Strategic Performance

Management & KPI for

public Sector Organisation

BY

Muhamad Bustaman Abdul Manaf

Head of Department
Department of Quality Management
Institute Aminuddin Baki, MOE
(National Institute of Educational Management and Leadership)

mbam@IAB.MOE 08 1
 BIODATA PENCERAMAH

MUHAMAD BUSTAMAN BIN HAJI ABDUL MANAF

Ketua Jabatan
• Jabatan Pengurusan Kualiti
• Instutut Aminuddin Baki, KPM

1. Pengurus kursus: Kursus Pengurusan Strategik dan Pengurusan Kualiti

• di Institut Aminuddin Baki semenjak 1995.

9. Menulis buku: 1. Perancangan Strategik (IAB) 2. Pengurusan Kualiti dalam pendidikan

(Utusan). (buku ketiga: pengurusan strategik: dalam proses penerbitan- PTS)

11. Latihan Luar Negara dalam bidang Kualiti dan Pengurusan strategik:
xii.Strategic Leadership: World Trade Institute, New York, USA (1996)
xiii.
TQM in Education: SEAMEO Innotech, Manila (1998)
xiv.Strategic planning in education (public sector): University of York, England (2000- 2004)
(Pengajian Peringkat Phd)
xv. Strategy Measurement (BSC): U of Adelaide, Australia (2005)

4. Mempunyai sijil profesional Juruaudit (Lead Auditor) MS ISO 9000 sejak 1998 (berdaftar
dengan IRCA London.
5. Memberi konsultasi dalam bidang Perancangan strategik dan kualiti pada semua peringkat
2
disusun semula oleh Muhd
Kementerian Pelajaran Malaysia dan Badan Kerajaan lain.
Bustaman- IAB KPM 08
 Self-Introduction

 Name, Organization
 Experience/knowledge about
Performance Measurement: KPI &
Balanced Scorecard.
 Your expectations of the workshop

mbustaman/IAB/KPM/0 3
5
 Workshop Objectives
This workshop is designed to assist participants to:
 Understand the concept of Strategic
Performance Management System (SPMS) in
the public organization
 Develop Key Performance Indicators (KPIs) in
line with missions, vision and objectives of the
educational organization
 Develop a scorecard of KPIs in all levels
(Cascading).
 Review performance and reporting performance.

mbam@IAB.MOE 07 4
Hello Sir,
I’m Mr. Muhd. Bustamante
from IAB to …………..
Establishing Performance Measurement Program
In Malaysian Public Agencies: Mandate

“Budaya pengurusan berasaskan

pengukuran prestasi secara berterusan
perlu diterapkan dalam Perkhidmatan
Awam untuk meningkatkan kecekapan
dan keberkesanan sistem penyampaian
perkhidmatan agensi Kerajaan kepada
pelanggan, khususnya orang ramai”
From Prime Minister Speech During
MAPA on 9 January 2004
mbam@IAB.MOE 07 7
 KPIs For Cabinet Ministers
PUTRAJAYA: Prime Minister Datuk Seri Najib Abdul Razak
yesterday unveiled a leaner cabinet of 28 ministers………
…….. – and subjected them to Key Performance Indicators
(KPI) and six-monthy performance review.

To this end, he introduced a new paradigm of

performance and achievement through the KPI ‘which
will’ push for impact and not input, results rather than
output and will ensure the public service delivery is
value for money”.
(theSUN Friday April 10 2009, page 2)
 The important of KPI
• Source: Few, Stephen. 2006. Information
Dashboard Design: The Effective Visual
Communication of Data. Sebastopol, CA: O’Reilly
Media, Inc. p. 34.

