of information to document a KPI;
3. Create and maintain an organizational KPI library.

© The KPI Institute 2020 148

KPI DOCUMENTATION FORM FUNCTIONS
Ensure understanding of KPI measurement

Facilitates communication through standardisation

Activation prerequisite

Automation enabler

Knowledge management

Educates stakeholders (KPI owners, data custodians)

Contributes to buy-in by involving the stakeholders

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KPI DOCUMENTATION
Unique identification
KPI name # Employee satisfaction index

WHAT smartKPIs.com #
Definition and usage
Definition
sk5912 Organizational measure no. HRKPI044

Measures the employees' satisfaction and motivation level with aspects regarding the job and working

• Identify metadata fields Organizational area

environment: job responsibilities, team and management, workplace and professional development.
HR Balanced Scorecard perspective People / Learning &
Growth

Fill in the required fields for each KPI

Calculation
• Subordinate measures used
for calculation
A = Index calculated based on responses to structured questioning to assess employee satisfaction and
dissatisfaction reasons and whether they find their work motivating.
Calculation formula A, based on survey Trend is good when (figures are) Increasing

Focus
Purpose To indicate the level of satisfaction and motivation of employees, as high levels of satisfaction lower
turnover rates, leading to higher performance and superior customer service.

WHY Strategic Objective

Measurement focus
objective 20
Satisfaction Measurement
type
Quantitative

Simplify communication
Impact stage Outcome Indicator focus Leading

• Level
Data profile
Strategic Presence at other levels Downstream

Alignment
Data capture period Spot Standard reporting frequency Q

• Automation fit
Limitations
Not recommended Data integrity Low
The accuracy of data can be limited by respondents' subjectivity, as the data is based on survey results.

“Setting the rules”

Targets
• Target
Benchmarking fit
0
Unsuitable
Green threshold
Yellow threshold
85-100
65-85
Other intermediate targets targets 20 Red threshold < 65
Measure administration
Measure owner (title) HR Manager Data custodian (title) HR Analyst
Measure owner (name) John McKinney Data custodian (name) George Douglas

HOW Current status

Data gathering
Lead time
Active

14 days
Activation date (past or future) N/A

• Standardized KPI documentation form Data source (DB name,

System...)
Who maintains DS
Survey report

HR Department When is data produced End of quarter

Comments
Studies suggest a direct correlation between employee satisfaction and increased performance on customer satisfaction, even on
financial results.

Benefits of the organizational KPI Library

• Top performers are 53% more likely than the industry average to maintain a
library of KPI examples and 39% promote the use of performance
management to their employees.

Source: The KPI Institute (2017)

Source: Aberdeen (2011)

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 KPI DOCUMENTATION FIELDS
Scenario: No. KPI examples
• You are part the project team in 1
charge with the KPI implementation 2
process. You are responsible to
3
create a KPI documentation
template. 4
5
Task: 6
• Think about the important fields 7
that need to be included in a KPI 8
documentation form and create a 9
list.
10

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KPI DOCUMENTATION FORM DESIGN
Form sections Fields
Identification Name, number, functional area
Definition and usage Definition, BSC perspectives
Calculation Sub-metrics, formula, trend
Orientation Meaning, impact, implementation level,
metric type
Purpose Purpose, link to strategic objective
Data profile Automation, frequency, time-lag, integrity,
limitations
Targets Intervals, benchmarking fit
Administration Owner, custodian, source

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KPI DOCUMENTATION FORM (1)
Unique identification
KPI name # Employee satisfaction index
smartKPIs.com # sk5912 Organizational measure no. HRKPI044
Definition and usage
Definition Measures the employees' satisfaction and motivation level with aspects regarding the job and working environment: job responsibilities,
team and management, workplace and professional development.

Organizational area HR Balanced Scorecard perspective People / Learning & Growth

Calculation
Subordinate measures used for A = Index calculated based on responses to structured questioning to assess employee satisfaction and dissatisfaction reasons and whether
calculation they find their work motivating.
Calculation formula A, based on survey Trend is good when (figures are) Increasing

Focus
Purpose To indicate the level of satisfaction and motivation of employees, as high levels of satisfaction lower turnover rates, leading to higher
performance and superior customer service.
Strategic Objective objective 20
Measurement focus Satisfaction Measurement type Quantitative
Impact stage Outcome Indicator focus Leading
Level Strategic Presence at other levels Downstream
Data profile
Data capture period Spot Standard reporting frequency Q
Automation fit Not recommended Data integrity Low
Limitations The accuracy of data can be limited by respondents' subjectivity, as the data is based on survey results.
Targets
Target 0 Green threshold 85-100
Benchmarking fit Unsuitable Yellow threshold 65-85
Other intermediate targets targets 20 Red threshold < 65
Measure administration
Measure owner (title) HR Manager Data custodian (title) HR Analyst
Measure owner (name) John McKinney Data custodian (name) George Douglas
Current status Active Activation date (past or future) N/A
Data gathering
Lead time 14 days
Data source (DB name, System...) Survey report
Who maintains DS HR Department When is data produced End of quarter
Comments
Studies suggest a direct correlation between employee satisfaction and increased performance on customer satisfaction, even on financial results.
Source: The KPI Institute (2017)

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KPI DOCUMENTATION FORM (2)
Positive aspects: A comprehensive 2-3 pages G OVERN AN CE
&
PROCESS
FIN AN CIAL
TRAN SACTION
&
TECH NOLOG Y

documentation form; CU STOMERS SU PPLIER PEOPLE

Metric 5.1:

Recommendations: A table format for the Percentage of Invoices Paid

within Due Date
document is recommended. Objective:
To i ncrease compliance with agreed-upon payment terms to maintain
good s upplier relationships

Number of invoices paid within agreed-contract terms

Comments: Other fields, besides the ones Calculation: x 100%

Total number of invoices

present in the right image are: Target: ≥ 98% by net invoice date

• Rational (the need for this KPI); Benefits:

• Benefits;
Percentage of Invoices Paid within Due Date

of Invoices Paid within Due Date

1600 102%
Financial Stewardship: By reliably complying with

• Underlying leading practices;

1400

# of Invoiced Paid
contract terms, organizations will be able to negotiate 100%
1200
more favourable future contracts with suppliers. 1000 98%

• Relevancy;
800 96%
Process Efficiency: By changing accounts payable policies 600
and implementing electronic commerce processes with 94%
400

• Target considerations (establishment and impact

suppliers, the organization can speed up the payment 200 92%
cycle, capture efficiencies, and reduce accounts 0 90%

Jan

Mar

May

Oct
Nov
Jun
Jul
Apr

Aug

Dec
Feb

Sep
payable workload.

with other metrics); Supplier Relationships: Paying invoices according to # of Invoices Paid

Related metrics and standards;

negotiated contract terms improves supplier relations
• and supports potential future preferential contract terms
and pricing.
# Invoices paid within due dates
% Invoices Paid within Due Date

• Implementation (calculation parameters, formula, %Ta rget: ≥ 98% pa id within due date

what to include and exclude )

Underlying Leading Practices
 RFP Development & Compliance Management

• Data accessibility;  Tight Supply Chain/Accounts Payable Organizational Relationship

 Rebate/Discount Management

• Data source;  “End to End” eSupply Chain

• Implementation challenges.
Source: Ontario Buys (2009)

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KPI DOCUMENTATION FORM (2)
Positive aspects: Proper display of 1 KPI title Number of cosmetic product inspections
This metric measure the number of inspections for assessment
2 Description of compliance with the EU (Cosmetic Product) Regulations
information – using a 1 page table, while 2004 as amended.
The HSE is responsible for the enforcement of these
providing the critical information for KPI 3 Rationale Regulations. Inspections are required to ensure the safety of
cosmetic products on the Irish market for use by consumers.
measurement. 4 Target
KPI Collection
NSP 2012 Target - 750
o Daily o Weekly o Monthly þ Quarterly
5
Frequency o BI-annually o Annually o Other-give details
KPI Reporting o Daily o Weekly o Monthly þ Quarterly
6
Recommendations: Standardize KPI
Frequency o BI-annually o Annually o Other-give details
Numerator: Number of inspections YTD of business selling
products to which the EU (Cosmetic Product) Regulations 2004
names. 7 KPI Calculation
as amended apply.
It is a cumulative metric expressed as number of inspections.
8 Reporting Aggregation HSE National HSE Region LHO Area
Data Sources Data is collected manually at PEHO office level.
Comments: 9 Data Completeness
It is reported in the EHO activity return and collated
regionally and nationally.
• The use of predefined checklist, to Data Quality Issues The data is 100% complete
Cosmetic product producers, importers, distributors, retailers
Tracer (Conditions)
standardize response options; 10
terms
and service sector to which the EU (Cosmetic Product)
Regulations 2004 as amended apply
Number of inspections Business which sell ? Products to which
11 Minimum Data Set
the EU (Cosmetic Product) Regulations 2004 as amended apply

