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For those businesses old enough to remember the 2001-02 (Dotcom bubble burst) and the 2007-08 (loan default crisis) there will be an institutional memory about how important cash was. With the Post COVID 19 recovery, you can ratchet up the importance of cashflow, I believe, by three or four times.
In the previous crises we did […]
Peter Drucker’s Lessons for Performance Management
Focus on your noncustomers
Which of your noncustomers should you be doing business with? (Desirable potential customers). Only Drucker could coin a phrase, “non customers”, yet it gets right to the heart of the fundamental issue. Every private sector government and not-for-profit organisation is missing customers it should be servicing. This […]
In every workshop, I ask one question, “Who has made a recruiting decision they have lived to regret?” Every manager puts his or her hand up. The carnage caused is relived in their facial expressions. Why does this happen so often?
Recruitment should be the most important activity a manager ever does. It should be the […]
In my servant leadership paper I talked about The Eight Behaviour Traits of Great Leaders
It is my belief that many leaders fail, when managing enterprises, because some of the eight behaviour traits that needed to be in their DNA were absent. They may have been successful managing smaller teams because their flaws not fully exposed.
I believe, […]
These three different observations led me to believe that time management, trust and training were at the core of delegation. Delegation being the “transfer of responsibility for the performance of an activity from one person to another with the former retaining accountability of the outcome” as described in a medical manual.
is so important as […]
1. There are four types of performance measures and thus it is a myth to consider all measures are KPIs.
2. Key performance indicators (KPIs) are those indicators that focus on the aspects of organizational performance that are the most critical for the current and future success of the organization.
3. KPIs have seven characteristics
5. If the CEO, members of the senior management team, and management focus on the KPIs every day, staff will naturally follow suit.
6. An organization, with over 500 FTEs, will have about 10 KRIs, up to 80 RIs and PIs, and 10 KPIs.
7. Lead and lag labelling of measures is misleading
8. Have a mix of 60% past, 20% current and 20% future orientated measures
9. The main purpose of performance measures is to ensure that staff members spend their working hours focused primarily on the organization’s critical success factors.
10. To create alignment between teams in an organization, it is important that there be only one set of between five and eight critical success factors (CSFs) for the organization.
11. To ensure that staff live and breathe them, a poster of the CSFs should be prepared and be widely seen around the work environment.
12. In order for staff to help the KPI team to determine measures, we need to train everybody in the rules for designing measures.
13. Designing and refining measures needs a systematic and well thought through process to ensure that the measures will promote the desired actions.
14. The CEO needs to make it clear that no measures are to be introduced without the KPI team approval.
15. Vet measures by holding an open session where staff members are invited to share their views on the shortlisted measures displayed on the walls of the KPI project room (known as a performance measures gallery).
16. The KPI project needs to report its wins to the SMT each week to maintain their interest in the project.
17. Staff need to be first trained in the new thinking of what are KPIs, why not all measures are KPIs, the four different types of measures, and the importance of an organization knowing their CSFs.
18. The success of a KPI project rests with trained home-grown staff who have been reassigned so that they are full time on the project.
19. For SMEs the in-house KPI team leader must have at least half the daily operational activity reassigned so that the incumbent has a chance to focus and create some momentum in the KPI project.
21. The KPI team should report directly to the CEO
22. The CEO needs to locate an external facilitator to mentor the in-house KPI team.
23. The external facilitator and the KPI project leader need to instil a “just-do-it” culture
24. Success or failure of the KPI project is determined by the presence or absence of the seven foundation stones
25. No KPI project will ever succeed without a guiding coalition of oracles behind it.
26. Delivering compelling PowerPoint Presentations is a skill that the KPI team will have to have mastered before they deliver any presentations or workshops.
27. The CEO must be the central driver, carrying around the embryonic KPIs all the time, talking about their importance frequently to all staff they meet.
28. The KPI project proposal presentation will be one of the most important presentations in the KPI TEAM leader’s working life.
29. Management will need to abandon projects, processes and reports to make time for the KPI project.
30. For organizations with fewer than 500 staff, a total KPI rollout in 16 weeks is achievable.
31. For SMEs with 100- 250 staff, a total KPI rollout in 10 weeks is achievable.
32. For SMEs with less than 100 staff, a total KPI rollout in 6 weeks is achievable.
33. The KPI team will need to develop training programs so new staff can be educated in CSFs, the four types of measures and how measures are reported.
34. A KPI provided to management that is more than a few days old is useless.
35. At least half of the KPIs should be reported each day, (electronically) at 9 A.M. or constantly updated 24 hours a day, seven days a week.
36. The board should only receive a one-page governance dashboard on the five to eight KRIs.
37. There is a science behind what makes data displays work. The expert in this field is Stephen Few.
38. Spreadsheets have no place in performance measure reporting.
39. Using a monthly icon-based report for staff is a good idea because they tell staff what is good, what is adequate, and what needs to be improved without giving away confidential data.
40. Because the board’s role is clearly one of governance and not of management, it is totally inappropriate to be providing the board with KPIs.
41. Typically, a board would need to see, in there one-page dashboard, between 9 and 12 graphs covering the critical success factors and outcome statements.
42. The KPI reporting system will fail if the review process relies on structured, monthly meetings because KPIs are indicators that need monitoring, reporting, and action 24/7.
43. Be aware of the current perception of performance measurement within the organization.
Source: Extracted from
Key Performance Indicators – developing, implementing and using winning KPIs (4th Edition)