C KPI Slides Delivery v2.3 AA

CERTIFIED
KEY PERFORMANCE
INDICATORS PROFESSIONAL
Towards the use of a rigorous KPI Measurement Framework
6th 8th of November 2016| Cairo | Egypt
Augustina Anghel
Management Consultant, The KPI Institute
Regalia Business Center, 1st floor, Office 101 Suite 11, Baysquare Building 3,
Business Bay, PO Box 213297, Dubai, United Arab Emirates
T: +971 4 563 7316 | M: +61 4 2456 8088
TheE:
KPI augustina.anghel@kpiinstitute.com
Institute 2016 | W: www.kpiinstitute.org 1
KEY RESOURCES
ADDITIONAL RESOURCES CONTACT DETAILS

www.purposefulidentity.com Life.lab Building
Suite 606, 198 Harbour Esplanade
Melbourne Docklands, VIC 3008
www.balancedscorecardreview.com Australia
www.integratingperformance.com office@kpiinstitute.org
+61 3 9028 2223
The KPI Institute 2016 2

RESEARCH
At the core of smartKPIs.com is an An online magazine containing more

online catalogue of over 20,000 KPI than 1,000 articles on topics like
examples from 16 business strategy, Balanced Scorecard, KPI,
functional areas and 25 industries. organizational performance.
An online catalogue A platform for The most

illustrating the use of integrating performance comprehensive online
corporate identity management knowledge resource dedicated to
elements in practice. at all levels. the Balanced Scorecard.

PUBLICATIONS
Top KPIs Reports by Top KPIs Reports by The KPI Books
Functional Area Industry 3 Books
54 Reports 57 Reports +30 Dictionaries
Details at: http://kpiinstitute.org/publications/

EDUCATION
Certified Strategy and Business Certified Data Visualization
Planning Professional Professional
Certified KPI Professional Certified Benchmarking

Professional
Certified Performance Certified Supplier

Improvement Professional Performance Professional
Certified Employee Certified Personal

Performance Professional Performance Professional
Certified Data Analysis Certified Customer Service

Professional Performance Professional
Certified Innovation Certified Balanced Scorecard

Performance Professional Management System
Professional

EDUCATION
Source: The KPI Institute (2016)

EDUCATION

SOFTWARE SOLUTIONS
Any performance management system implementation requires an appropriate software solution to enable data
gathering, analysis and reporting. At The KPI Institute we continuously monitor the evolution of the software
vendors marketplace and identify solutions that stand out due to their features, usability and value for money.
Given our knowledge of the field, we support organizations in selecting and deploying the right software solutions
for their context.
We help you bring your performance management system

implementation to life
Expert Advisory Services. Our specialized team of analysts support

customers by identifying requirements and in matching these needs
with an appropriate Performance Management software solution.
Configuration Services. Our configuration team can support you in
deploying in a timely and rigorous manner the solution of choice,
either in the cloud or in a client-server environment.
Quality Assurance. In case support is needed in monitoring existing
implementations, we can support through providing a review of the
project progress and by auditing the preliminary outputs to ensure the
end results are fit for purpose and the implementation is a success.
Examples of relevant software solutions
QuickScore by Spider Strategies: EPMS by KPISOFT: Pre-populated Excel Templates:

OPTION 1: QUICKSCORE, SPIDER STRATEGIES
Powered by the latest cutting edge web technologies, QuickScore gives you real-time access to the data you need
when you need it. QuickScore transforms static performance measurement data into information and business
intelligence.
QuickScore automates the balanced scorecard development process, Strategy Maps, and performance metric
spreadsheets to transform data into management information that allows users to visualize performance in a way
that helps improve decision making. Charts, graphs, dashboards and PowerPoint exporting are features of the
software.
Strategy Maps
Dashboards
Scorecards
Reports
Action Planer
Document Manager
To view a demo, access the following link: http://www.integerperform.com/kpi-dashboard-balanced-scorecard-software/demo/

OPTION 2: KPISOFT
KPISOFT brings your Analytics, Performance Management data, and external

data sources together in one intuitive platform, seamlessly integrating critical
business performance data with organizational scorecards. KPISOFT connects
organization strategy to employee performance management and business
reporting dashboards.
Alignment Made Easy. KPISOFT makes it easy to get your organization in alignment with your corporate Strategy
Proactive performance reviews. Custom Dashboards provide at-a-glance KPIs, allowing you to identify opportunities
Holistic Feedback Tools. Each unit can evaluate their team members on the unit-specific criteria that matters to them
Flexible calibration tools. Quickly identify top performers, understand weak scorecards and allow managers to fine-tune
Collaborate in Context. The right tools to make organization-wide collaboration a reality
Analytics. All of your data in one place, and never copy and paste performance data again.
Schedule a Demo
Schedule a personalized demo and see how we can help your organization
perform better by combining analytics and performance in one fully integrated
package.
Get in touch for a personalized tour of KPISOFT: www.kpisoft.com/get-started/

OPTION 3: PERFORMANCE MANAGEMENT TOOLKITS
The Performance Management Toolkits represent a powerful tool developed for specific industries and
functional areas, as well as for individual (employee) performance management.
The Toolkits offer you a valuable baseline selection of editable templates comprising the following
components:
Performance Management System Architecture

Organizational Desired State of Evolution
Organizational Strategy Map
Organizational Performance Scorecard
Departmental Performance Dashboards
Organizational Portfolio of Initiatives
Monthly Performance Management Process
Unlike other software solutions which can be difficult to manage, The Performance Management Toolkits use
Excel templates where renaming, adding new data into the spreadsheets and changing their design can be
easily done without affecting the integrity of the templates whilst achieving the desired results.
To access the pre-populated comprehensive collection of Toolkits, visit: http://store.kpiinstitute.org/templates.html

OUR CLIENTS
In-house training and advisory services
Telecommunications Chemicals Public Authority
Aviation Utilities Financial Services

OUR CLIENTS
Open Courses
Manufacturing Chemicals Public Authority
Aviation Healthcare Financial Services

CERTIFICATION PROCESS
Needs assessment Action plan Forum discussions
1 week before core-course Within 3 days after the core-course Within 3 weeks after the core-course
After-course stage
Pre-course evaluation quiz Webinar Performance

1 week before core-course Improvement Essentials
Within 3 weeks after the core-course
Core-course stage
Certification Exam
Guidance and schedule In-house presentation

Pre-course stage
1 week before core-course Within 3 weeks after the core-course
Participation at on-site
training
Forum introduction Additional reading
1 week before core-course Within 3 weeks after the core-course
Expectations Pre-requisite reading Learning journal

1 week before core-course 1 week before core-course Within 3 weeks after the core-course
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 (hard copy): after participating at the 3 days of on-site training course;
Certified KPI Professional diploma (hard copy): after you have successfully completed all of the 3 stages of the learning experience.