• The insert of hyperlinks in the 12

International
Comparison
Irish Medicines Board report on activities to EU
http://www.hse.ie/eng/services/Publications/corporate/HSE
documents to redirect the reader to 13 Web link to data
_Monthly_Performance_Reports_.html
During 2012 the Environmental Health Service will be
additional information; 14 Additional Information migrating to a new Environmental Health Information System
from the existing manually collected activity report.
Metric is a reporting
15 Performance Report
requirement in
• Provides direct contact details, such Named Link Person Mary Keane

email addresses. Metric Sign off Gevin Maguire

Source: HSE (2012)

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KPI DOCUMENTATION FORM
• Organizations use on average 12 different fields to document a KPI

• The most popular fields are: • All KPIs are documented in a

standardized form:
60 55
50
41
40 34 High to very high extent 39%
30 27 26
19 Moderate extent 29%
20 17 17 16 16
10 Very small to small extent 32%
0
Source: The KPI Institute (2016)

Source: The KPI Institute (2015)

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KPI DOCUMENTATION PROCESS
Review internal literature
1

Review external resources

2
Consult with staff collecting or using the data
3
Present to KPI owner for approval
4
Review and approve by KPI architect / SME / Strategy Manager
5

Approve by management team

6
Add to organizational KPI library
7

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THE ORGANIZATIONAL KPI LIBRARY
Process Governance
Design the initial KPI Strategy Office / KPI
documentation form implementation team
1

Update KPI documentation forms Data custodians

2
Review, update and sign-off KPI KPI data owners
documentation forms
3

Approve Top management

4
Centralize all KPI documentation Strategy Office / KPI
5 forms in a KPI library implementation team

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 PRACTICE KPI DOCUMENTATION
Unique identification
KPI name # Employee satisfaction index
smartKPIs.com # sk5912 Organizational measure no. HRKPI044
Definition and usage
Definition Measures the employees' satisfaction and motivation level with aspects regarding the job and working environment: job responsibilities,
team and management, workplace and professional development.

Organizational area HR Balanced Scorecard perspective People / Learning & Growth

Calculation
Subordinate measures used for A = Index calculated based on responses to structured questioning to assess employee satisfaction and dissatisfaction reasons and whether
calculation they find their work motivating.
Calculation formula A, based on survey Trend is good when (figures are) Increasing

Focus
Purpose To indicate the level of satisfaction and motivation of employees, as high levels of satisfaction lower turnover rates, leading to higher
performance and superior customer service.
Strategic Objective objective 20
Measurement focus Satisfaction Measurement type Quantitative
Impact stage Outcome Indicator focus Leading
Level Strategic Presence at other levels Downstream
Data profile
Data capture period Spot Standard reporting frequency Q
Automation fit Not recommended Data integrity Low
Limitations The accuracy of data can be limited by respondents' subjectivity, as the data is based on survey results.
Targets
Target 0 Green threshold 85-100
Benchmarking fit Unsuitable Yellow threshold 65-85
Other intermediate targets targets 20 Red threshold < 65
Measure administration
Measure owner (title) HR Manager Data custodian (title) HR Analyst
Measure owner (name) John McKinney Data custodian (name) George Douglas
Current status Active Activation date (past or future) N/A
Data gathering
Lead time 14 days
Data source (DB name, System...) Survey report
Who maintains DS HR Department When is data produced End of quarter
Comments
Studies suggest a direct correlation between employee satisfaction and increased performance on customer satisfaction, even on financial results.

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 SESSION REVIEW
1. KPI documentation form functions are to:
• Provide an easier understanding of KPIs;
• Facilitate communication;
• Prepare KPIs activation;
• Enable automation;
• Ensure knowledge management;
• Educate stakeholders;
• Contribute to buy-in.

2. Most important fields in a KPI documentation form: name, definition,

calculation formula, target, data source, data owner, data custodian.

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 REFERENCES
• Aberdeen Group (2011), Enterprise performance management. Available at:
http://www.aberdeen.com/Aberdeen-Library/6659/RA-enterprise-performance-management.aspx;
• The KPI Institute (2015), KPI documentation forms research study;
• The KPI Institute (2016), The State of Performance Improvement and KPIs. Available at:
https://marketplace.kpiinstitute.org/state-of-performance-improvement-and-key-performance-
indicator-practice-report-2016.html.

Images:
• HSE (2012), KPI guidelines. Available at:
http://www.hse.ie/eng/services/Publications/corporate/performancereports/kpiguidelines2012.pdf;
• Khaled, A., Sanjoy, K. P., Ripon, K. and Salahuddin A. (2011), Selection of suppliers through different
multi-criteria decision making techniques. Available at:
journalofbusiness.org/index.php/GJMBR/article/download/479/426;
• The KPI Institute (2017), Human Resources Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html;
• Ontario Buys (2009), Performance measurement. Phase II - User guide. Available at:
http://www.doingbusiness.mgs.gov.on.ca/mbs/psb/psb.nsf/Attachments/BPSPerformMeasurePhaseII-
UserGuide-pdf-eng/$FILE/perf_meas_userguide-eng.pdf;
• smartKPIs.com (2020), Net promoter score. Available at: https://smartkpis.kpiinstitute.org/kpi-
examples/organisational-context/1303/net-promoter-score

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AGENDA

8 Working with 1. Target setting process

targets 2. Challenges in working with targets
3. Weights and Indexes
4. Negative behaviors cause by target setting

Key Learning Points

1. Locate KPI target sources;

2. Experiment target setting for a KPI;
3. Address negative behaviors caused by target setting.

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WORKING WITH TARGETS

• Show the desired result level for KPIs

• Represent the starting point in the

measuring and analysis process
(comparing to actual / desired level)

• Impact behavior

WHY The Goal Setting Theory (Ed Locke, Gary Latham)

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TARGET SETTING PROCESS
Yes
Adjust Refresh with Continue
Start Review upon Changes
vertically and managerial monitoring
top-down KPI activation need to be
horizontally approval targets
made?

No

Consultations in target
setting should start with
the top management. As KPIs are active and data
is gathered, targets may be
reviewed and recalibrated Targets need to be
adjusted periodically as
the internal and external
environment of the
company is in a
permanent change.

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TARGET SETTING SOURCES
Contextual External analysis
Analysis (market trends)

External
Benchmarking

Internal
Benchmarking
Historical
records

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TARGET SETTING APPROACHES
Top-down
Increase global
sales
10%

Australia UK France US Middle East

2% 1% 1% 3% 3%

New KSA
Sydney Canberra London Paris Chicago Detroit Qatar UAE
York

1% 1% 1% 1% 1.5% 1% 0.5% 1% 1% 1%

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TARGET SETTING APPROACHES
Bottom-up
# Turn time
15 min

Cargo loading and Passenger

Pre-flight check
unloading boarding and
5 min.
10 min. deplaning 10 min.

Meal & beverage

Cabin grooming Fuelling
provisioning
3 min. 5 min.
5 min.

• Some activities can take place in the same time like cabin grooming and cargo
loading or unloading, allowing the process to be more efficient

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TARGET SETTING APPROACHES
Establishing thresholds

Set target
value

• Increasing
Determine • Decreasing
trend • Within range

• Above target
Establish • In tolerance range
thresholds • Below target

Define each
threshold

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KPIS TREND 1.2

0.8

Increasing 0.6

0.4

0.2

0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

40

30

Within range 20

10

0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

0.6
0.5
0.4
Decreasing 0.3
0.2
0.1
0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

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KPI THRESHOLDS
Popular methodologies to express thresholds

Traffic light:
• 2 points scale • 4 points scale
➢ Meets or exceeds target ➢ Above target
➢ Below target
➢ Meets target
➢ Acceptable range
• 3 points scale
➢ Far below target
➢ Meets or exceeds target
➢ Acceptable range
➢ Far below target

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Targets Gathering Visualization
CHALLENGES IN WORKING WITH TARGETS
Technical Social
• Historical data does not • Targets are perceived
exist; either too high or too low;

• Accuracy of forecasts or • Targets are imposed, not

analysis on which targets established
are set; collaboratively;

• The use of benchmarking

data; • Negative behaviors driven
by target setting.
• Assigning weights.
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WEIGHTS AND INDEXES
Weights Indexes
• Emphasizing the importance of • A set of items that aggregate
reaching targets, by distributing multiple, but distinctly related
100 points amongst all KPIs in the aspects under a single indicator;
scorecard / dashboard.
• They are an accumulation of
scores from a variety of individual
Weight X Actual Result items.

