KPI Development Guide - TOC - ITPMG

1 ITPMG Helping Companies Improve Their Performance IT Performance Management Group Bethel, Connecticut Copyright 2007 All rights reserved KPI Development Guide Table of Contents January 2007 ITPMG Helping Companies Improve Their Performance IT Performance Management Group Page 1 Bethel, Connecticut Copyright 2007 All rights reserved KPI Development Guide Table of Contents 1 How to use this manual .. The components of the manual _____ Table 1:Core components of the KPI manual _____ Using the different components of the manual _____ Using Part One: General Principles_____ Using Part Two: The KPI Workbook _____ Part Three: The Facilitator s Resource Kit _____ 2 The rationale for this manual.

2 The Idea of the Measurement-Managed Organization_____ Table 2:Relating Measurement-Managed Organizations to Performance* _____ Table 3:Measurement-Managed Organizations Cultural Characteristics*_____ Why does Measurement-Management Work?_____ The Idea of Best Practices _____ Best Practices and Key Performance Indicators_____ 3 An introduction to Key Performance The Context for Performance Management _____ The basic attraction of measurement_____ The learned reaction to measurement _____ The ITPMG approach to measurement adopted in the manual_____ What are Key Performance Indicators _____ A note on language _____ Part General 4 How to use Part One of the manual.

3 The purpose of the general principles _____ The structure of Part One _____ Table 4: Part One organization of the manual_____ 5 The context for the introduction of A process approach to your organization_____ Defining and improving key processes _____ Assessing your organization s capacity to pursue Best Practices_____ Pursuing inclusion _____ Stretching the limits of Best Practices _____ ITPMG Helping Companies Improve Their Performance IT Performance Management Group Page 2 Bethel.

4 Connecticut Copyright 2007 All rights reserved 6 The four general principles guiding the Development and use of Why kpis are needed_____ Principle One: Partnership _____ Implications of Principle One _____ Principle Two: Empowerment _____ Implications of Principle Two _____ Principle Three: Integrated performance improvement _____ Implications of Principle Three _____ Principle Four: Teamwork _____ Implications of Principle Four_____ 7 An eight-step model for developing and using kpis .

5 8 Step One: Aligning with other change and improvement strategies .. The purpose of alignment_____ Alignment and the principles _____ Alignment and the organizational level for the introduction of kpis _____ Best Practices and the starting point for the introduction of KPIs_____ Guidelines for completing Step One _____ Guideline One: Consider the existing measurement culture _____ Guideline Two: Be prepared to explain why kpis are necessary _____ Guideline Three: Be prepared to allow kpis to develop and evolve _____ Guideline Four.

6 Be flexible about the rate of progress required _____ Illustrations of approaches to Step One _____ 9 Step Two: Explaining the purpose of KPI Development and use to all employees .. The purpose of explanation _____ Explanation and the principles _____ Guidelines for completing Step Two _____ Guideline One: Deliver joint briefings _____ Guideline Two Build a case for change _____ Guideline Three: Address your audience _____ Guideline Four: Use the vision to attract people _____ Guideline Five: Personalize the message _____ Guideline Six: Illustrate Where to next _____ 10 Step Three: Establishing an agreed process for the Development and use of kpis .

7 The purpose in having an agreed process_____ An agree process and the principles _____ Guidelines for completing Step Three _____ Guideline One: Determining responsibility _____ Guideline Two Focus the plan on resourcing teams to develop KPIs_____ Guideline Three: Introduce a moratorium on old KPIs_____ Guideline Four: Check for cultural consistency _____ 11 Step Four: Identifying organization-wide Critical Success The purpose of Critical Success Factors _____ Determining Critical Success Factors for your organization _____ Table 6: IT Investment Views _____ Examples of Critical Success Factors _____ Table 7.

8 Examples of Critical Success Factors _____ ITPMG Helping Companies Improve Their Performance IT Performance Management Group Page 3 Bethel, Connecticut Copyright 2007 All rights reserved Critical Success Factors and the principles _____ Guidelines for completing Step Four _____ Guideline One: Consult strategic planning documents _____ Guideline Two: Consult customers and employees_____ Guideline Three: Address the six broad aspects of organizational performance ___ Guideline Four: Explain the Critical Success Factors _____ 12 Step Five: Selecting kpis at the team level.

9 The purpose of team level kpis _____ Why team kpis are critical _____ What do we mean by teams? _____ What team kpis can do _____ Team kpis and the principles _____ Guidelines for completing Step Four _____ Guideline One: Sourcing the process _____ Guideline Two: Encouraging balance in team kpis _____ Guideline Three: Promote kpis that measure processes and outcomes _____ Guideline Four: Permit kpis to evolve _____ Guideline Five: Practicality, not perfection _____ Guideline Six: Never lose sight of ownership_____ Guideline Seven.

10 A limited, manageable number of kpis _____ Guideline Eight: Build the integrated system of kpis from the ground up _____ 13 Step Six: Developing display, reporting and review frameworks at all levels .. The importance of display, reporting and review frameworks_____ Display frameworks _____ Reporting frameworks _____ Review processes _____ Table 8: A recommended KPI review schedule _____ kpis _____ Recommended Review _____ Workgroups and teams _____ Weekly team meetings _____ Department _____ Monthly reviews in: _____ Global kpis _____ Quarterly reviews in: _____ Display, reporting and review and the principles _____ Guidelines for completing Step Six _____ Guideline One.