• Let’s think of the dashboard of a car. It includes

the most important information to help you get
where you must go. You can see fuel levels,
speed, oil pressure, and mileage. You don’t see
tire pressure or a list of items in your trunk.
While those latter items might be important at
some time, they’re not key or critical to driving
the car at that time. They can – and perhaps
should – be monitored separately and less
frequently. hak milik mbustamanIAB.KPM 9
DIALS IN AN AIRPLANE
COCKPIT
•Weather
•Fuel
•Height
•Latitude
•Temperature
•Time
•Frequency
•….
hak milik mbustamanIAB.KPM 10
• Let’s also think of balance – from Kaplan and Norton’s book on
balanced scorecards they imagine a conversation with the pilot of
a plane:
“Q: I’m surprised to see you operating the plane with only a single
instrument. What does it measure?
“A: Airspeed. I’m really working on airspeed this flight.
• “Q: That’s good. Airspeed certainly seems important. But
what about altitude. Wouldn’t an altimeter be helpful?
• “A: I worked on altitude for the last few flights and I’ve
gotten pretty good on it . Now I have to concentrate on proper air
speed.
• “Q: But I notice you don’t even have a fuel gauge. Wouldn’t
that be useful?
• “A: You’re right; fuel is significant, but I can’t concentrate on
doing too many things well at the same time. So on this flight I’m
focusing on air speed. Once I get to be excellent at air speed, as
well as altitude, I intend to concentrate on fuel consumption on the
next set of flights.”
• Kaplan & Norton 1996. The Balanced Scorecard: Translating 11
hak milik mbustamanIAB.KPM
Strategy Into Action. Boston: Harvard Business School Press. P. 1.
Any one of us getting on such a plane might find a
way to leave quickly!

12
Why do organisations measure performance?
(Charles Parker, 2000)

• 1. identify success
2. identify whether they are meeting
customer requirement
3. help them to understand their process.
4. identify where problems bottlenecks,
waste, etc.
5. ensure decisions are based on fact, not
on supposition, emotion or intuition
6. show if improvements planned, actually
happened.
mbam@IAB.MOE 07 13
 Why we must measuring
performance?
Kaplan (2003):
• If we can’t measure our processes, we can’t
manage our processes
• If we can’t manage our processes, we can’t
change our processes for improvement
• If we can’t improve our processes, we can’t
meet or exceed our customers’ expectations
• MEASURE - MANAGE – CHANGE - EXCEED

mbam@IAB.MOE 07 14
 Why Do We Need KPIs?
• KPIs are critical to the strong
management of all organizations
 KPIs are used in:
 Balanced Scorecards
 Cascading strategy
 Performance management
 Risk management
 Governance = managing + reporting
mbustaman/IAB/KPM/0 15
5
 Why Do We Need KPIs?
• There are two main reasons for using
KPIs:
• 1 . To Motivate the Organization.
 Measure to motivate for higher performance on
both individual and group basis
 Measure to encourage changes in behaviour

mbustaman/IAB/KPM/0 16
5
 Why Do We Need KPIs?
• There are two main reasons for using
KPIs:
• 2 . To Monitor the Organization.
 Measure to track progress of strategy
 Measure as the basis for a fair reward and
recognition program

mbustaman/IAB/KPM/0 17
5
 To use KPIs Effectively, You
need to be able to:
 Identify /create KPIs
 Analyse KPIs
 Cascading KPIs
Make strategic decisions based on
your KPIs

mbustaman/IAB/KPM/0 18
5
 CHALLENGES ORGANISATION’S FACE
Vision Barrier

Only 5-10% of the

work force understand
the strategy

9 out of 10 Management Barrier

People Barrier companies fail
to execute 85% of executive
Only 25% of managers have teams spend less than
incentives linked to strategy
and track one hour/month
strategy discussing strategy

60% of organisations
don’t link budgets to
strategy

Resource Barrier
PERFORMANCE MANAGEMENT: ALIGNMENT

Performance management
takes place at three different
levels:
- Organisational Level
- Departmental Level
- Individual Level
Alignment matrix Dept scorecard
The cascading process is used
to align the organisation’s
objectives with the individual
performance requirements.
This ensures that every
individual and business unit
has a direct impact on the
success of the organisation.
mbam@IAB.MOE 07 22
Mission,
Vision,
Values

mbam@IAB.MOE 07 23
 A word of caution!

Measures or KPIs are just the Start of a strategic discussion!

Measures cannot:
• Solve problems, they can only tell you generally where
the problem is!
•Can’t tell you why your strategy is not succeeding, they
can only tell you if you are on track or not!

In other words – you need to analyse measures or kpis to help you

understand the why, what, how, who and when
 Measures or KPIs are Meant to Generate Strategic Information

We don’t just measure our strategy to be compliant ….