=
Score

Source: Arcan, A. (2011)

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WEIGHTS
PROs CONs
• Keep focus on what really • Establishing weights can be
matters by correlating subjective;
importance with weight
value; • Aggregating KPI results into
a performance score/index
• Enable an overall score of brings no value for the
performance; decision making process;

• Weights can be changed – • Changing weights from one

flexibility. period to another leads to
inconsistency of data in
time.
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 CHALLENGES IN WORKING WITH TARGETS
Which negative behaviors are associated with performance
based pay? Allocate the correct number in front of each
statement.

Match Description No. Behavior

Establishing lower targets than the realistic level
1 Gaming
estimated as possible.
Looking after the achievement of own targets,
without consideration of the implications for 2 Sandbagging
other areas in the organization.
Disregarding environmental and safety Tunnel
3
considerations in the process of meeting targets. behave or
Influencing results through unapproved means to Unethical
4
ensure target achievement. behavior

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 SESSION REVIEW
1. Checklist for working with targets:

• Based on data (historical, internal and external

benchmarking, market analysis);
• Ambitious, but achievable standards;
• Clear and specific;
• No delta targets;
• No conflictual targets;
• Thresholds;
• Discussed, not imposed.

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 REFERENCES
• Philips Hotel (2011), Net promoter score at Philips. Available at:
https://www.youtube.com/watch?v=lckcJeae5Ds;
• Bain & Company, Satmetrix Systems (2013), Measuring your Net Promoter Score. Available at:
http://www.netpromotersystem.com/about/measuring-your-net-promoter-score.aspx.

Images:
• Arcan, A. (2011), Performance measurements and metrics: An analysis of supplier evaluation. Available
at: http://scm.ncsu.edu/scm-articles/article/performance-measurements-and-metrics-an-analysis-of-
supplier-evaluation;
• Effectory International (2014), Global Employee Engagement Index. Avaliable at:
http://www.employee-engagement-index.com/;
• Eneco (2013), Performance report 2012. Available at:
http://annualreport2012.eneco.com/progress/strategic-kpis;
• Harvard Kennedy School, Center for Public Leadership (2012), A national study on confidence in
leadership. Available at: http://www.centerforpublicleadership.org/images/pdf/NLI/cpl_nli_2012.pdf;
• Lehigh University (2013), GPS weighting factors handout 2013. Available at:
https://hr.lehigh.edu/sites/hr.lehigh.edu/files/GPS_WeightingFactors_2013.pdf;
• Lindsey, M. (n.d.), Supplier performance ratings - Scorecards, rankings, and awarding business.
Available at: http://www.asq-qm.org/resourcesmodule/download_resource/id/348/;
• The KPI Institute (2015), Material extracted from consultancy projects.

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AGENDA

9 Data gathering & 1. Data quality dimensions

Working with data 2. KPI reporting data sources
custodians 3. KPI activation tools
4. KPI activation techniques
5. Working with data custodians
6. Data collection methods

Key Learning Points

1. Identify data quality dimensions;

2. Use KPI activation techniques and tools;
3. Address challenges in data gathering.

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 IDENTIFY DATA QUALITY ISSUES
You have received the following data to compile a report. You are requested
to perform a quick data audit and identify possible issues.
Actual Submission Submission
KPI Name Department Data Custodian Position
Result date deadline

# Time to fill a vacant position 35 HR Allan Smith Finance Manager 20-05-17 01-06-17

% Employee satisfaction 89% HR Allan Smith Finance Manager 18-04-17 01-06-17

% Return on capital employed
5% Finance Allan Smith Finance Manager 05-05-17 01-06-17
(ROCE)
# Units per man-hour 55 Production Dan McKenny Production Manager 20-05-17 01-06-17
% Net promoter score Marketing Joe Linch Marketing Manager 25-05-17 01-06-17
% Customer retention 10% Marketing Joe Linch Marketing Manager 18-05-17 01-06-17

% Deals closed 234 Sales Julien Harrison Sales Manager 18-06-17 01-06-17

# Production plants functional 4 Production Dan McKenny Production Manager 25-05-17 01-06-17

$ Time to produce 1 item 30 Production Dan McKenny Production Manager 21-05-17 01-06-17

% Brand awareness 50% Marketing Joe Linch Marketing Manager 17-05-17 01-06-17

% Production uptime 10% Production Dan McKenny Production Manager 17-05-17 01-06-17

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DATA QUALITY DIMENSIONS

CONFORMITY
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DATA QUALITY DIMENSIONS - COMPLETENESS

Refers to whether all available data is present. Unavailable data

does fall short of completeness.

• Make sure all necessary data is present;

• Check whether all fields required are

completed;

• Dimension easy to measure.

Source: Ravn, T. and Hoedholt, M. (2009), How to measure and monitor the quality of master data

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DATA QUALITY DIMENSIONS - UNIQUENESS

There should be no data duplicates. Each data record should be

unique, otherwise risk of accessing outdated information increases.

• Make sure there are no duplicate records for the same data;

• When using Excel files, filters can be applied, to check more

easily this dimension;

• When using BI solutions, the system should not allow double

entry of data.

Source: Ravn, T. and Hoedholt, M. (2009), How to measure and monitor the quality of master data

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DATA QUALITY DIMENSIONS - CONFORMITY

Make sure data is compliant with the format requested;

• Number of - #
• Percentage - %
• Value of - $

e.g.: If for the KPI % Processes mapped, the result is 3 (number,

not percentage), data is not compliant.

Source: Ravn, T. and Hoedholt, M. (2009), How to measure and monitor the quality of master data

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DATA QUALITY DIMENSIONS – CONSISTENCY

Refers to delivering consistent data across different reports. It

implies a synchronization of data across the organization.

• Make sure data presents the same values in different

systems;

• Check if data is consistent in time – results are the same

when applying the same criteria in different moments in
time.

Source: Ravn, T. and Hoedholt, M. (2009), How to measure and monitor the quality of master data

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DATA QUALITY DIMENSIONS - ACCURACY

Indicates the extent to which data reflects on the realities measured.

Inaccuracy can be reflected by incorrect values.

• Make sure data reflects real information;

• The data sources are verifiable;

• Ask for raw data;

e.g.: Sampling, checks on calculations.

Source: Ravn, T. and Hoedholt, M. (2009), How to measure and monitor the quality of master data

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DATA QUALITY DIMENSIONS - TIMELINESS

Indicates whether the data was submitted in due time, as per the
data gathering and reporting deadline

• Make sure establish data collection cycle time;

• Establish clear deadlines for performance data reporting

• Send reminder for data submission

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DATA QUALITY DIMENSIONS
Most common challenges:

Completeness
Availability

Timeliness Accuracy

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THE KPI ACTIVATION / DATA GATHERING PROCESS

1
• Meet with data custodians

2
• Secure activation budget KPI
activation
3
• Design the data gathering template

4
• Communicate the template to data custodians

5
• Send KPI data gathering notification On-going
data
• Send reminder email
6 gathering
7
• Receive data process

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DATA GATHERING GOVERNANCE

KPI Owner Data Custodian

• Responsible to • Responsible to
reach KPI targets gather data for
KPIs

Report Generator

This role can be taken by:

• Data custodian
• KPI owner
• A third party within the organization (e.g.
data analyst, strategy/performance
manager)

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 DISCOVER DATA CUSTODIAN ROLES
Analyze KPI measurement options
Reach the targets for the KPIs
Document KPIs
Select KPIs
Activate KPIs
Take decisions based on KPI results
Cascade KPIs to lower organizational levels
Find solutions for inactive KPIs
Ensure quality of data gathered: compliance with measurement
methodology, accuracy and timeliness of submission
Update KPI documentation forms

