KPI (Summarizing PowerPoint Slides) © The KPI Institute 2021 CERTIFIED KEY PERFORMANCE INDICATORS PROFESSIONAL TOWARDS THE USE OF A RIGOROUS KPI MEAS

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KPI (Summarizing PowerPoint Slides) © The KPI Institute 2021

CERTIFIED
KEY PERFORMANCE INDICATORS
PROFESSIONAL

TOWARDS THE USE OF A RIGOROUS
KPI MEASUREMENT FRAMEWORK

1

© The KPI Institute 2021 2

Empower the world to
achieve performance
excellence

VISION

MISSION

Provide integrated
performance
solutions
through rigorous
research, educational
programs and
advisory services

VALUES

ADDED VALUE

COMMON SENSE

BEST KNOW-HOW

EFFICIENCY

DATA AND FACTS

Offering more through
innovation and value for
money

Through the integration of
multidisciplinary global
expertise

Fairness, modesty and
friendship

Expertise and opinions based
on specific data

Key principle for prioritization
and getting things done

© The KPI Institute 2021 3

2004 YEAR OF ESTABLISHMENT
years spent on
researching KPI
best practice

research reports
published to
date

staff
members

14+

220+

55+
4 OFFICES

Australia

Europe

Middle East

South East Asia

6 CONTINENTS
On which we delivered trainings

global partner
organizations

countries where we delivered
educational programs

countries with
research clients

16

49

78

KPI examples
published

21,150
Companies
registered

51,045
Members on our
online communities

88,727
Professional
reached

945,800

© The KPI Institute 2021 4

© The KPI Institute 2021 5

© The KPI Institute 2021

AGENDA

6

The World of KPIs

Understanding KPIs

KPI Typology

Data Gathering

KPI Documentation

KPI Selection

Data Visualization

KPIs Alignment

Working with Targets

2

1

3 4

6

7 8

9

5

© The KPI Institute 2021 7

Key learning points Case study Session review

Exercise Video References

LEGEND

© The KPI Institute 2021

LEARNING OBJECTIVES

8

Differentiate between objectives, KPIs and initiatives;

Apply best practice techniques to KPI selection;

Understand KPI selection in different contexts;

Document KPIs in a standardized template;

Learn when and how to use benchmarking in target setting;

Optimize the KPI activation and data gathering process;

Enhance the use of data through effective data visualization.

© The KPI Institute 2021

LEARNING OBJECTIVES

SESSIONS
vs

OBJECTIVES

Differentiate
between

objectives,
KPIs and

initiatives

Apply best
practice

techniques to
KPI selection

Understand
KPI selection
in different
contexts

Document KPIs
in a

standardized
template

Learn when
and how to

use
benchmarking

in target
setting

Optimize the
KPI activation

and data
gathering
process

Enhance the
use of data

through
effective data
visualization

S1: The World of KPIs
S2: Understanding KPIs
S3: KPI Typology
S4: KPI Taxonomy
S5: KPI Selection
S6: KPIs Alignment
S7: KPI Documentation
S8: Working with
Targets
S9: Data Gathering
S10: Data Visualization

COMPETENCIES PerformanceManagement Data Analysis
Interpersonal

relations
System Thinking

Result
Oriented

9

© The KPI Institute 2021

AGENDA

10

The World of KPIs 1. Challenges in performance measurement
2. The value added by KPIs
3. Organizational levels
4. KPI concept map
5. Governance

1. Identify main challenges in performance measurement;
2. Understand the role of business performance measurement systems;
3. Acknowledge arguments to get buy-in for a KPI implementation project.

Key Learning Points

1

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

THE VALUE ADDED BY KPIS

Clarity

Improvement

Focus
Communication

11The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

THE VALUE ADDED BY KPIS
CLARITY • Provide a detailed numerical view of which are the desired results aimed to be achieved

• Facilitate line of sight by mapping contribution to success across organisational levels

FOCUS • Convey what matters
• Convey what requires attention

IMPROVEMENT • Objectively evaluate the level of achievement of desired results
• Readily available data which accelerates corrective action initiation

ENGAGEMENT • Lead to a sense of ownership through responsibility and accountability
• Motivate in achieving better results
• Contribute to building a performance culture

COMMUNICATION • Provide common understanding of the numbers that matter

• Enables precise stakeholder communication
• Demonstrate interest and ability to use state of the art management concepts

LEARNING • Enable comparison of results in time, to reflect trends
• Identify opportunities by comparing to others
• Lead to a better understanding of the business

12The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

CHALLENGES IN PERFORMANCE MEASUREMENT

13

Which is the most challenging aspect of working with KPIs in your
organization?

