elgaili h. ahmed - thebaselines.com · kpiinstitute.org73 73 kpi professional 1. understanding and...
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Elgaili H. AhmedMBA KPI PMP CBAP
Saturday 03 March 2018 | Khartoum | Sudan
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Elgaili H. AhmedBsc. Msc. Computer Sc.MBA, PMP, KPI, CBAP
Memberships: PMI, KPII, IIBA, ASP, ACM
04 06 08 10 12 14 16 18 Yrs
M C BA
M C PM
M C
KPI
C Mgt
MRKT
M Str. Plan
ERP
Elgaili H. Ahmed
Elgaili H. AhmedMBA KPI PMP CBAP
Saturday 03 March 2018 | Khartoum | Sudan
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Name, Career & Profession
Experience and Education
Why you are here
Expectations
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Name: KPI Framework Workshop
Duration: 5 Hours
Goals:
Understanding Key Performance Indicators KPI
Become familiar with KPI naming standards
Position KPIs in context as management tools
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• The KPI Institute • Introduction To The World Of KPIs
• Concepts & Definitions• The Role of KPI
• The KPIs Development & Management• Components• Personal Management (Ex.)
• The KPIs Framework• KPI Lifecycle & Project• Course Content
• The KPIs Reporting
kpiinstitute.org
VisionEmpower the world to achieve performance excellence
MissionProvide integrated performance solutions through
rigorous research, educational programs and advisoryservices
ValuesAdded value Best know-how Common sense
Data and facts Efficiency
kpiinstitute.org
The KPI Institute TKI is a leading global research institute specialized in business performance (training & advisory)
kpiinstitute.org
The KPI Institute TKI is a leading global research institute specialized in business performance (training & advisory)
kpiinstitute.org
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The KPIs World
The KPIs World
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Terms & Words
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The KPIs World
Strategy Map
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The KPIs World
Performance….
Plan formulation
monitoring implementation
Plan readjusting
Performance measurement
Capability development
identification
tracking
communication
of performance results
thorough the use of KPIs.
Performance
Management
Performance
Measurement
evaluation of results
Taking action based on the results of the evaluation to ensure target
results are achieved.
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The KPIs World
KPI Typology
PIs
KRIs
KPIs
Measures
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The KPIs World
Data Universe
KPIsPerformance Assessment
MetricsMeasurement
KRIsRisk Assessment
AnalyticsDecision Making
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The KPIs World
Key Risk Indicators
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The KPIs World
Data Universe
Metrics• # Air temperature
• # Employee age
• $ Budget size
• # Local hotels
KPIs• % Net promoter score
• % Employee turnover
• % Budget variance
• % Hotel occupancy rate
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The KPIs World
Analytics
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The KPIs World
The KPI Definitions
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The KPIs World
The KPI Definitions
A description of the project’s objectives interms of quality, quantity, target groups,time and place.
(European Commission).
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The KPIs World
The KPI Definitions
• A selected indicator considered key formonitoring the performance of a strategicobjective, outcome, or key result area importantto the success of an activity and growth of theorganization overall.
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The KPIs World
The KPI Institute Definition
A measurable expression for the achievement
of a desired level of results in an area
relevant to the evaluated entity’s activity.
A measurable expression for achievement
of a desired level of results
in an area relevant
to the evaluated entity’s activity.
Indicator
Performance
Key
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The KPIs World
Exercise1. % Employee satisfaction
2. $ Turnover
3. Finalize project by 31 December
4. # Clients from referrals
5. # Employees
6. % Projects on time and on budget
7. Quality
8. # Defects
9. $ Budget
10. Increase market share to 28%
Which of the Statements are KPI?