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KPI DATA GATHERING SOURCES
Internal
Operations

Production reports
HSSE observation sheets
ERP Benchmarking
reports
SAP
External
Oracle
benchmarking reports

External entities
Surveys Sources (accreditations,
ratings)

# Customer satisfaction Universities

# Employee engagement Hospitals

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KPI ACTIVATION TOOLS
Data gathering process map
1

Data gathering template

2

KPI documentation form

3

Source: The KPI Institute (2016)

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KPI ACTIVATION TOOLS
Data gathering process map
1
1
Send data gathering Data custodians provide Communicate the
data Generate report
email report to all employees
3rd working day of the 4th working day of the
2nd working day of the 5th working day of the
month month
month month
2

Yes

3
No Remind employees
Actions
about the report and
taken?
the meeting

Review the actions Take actions Conduct follow-up Participate at the

taken 15 working day of the
th 9th working day of the meeting
16 working day of the
th
month month 8th working day of the
month month

Source: The KPI Institute (2017)

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KPI ACTIVATION TOOLS
Data gathering template
1 KPI # Employment % Job offer # Applicant
brand strength acceptance ratio
rate
smartKPIs.com # sK2 sK53 sK1805

Trend is good Increasing Increasing Increasing

when (figures are)
2 Standard reporting Q Q Q Q Q Q Q Q Q Q M M M M M
frequency

Limit
Floor Threshold Target Ceiling Floor Threshold Target Ceiling Floor Threshold Target Ceiling
Measure owner (name) Firstname Firstname Firstname
Lastname Lastname Lastname
3 Data custodian (name) Firstname Firstname Firstname
Lastname Lastname Lastname
n/a n/a n/a
82 60 100 85% 50% 80% 100% 5
Jan 2009 80 7 8 10
5
Feb 9 8 10
5
Mar 7 8 10
88 60 100 84% 50% 80% 100% 5
Apr 80 6 8 10
5
May 6 8 10
5
Jun 4 8 10
60 60 100 98% 50% 80% 100% 5
Jul 80 1 8 10
5
Aug 3 8 10
5
Sep 2 8 10

Source: The KPI Institute (2017)

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KPI ACTIVATION TOOLS
KPI Documentation form
Unique identification
1 KPI name # Employee satisfaction index
smartKPIs.com # sk5912 Organizational measure no. HRKPI044
Definition and usage
Definition Measures the employees' satisfaction and motivation level with aspects regarding the job and working environment:
job responsibilities, team and management, workplace and professional development.
Organizational area HR Balanced Scorecard perspective People / Learning & Growth
Calculation
Subordinate measures used for A = Index calculated based on responses to structured questioning to assess employee satisfaction and dissatisfaction
2 calculation reasons and whether they find their work motivating.
Calculation formula A, based on survey Trend is good when (figures are) Increasing
Focus
Purpose To indicate the level of satisfaction and motivation of employees, as high levels of satisfaction lower turnover rates,
leading to higher performance and superior customer service.
Strategic Objective objective 20
Measurement focus Satisfaction Measurement type Quantitative
3 Impact stage
Level
Outcome
Strategic
Indicator focus
Presence at other levels
Leading
Downstream
Data profile
Data capture period Spot Standard reporting frequency Q
Automation fit Not recommended Data integrity Low
Limitations The accuracy of data can be limited by respondents' subjectivity, as the data is based on survey results.
Targets
Target 0 Green threshold 85-100
Benchmarking fit Unsuitable Yellow threshold 65-85
Other intermediate targets targets 20 Red threshold < 65
Measure administration
Measure owner (title) HR Manager Data custodian (title) HR Analyst
Measure owner (name) John McKinney Data custodian (name) George Douglas
Current status Active Activation date (past or future) N/A
Data gathering
Lead time 14 days
Data source (DB name, Survey report
System...)
Who maintains DS HR Department When is data produced End of quarter
Comments
Studies suggest a direct correlation between employee satisfaction and increased performance on customer satisfaction, even on financial results.

Source: The KPI Institute (2017)

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KPI ACTIVATION / GATHERING TECHNIQUES
Meeting KPI data custodians in
1 person

Involving data custodians in a

2
community of practice

Sending reminder email

3

After KPI activation, involving data custodians in a community

of practice and sending a reminder email become part of an
on-going process to gather data.

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KPI ACTIVATION TECHNIQUES
Meeting KPI data custodians in person
1
Maritz Institute - 3 main benefits for conducting face
to face meetings:
2

Captures Inspires a Strengthens

attention positive human networks
attitude and business
relationships

Source: EQAVET (n.d.)

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KPI ACTIVATION TECHNIQUES
Involving data custodians in a community of
1 practice
• Provides a common platform for data custodians to
2 communicate and share work related experience;

3 • Stimulates learning by supplying a medium for

sharing best practices and tutoring;

• Creates collaborative processes that add value and

maximize data custodian efficiency.

Source: EQAVET (n.d.)

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KPI ACTIVATION TECHNIQUES
Sending reminder email
1
# KPIs to # KPIs already
Custodian name KPIs not reported on yet Due date Status Comment
report reported on

2 John Doe 8 8 none 13-Jun-17 Submitted

% IT budget out of total

Ann Smith 9 8 13-Jun-17 Outstanding
operational budget
% Profit rate, $ Revenue
Emory Lafayette 5 3 13-Jun-17 Outstanding
3 seat per kilometer
# Fuel consumption per
Luis Ramirez 4 3 13-Jun-17 Outstanding
flight
# Service quality rating,
Not
Anthony Gleason 2 0 % Ticket price variance from 13-Jun-17
submitted
market average
Not
Mike Myers 1 0 % Market share 13-Jun-17
submitted

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 WORKING WITH DATA CUSTODIANS
Scenario:
• As a part of the KPI implementation project team, following the
strategic planning session, your have to deal with a list of currently
inactive KPIs for the organization.

Task:
• You are required to meet with all data custodians and discuss the
inactive KPIs. To guide your discussion use the agenda provided and
make sure each topic is debated and solutions are found.

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 WORKING WITH DATA CUSTODIANS
Agenda
No. Topics No. KPIs to discuss
1 Present the scope of the meeting # Complaints registered from
1
Explain each KPI (definition, customers
2 calculation formula, data collection 2 % Project on time
frequency) 3 # Employee engagement index
Identify resources needed to activate
3
each KPI (infrastructure, people, costs)
Propose solutions to gather data for
4
each KPI
5 Establish activation dates for each KPI
6 Next steps and closing the meeting

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DATA COLLECTION METHODS

• Manual - Microsoft Excel.

• Automated:
➢ Off-the shelf software;
➢ Custom-designed software.

Source: Gartner (2017)

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DATA COLLECTION METHODS
• During the last years, companies have oriented their IT investments
towards BI tools and analytics in order to facillitate data gathering and
provide accurate and timely information for decision making.
IT Investment Priority
60%

50%
50%

41%
40% 37% 36%
34%
31% 32%
30% 27% 26%
24%

20%

10%

0%
BI/analytics Infrastructure and data Cloud ERP Mobile
center

2014 2015

Source: Gartner (2016)

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 SESSION REVIEW
1. Data quality dimensions: completeness, validity, accuracy,
consistency, integrity, timeliness.

2. KPI activation tools:

• Data gathering process map;
• KPI documentation form;
• Data gathering template.

3. KPI activation techniques:

• Meeting KPI data custodians in person;
• Involving data custodians in a community of practice;
• Sending reminder email.

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 REFERENCES
• EQAVET (n.d.), Mission. Available at: http://www.eqavet.eu/gns/about-eqavet/mission.aspx;
• Gartner (2015), CIO Agenda insights. Available at:
http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights2015.pdf;

Images:
• Gartner (2017), Magic Quadrant. Available at: https://www.gartner.com/doc/reprints?id=1-
3TYE0CD&ct=170221&st=sb;
• Microsoft (2017), Power BI - Service dashboards. Available at: https://powerbi.microsoft.com/en-
us/documentation/powerbi-service-dashboards/;
• Qlik (2017), Nprinting. Available at: http://www.qlik.com/us/products/nprinting;
• SAP (2016), SAP Crystal Dashboard Design 2016. Available at:
https://www.sapstore.com/solutions/99046/SAP-Crystal-Dashboard-Design-2016;
• Spider Strategies (2020), QuickScore. Available at: http://www.integerperform.com/kpi-dashboard-
balanced-scorecard-software;
• Tableau (2017), Pediatrics Dashboard. Available at:
https://www.tableau.com/solutions/gallery/pediatrics-overview;
• The KPI Institute (2017), Call Center Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/call-center-performance-management-system-toolkit.html.