CERTIFICATION PROCESS
Pre-course stage activities:
1. Needs assessment: complete a survey so that we can offer you a relevant and tailored learning experience
2. Pre-course evaluation quiz: take a quiz in order to get an overview of the level of knowledge you have on the course topic
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
5. Expectations: share your expectations regarding the training course on the forum
6. Pre-requisite reading: go through a series of documents to better understand the face to face training content
Core-course stage activities:

7. Participation at on-site training course: attend the 3 days of training course
8. Certification exam: take and pass the exam that contains 75 questions; necessary score to pass is minimum 50
After-course stage activities:

9. Action plan: create a plan for the actions and initiatives you intend to implement after the training-course
10. Forum discussions: initiate a discussion and contribute in a discussion opened by another participant
11. Webinar: watch the Performance Improvement Essentials webinar and share:
3 key learning points you got from the webinar
1 action you intend to take in order to improve your current activities

12. In-house presentation: create and submit a short PowerPoint presentation to present your colleagues the knowledge you
have accessed during the training course (~30 slides)
13. Additional reading: go through a series of resources to expand your content related knowledge
14. Learning journal: reflect upon your 3 stages learning experience and complete a journal

AGENDA
DAY 1 DAY 2 DAY 3
The World of KPIs Data Gathering

Working with Targets
Understanding KPIs KPI Documentation
Data Visualization
KPI Typology KPIs Alignment
Review &
KPI Taxonomy Certification
KPI Selection Exam
LEGEND
Key learning points Case study Session review
Exercise Video References

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.

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 Management
Data Analysis
relations
System Thinking
Oriented

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.

CHALLENGES IN PERFORMANCE MEASUREMENT
Which are the major challenges:
You are interested in addressing?
Your organization/ team is facing?
Are relevant to the practice overall?
The KPI Institute 2016 The

The World
World Understand KPI KPI Working with Data Data Course 23
KPI Typology KPI Taxonomy KPI Alignment
of KPIs
of KPIs KPIs Selection Documentation Targets Gathering Visualization Review
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%

The World
of KPIs
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 World
of KPIs
THE VALUE ADDED BY KPIS
Improvement
Clarity Focus
Communication

The World
of KPIs
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 World
of KPIs
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)

The World
of KPIs
MAIN FEATURES OF BPM SYSTEMS
60%
53%
50%
40% 35%
29%
30% 24%
20%
12% 12% 12% 12%
10%
0%

The World
of KPIs
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 World
of KPIs
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 World
of KPIs
SYSTEM INTEGRATION
ORGANIZATIONAL STRATEGY
INTEGRATED PERFORMANCE
OUTCOMES
MANAGEMENT SYSTEM
OUTCOMES

The World
of KPIs
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 worlds 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 delivering
13 Vision Statement
high quality services.

The World
of KPIs
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

The World
of KPIs
SYSTEM INTEGRATION
PERFORMANCE MANAGEMENT SYSTEM ARCHITECTURE

The World
of KPIs
1. DESIRED STATE OF EVOLUTION

The World
of KPIs
2. STRATEGY MAP

The World
of KPIs
3. PERFORMANCE SCORECARD

The World
of KPIs
4. PERFORMANCE DASHBOARD

The World
of KPIs
5. KPI DOCUMENTATION FORM

The World
of KPIs
6. KPI REPORT FORM

The World
of KPIs
7. PORTFOLIO OF INITIATIVES

The World
of KPIs
8. INITIATIVE DESCRIPTION FORM

The World
of KPIs
MAIN PROCESSES OF BPM SYSTEMS
60%
53%
50%
40%
29% 29%
30%
20% 18% 18%

12% 12% 12% 12% 12%
10%
0%

The World
of KPIs
KPI MANAGEMENT FRAMEWORK CONCEPT MAP

The World
of KPIs
KPI MEASUREMENT FRAMEWORK GOVERNANCE
Top Promote
Management Support
Design
Implement
Strategy / Assume
Maintain
Performance Office ownership of
targets
Collect data
Report data
Department Department Department

The World
of KPIs
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

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

The World
of KPIs
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 (2015), The State of KPIs and Performance Improvement Practice Report, available at:
http://store.kpiinstitute.org/state-of-performance-improvement-and-kpi-practice.html
Images:
The KPI Institute (2014), Human Resources Performance Management Toolkit. Available at:
http://store.kpiinstitute.org/hr-performance-management-system-toolkit.html

The World
of KPIs
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.

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.
The KPI Institute 2016 The World Understand

Understand KPI KPI Working with Data Data Course 51
of KPIs KPIs
KPIs Selection Documentation Targets Gathering Visualization Review
METRICS KPIS- KRIS - ANALYTICS
Metrics
Measurement
KPIs KRIs
Performance Risk
Assessment Assessment
Analytics
Decision Making

of KPIs KPIs
METRICS
# Air temperature
# Air humidity
# Air purity
# Square meters per room
# Employees
# Highway kilometres
# Employee age
# Working hours per year
$ Budget

of KPIs KPIs
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 (2016)

of KPIs KPIs
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 companys 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 KRIs
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)

of KPIs KPIs
ANALYTICS
Refers to extracting key information from large volumes of data in
order to:
predict future trends
identify patterns Support decision making
Source: Google (2016)

of KPIs KPIs
IDENTIFY THE KPIS
1. % Employee satisfaction
2. $ Turnover
3. Finalise project by 31 December
4. # Clients from referrals
5. # Employees
6. % Projects delivered on time and on budget
7. Quality
8. % Defect rate
9. $ Budget
10. 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 entitys activity.
(The KPI Institute)
of KPIs KPIs
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

of KPIs KPIs
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

of KPIs KPIs
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)

of KPIs KPIs
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.

