About the Book
An in-depth look at how to create and use key performance indicators (KPIs), from the King of KPIs – now updated and expanded!
By exploring measures that have transformed businesses, David Parmenter has developed a methodology that is breathtaking in its simplicity and yet profound in its impact. Now in an updated and expanded Second Edition, Key Performance Indicators is a proactive guide representing a significant shift in the way KPIs are developed and used, with an abundance of implementation tools, including:
The four foundation stones that lead the development and use of KPIs
A 12-step model for developing and using KPIs with guidelines
A KPI resource kit including worksheets, workshop programs, and questionnaires
A new and pragmatic approach to finding critical success factors
Over 300 performance measures
Implementation variations for small to medium enterprises and not-for-profit organizations
New implementation short cuts
How to brainstorm performance measures
Templates for reporting performance measures
A resource kit for a consultant who is acting as a coach / facilitator to the in-house project team
Now including a discussion of critical success factors, as well as new chapters that focus on implementations issues and 'how to sections' on finding your CSFs and brainstorming the performance measures that report progress within the CSFs, Key Performance Indicators, Second Edition will help you identify and track your organization's KPIs to ensure continued and increased success.
Table of Contents:
Preface ix
Acknowledgments xix
CHAPTER 1 Introduction 1
Key Result Indicators 2
Performance and Result Indicators 3
Key Performance Indicators 4
Management Models that Have a Profound Impact on KPIs 16
Definitions 24
Notes 27
CHAPTER 2 Foundation Stones for Implementing Key Performance Indicators 29
Four Foundation Stones Guiding the Development and Use of KPIs 29
Defining Vision, Mission, and Strategy 37
Note 39
CHAPTER 3 Developing and Using KPIs: A 12-Step Model 41
Step 1: Senior Management Team Commitment 41
Step 2: Establishing a Winning KPI Project Team 51
Step 3: Establishing a “Just Do It” Culture and Process 55
Step 4: Setting Up a Holistic KPI Development Strategy 62
Step 5: Marketing the KPI System to All Employees 67
Step 6: Identifying Organization-Wide Critical Success Factors 74
Step 7: Recording Performance Measures in a Database 74
Step 8: Selecting Team-Level Performance Measures 77
Step 9: Selecting Organizational Winning KPIs 86
Step 10: Developing the Reporting Framework at All Levels 88
Step 11: Facilitating the Use of Winning KPIs 96
Step 12: Refining KPIs to Maintain Their Relevance 101
Notes 105
CHAPTER 4 KPI Team Resource Kit 107
Using This Resource Kit 107
Step 1 Worksheet: Senior Management Team Commitment 108
Step 2 Worksheet: Establishing a Winning KPI Team 115
Step 3 Worksheet: Establish a “Just Do It” Culture and Process for This Project 119
Step 4 Worksheet: Setting Up a Holistic KPI Development Strategy 122
Step 5 Worksheet: Marketing the KPI System to All Employees 125
Step 6 Worksheet: Identifying Organization-wide CSFs 132
Step 7 Worksheet: Comprehensive Recording of Measures within the Database 132
Step 8 Worksheet: Selecting Team Performance Measures 133
Step 9 Worksheet: Selecting Organization-wide Winning KPIs 141
Step 10 Worksheet: Developing Display, Reporting, and Review Frameworks at All Levels 143
Step 11 Worksheet: Facilitating the Use of KPIs 146
Step 12 Worksheet: Refining KPIs to Maintain Their Relevance 146
CHAPTER 5 Templates for Reporting Performance Measures 155
Reporting Key Result Indicators in a Dashboard to the Board 155
Reporting Performance Measures to Management 163
Reporting Performance Measures to Staff 169
Graph Format Examples 172
Notes 184
CHAPTER 6 Facilitator’s Resource Kit 185
Remember the Fundamentals 185
KPI Typical Questions and Answers 187
CHAPTER 7 Critical Success Factors Kit 199
Benefits of Understanding Your Organization’s CSFs 200
Relevant Success Factors 204
Step 6: Identifying Organization-wide Critical Success Factors 205
Finding the CSFs through a Relationship Mapping Process 212
How I Organize the Critical Success Factor Workshop 213
Note 222
Appendix 7A: Where to Look for Your Success Factors 222
Appendix 7B: Letter Invite from the CEO 224
Appendix 7C: Success Factors Workshop Planning Checklist 225
Appendix 7D: Workshop Instructions 227
Appendix 7E: Success Factor Matrix 233
CHAPTER 8 Brainstorming Performance Measures 241
CHAPTER 9 Implementation Variations for Small-to-Medium Enterprises and Not-for-Profit Organizations 243
Small-to-Medium Enterprises 243
Not-for-Profit Organizations 246
CHAPTER 10 Implementation Lessons 253
How to Implement Winning KPIs in 16 Weeks 253
Notes 265
Epilogue: Electronic Media Available to You 267
Appendix: Performance Measures Database 269
Index 295
About the Author :