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The KPIs World
KPI Format
• Symbol: %, $, or #
• Expression:
– Employee Satisfaction
– Turnover Rate
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The KPIs World
Decomposing SMART ObjectivesObjective
+
KPI
+
Target
+
Timeframe
+
Responsible
=
SMART Objective
Increase Customers base
% market share
20%
By Financial year end
Sales Director
Increase Customers
base to reach 20%
market share By
Financial Year end
under Sales Director
leadership
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The KPIs World
The Role of KPIs
Clarity: crystallizing data to reflect the big picture
Focus: enabling emphasis on what matters
Improvement: facilitate and inspire the achievement
of desired results
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The KPIs World
Case Study: Absenteeism
Source: Centrelink Annual Report 2010-2011
• Number• Percentage• Currency
#, %, or $
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KPIs Dev. & Mgt
• Strategic• Operational
• Financial• Customer• Biz Process• Learning &
Growth
• Lead• Lag
• Qualitative• Quantitative• Functional• Industry
• Input• Process• Output• Outcome/
Impact
KPI Composition
Unit of Measure
Org.Level
BSCPerspectives
VFAAnalysis
Timingof measure
Specialization
Quality Quantity Industry
% Maintenance requests
resolved within SLA
# Maintenance requests
closedManufacturing
% Ideas implemented # Ideas expressed Education
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KPIs Dev. & MgtKPI Balance
Subjectivity Objectivity Industry
# Customer satisfaction# Customer complaints
receivedFinancial institutions
% Net promoter score # Clients from referrals Professional Services
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KPIs Dev. & MgtKPI Balance
Efficiency Effectiveness Industry
$ New customers
acquisition cost# New customers Retail
# Call duration % First call resolution rate Call Centre
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KPIs Dev. & MgtKPI Balance
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KPIs Dev. & Mgt
VALUE FLOW ANALYSIS VFA
Desired
outcomesInputs Activities Outputs Outcomes
Effectiveness
Cost effectiveness
Efficiency
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KPIs Dev. & Mgt
VALUE FLOW ANALYSIS VFA
PROJECT INPUT PROCESS OUTPUT OUTCOMES
Health project $ Budget# Doctors
% On time delivery of vaccination programs
# Clients vaccinated
% Incidence of disease% Mortality rate
Highway project
$ Budget# Contractors# Machines available
% Construction machineries utilization
# Miles of road build
# Vehicle use of new road
Rural electrification project
$ Budget# Power plants# Electricians
# Time to install an electricity facility
# Electricity generation andtransmission facilities installed
# Rural supply (or consumption) of electricity
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KPIs Dev. & Mgt
VALUE FLOW ANALYSIS VFA
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KPIs Dev. & Mgt
Organizational Levels
Strategic
Individual
Operational
Team
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KPIs Dev. & Mgt
Personal Management
• Financial
• Work Performance
• Relationships
• Processes
• Personal Development
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KPIs Dev. & Mgt
Personal Management
• Financial:
– Income
– Expenditure
– Debt
– Savings
– Investments.
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KPIs Dev. & Mgt
Financial
Income % Variance from income target
Expenditure % Variance from planned expenditure
Debt % Debt level
Savings % Variance from target savings
Investments% Investments level
% Investment return
Personal Management
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KPIs Dev. & Mgt
Personal Management
• Work Performance:
– Individual Performance
– Professional Goals
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KPIs Dev. & Mgt
Work Performance
Individual Performance
As per individual performance plan
Professional Goals
Achievement of professional goals
Personal Management
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KPIs Dev. & Mgt
Personal Management
• Relationships:
– Friends
– Colleagues
– Social Networking
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KPIs Dev. & Mgt
Relationships
Friends % Feedback and assessment survey
Colleagues % Feedback and assessment survey
Social Networking % Feedback and assessment survey
Personal Management
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KPIs Dev. & Mgt
Personal Management
• Processes:
– Time Management
– Reliability
– Communication
– use of tools
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KPIs Dev. & Mgt
Processes
Time Management
% Wake-up on time
% Bed time on time
% Meeting times met
Reliability% Promises deadlines on time
% Work deadlines on time
Communication% Emails responded within 3 days
% Voice messages responded within 1 day
Use of tools % To do list tasks achieved as planned
Personal Management
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KPIs Dev. & Mgt
Personal Management
• Personal Development:
– Training
– Experience
– Introspection
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KPIs Dev. & Mgt
Personal Development
Training
# books read
% Completion of learning targets
# Points gained in personal skills register
Experience# Major events attended
# New places visited
Introspection # Hours spent on thinking about theself
Personal Management
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KPIs Dev. & Mgt
Personal Management• Financial: Income, Expenditure, Debt, Savings, and
Investments.
• Work Performance: Individual Performance and Professional
Goals.
• Relationships: Friends, Colleagues, and Social Networking.
• Processes: Time Management, Reliability, Communication,
and use of tools.
• Personal Development: Training, Experience, & Introspection.