of KPIs KPIs
Positive examples:
Objective 1 - To increase profitability in a sustainable manner for the benefit of the

country.
Objective 2 - To expand the range of services and products.
Objective 3 - To enhance good corporate governance.
Objective 4 - To efficiently manage the volume and quality of the water resources of the
Panama Canal Watershed.
Objective 5 - To increase productivity through excellence in performance and the wellbeing

of human resources

of KPIs KPIs
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

of KPIs KPIs
SESSION REVIEW
1. KPI definition: a measurable expression for the achievement of a desired
level of results in an area relevant to the evaluated entitys activity.
2. Terminology standards:
Objectives - Verb
KPIs - Symbols (#, %, $)
Initiatives - Noun.
3. KPI lifecycle:
Establishment
Use
Evolution

of KPIs KPIs
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 (2013), Annual report. Available at:
http://www.pancanal.com/eng/general/reporte-anual/
Images:
Google (2016), Google Analytics. Available at: http://www.google.com/analytics/
Spider Strategies (2016), QuickScore. Available at: http://www.integerperform.com/kpi-
dashboard-balanced-scorecard-software/

of KPIs KPIs
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.

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

indicators and consequences,
retrospective
Advantage:
Advantage:
Being predictive allows the
Easy to identify and to measure
organization to take better / collect results.
decisions to address future
events.
Challenge: Challenge:
May be difficult to identify Indicates past performance,
and capture results. does not reflect current
Source: International Association of Oil & Gas Producer (2011) activities.
International Customer Management Institute (n.d)
The KPI Institute 2016 The World Understand KPI

KPI Typology
KPI KPI Working with Data Data Course 67
KPI Taxonomy Selection KPI Alignment Documentation Review
of KPIs KPIs Typology Targets Gathering Visualization
Task:
Cluster the following examples into leading and lagging
KPIs.
No. KPI examples
1 % Employee engagement
2 % Customers from referrals
3 % Customer satisfaction
4 % Market share
5 $ Profit
6 % Returning customers
7 # Service lead time
8 % Staff with competencies at desired level

KPI Typology

KPI Typology
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: WACOSS (2011)

KPI Typology
QUALITATIVE KPIS?
Provide timely high-quality advice
meeting ministerial expectations
% Advice provided on time
# Versions for advice reports
% Satisfaction with advice
NCOS implementation
NCAT implementation
Ensure timely and smooth

processing of applications
% Applications processed in
SLA
% Applications processes
correctly first time
# Average delay in processing
applications
Source: Australian Federal Government (2011)

KPI Typology
QUALITATIVE VS QUANTITATIVE KPIS
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)

KPI Typology
IDENTIFY THE KPIS REFLECTING QUALITY
Find in the below list the KPIs that reflect quality as perception.
1. % Employee turnover
2. # Production cycle time
3. # Brand image index
4. # Customer satisfaction score
5. % Projects delivered on time and on budget
6. % Error rates
7. % Employee engagement
8. $ Operating costs
9. % Market share
10. # Service quality rating

KPI Typology
EFFICIENCY VS EFFECTIVENESS KPIS
Effectiveness
Desired
Inputs Processes Outputs Outcomes
output/outcome
Efficiency
Source: Adapted from Australian National Audit Office (1998)

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

KPI Typology
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!

KPI Typology
REFERENCES
Australian Federal Government (2011), Department of Climate Change and Energy Efficiency annual
report 201011. Available at: http://www.climatechange.gov.au/about-us/annual-reports/annual-
report-2010-11
Australian National Audit Office (1998), Better practice principles for performance information,
available at: http://www.anao.gov.au/Publications/Better-Practice-Guides
Charted Accountants Professionals Canada (2010), Performance indicators. Available at:
http://www.camagazine.com/archives/print-edition/2010/march/regulars/camagazine34812.aspx
International Association of Oil & Gas Producer (2011), Process safety recommended practice on
Key Performance Indicators. Available at: http://www.ogp.org.uk/pubs/456.pdf
International Customer Management Institute (n.d.), Leading and Lagging Indicators. Available at:
http://www.icmi.com/files/ICMILeading_LaggingIndicatorsExplained.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
WACOSS (2011), Qualitative vs. quantitative data collection. Available at:
http://www.wacoss.org.au/CommunitySectorFundingReform/Resources/Fundingreformconsidering/
QualitativeQuantitative.aspx
Western Australia Police (2005), General Audit. Available at:
http://www.police.wa.gov.au/LinkClick.aspx?link=PDFs/AR05_Performance.pdf&tabid=935

KPI Typology
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.

INTERDISCIPLINARY SYSTEMIC WORLDVIEW
The KPI Institute 2016 The World Understand KPI KPI KPI Working with Data Data Course 79
of KPIs KPIs Taxonomy Selection Documentation Targets Gathering Visualization Review
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)
1. ORGANIZATIONAL STRATEGY
Context: Scorecards to monitor the achievement of strategy, through KPIs.
Positive aspects: KPIs are monitored in 5 perspectives: Financial, Customer, Operations and
People. Traffic lights are used to enable immediate understanding of performance data.
Recommendations: Link KPIs to more specific strategic objectives, not only to goals.
Comments: The scorecard contain some of the most important fields to track performance.
2. ORGANIZATIONAL OPERATIONS STRATEGY
Context: Dashboards to provide a more detailed overview of corporate performance.
Source: KPI Institute (2014)
3. DEPARTMENTAL STRATEGY
Context: Scorecards to monitor strategy at operational level.
4. DEPARTMENTAL OPERATIONS TRACKING
Context: Dashboards to offer visibility into key processes.
Positive aspects: KPIs

are visualized in both
tables and graphs with
the purpose to enhance
data meaning.
Recommendations:
Cluster KPIs around key
processes or activities.
Comments: The interactivity of the dashboard enables managers to access

different data sets with ease, supporting timely decision making.
Source: Godrejinfotech.com (2010)
5. ALLIANCES / JOINT VENTURES RELATIONSHIP
SCORECARD
Context: Scorecards to monitor performance of alliances or other business
partnerships.
Positive aspects: KPIs are linked to clear objectives established for the alliance.
Recommendations: Standardize KPI names and allocate a section to comment KPI results.
Comments: Key value drivers for the alliance were identified, such as relationship value or
strength that cluster the scorecard objectives and help managers focus on what matters the
most.
6. PORTFOLIO OF PROJECTS
Context: KPIs to monitor the performance in
terms of managing more projects.
Positive aspects: KPI results are displayed