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AGENDA

10 Data visualization
1. Guidelines to design efficient templates
2. Usability in terms of visual design
3. Scorecard and dashboard design

Key Learning Points

1. Identify good practices in data visualization;

2. Design appealing and efficient data visualization elements;
3. Choose the right visual representations for the performance
scorecard and dashboard.

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 DESIGN GRAPHS TO ILLUSTRATE KPI RESULTS

Estimate the value of A, B, C and D.

B D

A
C

Biscotti Capuccino Espresso Mug

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 DESIGN GRAPHS TO ILLUSTRATE KPI RESULTS

Conclusion: Pie charts are not ideal for graphical

representation of data.

28% 33%

24%
15%

Biscotti Capuccino Espresso Mug

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Visualization
 5.17% 11.40%
9.13% 5.16%
9.80% 5.06%
5.31%

23.71% 16.79%

8.46%

Biscotti Capuccino
Coffee Grinder Coffee Pot Biscotti Capuccino
Croissant Espresso Coffee Grinder Coffee Pot
Latte Mug Croissant Espresso
Scone Thermos Latte Mug
Scone Thermos

Product Share
Latte
Latte 23,71% Croissant
Croissant 16,79% Biscotti
Biscotti 11,40% Mug
Mug 9,80% Scone

Scone 9,13% Espresso

Coffee Pot
Espresso 8,46%
Thermos
Coffee Pot 5,31%
Cappuccino
Thermos 5,17%
Coffee…
Cappuccino 5,16%
0% 5% 10% 15% 20% 25%
Coffee Grinder 5,06%

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DATA VISUALIZATION GUIDELINES (1)

Source: Digital Inspiration (2012)

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DATA VISUALIZATION GUIDELINES (2)
Graphical Representation Checklist:

✓Is it necessary that the viewer makes his own

calculations?
✓Is data missing?
✓Are the axes visible enough?
✓Do lines intersect the data?
✓Is there an informative title?
✓Are all tags correctly associated with the graph
elements?
✓Are there too many dimensions in the graph?
✓Are there scales for all axes included?
✓Is 0 included in all line graphs?

Source: Hichert (2006)

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DATA VISUALIZATION GUIDELINES (3)

Source: The KPI Institute (2014)

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COMMONLY USED GRAPHS IN PRACTICE

Bar charts
1
Bullet graphs
2

3 Dial charts

4 Line charts

5 Pie charts
6
Sparkline

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BAR CHARTS
For comparing individual values
Column chart Bar chart
2013 Revenue split by segment (%)
1 25
Revenues (EUR billions)

France
20

2
2 15
10
North America

Emerging markets
5
UK & Ireland
3
0
3 2009 2010 2011 2012 2013
Germany & Austria

Japan
4
4 Stacked-bar chart
Benelux
Gender distribution in 2013 (%)
Italy

5
5 All managers Nordics

Senior managers Iberia

6 Branch managers
LHH

Switzerland
0% 20% 40% 60% 80% 100%

Female Male Australia & New Zealand

0% 5% 10% 15% 20% 25% 30%

Source: Adapted from Adecco (2013)

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BULLET GRAPH
To compare actual results with targets
Thresholds (Under target, within tolerance limits, above targets)

1 % Community Target

satisfaction
2 0% 20% 40% 60% 80% 100%
Actual performance

3 % Medical practitioner
satisfaction
4 0% 20% 40% 60% 80% 100%

% Practice manager
5 satisfaction
0% 20% 40% 60% 80% 100%
6
% Pharmacist satisfaction

0% 20% 40% 60% 80% 100%

Source: Adapted from Centrelink (2010)

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DIAL CHARTS
Useful for signalling threshold values

3 Quality of road surface

5 Congestion free travel of

Interstates daily updates
6

Projects on time
Source: Adapted from http://dashboard.virginiadot.org/default.aspx

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LINE CHART
Useful for tracking trends
Net profit margin (%)
1 14.0%
12.0%
10.0%
2 8.0%
6.0%
4.0%
3 2.0%
0.0%

4
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net profit (EUR million)
6,000
5,000
5 4,000
3,000

6 2,000
1,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Adapted from Unilever (2013)

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PIE CHART
Useful for comparing different parts of a whole
% Net sales by segment
1 Banking (1,497 € m) Retail (742 € m)

2 33%

3 67%

4 % Net sales by segment % Net sales by segment

Hardware (1,140 € m) Software (1,099 € m) Asia / Pacific / Africa (332 € m) Americas (304 € m)
Germany (644 € m) Europe (959 € m)
5 15%

43%
6 49%
13%
51%

29%

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SPARKLINE
Useful for showing data trends in a condensed manner
KPI 2007 2008 2009 2010 2011 Trend
1 # Customer satisfaction with HR solutions,
84 84 84 80 100
product and services

2 # Retirement claims processing timeliness

(days)
30 42 41 108 125

% Customers satisfied with overall

87% 83% 85% 81% 76%
retirement services
3
# Days to pay Federal Employees Group
6.7 6.3 5.5 4.3 4.4
Life Insurance claims
4 % Agencies with violations of veterans
25% 33% 18% 33% 30%
preference laws, rules and regulations
% Health benefits claims processed within
97% 99% 98% 99% 98%
5 30 working days
% Deficient investigations due to errors in
0.12% 0.10% 0.08% 0.16% 0.15%
investigation processing
6

Source: Adapted from United States Office of Personnel (2012),

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USABILITY IN TERMS OF VISUAL DESIGN

1 3D

2 Pie chart

3 Donut chart Jan Feb Mar Apr

n Berlin 5 5 2 6
n Zurich 5 3 4 4

4 Crowded graphs n Vienna 5 4 2 3

5 Scales from 0

6
Background

Source: Equinox Center (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
3D or not?

1 90

80
2
70

60
3
50

4 40

30
5
20

10
6
0
1 2 3 4 5

Source: Adapted from Adecco (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
3D or not?

1 90 82
77
80 71
2
70 62

60
3 51

50

4 40

30
5
20

10
6
0
1 2 3 4 5

Source: Adapted from Adecco (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
Avoid 3D graphics
Canada Singapore Canada Singapore
1 30% 30%
30%
25%
30%
25%
25% 19.4% 19.3% 18.6% 17.9% 25% 19.4% 19.3% 18.6% 17.9%
20% 20%
20% 20% 14.7%
14.7%
12.8% 13.4% 13.2% 15% 15% 12.8% 13.4% 13.2%
15% 15%
2 10% 10% 10% 10%
5% 5% 5% 5%
0% 0% 0% 0%
2009 2010 2011 2012 2009 2010 2011 2012
3 % Health expenditure % Health
2009 2010 2011
% Health expenditure
2012 2009 2010 2011
% Health expenditure
2012

expenditure

United States India India

4 30%
United States
25.6% 25.9% 30% 25.6% 25.9% 25.1%
25.1% 23.9% 23.9%
30% 25.6% 25.9% 25.1% 23.9% 30% 25%
25%
25% 25% 20%
16.6% 16.2% 20%
5 20% 20% 15.9%
14.0% 15%
15% 15%
15%
10% 10% 10% 10%
5% 5% 5% 5%

6 0%
2009 2010 2011 2012
0%
2009 2010 2011 2012
0%
2009 2010 2011 2012
0%
2009 2010 2011 2012

% Health expenditure % Health % Health expenditure % Health expenditure

expenditure

Source: Adapted from Word Bank (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
Pie charts: Inefficient use of space
Federal Spending for United States (2014) Federal Spending for United States
(2014)
1 Transportation, 3%
Protection, 1%
General
Government , 1%Other spending,
1% Other spending 1%
Education, 3%
2 Interest, 6%
General Government 1%

Protection 1%
Healthcare, 27%
Transportation 3%
3 Welfare, 11% Education 3%

Interest 6%

4 Wefare 11%

Defense 22%

5 Defense, 22%
Pensions 25%

Healthcare 27%

Pensions, 25% 0% 5% 10% 15% 20% 25% 30%

6

Source: Adapted from US Government (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
Doughnut charts = an ink saving version of pie-charts
2009 2010 2011
1
Fixed
18% 19% Fixed 12%
20%
13%
21% Fixed
2 Base salary
Variable
Base salary