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The KPIs Framework
KPI lifecycle
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The KPIs Framework
KPI Establishment Project PlanInform staff & MgtConsult relevant St.H Establish online presence
Primary/ secondary/ internal/ external researchKPI selection workshop
Documentation form completionData gathering arrangements
Data gatheringReport generationReport analysis
Decision makingInitiative managementResults communication
Documentation refresh
Communication & Stakeholder Engagement
KPI Selection
KPI Documentation
& ActivationKPI Reporting
KPI Value Generation
KPI Maintenance
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The KPIs Framework
The performance management
process
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KPI Professional
1. Understanding and Selecting KPIs
Understanding and Selecting KPIsIntroduction To The World Of
KPIsCourse outline and
expectationsChallenges in performance
measurementKey Performance Indicators
concept mapStrategy and performance
management terminology reviewKPI historical overview and
current state of practiceManagement theory informing
the value added by using KPIs
The Pillars Of KPI ArchitectureInterdisciplinary systemic
worldview (weltanschauung)
KPI lifecycle
KPI use case scenarios
KPI architecture toolkit
KPI architecture skills map
KPI architect’s role in the world of KPIs
KPI SelectionKPI typology
Sources of relevant KPIs
Essential KPI examples
The generic KPI selection process
KPI toolkit spotlight: KPI filtering criteria
KPI selection based on use case scenarios
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KPI Professional
2. Documenting and Reporting KPIs
KPI DocumentationFunctions of the KPI
documentation form
KPI documentation form design
KPI documentation process
Functions of the organizational KPI library
Approaches to KPI target setting
Target setting process
Data Visualization: Designing KPI Dashboards And ScorecardsGood practice in data
visualization
KPI toolkit spotlight: The Balanced Scorecard
KPI toolkit spotlight: The KPI Dashboard
KPI toolkit spotlight: The Performance Healthogram
KPI Data Gathering And ReportingThe KPI data gathering
process
KPI data sources taxonomy
KPI activation tools and techniques
Business analysis techniques
Report compilation
Initiative management (documentation and progress review)
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KPI Professional
3. Generating value with KPIs
KPI Management Enablers: Software, Hardware, Communication And CultureOverview of KPI software
marketplace
Overview of KPI hardware marketplace
KPI results communication tools taxonomy
Generating Value From Using KPIsBuilding organizational
performance measurement capability
The Performance Measurement Maturity Model
Benchmarking typology
Pay for performance and KPIs
The human aspects of performance
Measuring And Learning With KPIsReview of the
performance management toolkit components
Review of the KPI toolkit components
Review of course content
Learning evaluation test
Questions and answers / free discussion
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KPI Practitioner
4. Establishing KPIs
KPI Project CoordinationThe business case for KPI
implementation
KPI project outline
Primary data sources
Secondary data sources
Reporting catalogue
KPI workshop briefing pack
KPI SelectionProbing questions for KPI
selection
Value driver concept mapping
Value flow analysis
KPI balancing
KPI selection expo
Scorecard -Dashboard Development & DocumentationKPI selection for objectives
Scorecard content structure
Scorecard design
KPI clustering
Dashboard content structure
KPI documentation form design
Target setting
Change log
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KPI Practitioner
5. Managing with KPIs
Data Collection, Analysis And ReportingData gathering
communication
KPI trend analysis
Reporting commentary
KPI Review Meetings And Initiative ManagementPerformance reporting
meeting preparation
Initiative selection
Initiative documentation
KPI Management EvaluationDouble loop learning
Measuring the cost of reporting KPI results
The Performance Measurement Maturity Model
Audit of performance measurement enablers (software, hardware)
Review of the KPI Management Framework toolkit
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KPI ReportingReports
• A report can be described as a document that contains data used for viewing and analysis.
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KPI ReportingDashboard
• A dashboard is a visual interface that provides at-a-glance views into key measures relevant to a particular objective or business process.
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KPI Reporting
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KPI Reporting
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KPI Reporting
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The KPIs WorldSum up
• The role of KPIs: clarity, focus, improvement
• KPI definition: A measurable expression for the achievement of a desired level of results in an area relevant to the evaluated entity’s activity.
• Linking metrics to Key Performance Indicators, Key Risk Indicators and analytics.
• KPI naming standards: #, %, $
• Getting value from KPIs: # DSO, % Employee engagement, # Turn-time
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Elgaili H. Ahmed, MBA KPI PMP CBAP Saturday 03 March 2018 | Khartoum | Sudan
Baselines for Business Solutions
+249 911 036 735 - +249 999 036 735
+249 123 036 735 - [email protected]