By David Parmenter The 2018 MIT Sloan Management Review and Google’s cross-industry survey*  asked senior executives to explain how they and their organizations are using KPIs in the digital era. It is probably the largest survey on this topic with more than 3,200 senior executives providing feedback and supported by in-depth interviews with 18 selected executives and…

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Do you know your organisation’s critical success factors? I was first introduced to critical success factors by the talented people who wrote the KPI manual for AusIndustry (an Australian government department). They defined critical success factors as: “The list of issues or aspects of organizational performance that determine ongoing health, vitality, and well-being.”Critical success factors are about what the staff inside the…

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From my research over the past 30 years I have come to the conclusion that there are four types of performance measures, and thus it is a myth to consider all measures as KPIs. These four measures are in two groups: result indicators and performance indicators. I use the term result indicators to reflect the fact that…

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By David Parmenter This information has been extracted from David Parmenter’s Key Performance Indicators (4th Edition) which is the highest rated KPI book on Amazon. First lets define what a KPI is Well, a Key Performance Indicator (KPI) is an indicator that focuses on the aspects of organizational performance that are the most critical for the current and…

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A Key Performance Indicator (KPI) “focuses on the aspects of organisational performance that are the most critical for the current and future success of the organisation.”   KPIs have 7 characteristics that make them unique and limit the number to no more than 10 for the whole organization: So, the Board of Directors get a different measure,…

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