Source: The KPI Institute (2017), State of Performance Improvement and Key Performance Indicator Practice Report

The World
of KPIs

2.93

2.98

3.12

3.13

3.14

KPI documentation

Data visualisation

Target setting

KPI selection

Data gathering

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS

14The World
of KPIs

Match Description No. Concept

80% 1 Goal
# Employees 2 KPI
% Customer satisfaction 3 Initiative (project)
Customer Service Development Program 4 Metric
Complete 50% of the trainings by 30 June 5 Milestone
Identify key competencies to improve for
Customer Service representatives

6 Mission Statement

Integrity 7 Program
Increase customer satisfaction 8 Objective
Growth for the business 9 Target
Quality 10 Task
To be the world’s leading company, focused on
maximizing the value we provide to our
stakeholders

11 Value Driver

Customer Service Training 12
Value (Corporate

value)
To support long-term client partnerships, by
delivering high quality services

13 Vision Statement

© The KPI Institute 2021 15

ISION

ISSION —- why we exist + impact

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

16

Vision Statement

Mission Statement

Value (corporate)
Value Driver
Goal
Objective
Metric
KPI
Target
Program
Initiative
Milestone
Task

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS
To be the world’s leading company, focused on maximizing the
value we provide to our stakeholders

To support long-term client partnerships, by delivering high
quality services.

Integrity

Quality

Growth for the business

Increase customer satisfaction

# Employees

% Customer satisfaction

80%

Customer Service Development Program

Customer Service Training

Complete 50% of the trainings by 30 June

Identify key competencies to improve for CS representatives

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

TERMINOLOGY

17

Term Description
Vision Statement Where you want to be
Mission Statement Why you exist

Value (Corporate value) Beliefs – influence/drive behaviors

Value driver
Characteristics of our activities that reflect how we generate value
for our stakeholders – drive objectives

Goals Clustering tool for objectives
Objectives Reflection of what we need to achieve as part of our strategy

Metric Something we can measure
KPI A metric reflecting performance

Target A specific level we want to achieve in relation to a KPI

Programs Clustering tool for projects
Initiative/Projects Activity with start/dates and specific outputs to be generated

Milestone Intermediate stage within a project (early awareness) – mark
specific points along a project timeline

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

PERFORMANCE MANAGEMENT SYSTEM ARCHITECTURE

18The World
of KPIs

Source: The KPI Institute (2018)

Current State

Environmental
Scan

Mandate

Performance
Dashboard

Portfolio of
Initiatives

Performance
Scorecard

Desired State of
Evolution

Strategy Map

Initiative Description

Project Status Report KPI Trend Analysis

KPI Description

Performance Report

Risk Log

Individual Performance Plans

Budget

KPI Trend Analysis

KPI Description

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

DESIRED STATE OF EVOLUTION

19

Vision

Identity & Purpose

Desired State
2022 Target Achievements

Projection into the external environment

Key Successful factors / Value Drivers / Internal Capabilities

Mission

Values

Safety: the creation and relentless maintenance of a healthy and safe work environment and safe work practices in everything we do.
Integrity: do the right things, do things right, say what you do and do what you say.
Honesty and openness in communication: ethical and honest dealings with all stakeholders and openness in communication on an informed and
need-to-know basis with due regard to privacy and confidentiality.
Customer focus: all applicants and employees are entitled to high quality customer service.
Excellence: develop and maintain high performance and proficiency standards in all services provided to both employees and applicant.
Competence: develop a talented and motivated workforce, mastered through education, mentoring, training and experience.

Our Shareholders
• Value generation – Fiduciary responsibility, dividend generation
by unlocking value and generating savings.
• Sustainable development – Strategic decisions are derived from
responses to changes in the environment and long-term thinking
aimed to ensure we are sustainable and relevant.

Our People
• Management / leadership – Management is committed to
working on strategy implementation and coach / advice / guide
• Individual and team capabilities – Capabilities are built through
formal training programs and mentoring programs.
• Organizational culture – Culture of performance

Our Services
• Efficiency of processes – We operate reliable, robust services,
monitored for quality.
• Process efficiency – All operational processes are mapped and
optimized to be cost efficient information systems

Our customers
• Responsive to customer needs – We understand and partner
with internal customers to address their needs.
• Competitive services – Our effective solutions provide the
organization with good value for money.

Relationships
• We partner with specialized
recruiting and training companies
to deliver value added services.

Value Added
• We contribute to the optimization of
resources and improved service delivery

Brand
We are recognized among the
companies that provide excellent
working environments.