Variable
Base salary

Variable
Bonus Bonus
Bonus
36% PSP 39%
3 29%
34% PSP 32% AZIP
27% PSP
AZIP
AZIP

4 2010
2009 2011

5 Fixed 10% Fixed 11% Fixed

16% 24%
23% Base salary Base salary 26% Base salary
Variable Variable
6 Bonus
30%
Bonus
31%
Variable
Bonus
26%
PSP PSP
PSP
AZIP 36% AZIP
35% 32% AZIP

Source: Adapted from Astra Zeneca (2012)

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USABILITY IN TERMS OF VISUAL DESIGN
Avoid crowded graphs
Sales by product
¥300.0
1
¥250.0

2 Too much information on

¥200.0

one graph creates

3 ¥150.0
confusion and relevant
4 ¥100.0 data is no longer visible.
¥50.0
5
¥0.0

2010 2011 2012 2013 2014

Source: Adapted from MuRata (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
Avoid crowded graphs
2010 2011
¥300.0 ¥300.0

1 ¥250.0 ¥250.0
*The black line represents the average ¥200.0 ¥200.0
value of the 5 analyzed years
2 *The green column represents the average
¥150.0 ¥150.0

sales value of all products ¥100.0 ¥100.0

¥50.0 ¥50.0
3
¥0.0 ¥0.0

4 2012 2013 2014

¥300.0 ¥300.0 ¥300.0
5 ¥250.0 ¥250.0 ¥250.0
¥200.0 ¥200.0 ¥200.0

6 ¥150.0 ¥150.0 ¥150.0

¥100.0 ¥100.0 ¥100.0
¥50.0 ¥50.0 ¥50.0
¥0.0 ¥0.0 ¥0.0

Source: MuRata (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
“Simplicity is the ultimate sophistication” – Leonardo DaVinci

Source: Hichert (2006)

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USABILITY IN TERMS OF VISUAL DESIGN
Scales should start from 0
Capital expenditure and cash flow form operating activities
(EUR million)
1 3,500 3,290
2,992
3,000 2,842
2,566
2 2,500
2,405
2,273 2,356 2,359
2,499

1,991
2,000

3 1,500

1,000 Capital expenditure and cash flow form operating

2009 2010 2011 2012 2013 activities (EUR million)
4 Capital expenditure Cash flow from operating activities 3,500

3,000

5 2,500

2,000

1,500
6 1,000

500

0
2009 2010 2011 2012 2013

Capital expenditure Cash flow from operating activities

Source: Adapted from Luftansa (2014)

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USABILITY IN TERMS OF VISUAL DESIGN
Background
Strong colors are not Avoid using strong gridlines, as they
1 recommended for backgrounds. hinder visibility of data.
Homeownership Rates by Region Homeownership Rates by Region
80%
70.0% 69.3%
80% 70.0%69.3%
65.0% 66.5% 66.5% 65.0%64.8% 66.5%66.5%
2
70% 64.8% 62.5% 62.4% 70% 62.5%62.4%
59.4% 59.4% 59.4%59.4%
60% 60%
50% 50%
40%
40%
30%
30%
3 20%

10%
20%
10%
0%
United States Northeast Midwest South West 0%
United States Northeast Midwest South West

4 First quarter 2013 First quarter 2014

First quarter 2013 First quarter 2014

Homeownership Rates by Region

5 80%
65.0% 70.0% 69.3% 66.5%
70% 64.8% 62.5% 66.5% 59.4%
62.4%
60% 59.4%

Recommended visual 50%

6 40%
representation 30%
20%
10%
0%
United States Northeast Midwest South West

First quarter 2013 First quarter 2014

Source: Adapted from United Stated Census Bureau (2008)

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KPI TOOLKIT SPOTLIGHT: BALANCED SCORECARD
Perspective / Goal smartKPIs. Standard Previous Current Trend Target % Target Results Comments
Strategic Objectives / KPIs com # reporting Period Results complete
frequency Results
Customer - 1 Strategic Objectives / 2 KPIs
Maintain high levels of internal customer satisfaction
% Internal customer satisfaction with HR service levels sK2379 Q 85% 75% 90% 83%
# Complaints received
Financial - 2 Strategic Objectives / 3 KPIs
sK2038 Q 0 1
k 0 50%

Seek efficiencies to minimize cost base

$ Cost per hire sK49 M 400.00 534.00 k 350.00
500.00
153%
112%
$ Cost avoidance savings sK262 M 918.00 560.00
Maintain financial rigor in budget projection and
execution
% HR budget variance sK479 M -5% -3% k 2% -157%
Internal Processes - 2 Strategic Objectives / 4 KPIs
Optimize recruitment
# Time to fill a vacant position sK688 M 25 19 15 79%
% Employees who leave the organization in the first 3 months sK688 M 15% 12% 10% 83%
Improve HR service delivery capability
% HR projects on time, on budget and according to specifications
% HR processes optimized
sk2863
sk2284
M
M
62%
84%
87%
46%
k 80%
60%
109%
77%
People, Learning & Growth - 2 Strategic Objectives / 4
KPIs
Build an environment that fosters creativity and
innovation
# HR employee engagement index sK1836 Q 56 76 k 65 117%
# Ideas for new / improved service from HR employees
Develop workforce skills and competences
sK4657 M 14 19 k 30 63%

# Certifications per HR employee sK4659 Q 2.18 1.35 2.00 68%

# Training hours per HR full time equivalent (FTE) sK7 M 14 8 8 100%

Source: The KPI Institute (2014)

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IN PRACTICE: SCORECARD
Medicare Australia BSC Actual
2006-07
Actual
2007-08
Target
2008-09
Actual
2008-09
Finance
Revenue $626.0 m $691.0 m $707.8 M $713.9 M
• The BSC perspectives can be Operating Expense
Net result
$623.7 m
$2.3 m
$697.3 m
($6.3 m)
$724.6 M
($16.8 M)
$722.3 M
($8.4 M)

adapted; Service (public and government)

Community satisfaction 90% 89% ≥90% 93%
Medical practioner satisfaction 89% 86% ≥70% 74%
Practice manager satisfaction 95% 89% ≥85% 87%
Pharmacist satisfaction 87% 91% ≥90% 86%

• 6 perspectives identified: Call centre response time

Medicare claim processing accuracy
91.9%
97.8%
93%
97.8%
90%
97.8%
85.8%
98.1%

Financial, Services, Internal PBS claim processing accuracy

Briefs meet satisfactory standard or above
98.4%
n/a
98.3%
n/a
98.3%
≥95%
98.3%
98%

Business Processes, Growth and

Internal business processes
IT service availability 99.9% 99.9% 99.9% 99.81%

Development, People, Social and

IT service performance 99.9% 99.7% 99.9% 99.46%
Growth and development
Online claiming take up--Medicare bulk bill 31.5% 67.4% n/a 83.6%
Environment; Online claiming take up--Medicare patient
claim 7.9% 12.6% n/a 14%
PBS online take up--number and percentage of 4490 4962 n/a 5099
participating pharmacies (81%) (95%)* 97.03%
People

• For more consistency, the target Overall staff satisfaction 79% 70% The 2009 staff scheduled for
October 2009.

field should be the last one, not Unscheduled absenteeism rate

Social and environmental
12.17 13.2 11.7 13.55

inserted between actual results. Energy usage--office--tenant light and power

per person
6944MJ <10 000MJ 6173MJ**

Source: Medicare Australia (2009)

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IN PRACTICE: SCORECARD
Department of Treasury and Finance, Victoria Government Procurement
Department of Treasury and
NOTE: THIS IS AN INTERACTIVE TOOL FOR USE Finance
KPI for Supplier performance
scorecard
Supplier Name Contract reference Month Year

Variance
Accepta
Key Performance Indicator Score This from
Area Performance Target Measurement Purpose ble Trend
(KPI) month Acceptabl
Score
e Score
Goods or service are Count of good services that are Rejection of goods services adds
Quality Compliant Specification provided to contracted
specification x% of time
rejected as unsuitable for
consumption
cost to the business and may delay
delivery of projects
0
1
x% of Goods or services are Count of orders that are received Late delivery of orders or other
On time provided on date time incomplete later than expected or deliverables may add time and cost 0
required required delivery time to delivery of projects
Delivery
Detective goods and/or services
Less than x% of goods service Count of orders that are received
Secure/no Damage orders may add time and cost to 0
are detective on receipt by detective and unable to be used
delivery of projects
All goods services are
Count of rejected invoiced as a Incorrect pricing leads to increased
Cost To Contract invoiced at contracted rate 0
consequence of incorrect pricing administrative costs
or less
x% of operational issues are Unresolved issues and stress to the
Count of issues unresolved within
Customer Service Issue resolution resolved within X hours of relationship and could add both cost 0
turn time
notification and time to delivery
Supplier presents innovative
Continues improvement and
and creative supply chain
Count of relevant initiatives innovation adds value to the
Innovation Creative solutions solutions to increase 0
presented relationship and has potential to
performance across one or
reduce costs
more KPI areas
Risk adds complexity to service
Supplier actively manages Presentation of information
delivery and potentially adds to
Risk Risk is managed and reports to Vic govt that demonstrating active mitigation of 0
both political sensitivity and public
known risks are mitigated known risks
health issues

Source: Victoria Government (n.d.)

