Performance measurement is failing organisations worldwide, whether they are multinationals, government departments, or non-profit agencies. The KPIs that have been adopted were dreamed up one day without any linkage to the critical success factors (CSFs) of the organisations. The lack of understanding of performance measures has led most monitoring and reporting of measures to fail, including balanced scorecard initiatives. At this workshop a practical step by step methodology is shared that helps organizations to rediscover their critical success factors and underpinning winning key performance indicators. This course builds on David Parmenter’s book “Key Performance Indicators – Developing, Implementing and Using Winning KPIs” and includes David’s latest research and new material developed for his forthcoming book “Key Performance Indicators for Government and Non-Profit Agencies”.
Organisations with over 20 KPIs lack focus, lack alignment and underachieve. In fact, there are normally fewer than 10 true KPIs in an organisation and these should be measured and reported 24/7, daily, or at the outside weekly. By exploring measures that have transformed businesses, David has developed a methodology that is breathtaking in its simplicity and yet profound in its impact. It has been said that David’s work is the missing link between the balanced scorecard work of Robert Kaplan and David Norton and the reality of implementing performance measurement in an organization. David believes that there are four types of performance measures and choosing the right mix is crucial for effective measurement and control.
- To help those who are about to embark on a KPI project
- To revitalize your balanced scorecard
- To help you to understand why your current performance measurement system is not working and how to fix the situation based on best practice knowledge
Who Should Attend
This programme is suitable for all staff responsible for monitoring and reporting the performance of a business unit, division or an organisation as a whole. It will be of particular benefit to:
- Balanced scorecard implementers
- Teams responsible for organisation-wide performance measurement
- CFOs and reporting accountants responsible for reporting performance measurement on a regular basis
- CEOs and general managers who are dissatisfied with performance measurement in their organisation and wish to scope out acomplete revisit of performance measurement
- Heads of department
- Managers who have been assigned the task of improving performance measurement in their organisation.
- Consultants who implement balanced scorecards
8.30am Registration and coffee
– What are key performance indicators?
- Difference between the four types of performance measures.
- The common misunderstandings.
- The characteristics of a winning KPI.
- How KPIs tie to business goals and strategy.
- Lead and lag indicators revisited.
- The 10, 80, 10, rule for performance measures.
- Importance of knowing your critical success factors.
– Understanding the myths of performance measurement that lead to failure
- By tying KPIs to pay you will increase performance
- Most measures lead to better performance
- All performance measures are KPIs
- Monitoring monthly performance measures will improve performance
- KPIs are financial and non financial indicators
– Understanding the dark side of performance measures
– Finding the critical success factors (CSFs) in your organisation.
- Case studies
- The three stage process
- Workshop: Brainstorm the success factors in sector groups
- Learn how to use relationship mapping to find the success factors with the greatest influence (Airline example)
- Workshop: Shortlist the likely CSFs in your in Sector using the relationship mapping technique
– Brainstorming performance measures.
- Using mind-maps to brainstorm measures.
- Understanding the need for past, present, and future measures.
- Workshop: performance measures in a couple of CSFs.
– 12-step model to developing and using winning KPIs.
- The seven foundation blocks.
- Walk through the twelve step process:
- SMT commitment.
- Establishing a “winning KPI” team.
- Establish a “just do it” culture for this project.
- Setting-up a holistic KPI development strategy.
- Marketing a KPI system to all employees.
- Identifying organisation-wide CSFs.
- Recording of performance measures in a database.
- Selecting team-level performance measures.
- Selecting organisational “winning KPIs”.
- Developing the reporting frameworks at all levels.
- Facilitating the use of winning KPIs.
- Refining KPIs to maintain their relevance.
– Common critical success factors and their likely performance measures
– Case studies
- Non profit organisation
- Government department
– KPIs for your enterprise: a question and answer session on the measures you are currently using, thoughts on the areas in which to search for your likely CSFs and KPIs.
– KPIs: the road ahead – the implementation issues.
– Implementing in a not for profit organisation.
– Implementing in a small to medium enterprise.
– Selling the change to the SMT through their emotional drivers.
5.00pm Close of workshop
Benefits from Attendance
- A ground-breaking approach which will help you choose the right KPIs.
- An appreciation that not all KPI performance measures are ‘key’ to your business.
- An insight into the importance of identifying your organisation’s critical success factors.
- A road map to developing and reporting KPIs.
- An understanding of why performance measures often fail to deliver.
- A white paper and electronic media valued at NZ$250 with over 300 performance measures.
Comments from the course delivered for CIMA
- Thank you David for a good overview of Performance focused KPIs. Very relevant to my current work on defining (and improving) measures of value to our business. We have been using a balanced scorecard model for about a year, and are only now starting to dig into the important work of defining business CSFs, and the associated KRIs and other indicators. Mattias A. Craig, Vice President, BNY Mellon
- I found it fascinating and extremely useful. For me you were right on the money in terms of what I have to do within the organization. Steve Hill, UK Finance Director, UNIQ plc
- Helpful tools for re-implementing KPIs at my current organisation. Tony Evans ACMA, Data and Statistics Manager, JHP Group Ltd
- Will help with implementing KPIs in my organisation. Stuart Sims ACMA, Commercial Accountant, Total Produce Ltd
- Very practical and informative. Winston Luke, Finance Manager, Medical Research Council
Event Organizers and Professional bodies
If this course is relevant to your clients / members, please complete the enquiry form or email to firstname.lastname@example.org.
Booking an in-house course
David Parmenter travels on at least five major speaking tours a year. It is highly likely that a mutually convenient date can be found.
David Parmenter is an international presenter who is known for his thought provoking and lively sessions, which have led to substantial change in many organisations. He has spoken in over 30 countries and in most continents in the world. Besides delivering in-depth workshops he has been a keynote speaker for the IBM Finance Forum, The World Capability Congress, TEC Malaysia, Profiles International Romania. David is a leading expert in: the development of winning KPIs, replacing the annual planning process with quarterly rolling planning, quick month-end processes and making reporting a decision based tool.
John Wiley & Sons Inc have published his four books, including “Winning CFOs: Implementing and Applying Better Practices”, “The leading-edge Manager’s guide to success – strategies and better practices” and “Key Performance Indicators – developing, implementing and using winning KPIs”.
David has also worked for Ernst & Young, BP Oil Ltd, Arthur Andersen, and Price Waterhouse. David is a fellow of the Institute of Chartered Accountants in England and Wales.
He has written over 50 articles for the accounting and management journals. He has won two ‘article of merit’ awards from the International Federation of Accountants. (2007 and 2009). His published articles titles include: “Quarterly rolling planning – removing the barriers to success”, “Throw away the annual budget”, “Beware corporate mergers”, “Implementing a Balanced Scorecard in 16 weeks not 16 months”, “Convert your monthly reporting to a management tool”, “Smash through the performance barrier”, “Is your board reporting process out of control?” “Implementing winning Key Performance Indicators”, “Quick month end reporting” “Conquest leadership- lessons from Sir Ernest Shackleton” etc.