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Implementing Key Performance Indicators KPIs

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Implementing Key Performance Indicators KPIs In the real world Presented by Ben Lorence, President Automated Intelligence Corporation NCBISIG.org - March 26, 2008 – PowerPoint PPT presentation

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Title: Implementing Key Performance Indicators KPIs


1
Implementing Key Performance Indicators KPIs
  • In the real world

Presented by Ben Lorence, President Automated
Intelligence Corporation NCBISIG.org - March 26,
2008 Data and company information used as
illustration only and does not necessarily
reflect performance of companies mentioned, this
presentation may not be sold or used without
permission from automated intelligence
corporation.
2
  • To be able to control his own performance, a
    manager must be able to measure his performance
    and results against the goal.
  • Peter Drucker
  • (Essential Drucker, 2001 Management by
    objectives and self control)

3
About Ben Lorence
  • Business process automation
  • Full service, end to end business intelligence
  • ben_at_automatedintel.com

4
Our Objectives
  • Fundamentals of KPIs
  • Understand and avoid KPI pitfalls
  • Focus on business intentions
  • Understand were KPIs fit within Microsoft
  • Example KPI implementations (Strategic,
    operational, departmental)
  • Start right away

5
Goal of KPIs is to increase focus
KPIs
6
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7
Simplicity
8
Goals
9
Performance oriented
10
Drucker recommends KPIs
  • Not be rigidly quantitative
  • Not necessarily exact
  • Clear, simple and rational
  • Self announcing, understandable
  • Delivered to the manager himself
  • A tool of self control, not control from above.

11
Foundation
  • Partnership with staff
  • Power to the front line
  • Process improvement integration
  • Link between strategy and measures
  • Technical items are build from here
  • Source systems, Data warehouse, business
    processes and reports

12
KPI essentials
  • Know the corporate culture
  • Flexibility (total org, division or product)
  • Be convincing, open/honest communication
  • Example, what it looks like

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15
What are KPIs?
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18
What KPIs get mixed up with
  • Current Performance
  • Historical performance
  • Economic, process, quality indicators
  • Balanced scorecard
  • Dashboards, portals or other technology
  • Fashion, glass buttons, guages
  • real time SOA

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20
KPIs are representational
  • Key performance indicators communicate
  • Simplify (summarize) complex systems
  • Point towards action (performance)
  • Indicate something of agreed to importance (key)

21
Microsoft products
  • Bleeding edge
  • Performance Point Server
  • Business Scorecard Mananger
  • Pro Clarity
  • Tried and true
  • Excel
  • SQL Server
  • Sharepoint

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30
BonaVista Excel Add in
  • http//www.bonavistasystems.com/Media/MicroCharts
    20Server20Components/MicroCharts20Server20Compo
    nents.html

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33
KPI implementation Pitfalls
  • Trust
  • Source data, process, people (traceable)
  • Perspectives (what is success?)
  • T vrs. B (accessible)
  • Meaninglessness
  • nonK, nonP or nonI (strategic, personal)
  • Un-implemented

34
How to Avoid the KPI Pitfalls
  • Bring it together
  • Evidence, actual process roll it up for people
  • Workflow contexts
  • Strategy, operations, technology
  • Hardware, software, business culture
  • KPIs are meaningful
  • Strategic implications, personal applications

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38
Business intentions and value
  • Management will get the behavior it measures and
    communicates

39
Links
  • http//www.enterprise-dashboard.com/
  • http//en.wikipedia.org/wiki/Peter_Drucker
  • http//alignment.wordpress.com/2008/02/25/bad-kpis
    -bad-behavior/
  • http//automatedintel.com/resources.html
  • http//www.waymark.co.nz/
  • http//automatedintel.com/images/Automated_Intelli
    gence_Case_Study_Making_Sales_Happen_Faster.pdf

40
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