Indices

We measure our strategy so that we can see: Percentages

Complexity of Analysis
Ratio

 Where we are going well (Yellow) Rating

(surveys)
Rankings
 Where we need to improve ( Amber) (Benchmarks)

Absolute
Numbers

 Where we are having problems (Red) Strategic Information Generated

SMART –A Measures are more likely to generate ‘strategic Information’

Best Practice Measures or KPIs

Measures or KPIs needs to be able to be analyzed so that they can generate

strategic information about your strategy

‘Good’ Measures or KPIs have five key elements:

 They focus you on motivating staff or monitoring performances

They focus you on what how you can beat the competition, fix
something that is broken or clear something that is blocked
They are SMART-A
They are not generic in nature
They are regularly reported and analysed!

A ‘strategic’ Measure or KPI is NOT operational!

 Performance Measurement
Frameworks
• IPO-Framework
• Program Logic Model
• The “Critical Few” Set of Measures
• Performance Dashboards
• The Balanced Scorecard
• Malcolm Baldrige National Quality Award
• EFQM
• Kanji's Business Excellence Model (KBEM)
• Performance Prism

mbam@IAB.MOE 07 27
Leadership System: M,V,GP, G, O

8. Customer & Stakeholder
Satisfaction

mbam@IAB.MOE 07 28
 MODEL PENGUKURAN PRESTASI
BERASASKAN PROSES

MISI & VISI

Tetapkan Perkhidmatan Teras

Tentukan Proses-proses Utama

Kenalpasti Perkhidmatan-perkhidmatan Yang

Disampaikan di bawah setiap Proses Utama
Perkhidmatan
Yang
Wujudkan KPI dan Kaji Memuaskan
Tetapkan Sasaran Prestasi bagi setiap Semula Hati
Nilai Secara perkhidmatan Prestasi Pelanggan
Berterusan Agensi
Ukur dan Nilai Prestasi

Pantau Tahap Prestasi

Tambah Baik Prestasi

Maklumbalas Pelanggan
mbam@IAB.MOE 07 29
 Step 1
•Clarifying Your
Organisational Mandates,
Mission, Vision and Values

mbam@IAB.MOE 07 30
 What is Mandate?
• Mandates are written and unwritten
rules that govern and guide an
institution and its stakeholders. Its
maybe directly tied to laws, by laws,
ordinances, acts and charters
(Sevier, 2000)

mbam@IAB.MOE 07 31
 Definisi Mandat?

• Kamus Dewan- DBP (2005):

1. Amanah yang diberikan
oleh orang ramai.
2. Kuasa yang diberikan oleh
oleh pihak yang lebih tinggi.
3. Surat kuasa, surat perintah
4. Kuasa yang diberikan untuk
mentadbir mbam@IAB.MOE 07 32
 Definisi misi?

• Kamus Dewan (2005):

Tugas khusus yang
dipertanggungjawabkan kepada
atau yang akan dilakukan oleh
seseorang atau sesuatu kumpulan.

mbam/iab-moe/2006 33
 What is a Mission
Statement?
A mission statement describes the
•What is our basic purpose or Why do we
exist?)
•Who we serve? , as our customers:
geography, segments, names
•What we produce- outcome benefits:
products, services, uses)
•How we do it "differently", "better", "more
effectively" thanmbam@IAB.MOE
others) 07 34
 Visioning

Apakah yang anda boleh pelajari dari gambar ini?

mbam@IAB.MOE 07 35
 Apakah itu visi/wawasan?
• Kamus Dewan (2005):
Pandangan yang jauh
(terutamanya yang berkaitan
dengan perkembangan masa
depan dsb) bagi mencapai
matlamat penting sesebuah
organisasi atau negara.
36
 Apakah itu
Wawasan/Visi?
• Burt Nanus:“A vision is a realistic,
credible, attractive future for your
organisation”.
• Thornberry (1997), Wawasan
adalah satu gambaran atau
pandangan tentang masa depan.
Sesuatu yang bukan “real”, tetapi
yang diimaginasikan
mbam@IAB.MOE 07 37
 Value Statement
Value statement describes the principle that guide the
organization’s work and includes a description of an
organization’s philosophy and beliefs and often explains the
organization’s relationship to its environment and resources.

