Key Performance Indicators: Developing, Implementing,and Using Winning KPIs
- Great product!
Breathtaking in its simplicity and profound in its impact, Key Performance Indicators (KPI) distills the balanced scorecard process into twelve logical steps, equipping users with an implementation resource kit that includes questionnaires, worksheets, workshop outlines, and a list of over 500 performance measures. Author David Parmenter provides you with everything you need to master and implement a KPI-driven strategy.
More
Social Marketology: Improve Your Social Media Processes and Get Customers to Stay ForeverManage all your social media marketing efforts with repeatable, improvable processes Winner of a 2013 Small Business Book Award …
Total Quality Service: Principles, Practices, and Implementation (St Lucie)Total Quality Service rises to the business challenge of the 90s. It explains in the most concise terms possible the principles of…
Filling in the Scorecard Gaps,
Among the many things this book does well, the most important may be: Setting the context for key implementation steps. In addition to his 12 step process, Parmenter presents 5 critical aspects of a KPI system.
One, he open’s the dialogue by providing all important distinctions between; Key Results Indicators (KRIs), team Performance Indicators (PIs), and leadership’s Key Performance Indicators (KPIs). He says these should be balanced 10/80/10. This is foundational to successful implementation.
Two, he links these to strategy thru a clear understanding of well thought out (and few in number) Critical Success Factors (CSFs) – one of the most critical and hardest parts of for making measurement effective at a working level.
Three, he exposes the ‘best practice’ myth; rightly acknowledging that the goal is the continuous adaptation of ‘better’ practices and not a misguided belief in the redemptive qualities and often misapplication of someone else’s “best practice”.
Four, he stresses the importance of understanding measurement as a constantly evolving process and not a one-time establishment of the “right” measures.
And, five, he places performance measurement within the overall context of organizational development. A part of the whole, but not the whole.
The approach is pragmatic, the steps are clear and doable, the materials don’t give the answer, but they provide a well-defined space in which to write your own business particulars. This book does not belong on any manager’s book shelf; it belongs on their working table. This one is a winner for those who want doing and not just knowing.
Dennis DeWilde, author of “The Performance Connection”
Was this review helpful to you?
|Just the First Chapter Alone is Worth Buying This Book! The Rest is Icing!,
David Parmenter opens the book showing how we often confuse results, with actions that we need to take to get those results. He shows an onion and Key Result Indicators (KRIs) being the outer most layer of that onion. This is what we see as the end result in a company – Customer Satisfaction, Financial Results in terms of Profits, etc. The next layers inside are the Result Indicators (RIs) and Performance Indicators (PIs). Performance Indicators are like % Increase in Sales with say top 10 Customers. Result Indicators are like Sales done Yesterday. David then makes the key distinction that only some are Key Performance Indicators that drive the whole company outwards from the core of the onion! These are the ones you need to monitor closely on a daily, weekly, monthly basis as appropriate but they cause the other indicators to have positive or negative values.
The example he uses is that of a British Airways CEO who always called the relevant British Airways people at the airport EVERYTIME a flight left late. That kept the BA personnel on their toes making sure the planes left on time all the time! Now every Performance Indicator, Result Indicator and Key Results Indicator downstream like On Time Record, Sales Per Flight and Customer Satisfaction Index were all exemplary!
David also talks about a very useful 10/80/10 rule that says KPIs should only be 10% of all the metrics. Result Indicators and Performance Indicators make up 80% and Key Result Indicators 10%. This enables management at different levels pay attention to those that are relevant and urgent on a daily basis (KPIs) so that all downstream results and indicators are on track.
There is also an elaborate 12 step implementation process on how to plan for, implement and fine tune a KPI measurement regimen.
The best illustration I liked was that of a Dial Chart on page 171 that provided at a glance a lot of information – Performance Indicator on a Speedometer where you can see current performance value, Best Performance so far as a dot on the meter, worst performance as a dot, acceptable, middle and unacceptable ranges of performance all in the same speedometer! In one glance you know where your current performance stands. That should be the goal of visualizations – all information in one place at the same time!
I will never think about KPIs the same way again! Very useful, illuminating book!
Was this review helpful to you?
|A rational methodology to implement KPIs,
I would say that many recommendations throughout the book will be of good use, although there are several concepts that are applicable in a cultural environment that is more common to multinational companies or very large local companies.
The best chapter of this book is the first, where David Parmenter discusses the concept of a KPI, from a practical point of view. He divides indicators in three basic types, that makes sense and help understand them :
. KRI – Key Results Indicator
. PI – Performance Indicator
. KPI – Key Performance Indicator
In this chapter, he emphasizes the fact that KPIs are just the few main indicators that management of a business must identify, so that they focus on the right things… Something to remember all the time when you are implementing BSCs, Dashboards and the like.
The proposed approach behind this methodology is a practical one. It is for those that want faster results. The final phrase of the book could be: “roll up your sleeves and put KPIs to work as fast as you can”.
Was this review helpful to you?
|