100% HR processes
optimized

95% On-time delivery of HR service requests
80% Internal customer

satisfaction

To play a pivotal role within the organization general setting by nurturing a culture of performance through the development of cost effective and result
oriented HR programs.

To provide high quality HR services to support organizational value generation.

Source: The KPI Institute (2018)

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

Source: Emirates Emirates Identity Authority (2015), Strategic Plan 2014-2016, https://www.ica.gov.ae/userfiles/assets/tplcqI9U.pdf

20

DESIRED STATE OF EVOLUTION

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS

21The World
of KPIs

Vision Statement

Mission Statement

Value (corporate)
Value Driver
Goal
Objective
Metric
KPI
Target
Program
Initiative
Milestone
Task

To support long-term client partnerships, by delivering high
quality services.

Integrity
Quality

Growth for the business

Increase customer satisfaction

# Employees
% Customer satisfaction

80%

Customer Service Development Program
Customer Service Training
Complete 50% of the trainings by 30 June
Identify key competencies to improve for CS representatives

Desired State
of Evolution

To be the world’s leading company, focused on maximizing the
value we provide to our stakeholders

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

STRATEGY MAP

22

Customers

Financial

Learning,
Growth &
Innovation

Internal
Processes

Perspectives

Optimize recruitment
and retention

Improve HR service
delivery capability

Develop workforce
skills and

competences

Maintain financial rigour
in budget projection and

execution

Maintain high levels
of internal customer

satisfaction

Seek efficiencies to
minimise cost base

Provide good value
for money to the

organisation

Ensure high service
delivery standards

Build an
environment that
fosters creativity
and innovation

Theme 2: Efficiency – Achieve more with
same or less resources

Maintain high
performing
motivated
employees

Theme 1: Effectiveness – Fulfilling internal
customers expectations

Strategic Objectives

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

STRATEGY MAP

Source: Dubai Electricity and Water Authority (2019): https://www.dewa.gov.ae/en/about-dewa/about-us/about-us/corporate-governance-and-strategy

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

Vision Statement

Mission Statement

Value (corporate)
Value Driver
Goal
Objective
Metric
KPI
Target
Program
Initiative
Milestone
Task

24

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS
To be the world’s leading company, focused on maximizing the
value we provide to our stakeholders

To support long-term client partnerships, by delivering high
quality services.

Integrity
Quality

Growth for the business

Increase customer satisfaction

# Employees
% Customer satisfaction

80%

Customer Service Development Program
Customer Service Training
Complete 50% of the trainings by 30 June
Identify key competencies to improve for CS representatives

Desired State
of Evolution

Strategy Map

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

Vision Statement

Mission Statement

Value (corporate)
Value Driver
Goal
Objective
Metric
KPI
Target
Program
Initiative
Milestone
Task

25

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS
To be the world’s leading company, focused on maximizing the
value we provide to our stakeholders

To support long-term client partnerships, by delivering high
quality services.

Integrity
Quality

Growth for the business

Increase customer satisfaction

# Employees
% Customer satisfaction

80%

Customer Service Development Program
Customer Service Training
Complete 50% of the trainings by 30 June
Identify key competencies to improve for CS representatives

Desired State
of Evolution

Strategy Map

Scorecard
and

Dashboard

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

PERFORMANCE SCORECARD

Source: The KPI Institute (2018)

26

Perspective / Goal
Strategic Objectives / KPIs

smartKPIs.
com #

Standard
reporting
frequency

Previous
Period
Results

Current
Results

Trend Target % Target
complete

KPI
Owner

Results Comments

Customer – 1 Strategic Objectives / 2 KPIs
Maintain high levels of internal customer satisfaction

% Internal customer satisfaction with HR service levels sK2379 Q 85% 75% 90% 83% Mike S.

# Complaints received sK2038 Q 0 1 0 50% Ron J.

Financial – 2 Strategic Objectives / 3 KPIs
Seek efficiencies to minimise cost base

$ Cost per hire sK49 M 400.00 534.00 350.00 153% Mina F.

$ Cost avoidance savings sK262 M 918.00 560.00 500.00 112% Mina F.

Maintain financial rigor in budget projection and execution

% HR budget variance sK479 M -5% -3% 2% -157% Jane T.

Internal Processes – 2 Strategic Objectives / 4 KPIs
Optimize recruitment

# Time to fill a vacant position sK688 M 25 19 15 79% Brian A.

% Employees who leave the organization in the first 3 months sK688 M 15% 12% 10% 83% John T.

Improve HR service delivery capability

% HR projects on time, on budget and according to specifications sk2863 M 62% 87% 80% 109% Ana F.

