Sorting the wheat from the chaff

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Sorting the wheat from the chaff finding your
winning KPIs

• Presented by David Parmenter
• waymark solutions limited
• April 2009
• Website www.waymark.co.nz
• Blog www.davidparmenter.com
• Email Parmenter_at_waymark.co.nz

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A top ten performance management book on
www.amazon.com for over two yearssee
davidparmenter.com for Amazon link
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How familiar are you with David Parmenters work?

• First event, and no familiarity with his work
• First live event, but have listened to some
  recorded web casts
• Have listened to a few live web casts and read
  some of his work
• Very familiar with his work

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How are your measures derived in your
organisation?

• No idea, haphazard development
• There is some method to constructing measures
  albeit there is not full compliance
• Have a centralised unit that review and approve
  all measures

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The winning KPIs webcasts on www.bettermanagemen
t.com

1. Introduction to winning KPIs
2. Implementing KPIs - A 12-Step Process
3. Implementing KPIs in Smaller Orgs (lt200 Staff)
4. Finding your organizations critical success
   factors
5. Balanced scorecard in 16 weeks not 16 months
6. Getting started or restarted with winning KPIs
7. Revitalizing a floundering balanced scorecard
   with winning KPIs
8. Winning KPIs - a question and answer session
9. Winning KPIs - a question and answer session
10. Sorting the wheat from the chaff finding your
    wining KPIs

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The combination to unlock winning KPIs

• Working with the six perspectives
• Identifying the critical success factors
• Selling the change and keeping the SMT motivated
• Getting the four foundation stones in place
• Keeping it simple by following the basic rules
• definitions of KPIs, PIs, RIs, KRIs
• 10/80/10
• 16 weeks not 16 months
• full time in-house team
• avoid BSC applications until you know what you
  want
• Past, current and future measures

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Relationship between strategy / CSFs and PMs
Linkage of strategy to measurement
Strategies (issues Initiatives)
Critical Success Factors
KPIs PIs in a balanced scorecard and KRIs in a
dashboard
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The success factor list
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Brainstorming the maintain a happy, safe and
healthy workplace SF
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Full utilisation of xxx system SF
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Full utilisation of xxx system SF
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Full utilisation of xxx system SF
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Be seen in the community as an employer of first
choice

• Number of employees involved in up-skilling local
  community organizations
• Number of media coverage events planned for next
  month, months 2-3, 4-6
• Number of media press releases planned for next
  month, months 2-3, 4-6
• Number of photos/articles in papers last month,
  months 2-3, 4-6
• Number of sponsorship projects in last 12 months
  by company
• Number of students who have been offered holiday
  work for the next holiday period

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Be seen in the community as an employer of first
choice 2

• Number of initiatives implemented to improve
  perception by local community
• Dollars donated to the community in last 12
  months
• Percentage of local residents in total workforce
• Entries to environment/community awards to be
  completed in months 1-3, 4-6
• Number of environmental complaints received last
  week, last 4 weeks

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Delivery in full on time, all the time to our key
customers

• Late / incomplete deliveries to key customers
• Key customer enquiries that have not been
  responded to within 24 hours
• Complaints from key customers (notified to CEO)
• Forecast stock out of any of the Key products
  (notified to CEO)
• Number of Key customer complaints where senior
  management needed to instigate remedial action
• Number of credits/returns from key customers

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Delivery in full on time, all the time to our key
customers

• Key customer complaints not resolved in two hours
• Accuracy and completeness of specifications for
  key customer orders
• Manufacturing process quality measures re-work
  (how many items make it through the process
  without being reworked at any stage)
• Number of pricing errors to key customer invoices

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Delivery in full on time, all the time to our key
customers

• Downtime due to different types of equipment
  failure
• Engineering changes after design completion
• Process part-per-million defect rates
• Number of processes made foolproof
• Production set-up/changeover time

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Increased repeat business from our key customers