Sample values:
Contribution, Alignment, Mutual support, Service,
Compassion, Competence, Appreciation,
Energy, Wonder, Risk, Fun, Safety, Excellence,
Integrity, Responsibility, Awareness

mbam@IAB.MOE 07 38
PIAGAM PELANGGAN
Adakah PP organisasi
dinyatakan berasaskan
prinsip SMART?
 Definisi Pelanggan

Organisation or person
that receives a product or
services.
A customer can be
internal or external to the
organisation.
(ISO 9000:2000)
Definisi Kepuasan Pelanggan

the degree to which the

customer’s requirement have
been fulfilled. – ISO 9000:2000
Siapakah “PELANGGAN”?
• Mereka yang secara langsung
menerima/ mengunapakai
output/produk dari sesuatu proses
• Mereka yang menggunakan atau
membeli produk kita
• Pelanggan dalam dan luaran

SIAPAKAH PELANGGAN ANDA ?

Hak Milik MBAM@IAB KPM 09 42

PERNYATAAN PIAGAM PELANGGAN IAB

IAB komited untuk memberi kepuasan kepada stakeholder

berdasarkan piagam pelanggan seperti berikut dan akan
memastikan:
3. Melaksanakan sekurang-kurangnya 80% program latihan
yang didaftarkan dalam dokumen Program Latihan IAB pada
tahun berkenaan;
4. Memastikan sekurang-kurangnya 95% peserta kursus
berpuas hati dengan program latihan IAB;
5. Memastikan sekurang-kurangnya 80% peserta yang
mengikuti program latihan berpuas dengan pengendalian sesi
latihan oleh Pensyarah IAB dan Pensyarah Jemputan;
6. Memaklumkan pelanggan tentang kelulusan sesuatu kursus
yang dipohon sekurang-kurangnya empat minggu (4)
sebelum kursus bermula;
7. Memastikan prasarana latihan dan semua keperluan serta
peralatan latihan berfungsi dengan baik dan dalam keadaan
siap sedia untuk digunakan dalam tempoh satu (1) hari
sebelum kursus bermula;
8. Menjalankan sekurang-kurangnya sembilan (9) penyelidikan
dan pembangunan sistem maklumat setahun;
 sambungan
• 7. Menghasilkan sekurang-kurangnya sepuluh (10)
penerbitan setahun ;
• 8. Menjalankan sekurang-kurangnya enam (6) program
konsultansi termasuk khidmat pasukan pemikir setahun;
• 9. Menghasilkan indeks keperluan latihan dan
pembangunan profesioanal pemimpin sekolah bagi setiap
negeri setiap tahun ;
• 10. Memastikan sekurang-kurangnya 80% peserta kursus
berpuas hati dengan perkhidmatan sajian dan
penginapan;
• 11. Menyediakan perkhidmatan perpustakaan pada setiap
hari bekerja mulai 8.15 pagi hingga 4.45 petang;
• Memastikan semua staf IAB mendapat peluang untuk
mengikuti latihan sekurang-kurangnya 7 hari setahun;
• Memastikan maklum balas kepada semua pertanyaan dan
aduan pelanggan mengenai pengurusan perkhidmatan di
IAB adalah menepati tempoh-tempoh berikut:
– akuan penerimaan dalam tempoh 1 hari
– maklum balas awal dalam tempoh 15 hari
– laporan status aduan dalam tempoh 5 minggu
Step 2: Conducting the
Environmental Analysis

mbam@IAB.MOE 07 45
 THE ORGANIZATION AS
AN ICEBERG

mbustaman/IAB/KPM/0 14.546
5
 Role of SWOC/T Analysis in
Crafting a Better Strategy
• 1. Developing a clear understanding of an organization’s
– Internal resource strengths
– Internal resource weaknesses
– External best opportunities
– External threats or Challenges
• 2. Drawing conclusions about how
– Organization’s strategy can be matched to both its
resource capabilities and external opportunities
– Urgent it is for organization to correct resource
weaknesses and guard against external threats

mbam@IAB.MOE 07 47
 Step 3:

Identifying
Strategic Issues,
Goals, Objectives,
KPI and Target

mbam@IAB.MOE 07 48
 Strategic Issues or Critical
Success Areas?
• SI is a strength, weakness,
opportunity or threat--- or problem
or opportunity – that has or will have
the potential to have significant
impact on the institution mission and
vision (Sevier, 2000)

mbam@IAB.MOE 07 49
 3.2: What are Goals?

Goals
… are targets set for performance.