David Parmenter is an international presenter who is known for his thought-provoking and lively sessions, which have led to substantial change in many organizations. He is a leading expert in the development of winning KPIs, replacing the annual planning process with quarterly rolling planning, quick month-end processes, and converting reporting to a decision-based tool. Parmenter's work on KPIs is recognized internationally as a breakthrough in understanding how to make performance measures work. He has delivered workshops to thousands of attendees in many cities around the world including Sydney, Melbourne, Kuala Lumpur, Singapore, Tehran, Johannesburg, Dublin, London, Manchester, Edinburgh, and Prague. Parmenter has worked for Ernst & Young, BP Oil Ltd, Arthur Andersen, and PricewaterhouseCoopers, and is a fellow of the Institute of Chartered Accountants in England and Wales. He is a regular writer for professional and business journals. He is also the author of Pareto's 80/20 Rule for Corporate Accountants (Wiley). David can be contacted via parmenter@waymark.co.nz. His website www.davidparmenter.com contains many white papers, articles, and freeware that will be useful to the reader.
David Parmenter is an international presenter who is known for his thought-provoking and lively sessions, which have led to substantial change in many organizations. He is a leading expert in the development of winning KPIs, replacing the annual planning process with quarterly rolling planning, quick month-end processes, and converting reporting to a decision-based tool. Parmenter's work on KPIs is recognized internationally as a breakthrough in understanding how to make performance measures work. He has delivered workshops to thousands of attendees in many cities around the world including Sydney, Melbourne, Kuala Lumpur, Singapore, Tehran, Johannesburg, Dublin, London, Manchester, Edinburgh, and Prague. Parmenter has worked for Ernst & Young, BP Oil Ltd, Arthur Andersen, and PricewaterhouseCoopers, and is a fellow of the Institute of Chartered Accountants in England and Wales. He is a regular writer for professional and business journals. He is also the author of Pareto's 80/20 Rule for Corporate Accountants (Wiley). David can be contacted via parmenter@waymark.co.nz. His website www.davidparmenter.com contains many white papers, articles, and freeware that will be useful to the reader.
Review :
"The book makes an important distinction that separates performance indicators from results indicators (like profits, market share percentages, or customer satisfaction numbers), and gives an intriguing list of characteristics for identifying a KPI in the wild. All in all, it's a very handy reference for making sense of something people think they already know - but don't." (Accounting Today, Aug 16-Sept 12, 2010) "(Parmenter)...draws on his previous research and experience to compile a series of 'how-to' guide-lines for performance improvement implementation for senior managers." (Accountancy Ireland, August 2010)
"The book makes an important distinction that separates performance indicators from results indicators (like profits, market share percentages, or customer satisfaction numbers), and gives an intriguing list of characteristics for identifying a KPI in the wild. All in all, it's a very handy reference for making sense of something people think they already know - but don't." (Accounting Today, Aug 16-Sept 12, 2010) "(Parmenter)...draws on his previous research and experience to compile a series of 'how-to' guide-lines for performance improvement implementation for senior managers." (Accountancy Ireland, August 2010)
"The book makes an important distinction that separates performance indicators from results indicators (like profits, market share percentages, or customer satisfaction numbers), and gives an intriguing list of characteristics for identifying a KPI in the wild. All in all, it's a very handy reference for making sense of something people think they already know - but don't." (Accounting Today, Aug 16-Sept 12, 2010) "(Parmenter)...draws on his previous research and experience to compile a series of 'how-to' guide-lines for performance improvement implementation for senior managers." (Accountancy Ireland, August 2010)
"The book makes an important distinction that separates performance indicators from results indicators (like profits, market share percentages, or customer satisfaction numbers), and gives an intriguing list of characteristics for identifying a KPI in the wild. All in all, it's a very handy reference for making sense of something people think they already know - but don't." (Accounting Today, Aug 16-Sept 12, 2010) "(Parmenter)...draws on his previous research and experience to compile a series of 'how-to' guide-lines for performance improvement implementation for senior managers." (Accountancy Ireland, August 2010)