% HR processes optimized sk2284 M 84% 46% 60% 77% Don T.

People, Learning & Growth – 2 Strategic Objectives / 4
KPIs
Build an environment that fosters creativity and innovation

# HR employee engagement index sK1836 Q 56 76 65 117% Chris M.

# Ideas for new / improved service from HR employees sK4657 M 14 19 30 63% Chris M.

Develop workforce skills and competences

# Certifications per HR employee sK4659 Q 2.18 1.35 2.00 68% Chris M.

# Training hours per HR full time equivalent (FTE) sK7 M 14 8 8 100% Chris M.

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

PERFORMANCE DASHBOARD

27

Human Resources Performance Dashboard
Period Sep 2019

Recruitment Retention

99% 82% 89% 66% 74%
86% 80% 88% 76%

56% 72% 56% 67%

% Staffing rate Target

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016 2017

9% 10%
3%

9% 9%
6%

0% 2%
7% 7%

10%
6% 4%

% Succession plans for key positions Target

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016 2017

0%
0%
0%
0%

55%
91%

65%
83%

0% 50% 100%

Q1 11
Q2 11
Q3 11
Q4 11

% Job offer acceptance rate

3

10

4
8 9

6 7
3

6 7 7
8

1

# Applicant ratio Target

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016 2017

3% 0%

14% 12%
19%

14% 17%

4%
9% 12% 10% 7%

14%

% Accession rate Target

0
0
0
0

2
3

4
4

0 2 4 6

Q1 11
Q2 11
Q3 11
Q4 11

# Average time to
promotion

0
0
0
0

81
64
66

87

0 50 100

Q1 11
Q2 11
Q3 11
Q4 11

# Employment brand strength

Workforce profile

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016 2017

Source: The KPI Institute (2018)

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

KPI DOCUMENTATION FORM

28

Source: The KPI Institute (2018)

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

KPI DOCUMENTATION FORM SIMPLIFIED

29

Source: The KPI Institute (2019)

The World
of KPIs

Unique identification
KPI name % Project budget variance

Definition and useage

Definition

Balanced Scorecard perspective

Calculation

Calculation formula
(A-
B)/B*100

Trend is favorable when (figures are) Within range

Data profile

Targets
Target +/- 3% Green threshold (-3 %) – (+3%)

Yellow threshold (-5%) – (-3%); (+3%) – (+5%)
Red threshold < -5%; > +5%

Comments

Measures the deviation between the actual and planned project cost upon completion.

Financial

Subordinate measures used for
calculation

A = $ Actual cost of the project upon completion
B = $ Planned cost of the project

Standard reporting frequency Quarterly

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

Vision Statement

Mission Statement

Value (corporate)
Value Driver
Goal
Objective
Metric
KPI
Target
Program
Initiative
Milestone
Task

30

IDENTIFY PERFORMANCE MANAGEMENT CONCEPTS
To be the world’s leading company, focused on maximizing the
value we provide to our stakeholders

To support long-term client partnerships, by delivering high
quality services.

Integrity
Quality

Growth for the business

Increase customer satisfaction

# Employees
% Customer satisfaction

80%

Customer Service Development Program
Customer Service Training
Complete 50% of the trainings by 30 June
Identify key competencies to improve for CS representatives

Desired State
of Evolution

Strategy Map

Scorecard
and

Dashboard

Portfolio of
Initiatives

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

PORTFOLIO OF INITIATIVES

Source: The KPI Institute (2018)

31

Perspective / Objective / Initiative Org.
initiative no.

Initiative
owner

Initiative
coordinator

Priority Status Budget Comments Start
Date

End
date

No within
perspective

Customer
Maintain high levels of internal customer satisfaction
Quarterly evaluations of the HR department’s
performance with other departmental managers

Oi1 Anne Smith John
McKinney

High Proposed 50000 1

Monthly HR Satisfaction Survey Oi2 Anne Smith John
McKinney

High Approved 20000 2

Finance
Seek efficiencies to minimize cost base
Award for savings generated by HR employees Oi3 Sally Smith Sally Smith High Proposed 100000 1
Maintain financial rigor in budget projection and
execution
No active initiatives in place
Internal Processes
Optimize recruitment
Employer brand promotion campaigns Oi4 George

Douglas
John

McKinney
High Approved 60000 1

Improve HR service delivery capability
Process optimization initiative Oi5 George

Douglas
John

McKinney
High In

progress
80000 2

People, Learning & Growth
Build an environment that fosters creativity and
innovation
No active initiatives in place
Develop workforce skills and
competences
HR certification program Oi6 George