through graphs, in the format of a dashboard.
Recommendations: Replace pie charts, with

more effective data visualization tools;
Comments: Dashboards are very useful in

managing a portfolio of projects as they provide
key information in order to ensure initiatives are
finalized on time, within budget and resources
are used efficiently.
7. PROJECT MANAGEMENT
Source: SmartKPIs.com (2016)
8. QUALITY / PROCESS MANAGEMENT
Context: KPIs to measure quality and compliance with standards, as well as to
support process optimization.
Positive aspects: Process

mapping is used to
standardize activities and
to support process
optimization.
Recommendations:
Establish KPIs to assess
the quality of processes.
Source: Adapted from Oak Ride Institute for Science and Education (2005)
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
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).
Positive aspects: Clear targets

are established for each
performance measure.
Recommendations:
Standardize KPI names for more
clarity.
Comments: Internal SLAs can

be used for both internal and
external providers.
Source: Texas State University (n.d)
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 clients 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
11. EMPLOYEE PERFORMANCE MANAGEMENT
Context: KPIs and scorecards to evaluate performance of each employee in the
organization.
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)
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
14. SUSTAINABILITY PERFORMANCE REPORTING
Context: KPIs to assess the environmental impact of
activities. Results are presented in sustainability scorecards
or in dedicated performance reports.
Positive aspects: there is a trend in representing

performance data in annual reports through infographics.
Recommendations: Structure the KPIs under

sustainability objectives and outline specific targets that
are desired.
Comments:
Transparency in KPI
results can positively
contribute to brand
image.
Source: Apple (2011)
The KPI Institute 2016 The World Understand KPI KPI KPI
KP Taxonomy Working with Data Data Course 95
15. BENEFITS REALIZATION MANAGEMENT
Context: Benefits realization is an important part of project management and
should rely on KPIs that clearly outline expected benefits.
Positive aspects:
KPIs are accompanied by
target values.
Recommendations: KPI
names should be
standardized.
Comments: benefits
realization management
through KPIs provides the
necessary visibility in
assessing investment
projects.
Source: Western Australia Department of Treasury and Finance (2005)
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.
Recommendations:
Structure the KPIs under
sustainability objectives
and outline specific
targets that are desired.
Comments:
Operational reporting
must be focused on
providing essential data
for decision making.
Source: Clebsch, B., Dougherty, J. D., and Anderson, G. (2004)
17. AUDIT
Context: KPIs can be used to assess the quality of the audit department, but also to
analyze how an organization is coordinated.
The checklist from the

example is used to
evaluates the KPIs used
by a set of organizations
to track if their projects
deliver the expected
outputs.
The audit aims to

identify the mix
between qualitative and
quantitative KPIs and
whether they had clear
targets assigned.
Source: Australian National Audit Office (2011)
18. COMPLIANCE REPORTING
Context: KPIs are commonly used to report
compliance with regulations.
Positive aspects: KPIs are clustered on

different perspectives.
Recommendations: KPI names should be

standardized.
Comments: Reporting to governmental

institution can also serve for organizations
as a benchmarking technique if results are
published.
Source: Ontario Buys (2010)
KPI DNA MAP
Scenario:
You are part of the management team of a manufacturing
company. Based on the context provided you have to
recreate the KPI taxonomy of two division in the
organization: production and customer service.
Task:
Read carefully the report 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 KPIs or

clusters as well.
KPI DNA MAP
PRODUCTION
Costs Timeliness
Expenses Planning Duration Schedule adherence
Quality Quantity
Scrap Meeting standards Volume Productivity
KPI DNA MAP
CUSTOMER SERVICE
Costs Timeliness
Expenses Planning Duration Schedule adherence
Quality Quantity
Meeting standards Satisfaction Volume Productivity
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
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
REVIEW DAY 1 CROSSWORD
Scenario
You are split in teams, with the objective of finding out the
crosswords from the next slide.
Tasks
Identify the 15 terms hidden behind letters from the next
slide;
All words connect to the previous day key concepts.
A S L E A D I N G E N T G G V D E R A C K B E K K G
Q T I L O S Z Q L I M N D E C Q B C Q P P M K Q E D
A F O B J E C T I V E L I A Q D M H R O I L R D Y C
Z U I A D G A M I E F F E C T I V E N E S S Q C R Y
A B O N A S O A R S F N B B M D F N Q A S C V B I S
Q E Y P V B N M L Q I H C G I L A A A L L H U J S C
W B H O A A S S G T C Y S T N O L E Z C A X S C K D
X E N I C D V B M D I P E R F O R M A N C E U I I F
C R M K O C V B K A E U V E X S W E D X R T Y U N L
D V J M D A N M I O N I I E V R Y T E O E G H J D O
Q E R T Y U I O P C C Y N R E W Q R A S W V E R I U
D A S H B O A R D R Y N I R T C Y I Z X I V B N C T
A S C V B N M J H K D D T X A A A C G H E K L O A R
I U Y T R E W Q S D F G I J L F L F J H W F D S T E
A S C O R E C A R D O I A P O C E T S R T D N G O W
C M N B V C U P O L I U T T R A Q Y E L H G F S R Q
Q W E R T Y U I O P L K I H T I M E L I N E S S D D
G F L A G G I N G W Y U V O P E L T J H G F D S A F
A S D F G L H Q A Z X E E W C R V B N H G F D E W G
V B N M P L O I U Y T R X W Q U A L I T A T I V E H
A S L E A D I N G E N T G G V D E R A C K B E K K G
Q T I L O S Z Q L I M N D E C Q B C Q P P M K Q E D
A F O B J E C T I V E L I A Q D M H R O I L R D Y C
Z U I A D G A M I E F F E C T I V E N E S S Q C R Y
A B O N A S O A R S F N B B M D F N Q A S C V B I S
Q E Y P V B N M L Q I H C G I L A A A L L H U J S C
W B H O A A S S G T C Y S T N O L E Z C A X S C K D
X E N I C D V B M D I P E R F O R M A N C E U I I F
C R M K O C V B K A E U V E X S W E D X R T Y U N L
D V J M D A N M I O N I I E V R Y T E O E G H J D O
Q E R T Y U I O P C C Y N R E W Q R A S W V E R I U
D A S H B O A R D R Y N I R T C Y I Z X I V B N C T
A S C V B N M J H K D D T X A A A C G H E K L O A R
I U Y T R E W Q S D F G I J L F L F J H W F D S T E
A S C O R E C A R D O I A P O C E T S R T D N G O W
C M N B V C U P O L I U T T R A Q Y E L H G F S R Q
Q W E R T Y U I O P L K I H T I M E L I N E S S D D
G F L A G G I N G W Y U V O P E L T J H G F D S A F
A S D F G L H Q A Z X E E W C R V B N H G F D E W G
V B N M P L O I U Y T R X W Q U A L I T A T I V E H
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%20
No%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
KPI Institute (2014), Human Resources Performance Management Toolkit. Available at:
http://store.kpiinstitute.org/medical-practice-performance-management-system-toolkit.html
KPI Institute (2016), Individual Performance Management Toolkit. Available at:
http://store.kpiinstitute.org/individual-performance-management-toolkit.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
Western Australia Department of Treasury and Finance (2005), 2004-05 Procurement Reform benefits
realisation report
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.