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SCORECARD DESIGN
Checklist:
• Numerical guide (to show if data has been shrunk, if this is
the case);
• Legend;
• Eliminate and minimize grids;
• Delineate and group data (strategic themes, perspectives,
objectives);
• Outline status of results ( ≥target, acceptable range,<target);
• Provide essential data (not nice to know information);
• Align characters appropriately;
• Use optimal size font for easy reading.
Source: CLIMB (n.d.)

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KPI TOOLKIT SPOTLIGHT: DASHBOARD
Human Resources Performance Dashboard
Period Sep 2020
Recruitment Retention
# Employment brand strength
% Staffing rate Target
Q4 11 87
99%
Q3 11 66 82% 89% 86% 80% 88% 76% # Average time to
Q2 11 64 66% 74% 56%
72%
56% 67% promotion
Q1 11 81
0
0
0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0 2016 2017 Q4 11 4
0 50 100 Q3 11 4
Q2 11 3
% Job offer acceptance rate # Applicant ratio Target
Q1 11 2
Q4 11 83% 10 0
Q3 11 65% 8 9 8
6 7 6 7 7 0
Q2 11 91% 4
Q1 11 55% 3 3 0
1
0% 0
0% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0% 0 2 4 6
0% 2016 2017

0% 50% 100%
Workforce profile
% Accession rate Target % Succession plans for key positions Target
19% 17%
14% 12% 14% 12% 10% 14%
9% 7% 9% 10% 9% 9% 7% 7%
10%
4% 6% 6% 4%
3% 3% 2%
0% 0%
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016 2017 2016 2017

Source: The KPI Institute (2020)

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IN PRACTICE: DASHBOARD
Emergency Department Dashboard, Australia
Emergency Dept Dashboard
Data Current To 26/07/2013 Help
20:30

Excludes high
Hospital Status priority cases Wait to See Treat Wait For Total Time in ED
FMC Streams
Avg wait (mins)
Hos EA WTBS Com Treat Cap Ÿ # Stream Tot WOT * Tot Tot WOT * 0-2 2-3 3-4 4-8 8+ EECL Tot

FMC 3 12 53 53 = 61 LIKELY TO ADMIT 7 5 = 7 10 0 7 5 3 9 0 2 26

LMH 5 17 42 41 = 101 LIKELY TO DISCHARGE 4 3 = 14 1 0 8 6 3 2 0 0 19

MH 2 8 20 19 = 32 MENTAL HEALTH 0 0 5 0 0 1 1 1 2 0 0 5

NHS 1 3 20 31 = 60 PAEDIATRICS 1 0 5 0 0 3 2 0 1 0 0 6

RAH 2 8 68 64 = 67 RESUSCITATION 0 0 1 1 0 0 0 0 2 0 0 2

TQEH 2 2 30 31 = 18 TIME CRITICAL 0 0 2 4 0 2 2 0 2 0 0 6

WCHP 3 3 40 26 = 40 UNCLASSIFIED 0 0 0 0 0 0 0 0 0 0 1 1

Total 18 53 273 265 Total 12 8 0 0 34 0 16 0 0 0 21 16 7 18 0 0 3 65

FMC Expected Arrivals FMC Departures (Last 1Hr) FMC Triage Categories FMC 24 Hour Activity
Category Total Departure Type Total Cat. WTS WOT * Oth Tot
90
AMB 2 2 Admitted to this hospital 2 1 0 0 1 1
80
AMB 5 1 Discharged 7 2 0 0 9 9
70
Other 0 3 8 6 = 32 40 60
Transferred to other Hosp 1 4 4 2 = 9 13 50
Total 3 Total 10 Total 12 8 53 55 40
30
FMC Waiting Times 20
0-2 2-4 4-8 8-12 12-24 24+ Total 10
Waiting to be seen 11 1 0 0 0 0 12 0

21:00
0:00
3:00
6:00
9:00
12:00
15:00
18:00
21:00
N/A N/A N/A N/A N/A N/A N/A
Waiting for Radiology
0 0 0 0 0 0 0
Waiting for IP Consult
9 4 3 0 0 0 16
Waiting for a Bed
Patients: 0 2 4 6 8 10 12 14 16

Source: Emergency Department Dashboard, Australia (2013)

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IN PRACTICE: DASHBOARD
Franklin Lakes Police Department, USA
• No contrast
background, no
strong grids;

• Contrast colors for

bar charts to outline
different data sets;

• Interactive charts,
providing more
details for each set
of data.

Source: Franklin Lakes (2014)

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IN PRACTICE: DASHBOARD
The KPI Institute, Quickscore - SpiderStrategies
• Background
designed based on
thresholds to
provide instant
understanding of
performance
results;

• Monthly evolution
trends.

Source: Spider Strategies (2020)

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 DEVELOP THE HR DASHBOARD
Scenario:
• As Human Resources manager, you realized that the departmental
scorecard does not provide sufficient data to inform your decisions. In
this context, you decide to develop HR dashboard to have more insights
into everyday operations.

Tasks:
• Select the most relevant KPIs for the clusters already identified.

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 DEVELOP THE HR DASHBOARD
Working environment No.KPIs
1 # Applicant ratio
2 $ Average hourly compensation rate
3 # Compensation satisfaction index
4 # Entry level wage to local minimum wage
Talent development 5 # Employee engagement index
6 # Employee tenure
7 % Employees satisfied with compensation
% Employees that leave the organization in 6
8
month after hire
Recruitment 9 # Employment brand strength
10 # Employment offer acceptance rate
11 % Internal promotion rate
12 % Involuntary termination rate
13 % Performance appraisals completed on time
Retention 14 % Positions with succession plans completed
15 % New hire retention
16 # Sick leave days
17 # Time lost per health & safety incident
Compensation 18 $ Training cost per full time equivalent (FTE)
19 % Training return on investment
20 % Unscheduled absence rate

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KPI TOOLKIT SPOTLIGHT: PERFORMANCE HEALTHOGRAM
Perspective smartKPIs. Standard Previous Period Current Trend * Target % Target Results Comments
Dimensions / KPIs com # reporting Results Results complete
frequency
Resources - 2 Dimensions / 4 KPIs
Financial
% Operating budget spent sK7046 Q 90% 92% k 100% 92% R
% Operating expense rate
Talent
sK2046 Q 39% 47%
k 50% 94% R

# Departmental employees sK9 Q 13 11 14 79% R

% Staffing rate
Capabilities - 6 Dimensions / 10 KPIs
sK763 Q 72% 100% k 70% 143% R

Talent development
# Training hours per departmental full time equivalent (FTE) sK7 Q 10 30 k 20 150% ü
% Employees meeting continuing professional development requirements
Innovation
sK4673 Q 74% 96% k 80% 120% R

# Ideas for new or improved service from employees sK4657 Q 25 22 30 73% R

% Ideas approved for implementation
Performance management
sK7049 Q 34% 48% k 50% 96% R

% Compliance with performance architecture sK7050 Q 80% 85% k 80% 106% R

% Active KPIs
Performance culture
sK7051 Q 81% 90% k 80% 113% R

% Positions with Professional Development Plans in place sK6772 Q 97% 89% 80% 111% R
% Performance appraisals completed on time
Project management
sK769 Q 75% 95% k 90% 105% R