Douglas
John

McKinney
High In

progress
45000 1

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

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Visualization

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Review

Data
Gathering

INITIATIVE DOCUMENTATION FORM

Source: The KPI Institute (2019)

32

Initiative Documentation Form
Unique identification
Initiative name
Initiative number HRI12
Description and allocation
Description
Organisational area Human Resources Department Balanced Scorecard perspective Customer
Scope
Strategic objective Maintain high levels of internal customer satisfaction
KPIs % Staff satisfaction
Current implementation state 0%
Expected outputs

Initiative administration
Initiative owner (title) HR Manager Initiative coordinator (title) HR Specialist
Initiative owner James Turuk Initiative coordinator Ariana Ming
Budget $3,000 Budget source BS02
Priority High Status Approved
Implementation details
Start date 1-Jan-19 End date 1-Jun-19
Major activities Survey development

Risk profile

Interdependencies
Comments

W ith current data gathering systems

Identification of configuration possibilties
Decide configuration platform
Test survey functionality
Disseminate survey
Process data
Generate report

Monthly HR Satisfaction Survey

Develop a questionnaire in order to identify staff satisfaction level with the service provided by the HR department.

Primary: A monthly report reflecting the state of staff satisfaction and recommendations for improvement
Secondary: Survey development and configuration

Medium
Budget overrun

The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

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Visualization

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Review

Data
Gathering

PERFORMANCE TOOLS OVERVIEW

33The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

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Documentation

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Targets

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of KPIs

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Visualization

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Gathering

PERFORMANCE MEASUREMENT VS PERFORMANCE
MANAGEMENT

34The World
of KPIs

Performance Measurement =
evaluation and assessment of

results

1. Sub-process of performance
management

2. Focuses on:
• identification of KPIs
• tracking of KPIs
• communication KPIs results

Performance Management =
taking action based on the results
of the evaluation to ensure targets

achieved

1. The overarching discipline that
deals with performance.

2. Reflects the approach one
entity has towards performance

3. Includes sub-processes such as:
• The formulation of a plan
• Actively monitoring

implementation
• Readjusting the plan
• Performance measurement
• Capability development

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

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Documentation

Working with
Targets

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of KPIs

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Visualization

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Gathering

KPI MANAGEMENT FRAMEWORK CONCEPT MAP

35

Source: The KPI Institute (2017)

The World
of KPIs

Measurement

Management

PHILOSOPHY

Effectiveness Performance Efficiency Content Data

Learning Improvement Focus Clarity Communication Engagement

AIMS

Performance
culture

Decision making

Reporting

Initiative
management

Learning

Data analysis

Data gathering

KPI
Documentation

KPI Selection

Data visualization

Building
blocks

Hardware

Software

Governance

Processes

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

KPI MANAGEMENT FRAMEWORK GOVERNANCE

Top
Management

Department Department Department

Strategy /
Performance Office

• Set direction and mandate;
• Promote system and ensure buy-in;
• Support;
• Take decision

• Designs Framework, system and tools;
• Implements system across the organization;
• Ensures alignment (horizontal and vertical);
• Maintains functioning system.

• Assume ownership;
• Collect data;
• Report data;
• Implement decisions;
• Take actions.

36The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

KPI ARCHITECTURE SKILLS

Research

Analysis Synthesis

Software

MS PPT

MS XLS

Strategy Data visualization

Performance
Measurement
Architecture

Coaching

Communication

Facilitation

Technology Interpersonal

Performance
Management

Data

37The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

1. Most common challenge: KPI selection

2. Why use KPIs?

• Clarity

• Focus

• Improvement

3. Performance Management Architecture Tools:

1. Desired State of Evolution

2. Strategy Map

3. Scorecard

4. Dashboard

5. KPI Documentation Form

6. Portfolio of Initiatives

7. Initiative Documentation Form

SESSION REVIEW

38The World
of KPIs

© The KPI Institute 2021 Understand
KPIs KPI Typology

KPI
Selection KPI Alignment

KPI
Documentation

Working with
Targets

The World
of KPIs

Data
Visualization

Course
Review

Data
Gathering

• Franco-Santos, M., Kennerley, M., Micheli, P., Martinez, V., Mason, S., Marr, B., Gray, D. and Neely, A.
(2007), Towards a definition of a business performance measurement system, International Journal of
Operations and Production Management, 27(8): 784-801. Available at:
https://dspace.lib.cranfield.ac.uk/bitstream/1826/2789/1/Towards%20a%20definition%20of%20busines
s%20performance%20measurement%20system.pdf;

• The KPI Institute (2016), The State of KPIs and Performance …

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