ALLOCATE KPIS FOR EACH OBJECTIVE
Financial No. KPIs list
Increase profitability
1 % Operating expenses to revenue
% 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
of KPIs KPIs Selection
Selection Documentation Targets Gathering Visualization Review
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

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.

KPI SELECTION SOURCES
Workshop Industry
KPI standards
2
Sources
3
Board Benchmarking
Management Competitors
Historical External
data Compliance lists
Workshop

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

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.
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.

KPI CLUSTERING
Scenario:
1
You are part of the management
team operating in a niche
2
industry.
The board asks you to present 5
3
KPIs you will be using to track the
performance of the organization.
Task:
Write down 5 KPIs you would
recommend.
Use one single post-it note for
each KPI (5 post-it notes per
team).

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?
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?

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.
VALUE FLOW ANALYSIS
OBJECTIVES INPUTS PROCESSES OUTPUTS OUTCOMES
# Customer # Time to % Solved

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

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

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

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

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

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

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

VALUE FLOW ANALYSIS
Scenario:
1 Select one objective of your
choice.
2
Tasks:
Write at least 2 input, 2
3
process, 2 output and 2
outcome 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.

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.

KPI BALANCING
Write the correct KPI number under each objective, in order
1 to assure a balanced approach.
2 FAs Objectives No. KPIs

R&D A. Ensure R&D efficiency 1 $ R&D costs
2 % IT software updated within SLA
3 % Core areas of expertise
3 covered at desired level
Investments B. Improve investments activity 4 # Complaints logged
5 # New products developed
6 % Profitable investments
Information
C. Maintain updated systems 7 # Training hours per FTE
Technology
8
# Investment initiatives proposed
# IT software updates 9
6 Human % Customer satisfaction with
D. Develop workforce skills and competencies 10
Resources service level
Marketing E. Increase customer satisfaction levels

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

KPI BALANCING
Source: Heinrich, H.W. (1931)

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

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

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.

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

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.

REFERENCES
SmartKPIs.com (2016), KPI examples. Available at:
http://www.smartkpis.com/kpi_examples/dashboard/
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

AGENDA
6 KPI Alignment
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.

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);
of KPIs KPIs Selection Alignment Documentation Targets Gathering Visualization Review
KPI ALIGNMENT
Approaches
Bottom-up
In practice, many companies find
themselves between the two
extreme approaches and recur to a
combination of tactics.
Top-down
The process can start from business units and have an alignment:
bottom-up for corporate scorecard;
top-down for departments within that business unit.
KPI CASCADING
Business Unit Department A Team A1
O1: Same objective

O1: Same objective O1:
KPI1a Same KPs
KPI1a KPI1a
1 KPIs cascaded
KPI1b KPI1b 1 specific KPI KPIA1a
Team A2
O2: Same objective
O2: O1:
KPI2a KPI2Aa KPI1b
Specific KPIs 1 KPIs cascaded
KPI2b KPI2Ab 1 specific KPI KPIA1b
O3: OA2: OAA2: Team specific

KPI3a KPI2Ba KPIAA2a objective
KPI3b KPI2Bb KPIAA2b Specific KPIs
Specific objective
Specific KPIs
KPI 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.
SELECT KPIS FOR CORPORATE SCORECARD
Scenario:
As the new management team of a hotel you have reviewed the strategy
and reflected it in the organizational 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 hospitality industry you are
required to choose the most relevant KPIs for the organizational 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
Examples of KPIs for Hotel

% 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 $ Operating expenses per guest
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
CASCADE KPIS TO FUNCTIONAL AREA
Scenario:
You are part of a hotels Human Resources team. Given the strategy
review that took place at organizational level, you will have to align the
departmental strategy to the new changes.
Task 1:
Cascade the objectives and KPIs from the Hotel balanced scorecard
to Human Resources department.
Task 2:
Add new relevant objectives and KPIs for the department, based on the
lists with examples provided.
Customer
Internal Processes
People, Learning & Growth
Financial
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
Examples of KPIs for Human Resources
1 # Certifications per HR employee % HR projects on time, on budget
11
2 # Complaints with HR services and according to specifications
3 $ Interviewing cost 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 % Bonus eligibility 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
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.

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
WHAT
Identify metadata fields
Fill in the required fields for each KPI
WHY
Simplify communication
Alignment
Setting the rules
HOW
Standardized KPI documentation form
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: SmartKPIs.com (2016)
Source: Aberdeen (2011)

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

KPI DOCUMENTATION FORM (1)

Positive aspects: A comprehensive 2-3 pages
documentation form;
Recommendations: A table format for the

document is recommended.
Comments: Other fields, besides the ones

present in the right image are:
Rational (the need for this KPI);
Benefits;
Underlying leading practices;
Relevancy;
Target considerations (establishment and impact
with other metrics);
Related metrics and standards;
Implementation (calculation parameters, formula,
what to include and exclude )
Data accessibility;
Data source;
Implementation challenges.
Source: Ontario Buys (2009)

Positive aspects: Proper display of
information using a 1 page table, while
providing the critical information for KPI
measurement.
Recommendations: Standardize KPI

names.
Comments:
The use of predefined checklist, to
standardize response options;
The insert of hyperlinks in the

documents to redirect the reader to
additional information;
Provides direct contact details, such

email addresses.
Source: HSE (2012)

KPI DOCUMENTATION FORM
Organizations use on average 12 different fields to
document a KPI
The most popular fields are:
25 21 19
20 18
15 13 12 11
10 8 7 7 6
5
0
Name Definition Calculation Data source KPI ID Purpose Targets/ Subordinate Limitations Standard
formula record Thresholds measures reporting
used for frequency
calculation

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

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

PRACTICE KPI DOCUMENTATION

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.