% Projects on time, on budget and according to specifications

Process management
sK4996 Q 82% 83% k 85% 98% R

% Processes optimized
Stakeholders - 3 Dimensions / 6 KPIs
sK2284 Q 82% 94% k 85% 111% R

Internal customers
% Internal customers satisfaction with service levels sK1290 Q 62% 92% k 80% 115% R
# Satisfaction of employees with departmental services
Departmental employees
sK2038 Q 5 10 k 10 100% R

% Departmental employee turnover sK1 Q 3% 4% k 2% 194% R

# Rewards and recognition awards offered sK6751 Q 8 7 5 140% R
Suppliers
# Value added suppliers sK7053 Q 9 9 6 150% ü
# Rating of supplier performance
Shareholders - 1 Dimensions / 1 KPI
sK7056 Q 81 82 k 70 117% R

$ Savings achieved sK7057 Q $ 1,227.00 $ 2,772.00

k $ 2,000.00 139% R
Source: The KPI Institute (2020)

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 MANAGING PERFORMANCE THROUGH KPI
REPORTING

Source: Domo (2011)

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Data Course 241
KPI Typology KPI Taxonomy Selection KPI Alignment Documentation Review
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 SESSION REVIEW
1. Scorecards use tables to visualize data, therefore:
• It keeps tables simple;
• No grids, no strong color combination;
• Clusters data based on strategic themes, perspectives or objectives.

2. Dashboards:
• Bar charts: to compare individual values;
• Bullet graphs: to compare actual results to targets;
• Dial charts: to indicate threshold values;
• Line charts: to track trends;
• Pie charts: to compare different parts of a whole;
• Sparklines: to show trends in a condensed manner.

3. Avoid using:
• 3D graphs: distort data;
• Pie and donut charts: inefficient use of space;
• Crowded graphs: data is no longer visible;
• Strong colors for backgrounds: hinder visibility.

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 REFERENCES
• Adecco Group (2013), Annual report 2013. Available at:
http://annualreport2013.adecco.com/fileadmin/user_upload/redakteure/ar2013/pdf/Adecco_Group_A
R2013.pdf;
• Astra Zeneca (2012), Annual report 2011. Available at: http://www.astrazeneca-
annualreports.com/2011/documents/pdfs/annual_report_pdf_entire.pdf;
• Centrelink (2010), Annual report 2009-10, available at:
http://www.humanservices.gov.au/spw/corporate/publications-and-resources/annual-
report/resources/0910/centrelink-annual-report-0910-full-report.pdf;
• Digital Inspiration (2012), Choose the right chart type for your data, available at:
http://www.labnol.org/software/find-right-chart-type-for-your-data/6523/;
• Domo (2011), How Fort Worth Police Department uses domo. Available at:
https://www.youtube.com/watch?v=pKbakXit9H4;
• Equinox Center (2014), Quality of life dashboard. Available at:
http://www.equinoxcenter.org/assets/files/2014%20Final%20Dashboard%281%29.pdf;
• Fusion Charts (2013), Line & area charts, available at:
http://www.fusioncharts.com/demos/gallery/#line-and-area;
• Hichert (2006), Skalen ud deren manipulation, available at:
http://www.hichert.com/downloads/success/check/Skalenmanipulation_2006-11.pdf;
• MuRata (2014), Investor relations. Available at:
http://www.murata.com/ir/information/sales_product/index.html;

© The KPI Institute 2020 The World Understand KPI KPI Working with Data Data
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KPI Typology KPI Taxonomy Selection KPI Alignment Documentation Review
of KPIs KPIs Targets Gathering Visualization
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 REFERENCES
• SA Health (2013), Emergency department dashboard. Available at:
http://www.sahealth.sa.gov.au/wps/wcm/connect/public+content/sa+health+internet/about+us/our+p
erformance/our+hospital+dashboards/about+the+emergency+department+dashboard/emergency+depar
tment+dashboard;
• Spider Strategies (2020), QuickScore. Available at: http://www.integerperform.com/kpi-dashboard-
balanced-scorecard-software;
• The KPI Institute (2017), KPIs Infographic. Available at: https://library.kpiinstitute.org/key-
performance-indicators-infographic-976.html.html;
• Tufte, E. (1983), The visual display of quantitative information. Cheshire, CT: Graphics Press;
• Tufte, E. (2001), Presenting data and information, One-day course, September 17, 2001. New York;
• Unilever (2013), Making sustainable living commonplace, available at:
http://www.unilever.com/images/ir_UNI_10-Year_Charts_2013_030314_tcm13-384260.pdf;
• United Stated Census Bureau (2008), Housing vacancies and homeownership, available at:
http://www.census.gov/hhes/www/housing/hvs/qtr407/graph407.html;
• United States Government (2014), US Federal Budget Pie. Available at:
http://www.usgovernmentspending.com/federal_budget_pie;
• United States Office of Personnel (2012), Annual performance report 2011. Available at:
https://www.opm.gov/about-us/budget-performance/performance/2011-annual-report.pdf
• World Bank (2014), Data. Available at:
http://data.worldbank.org/indicator/GC.XPN.TOTL.GD.ZS/countries/1W-DE?display=default;

© The KPI Institute 2020 The World Understand KPI KPI Working with Data Data
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KPI Typology KPI Taxonomy Selection KPI Alignment Documentation Review
of KPIs KPIs Targets Gathering Visualization
Visualization
 REFERENCES
Images:
• CLIMB (n.d.), Best practices in designing tables. Available at:
http://www.northwestern.edu/climb/resources/written-communication/Best-Practices-Tables.html;
• Equinox Center (2014), Quality of life dashboard. Available at:
http://www.equinoxcenter.org/assets/files/2014%20Final%20Dashboard%281%29.pdf;
• Franklin Lakes (2014), Performance dashboards. Available at:
http://dashboard.revelstonelabs.net/entities/281;
• Medicare Australia (2010), Annual report 2009-10. Available at:
http://www.humanservices.gov.au/spw/corporate/publications-and-resources/annual-
report/resources/0910/centrelink-annual-report-0910-full-report.pdf;
• The KPI Institute (2017), Human Resources Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/hr-performance-management-system-toolkit.html;
• The KPI Institute (2017), Medical Center Performance Management Toolkit. Available at:
https://marketplace.kpiinstitute.org/medical-practice-performance-management-system-toolkit.html;
• The KPI Institute (2017), Performance Healthogram. Available at: http://kpiinstitute.org/research/about-
performance-management/performance-healthogram/;
• Victoria Government Procurement (n.d.), Supplier performance scorecard. Available at:
http://www.procurement.vic.gov.au/CA2575BA0001417C/WebObj/KPIandSupplierPerformanceScorecardTool(Ap
pendix6)/$File/KPI%20and%20Supplier%20Performance%20Scorecard%20Tool%20(Appendix%206).XLS;
• World Bank (2014), World Bank global scorecard. Available at:
http://siteresources.worldbank.org/CSCARDEXT/Resources/2014_WBG_corporate_scorecard_e-version.pdf;
• University of California (2013), Division of Hospital Medicine Faculty Balanced Scorecard FY 2012. Available at:
http://hospitalmedicine.ucsf.edu/bsc/fy2012.html.

© The KPI Institute 2020 The World Understand KPI KPI Working with Data Data
Data Course 245
KPI Typology KPI Taxonomy Selection KPI Alignment Documentation Review
of KPIs KPIs Targets Gathering Visualization
Visualization
 COURSE REVIEW
10 takeaways to implement in your organization:

1. Connect your KPIs to strategy.

2. Articulate the KPI selection process – apply techniques like
KPI selection workshop, KPI clustering, VFA and KPI
balancing.
3. Avoid measuring what is easy to measure or familiar for the
organization.
4. Use a balanced approached of performance measurement –
Balanced Scorecard.
5. Use both scorecards and dashboards.

© The KPI Institute 2020 The World Understand KPI KPI Working with Data Data Course
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KPI Typology KPI Taxonomy Selection KPI Alignment Documentation Review
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10 takeaways to implement in your organization:

6. Cascade the performance measurement framework down to

employee level.
7. Develop the performance measurement capability in the
organization.
8. Involve stakeholders in the KPI implementation project.
9. Avoid making irrelevant comparisons through flawed
benchmarking.
10. Analyze objectives and KPIs in correlation, not as isolated
elements.

© The KPI Institute 2020 The World Understand KPI KPI Working with Data Data Course
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