A practical guide to the generation and selection of good Key Performance Indicators for managing
business processes, including a large selection of candidate KPIs for common processes.
Organisations are littered with poor Key Performance Indicators (KPIs). The unintended consequences of poor KPIs often result in poor performance as people struggle to improve KPIs which have little to to with the organisation's goals, do not measure quality and are not correlated with the organisation's processes. This eBook, Generating and Selecting KPI Sets, methodically guides readers on how to develop KPIs which are relevant and do indeed measure the Key Performance attributes of the organisation.
Generating & Selecting KPI Sets starts out be defining what is meant by and measured by a Key Performance Indicator (KPI). Then the general charactersitics of Key Performance indicators are considered including clarity, standardisation of measurement & documentation, correlation with process performance, quantification, responsiveness (leading, lagging and stable KPIs), trends over time and seasonality and their measurement using moving average and weighted average.
Next, Generating & Selecting KPI Sets discusses the process of generating candidate Key Performance Indicators by cascading corporate goals down through the organisation, application of different perspectives and the application of common-use KPIs. The e-book then turns to evaluating KPIs by examining their alignment with corporate goals, correlation with process performance, quantification, measurement by the process, ease of understanding and quality delivery, culminating in a KPI evaluation table.
The next step in the creation of Key Performance Indicator sets is the selection of sets from the candidate KPIs by considering the number of KPIs, Kaplan & Norton's Balanced Scorecard approach, balancing of lead and lag time KPIs, balancing of short and long-term KPIs and KPI independence.
Next we turn our attention to the setting of targets, thresholds and benchmarks and then consider comparative performance and normalisation, including data sources for normalisation.
Generating & Selecting KPI Sets winds up by considering the KPI system implementation roadmap, which encompasses preparatory work (corporate goals, business process identification, single-point accountability and delegation of authority), generation of KPIs, evaluation of KPI candidates, set selection, setting thresholds & targets, ewstablishing plans to meet KPI targets implementation of the monitoring system, testing & tuning and resourcing of the roadmap.
There are two main "hard wired" motivators any leader can provide their people; a clear goal and good KPIs which cascade from the goal.Generating and Selecting KPI Sets will repay you enormously when you get your KPIs right. As a bonus, the e-book also provides access to over 500 common-use KPIs complete with definition which you can use to help generate your management sets.
Read a 5-page extract from th Generating & Selecting KPI Sets e-book