Goals should answer the question:

“What do we hope to achieve in support of the
mission and vision (over the period …)?”
mbam@IAB.MOE 07 50
• Strategic goals define what must be
done to achieved the mission & vision.
(Niven, 2003)
• They are long-range performance targets that
are consistent with an organization’s mission,
usually requiring a substantial commitment of
resources and achievement of short-term and
mid-term supporting plans.

mbam@IAB.MOE 07 51
 Strategic Goals
Goals serve as the starting point for cascading Objectives,
Initiatives, and Measures down through the organization

Strategic Planning
Mission Why we exist
Action Planning

Implementation /
Vision What we want to be Measures

Goals What we must achieve to be successful

Objectives O1 Specific outcomes expressed in

O2
measurable terms (NOT activities)

Measures Planned Actions to

AI1 AI2 AI3 Achieve Objectives

Targets Indicators and

M3 M2 M1
Monitors of success
Actions/
Initiatives T1 T1 T1 Desired level of
performance and timelines
mbam@IAB.MOE 07 52
 Contoh perhubungan antara misi, isu
strategik,matlamat & Objektif
. MISI NASIONAL

MATLAMAT STRATEGIK:
Melahirkan Modal Insan Kelas Pertama

OBJEKTIF 1: OBJEKTIF 2: OBJEKTIF 3:

Meningkatkan keupayaan Meningkatkan tahap kemahiran Memperkukuh keupayaan
dan pengusaan ilmu teknikal & vokasional R&D, sains & inovasi
pengetahuan

OBJEKTIF 4: OBJEKTIF 5:
Memupuk masyarakat Meningkatkan akses kepada pendidikan dan latihan
berbudaya dan memiliki berkualiti di semua peringkat
kekuatan moral
mbam@IAB.MOE 07 53
3.3 Objectives

mbam@IAB.MOE 07 54
 What are SMART Measures?

To increase your success in terms of performance management, it is

critical to choose the right measures- not just the most convenient
one…

MEASURABLE

SPECIFIC AGREED TO

SMART
MEASURES

REALISTIC

TIMELY
 What are SMART-A Measures?

When creating a ‘balanced’ set measures for an organization,

aligning measures where possible is also critical for your success ….

MEASURABLE

SPECIFIC AGREED TO

SMART
MEASURES

ALIGNED
REALISTIC

TIMELY
3.4: Developing KPI

mbam@IAB.MOE 07 57
 What are performance
indicators?
Performance indicators are measures
that describe how well a program is
achieving its objectives.

Key Performance Indicators are quantifiable

measurements, that reflect the critical success
factors of an organisation.

mbam@IAB.MOE 07 58
 PRINSIP-PRINSIP ASAS

Sasaran Prestasi boleh disediakan dalam

bentuk:
• Percentage of…….(Peratus )
• Number of……. (Angka bilangan)
• Ranking (Top 10, Best in the World)
• Ratio
• Rating
• Average of…
• Level of achievement of….
mbam@IAB.MOE 07 59
 1.3 Identifying & Creating KPIs

… That Can Present in Different Forms

Indices

Percentages
Complexity of Analysis

Ratio

Rating
(surveys)

Rankings
(Benchmarks)

Absolute
Numbers

Strategic Information Generated

 Absolute Numbers vs. indexes
Absolute Numbers

Positives:
 Objective – ‘the number is the number’
 Easy to measure and analyse
 Easy to communicate performance required
( i.e. what needs to be done)

Negatives:
 Are simplistic in the information that
they generate
 Direct comparisons between
departments/ divisions/ organizations is
difficult because the relative importance of
what is being measured may be different for
each
E.g.
• Number of tons of exported
• Number of patients admitted
• Number of days of sick leave taken
• Number of passenger journeys
 Absolute Numbers vs. indexes
Indices

Positives:
 Generate a lot of strategic information
 Able to make comparisons across a wide range of areas
 Able to weight areas of importance

Negatives:
 Difficult to communicate what needs to be done
 Results can be skewed by one factor if weighting is done incorrectly (or not at all)
 Results can be interpreted in different ways by different people
 Individual component performance often cancel out so index performance generally
does not change rapidly

E.g.
 Index of customer satisfaction - Happiness index
 Index of employee engagement - Economic prosperity index
 Ranking vs. Ratings