REFERENCES
Aberdeen Group (2011), Enterprise performance management. Available at:
http://www.aberdeen.com/Aberdeen-Library/6659/RA-enterprise-performance-management.aspx,
The KPI Institute (2014), KPI documentation forms research study
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
KPI Institute (2014), Human Resources Performance Management Toolkit. Available at:
http://store.kpiinstitute.org/medical-practice-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 (2016), Net promoter score. Available at: http://www.smartkpis.com/kpi-key-
performance-indicator/net-promoter-score-1303.html

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.

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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Targets Gathering Visualization Review
TARGET SETTING PROCESS
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.
TARGET SETTING SOURCES
Contextual External analysis
Analysis (market trends)
External
Benchmarking
Internal
Benchmarking
Historical
records
TARGET SETTING APPROACHES
Top-down
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
Establishing thresholds
Set target
value
Increasing
Determine Decreasing
trend Within range
Above target
Establish In tolerance range
thresholds Below target
Define each
threshold
KPIS TREND
Increasing
Within range
Decreasing
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
KPI THRESHOLDS
Perspective / Strategic Objectives / KPIs SRF Actual result Target Thresholds Status
Financial
Ensure financial stability
>10,000
$ Revenue M 10,500 10,000 9,000-10,000
<9,000
Customers
Maintain high level of customer satisfaction
>80%
% Customer satisfaction Q 65% 80% 70-80%
<70%
Internal Processes
Ensure efficient production
<30
# Production cycle time M 20 30 30-35
>35
People, Learning and Growth
Develop staff competencies
24-28
# Training hours per employee Y 30 24 20-24; 28-32
<20; >32
ESTABLISH TARGETS
Scenario 1:
You are the Marketing Manager of a company that sells bicycles on the
national and international market. The company is an average player in
the industry in terms of turnover and company size.
After the annual strategic planning session, the Board has decided that
the target of 5 % for % National market share should be revised.
Task:
Based on the 4 sources of information provided you are requested to
propose a new target for % National market share.
ESTABLISH TARGETS
Historical data
% National market share performance results
2010 2011 2012 2013 2014
Q1 5.5% 7% 7.3% 6% 6%
Q2 5.6% 7% 7.2% 6.1% 6.5%
Current target: 5%
Q3 5% 6% 7% 5.7% 6.8%
Q4 5% 4.5% 7% 5.7% 5.5%
Average 5.3% 6.1% 7.1% 5.9% 6.2%
Total average 6.1%
Internal benchmarking
The international Marketing division that operates on a similar market size
registered the following results for % International market share:
2014
Q1 7.5%
Q2 8%
Q3 9%
Current target: 8%
Q4 9%
Average 8.4%
ESTABLISH TARGETS
External benchmarking
% Market share at national level % Market share at international level
Market leader 20% Market leader 30.0%
2nd 18% 2nd 25%
3rd 17% 3rd 24%
Average players 8% Average players 10%
Market analysis
The governmental initiative to build bicycle tracks in all major cities is progressing
according to schedule and the budget for 2016 has increased compared to 2014.
In the last years, this sport has become more and more popular not only among young
people, but also among adults. It is estimated that in the following 3 years each family
will posses at least 2 bicycles and they will not be used exclusively for leisure, but also
as means of transportation.
This will definitely reflect in a more fluent traffic and a lower environmental foot
print.
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KPI KPI Workingwith
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Targets Gathering Visualization
ESTABLISH TARGETS
Scenario 2:
You are the Call Center Manager of a company operating in IT business.
You are responsible for managing the inbound Call Center Division A and
in the last quarters, performance results indicate that the current target
of 10% for % Call abandon rate should be reconsidered.
Task:
Based on the 2 sources of information provided, you are requested to
propose a new target for % Call abandon rate.
ESTABLISH TARGETS
Historical data
% Call abandon rate
2010 2011 2012 2013 2014
Q1 10% 11% 12.3% 13% 10%
Q2 9% 12% 13.2% 12% 8%
Current target: 10%
Q3 9.5% 11.5% 12% 10% 8%
Q4 10% 11.9% 11% 11% 7%
Average 9.6% 11.6% 12.1% 11.5% 8.3%
Total average 10.6%
External benchmarking
Inbound Call Center 1 2%
Outbound Call Center 1 3%
Average inbound 3.3%
Average outbound 5.0%
ESTABLISH TARGETS
Scenario 3:
You are the Marketing Manager of a distribution company that provides
delivery services nationally and internationally.
Following the strategic planning for 2016, you are requested to activate
the objective under your ownership: Increase customer advocacy. The KPI
used to measure this objective is % Net promoter score (NPS).
This KPI needs to be activated until the next month and all the KPI
documentation is prepared except one field: the target.
Task:
There is no historical data for this KPI and no reliable benchmarking data.
Under these circumstances you are requested to propose a target for %
NPS.
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 collaboratively;
are set;
The use of benchmarking Negative behaviors driven

data; by target setting.
Assigning weights.
Workingwith
Targets
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)
WEIGHTS
PROs CONs
Keep focus on what Establishing weights can be
matters by correlating subjective;
importance with weight
value; Aggregating KPI results into
a performance score/index
Enable an overall brings no value for the
performance score; decision making process;
Changing weights from one

Weights can be changed
flexibility. period to another leads to
inconsistency of data in
time.
WEIGHTS EMPLOYEE ASSESSMENT
Context: Example of instructions on how to assign weights for employees
Positive aspects: Weighting focused on impact of outcomes and importance.

