David Parmenter

About David Parmenter

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So far David Parmenter has created 22 blog entries.
My vision is to change how leading organisations, around the world, measure and manage performance – by 2030
1911, 2019

40+ Rules to Get Your KPIs To Deliver

Category
Wisdom

About KPIs
1.      There are four types of performance measures and thus it is a myth to consider all measures are KPIs.

About 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.

About KPIs
3.      KPIs have seven characteristics

About KPIs
5.      If the CEO, members of the senior management team, and management focus on the KPIs every day, staff will naturally follow suit.

About measures
6.      An organization, with over 500 FTEs, will have about 10 KRIs, up to 80 RIs and PIs, and 10 KPIs.

About measures
7.      Lead and lag labelling of measures is misleading

About measures
8.      Have a mix of 60% past, 20% current and 20% future orientated measures

CSF
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.

CSFs
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.

CSFs
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.

Designing measures
12.   In order for staff to help the KPI team to determine measures, we need to train everybody in the rules for designing measures.

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.

Designing measures
14.   The CEO needs to make it clear that no measures are to be introduced without the KPI team approval.

Designing measures
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).

Engagement
16.   The KPI project needs to report its wins to the SMT each week to maintain their interest in the project.

Engagement
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.

KPI project
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.

KPI 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.

KPI project
21.   The KPI team should report directly to the CEO

KPI project
22.   The CEO needs to locate an external facilitator to mentor the in-house KPI team.

KPI project
23.   The external facilitator and the KPI project leader need to instil a “just-do-it” culture

KPI project
24.   Success or failure of the KPI project is determined by the presence or absence of the seven foundation stones

KPI project
25.   No KPI project will ever succeed without a guiding coalition of oracles behind it.

KPI project
26.   Delivering compelling PowerPoint Presentations is a skill that the KPI team will have to have mastered before they deliver any presentations or workshops.

KPI project
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.

KPI project
28.   The KPI project proposal presentation will be one of the most important presentations in the KPI TEAM leader’s working life.

KPI project
29.   Management will need to abandon projects, processes and reports to make time for the KPI project.

Maintaining interest
30.   For organizations with fewer than 500 staff, a total KPI rollout in 16 weeks is achievable.

Maintaining interest
31.   For SMEs with 100- 250 staff, a total KPI rollout in 10 weeks is achievable.

Maintaining interest
32.   For SMEs with less than 100 staff, a total KPI rollout in 6 weeks is achievable.

Ongoing training
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.

Reporting
34.   A KPI provided to management that is more than a few days old is useless.

Reporting
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.

Reporting
36.   The board should only receive a one-page governance dashboard on the five to eight KRIs.

Reporting
37.   There is a science behind what makes data displays work. The expert in this field is Stephen Few.

Reporting
38.   Spreadsheets have no place in performance measure reporting.

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.

Reporting
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.

Reporting
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.

Reporting
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.

Roadblocks
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)

809, 2019

KPI masterclass converted into 4 *2.5 hour webinars Nov 2020 (US$1,500 for one, US$2,500 for two )

 KPI masterclass converted into 4 *2.5 hour webinars
“The KPI masterclass was a very good experience that I professionally benefited from. The small class format allowed for ongoing engagement throughout the lessons and the material was well prepared to support the areas of discussion and learning.”
John Slack-Smith,COO, Harvey Norman

3008, 2019

Key Performance Indicators – developing, implementing and using winning KPIs (4th Edition)

Key performance indicators (KPIs), while used commonly around the world, have never until now been clearly defined...

2002, 2018

Lean Finance Team Practices Keynote Addresses

2002, 2018

Performance Management Keynote Addresses

2002, 2018

Management and Leadership Keynote Addresses

2002, 2018

KPI Keynote Addresses

2909, 2017

How far can your leadership traits take you?

As accountants climb up the management tree we should ask ourselves how far can my leadership traits take me?  To help answer this question you need to see how much leadership is in your DNA and how much you are prepared to commit to rectify the shortfalls. Please see the brochure below for what this session will cover.

506, 2017

Recorded Webinars, pay-to-view with ACCA, CAANZ, & ICAEW

Pay to view David Parmenter's recorded webinars with the ACCA, CAANZ, & ICAEW. 1. Transform your KPIs (2x 90 mins) 2. Quick month-end reporting in three days or less (2x 90 mins) 3. Lean planning and forecasting for the 21st century (3x 90 mins) 4. Technology to help make your finance team future ready (90 mins) 5. 50+ ways to improve accounts payable (90 mins) 6. Rapid year-ends (90 mins)

1305, 2017

Lean Practices to Transform Your Finance Team – New Zealand

Why your finance team should send a representative or two • Save hundreds of hours every year from your month-end reporting, annual accounts and annual budget process • Find out how to implement modern lean methods such as quarterly rolling forecasting, planning tools and paperless board papers • Sort out performance issues such as ineffective KPIs, poor reporting, and costly re-organisations • Learn modern soft skills to enhance: your leadership; your recruiting success rate and your ability to sell and lead change • Only $695* for a day with multi book author and international presenter, David Parmenter • Receive an electronic version of the toolkit in David’s latest book (valued at $150).