Rankings (Benchmarks)
Positives:
 Relatively easy to measure and analyse E.g.
Relatively easy to communicate what
needs to be done • Brand recognition
ranking
Negatives:
 Are simplistic in the information that they • ‘Employer of
generate Choice’ ranking
 Direct comparisons between • Pharmaceutical
departments/ divisions/ organizations is distributor ranking
difficult because different organizations:
• May use different criteria for ‘best’ • University ranking
•Performance spreads from best to
worst may vary greatly
 Ranking vs. Ratings

Ratings (surveys)

E.g.
Positives:
 Relatively easy to measure and analyse • Rating achieved on
Relatively easy to communicate what customer satisfaction
survey
needs to be done
 Generate a lot of strategic information • Rating achieved on
 Able to make comparisons across a employee
wide range of areas engagement survey
• rating achieved on
Negatives:
 Results can be skewed by one factor product acceptance
 Results can be interpreted in different in market
ways by different people.
 Ratios vs. Percentages

Ratios

E.g.
Positives:
 Easy to measure and analyse • Number of
 Able to make comparisons across a complaints per
passenger journey
wide range of areas
• Number of calls
Negatives: completed per
 Need to be reviewed to ensure operator
organizations aren’t managing the
• Number of students
denominator
matriculating per
school
 Ratios vs. Percentages

Percentages

E.g.
Positives:
 Everything is normalised to ‘100’ • Percentage of new
vs. old customers
therefore easier to understand as
everything is related back to the whole • Percentage of
 Easy to communicate improvements actual vs. budget
required
 easy to measure and analyse • Percentage of IT
 Able to make comparisons across a projects completed
wide range of areas on time and on
budget
Negatives: • percentage of staff
 Need to be reviewed to ensure trained
organizations aren’t managing the
denominator
 How to identify Potential Strategic Measures

Review Existing Measures, i.e.:

 Own organizations (i.e. reports, other
BSCs etc.)

Develop New Measures, i.e.:

 Industry benchmarks 2. Identify critical success factors for the
objective

5. Determine which ones are acting as

the biggest ‘choke point’

8. Develop a specific measure for the

‘choke point’
 A word of caution!

Your current measures are possibly generic

in nature and / or lagging measures ….
 1.3 Identifying & Creating KPIs

There are Two Types of Strategic Measures …

Leading Measures: Lagging Measures:

 Measure the drivers in your  Measure the outcomes of your

organization- Your people and your strategy- Your customer
processes stakeholder/financial outcomes

 Usually found in the ‘bottom half’  Usually found in the ‘top half’ of
of the Strategy Map the Strategy Map

Tend to indicate what will happen Tend to indicate what has

in the future if an action is taken now happened in the past

Are usually qualitative in nature Are usually quantitative in nature

 Data Collection
• 1. Data Credibility

• 2. Data Collection Methods

• 3. Data Presentation

mbam@IAB.MOE 07 70
mbam@IAB.MOE 07 71
The Measurement Pyramid
Goal

Outcome
Strategic Goals/Objectives
Performance
End-Outcomes Measures

Program
Longer-Term Intermediate
Outcomes Program Performance Measures

Shorter-Term Program Components

Intermediate
Outcomes Program Component Performance Measures
& Outputs
Activities
Outputs
& Inputs Activity Performance Measures
mbam@IAB.MOE 07 72
Categories of Performance
Measures
• Input measures (e.g., staff time, materials,
equipment, resources) are useful in showing
resources or effort used to provide services;
however does not show effectiveness
– You may be a spending a lot of effort doing the
wrong things
• Output measures (e.g., number of products
produced or services provided) are useful in
defining program or service; however, does
not reveal quality or efficiency
– You may be producing or providing a lot of the
wrong things inefficiently or with poor quality

mbam@IAB.MOE 07 73
• Outcome measures (e.g., score on standardized
test, distance from proposed targets) are useful in
showing the impact or benefit of the program or
service
• Efficiency measures (e.g., cost per unit of
output, outputs per unit of input, outputs per unit
time) are useful in showing productivity and cost
effectiveness
• Quality measures (e.g., reliability, accuracy,
courtesy, competence, responsiveness) are useful
in measuring the effectiveness in meeting
customer expectations
– Lack of quality can be measured (e.g., error
rates)