Assigning weights during the employee performance planning stage.
Recommendations: Ensure balance and alignment between of weights

across different positions.
Comments: Assigning
weights can be subjective
try to reduce this to the
minimum.
Workingwith
KPI Documentation Targets
Positive aspects:
Weights are assigned
for special projects,
outlining on what
should the employee
focus with priority.
Recommendations:
Include KPIs to
measure the
fulfillment of key
accountabilities.
Comments: Ensure a
proper aggregation of
weights with scores.
Positive aspects: Weights
are assigned to objective
measures of performance
such as KPIs.
Recommendations:
If used, weights should
cover all elements of
assessing employee
performance.
Comments: Thresholds are

also used to break down
results in 3 intervals: poor,
fair, excellent.
Workingwith
Targets
WEIGHTS SUPPLIER ASSESSMENT
Context: Weight are also used in supplier assessment to outline the
importance of reaching certain targets of the service level agreement.
Positive aspects:
Weights are included
in the supplier
evaluation sheet /
scorecard.
Recommendations:
Ensure the weights
assigning system
contributes to
improving the quality
of the service.
Source: Lindsey, M. (n.d.)
Workingwith
Targets
INDEXES - # EMPLOYEE ENGAGEMENT INDEX
The Global Employee Engagement Index
Applied in 47 different countries;
More than 100 questions survey.
6.7 6.1
5.8
6.7
6.9
6.0
Source: Effectory International (2014)
INDEXES - # LEADERSHIP CONFIDENCE INDEX
The National Leadership Index
1,000 Americans
13 of the countrys major sectors.
Source: Harvard Kennedy School, Center for Public Leadership (2012)
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
1 Gaming
level estimated as possible.
Looking after the achievement of own
targets, without consideration of the
2 Sandbagging
implications for other areas in the
organization.
Disregarding environmental and safety
considerations in the process of meeting 3 Tunnel behavior
targets.
Influencing results through unapproved means Unethical
4
to ensure target achievement. behavior
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.
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
Lindsey, M. (n.d.), Supplier performance ratings - Scorecards, rankings, and awarding business.
Available at: http://www.asq-qm.org/resourcesmodule/download_resource/id/348/
AGENDA
9 Data gathering 1. Data quality dimensions

2. KPI reporting data sources
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.

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 20-05-14 01-06-14
% Employee satisfaction 89% HR Allan Smith Finance Manager 18-04-14 01-06-14

% Return on capital employed
5% Finance Allan Smith Finance Manager 05-05-14 01-06-14
(ROCE)
# Units per man-hour 55 Production Dan McKenny Production Manager 20-05-14 01-06-14
% Net promoter score Marketing Joe Linch Marketing Manager 25-05-14 01-06-14
% Customer retention 10% Marketing Joe Linch Marketing Manager 18-05-14 01-06-14
% Deals closed 234 Sales Julien Harrison Sales Manager 18-06-14 01-06-14
# Production plants functional 4 Production Dan McKenny Production Manager 25-05-14 01-06-14
$ Time to produce 1 item 30 Production Dan McKenny Production Manager 21-05-14 01-06-14
% Brand awareness 50% Marketing Joe Linch Marketing Manager 17-05-14 01-06-14
% Production uptime 10% Production Dan McKenny Production Manager 17-05-14 01-06-14
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DATA QUALITY DIMENSIONS
Is the data available
at the time needed?
Does data Timeliness
reflect the
real world
Accuracy Is all the necessary
objects or
Completeness data present?
a verifiable
source?
Data
quality
Are there Is the data
no presenting the same
Uniqueness Consistency values in different
duplicate
records for systems?
the same
data? Conformity
Is the data compliant with the
format, type and range
requested?
DATA QUALITY DIMENSIONS
Most common challenges:
Completeness
Availability
Timeliness Accuracy
THE KPI ACTIVATION / DATA GATHERING PROCESS
1
Meet with data custodians
Secure activation budget KPI

2
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
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)
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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KPIs
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KPI
Selection KPI Alignment
KPI
Documentation
Working with
Targets
Data
Data
Gathering
Gathering
Data
Visualization
Course
Review
198
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
KPI ACTIVATION TOOLS
Data gathering process map
1
Data gathering template

2
KPI documentation form

3
Data gathering process map
1
1
Data gathering template
1
KPI Documentation form
1
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.
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.)
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.)
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-Jan-15 Submitted
% IT budget out of total

Ann Smith 9 8 13-Jun-15 Outstanding
operational budget
% Profit rate, $ Revenue
Emory Lafayette 5 3 13-Jun-15 Outstanding
3 seat per kilometer
Carlos Mendoza 6 5 % Profitable routes 13-Jun-15 Outstanding
# Staff per passengers,

Ahmed Alsaudi 5 3 13-Jun-15 Outstanding
# Staff per flight
# Fuel consumption per
Luis Ramirez 4 3 13-Jun-15 Outstanding
flight
# Service quality rating,
Not
Anthony Gleason 2 0 % Ticket price variance from 13-Jun-15
submitted
market average
Not
Mike Myers 1 0 % Market share 13-Jun-15
submitted
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.
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
DATA COLLECTION METHODS
Manual - Microsoft Excel
Automated:
Off-the shelf software;
Custom-designed software.
Source: Gartner (2015)
SPIDER STRATEGIES
Source: Spider Strategies (2016)
SOFTWARE SPOTLIGHT
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.
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
Spider Strategies (2016), QuickScore. Available at: http://www.integerperform.com/kpi-dashboard-
balanced-scorecard-software
Images:
KPI Institute (2014), Call Center Performance Management Toolkit. Available at:
http://store.kpiinstitute.org/call-center-scorecard.html
Gartner (2015), Magic Quadrant. Available at: http://www.gartner.com/technology/reprints.do?id=1-
2AEDBU3&ct=150223&st=sb
AGENDA
10 Data visualization
1. Usability of graphs for dashboard design
2. Best practices for scorecard design
3. Usability in terms of visual 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.

DASHBOARD DESIGN
Scenario:
Your work colleague, John has just contacted you to ask for advice. John is
the Sales Manager of the company and given the recalibration of the current
performance management system, he is in charge with developing the
specifications for the sales dashboard.
Tasks:
Analyze the sample of examples from the dashboard John has already
prepared.
Offer at least 5 recommendations of what should be improved in terms of

the graphics used to display data.
Discuss about what should be used in the future for more effective data
visualization and what should be avoided.

