The ten guidelines for designing KPI graphs There is a major problem with reporting. The writers often do not understand enough about the science of reporting. In addition, too many reports have been prepared monthly, which is far too late for prompt action. The reporting framework used in an organization must accommodate the requirements of the different levels in the organization…

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There are a number of rules to follow when designing measures. Source: Extracted from Key Performance Indicators – developing, implementing and using winning KPIs (4th Edition) 1.     Understand the difference between Result and Performance Indicators If you can phone a manager and they accept the responsibility for a measure, it is a Performance Indicator. Where you have measures that…

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In a previous article in this magazine (‘The new thinking on key performance indicators’, F&M 133), I discussed the importance of identifying, measuring and monitoring a business’s winning key performance indicators (KPIs). Companies with 250 or fewer employees often ask if identifying winning KPIs would work for them and, crucially, whether there is a simpler, truncated process for doing so. The answer is yes to…

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I offer a database of measures with the following warnings Stage 1: Getting the enterprise committed to the change and up-skilling the in-house KPI team, Stage 2: Ascertaining your organization’s operational critical success factors, those “issues or aspects of organizational performance that determine ongoing health, vitality, and well-being.” Stage 3: Determining metrics and getting them to drive performance A…

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To help organisations around the world find their critical success factors (CSFs), I have developed a four-task process. Task 1: Wording the success factors and the external outcomes The KPI team needs to review the strategic documents in their organization covering the past 10 years, then extract and develop success factors from these documents. You may…

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By David Parmenter To work out what your KPIs should be you need first to work out what your five to eight most important critical success factors are.  Critical success factors (CSFs) are operational issues or aspects that need to be accomplished day-in/day-out by the staff in the organization. Lets assume you want the right staff to…

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From my observations the failure rate for KPI and balance scorecard projects is off the scale.  Key Performance Indicators, in many organisations are dysfunctional and thus a broken tool. Measures are often a random collection, prepared with little expertise, thus signifying nothing.  KPIs should be measures that link daily activities to the organisation’s critical success…

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By David Parmenter After 30 years helping organizations ascertain their Critical Success Factors and associated KPIs, I have come up with 15 steps to start a KPI project. These steps are explained in detail in my best selling KPI book which can be accessed from leading book sellers. The most up to date reference work is in…

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 Exhibit from David Parmenter’s Key Performance Indicators (4th Edition)  An overview of how to generate KPIs for your organisation (a three-stage process) By David Parmenter Many organizations that have operated with key performance indicators (KPIs) have found the KPIs made little or no difference to performance. In many cases this was due to a fundamental misunderstanding…

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By David Parmenter Key performance indicators (KPIs) in many organizations are a broken tool. Measures are often a random collection prepared with little expertise, signifying nothing. KPIs should be measures that link daily activities to the organization’s critical success factors (CSFs), thus supporting an alignment of effort within the organization in the intended direction. Here…

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