mbam@IAB.MOE 07 74
mbam@IAB.MOE 07 75
mbam@IAB.MOE 07 76
 Designing Good KPIs
Objectives – what are we trying to achieve?
• May be more than one indicator for each objective.
• Each objective will have strategies on how to achieve them.
Indicators – what are you going to measure?
• Used to assess the present state of progress and to suggest
an appropriate course of action.
Measures – how are you going to measure it?
• Can be qualitative or quantitative data related to inputs,
progresses or outputs.
Targets – what is the result that you want?
• Can be minima targets, stretch targets or a combination.
Results – what have you actually achieevd?
mbam@IAB.MOE 07 77
 Constructing Good
KPIs
Objectives
• High quality teaching.
Indicators
• Student satisfaction with the teaching they experience.
Measures
• Mean student response per class to the question e.g. Overall,
how satisfied are you with this teacher?
• On a 1 to 5 Likert-type scale.
Targets
• At least 3.5 on a 1 to 5 scale, or
• Best in class compared with benchmark
mbam@IAB.MOE 07 partners. 78
Target
Link KPI with target &
Initiatives
• Target: Desired level of performance for a
performance measure (e.g., % of
customer satisfaction target = 95%)

• Initiatives: Action programs that will

achieve our performance goals (e.g.,
license renewals via Internet)
(source: Balanced Scorecard Institute, USA. 2005)

mbam@IAB.MOE 07 80
Potential areas to consider when
setting targets:

• 1. TOV or Baselines and trends

• 2. National, state, local or Education
Standards.
• 3. Benchmarking
• 4. Feedback from customers and
stakeholders

mbam@IAB.MOE 07 81
Tip (target)

mbam@IAB.MOE 07 82
Contoh Perhubungan: Isu strategik,
Matlamat Strategik, Objektif, KPI
dan Sasaran Prestasi.

mbam@IAB.MOE 07 83
MATLAMAT OBJEKTIF KPI SASARAN
STRATEGIK

BIDANG 05 06 07 08 09 10
KURIKULUM TOV
Meningkatka Meningkatka % 80.9 82.0 84.0 90.0 95.0 100
kecemerla Pencapaian Keputusan
ngan Cemerlang Peperiksaan
akademik dalam PMR
PMR, SPM
dan
% 94.8 96.0 97.0 98.0 99.0 100
STPM
Keputusan
Peperiksaan
SPM

% 97.5 98.0 100 100 100 100

Keputusan
Peperiksaan
STPM
mbam@IAB.MOE 07 84
 ISU STRATEGIK, MATLAMAT STRATEGIK, KPI, OBJEKTIF &
SASARAN
ISU SASARAN PRESTASI
STRATEGIK MATLAMAT
BIDANG STRATEGIK OBJEKTIF KPI
KURIKULUM TOV 07 08 09 2010

Meningkatkan Meningkatkan % kelulusan 91.7 94% 97% 99% 100%

Pencapaian kecemerlangan kelulusan Peperiksaan %
akademik pencapaian peperiksaan UPSR
murid masih akademik dan bilangan
lagi belum pelajar pelajar mendapat 5A
cemerlang. % pelajar 35% 37% 39% 40%
mendapat 33%
5A

ISU STRATEGIK MATLAMAT KPI SASARAN PRESTASI

BIDANG STRATEGIK
TOV 07 08 09 2010
Pencapaian kokurikulum Memastikan Bilangan
masih lagi di tahap pencapaian pelajar
minimum kokurikulum mencapai
KO- mencapai tahap kejayaan
KURIKULUM yang 3 7 11 13 15
-peringkat
cemerlang. Negeri

Objektif jangka panjang : 15 orang pelajar mencapai kejayaan peringkat negeri pada tahun 2010

Objektif jangka pendek : 7 orang pelajar mencapai kejayaan peringkat negeri pada tahun 2007
mbam@IAB.MOE 07 85
 Step 4: Develop
Initiatives
• Action programs that will achieve
our performance goals (e.g.,
license renewals via Internet)
(source: Balanced Scorecard Institute, USA. 2005)

• Business strategy.
• Specific programs, activities, projects or actions
you will engage in to help ensure you meet or
exceed your performance targets.

mbam@IAB.MOE 07 86
 THE TOWS MATRIX
(GENERATION OF STRATEGIC OPTIONS)

STRENGTHS WEAKNESSES
INTERNAL
1. 1.
ENVIRONMENT
2. LIST STRENGTHS 2. LIST WEAKNESSES
3. 3.
4, 4.
EXTERNAL 5. 5.
ENVIRONMENT 6. 6.

