The "King of KPIs" has something to say about the way you’re monitoring your company’s true performance: You’re probably doing it wrong. David Parmenter, key note speaker at the upcoming TARGIT Decision Day 2013, will be lecturing on the right way for companies to develop, implement, and use winning KPIs.
So many businesses today are mislabeling or misusing KPIs, suffering from information overload, focusing on the wrong data, and becoming stuck in the weeds when it comes to monitoring and examining the data that truly reflects the health of the organization.
The right focus on a few select KPIs will align a team, clarify strategy, and bring the steps needed to take to achieve the ultimate end goal more clearly into focus.
Performance measurement is failing organizations of every size worldwide, from multinational corporations, government departments, and non-profit agencies. In many cases that David has seen, a company’s KPIs were established without any true knowledge or understanding of what a Key Performance Indicator actually is. It’s not rocket science, but it can be confusing. In general, KPIs are often mislabeled and misused. Even if organizations do have a list of “true” KPIs to monitor, many have far too many, creating a lack of focus.
So how can organizations expect to monitor and measure performance with success?
And after decades of engaging speeches, forward-thinking business consulting, authoring books on the subject, David has put together a list of guidelines to help organizations of any size establish their true KPIs:
- They must be measured frequently (daily or even 24/7)
- They are non-financial measures (not expressed in dollars, pounds, etc.)
- They are acted upon by the CEO and the senior management team on a daily or 24/7 basis
- All staff understand the measure and what corrective action is required
- Responsibility can be tied down to the individual or team
- The KPI has a significant impact on the organization (it impacts on most of the critical success factors and balanced scorecard perspectives
- Positive movement affects all other performance measures in a positive way
David believes that there are four types of performance measures, so choosing the right mix is crucial for effective measurement and control.
His Decision Day session will demonstrate how to choose the right KPIs.
This session will cover:
- How performance measures are divided into four types: key result indicators, performance indicators, result indicators, and key performance indicators
- Why you need to know your organization's critical success factors (CSF)
- The 10/80/10 rule for measures
- Reporting of performance using the thinking of Stephen Few
- Some KPIs to get your started
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