KPI KPI Working with Data Data
Data Course 216
of KPIs KPIs Targets Gathering Visualization
Visualization
DASHBOARD DESIGN
Current data display

Data Course 217
Visualization
DASHBOARD DESIGN
Recommended data display

Data Course 218
Visualization
DASHBOARD DESIGN
Replace pie charts with stacked-bar or donut charts

Data Course 219
Visualization
DASHBOARD DESIGN

Data Course 220
Visualization
DASHBOARD DESIGN
No colored background
No patterns to distract the reader
No 3 Ds
% Average sales per distribution channel
35%
30%
30%
25%
25%
20%
15% 15%
15%
10%
10%
5%
5%
0%
Channel 1 Channel 2 Channel 3 Channel 4 Channel 5 Channel 6

Data Course 221
Visualization
DASHBOARD DESIGN
Split data into meaningful clusters to enhance data analysis

Data Course 222
Visualization
DATA VISUALIZATION GUIDELINES
Graphs usability
1. Bar charts to compare individual values

Data Course 223
Visualization
2. Bullet graphs - to compare actual results with targets
Thresholds (Under target, within tolerance limits, above targets)
% Community satisfaction Target
0% 20% 40% 60% 80% 100%

Actual performance
% Medical practitioner satisfaction

0% 20% 40% 60% 80% 100%
% Practice manager satisfaction

0% 20% 40% 60% 80% 100%
% Pharmacist satisfaction
0% 20% 40% 60% 80% 100%

Source: Adapted from Centrelink (2010)

Data
Data Course 224
Visualization
3. Dial charts - Useful for signalling threshold values
Source: Adapted from Victoria Department of Transportation (2015)

Data Course 225
Visualization
4. Line charts to track and analyze trends
Net profit margin (%)

14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Net profit (EUR million)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6,000
5,000
4,000
3,000
2,000
1,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Data Course 226
Visualization
5. Sparkline - Useful for showing data trends in a condensed manner
Source: Adapted from United States Office of Personnel (2012),

Data Course 227
Visualization
6. Sparklines & Bullet graphs
To enhance data
visualization and space
usage, in a table format
dashboard;
Enables trend analysis and

assessment of results against
targets.

Data Course 228
Visualization
DOs
Ensure graphic suitability for the data;
Graphical representations should have titles;
Make sure no data is mission;
Clear outline of axes;
There scales for all axes included;
The scale for the ax should start from zero;
All tags should be correctly associated with the graphs elements;
Space is used efficiently;
Backgrounds are light and clear;
Colors are not used in excess.

KPI Data KPI Working with Data Data
Data Course 229
of KPIs KPIs Visualization Targets Gathering Visualization
Visualization
DONTs
X 3 Ds;
X Crowded data in one graph;
X Pie charts;
X Spaghetti charts;
X Strong color background;
X Strong background grids;
X Background patterns;
X Icons, pictures or any other visual representations to enrich
design;
X Large diversity of colors;
X Forget to insert graphic legend.

KPI Data KPI Working with Data Data
Data Course 230
of KPIs KPIs Visualization Targets Gathering Visualization
Visualization
SCORECARD DESIGN
Scenario:
You have been contacted by your friend Mike, who asked for your advice given
your experience in working with scorecards. Mike is the manager of a fancy
Italian restaurant in the city center. Although, he was successful at identifying
relevant business objectives and KPIs, he seems to be having difficulties in
creating an effective data visualization tool. The first version of his scorecard
received negative feedback from his boss and he is pressured by time to come
up with a better version of this tool.
Tasks:
Analyze the scorecard sample, from the tool Mike has already prepared.
Offer at least 5 recommendations of what should be improved in terms of the

displaying data in table formats.
Discuss about what should be used in the future for more effective data
visualization and what should be avoided.
Data Course 231
Visualization
SCORECARD DESIGN

Data Course 232
Visualization
SCORECARD DESIGN

Data Course 233
Visualization
DOs
Provide a title for the table;
Delineate and group data into logical clusters (strategic themes,
perspectives, objectives);
Numerical guide (to show if data has been shrink, if this is the
case);
Display legend;
Eliminate and minimize grids;
Outline status of results ( target, acceptable range,<target);
Align characters appropriately;
Use optimal size font for easy reading.
Source: CLIMB (n.d.)

Data Course 234
Visualization
DONTs
X Use strong outlines of the table;
X Embed icons, pictures or other graphic representations that can
distract the reader;
X Create an endless list of data;
X Use a variety of colors;
X Provide all existing data, stick to essential information.
Source: CLIMB (n.d.)

Data Course 235
Visualization
USABILITY IN TERMS OF VISUAL DESIGN
Simplicity is the ultimate sophistication Leonardo DaVinci
Source: Hichert (2006)

Data Course 236
Visualization
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.

Data Course 237
Visualization
REFERENCES
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
CLIMB (n.d.), Best practices in designing tables. Available at:
http://www.northwestern.edu/climb/resources/written-communication/Best-Practices-Tables.html
Hichert (2006), Skalen ud deren manipulation, available at:
http://www.hichert.com/downloads/success/check/Skalenmanipulation_2006-11.pdf
Victoria Department of Transportation (2015), Dashboard. Available at:
http://dashboard.virginiadot.org/default.aspx
United States Office of Personnel (2012), Annual performance report 2011. Available at:

Data Course 238
Visualization
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office@kpiinstitute.org office@kpiinstitute.org office@kpiinstitute.org office@kpiinstitute.org
Why choose The KPI Institute? Web:

Global expertise in: http://kpiinstitute.org/
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http://www.purposefulidentity.com/
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QuickScore by Spider Strategies: EPMS by KPISOFT: Pre-populated Excel Templates:

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Aviation Utilities Financial Services

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Aviation Healthcare Financial Services

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Pre-course evaluation quiz Webinar Performance

Guidance and schedule In-house presentation

1 week before core-course Within 3 weeks after the core-course

Expectations Pre-requisite reading Learning journal

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Core-course stage activities:

After-course stage activities:

1 action you intend to take in order to improve your current activities

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The World of KPIs Data Gathering

Understanding KPIs KPI Documentation

KPI Typology KPIs Alignment

Exercise Video References

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Differentiate between objectives, KPIs and initiatives;

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Performance Interpersonal Result

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1 The World of KPIs 1. Challenges in performance measurement

Key Learning Points

1. Identify main challenges in performance measurement;

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Which are the major challenges:

You are interested in addressing?

Your organization/ team is facing?

Are relevant to the practice overall?

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