• Late / incomplete deliveries to key customers
• Key customer enquiries that have not been
  responded to by the sales team (over 24 hours
  old)
• Complaints from key customers (notified to CEO)
• Number of Key customer complaints where senior
  management needed to instigate remedial action
• Number of credits/returns from key customers
• Key customer complaints not resolved in two hours
• Accuracy and completeness of specifications for
  key customer orders

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Increased repeat business from our key customers

• Number of pricing errors to key customer invoices
• Weekly sales to top customers by major product
  lines ( no more than five product lines shown)
• Direct communications to key customers in month
  (average number of contacts made with the key
  customers)
• Number of key customer referrals
• Number of proactive visits to key customers
  planned for next month,
• Date of next visit to key customers (by customer
  name)

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Increased repeat business from our key customers

• Number of visits made to key customers made last
  month
• Number of initiatives completed from the recent
  key customer satisfaction survey
• Service requests outstanding for key customers
  (faults, works requests)
• Timeliness and accuracy of price quotations to
  key customers
• Number of innovations introduced in last 4
  quarters (1-3, 4-6,7-9,10-12 months)

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Stay, say, strive engagement of staff

• Number of employees attending courses to increase
  reading and math skills
• Number of training hours achieved in last 12
  months
• Number of training hours-booked for next month,
  months 2-3, 4-6-in both external/internal courses
• Dollars saved by employee suggestions
• Number of staff who have attended the stress
  management course
• Percentage of customer-facing employees having
  on-line access to CRM

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Stay, say, strive engagement of staff

• Percentage of rising stars with mentors
• Number of mentoring meetings held last quarter
• Number of mentoring meetings to be held in next
  1, 2-3 months
• Total hours employees spend in mentoring
• Number of employees that have improved skills
  during last six months
• Number of employees with delegated spending
  authority
• Number of leadership initiatives targeted to
  rising stars to be completed next month, months
  2-3, 4-6

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Stay, say, strive engagement of staff

• Number of managers who have had performance
  management training
• Number of current users of xxx system
• Staff trained to use xxx system
• Number of initiatives implemented from the staff
  survey
• Number of internal promotions in the last quarter
• Number of level 1 and 2 managers who were
  promoted internally
• Number of new staff (less than three months) who
  attended an induction program

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Stay, say, strive engagement of staff

• of managers who are women
• of teams having a team meeting once a week
• of cross-trained personnel per team
• Number of suggested improvements from employees
  by team
• Suggestions made to suggestions implemented
• Training days last month, last 3 months
• Turnover of female staff
• Number of staff who are aware of new staff
  initiative (from staff survey)

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Measures that maybe KPIs

• Number of recognitions planned for next week,
  next fortnight
• Number of health related training planned for
  next 1,2-3,4-6 months
• Employees who have been sick for over 2 weeks who
  are not on a back to work programme
• Number of new staff (less than three months) who
  attended an induction program
• Number of mentoring meetings to be held in next
  1, 2-3 months

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Measures that maybe KPIs 2

• Date of next visit to key customers (by customer
  name)
• Date of next social interaction with our key
  customers
• Late / incomplete deliveries to key customers
• Number of key fields in xxx system that are
  incomplete
• Customers with contracts that are to expire in
  the next 0-3,4-6 months
• Number of runs planned in uneconomic quantities
  in next week, fortnight

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Measures that may go in the wrong direction

• Linking lost time injuries to performance related
  pay
• of deliveries made on time
• Percentage of teams having a team meeting once a
  week
• Time taken to process patient in accident and
  emergency
• Staff with over 10 years of service

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These books came out in 07

• www.waymark.co.nz to order, see link to
  www.amazon.com

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Next steps

• Understand all the resources I have provided you
• webcasts and articles on www.bettermanagement.com
• whitepapers and templates can be bought from
  www.davidparmenter.com
• my KPI book
• the workshop outlines
• Hold a focus group workshop to find your CSFs

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• Thank you for participating in this web
  seminar
• Please keep in touch about your progress
• see www.davidparmenter.com for my speaking
  engagements, white papers etc

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John Wiley Sons have published
Amazon link on www.davidparmenter.com