OPPORTUNITIES S-O STRATEGIES W-O STRATEGIES

1. PENETRATION NICHE
2. LIST OPPORTUNITIES EXPANSION LINKAGING OR NETWORKING
3. INTENSIFICATION SUB-CONTRACTING
4. ACQUISITION ANCHORING ORGANIZATION
5. INTEGRATION OF BACKWARD AND FORWARD DEVELOPMENT/CAPABILITY BUILDING
LINKAGES
6.

S-T STRATEGIES
THREATS W-T STRATEGIES
DIVERSIFICATION
1. RETRENCH
CONSOLIDATION
2. LIST THREATS MERGE
CONTINGENCY MECHANISMS
3. WITHDRAW
4, CLOSE SHOP
5. STATUS QUO
6. mbam@IAB.MOE 07 87
STEP 5: Cascading kpi

mbam@IAB.MOE 07 88
hak milik mbustamanIAB.KPM 90
 Alignment
by Soichiro Honda-Honda Motors:
• 1. Craft a vision: what we will be
• 2. Create goals and performance
measures: What 4 or 5 things we
must do to get there
• 3. Alignment: Translate the work of
each person into alignment with the
goals.
hak milik mbustamanIAB.KPM 91
hak milik mbustamanIAB.KPM 92
 Cascading Scorecards
Support Strategy
Corporate
Business Units
Financial
Financial
Support Units
Goal Measure Target Initiative
Goal Financial
Measure Target Initiative
Goal Measure Target Initiative
Team/
Individual
Internal Business Process
Customer
Customer Mission Internal
Goal Business
Measure Target Process
Initiative
Goal Measure Target Initiative
Customer Internal
Goal Measure TargetProcess
Business Initiative
Goal
Goal
Measure Target Initiative
Measure Target Initiative
Vision Goal Measure Target Initiative

Strategy

Learning and Growth

Goal Learning
Measure and Growth
Target Initiative
Goal Learning and
Measure TargetGrowth
Initiative
Goal Measure Target Initiative

mbam@IAB.MOE 07 93
 Pelan Tindakan untuk strategi 1
Bil Pelan Tanggung Tempo Kos/ Output KPI Pelan
Taktikal -jawab h Sumber Kontigens
(RM) i

1. Kelas Jan- 500.00 Pencapai % lulus Latih Tubi

bimbingan GPK 1 Okt an dan keseluru dalam
minat han kelas
murid mengikut
meningka topik
%
t. cemerlan
gA
%
kehadira
n murid
%
peningka
tan
prestasi
murid

mbustaman.IAB.KPM 94
 Contoh Pelan Operasi
Perkhidmatan KPI Sasaran

Untuk mengukur Kecekapan Proses

Perkhidmatan 1. Tempoh masa menunggu untuk 1 jam
Pengeluaran mendapat perkhidmatan di
Pasport kaunter penerimaan
Malaysia 1. Tempoh layanan semasa
menerima perkhidmatan di 8 minit
kaunter 2 minit
- Penerimaan borang
permohonan
- Penerimaan Bayaran & resit
1. Tempoh kitaran mengeluar dan 24 jam
menyerahkan paport
1. Peratus kesilapan pasport yang 0%
dikeluarkan kesilapan
 CONTOH KPI ( tahap Operasi : level tiga)
PERKHIDMATAN PENGELUARAN PASPORT MALAYSIA
ALIRAN KERJA KPI: MASA SEBENAR (MINIT)

9 PI Terima dan semak permohonan 5

5 PIT Sah dokumen dan lulus 3

9 PI Terima bayaran 2

Tangkap imej 1
3 PI

Cetak muka surat utama 2

3 PI

3 PI Laminate 1

Kepastian cip dan cetak muka surat pemerhatian 2

3 PI

3 PI Encoding 1

1 PI Sah keluar 2

Serahan 11
4 PI

JUMLAH SEBENAR: 30 minit

Perkhidmatan KPI Sasaran

Perkhidmatan Untuk Mengukur Keberkesanan Proses

Pengeluaran
Pasport
Malaysia
Bilangan pengeluaran pasport sehari 476
passport
Masa produktif: /hari
34 orang X 7 jam X 60 minit
=14,280 minit

Masa sebenar bagi 1 permohonan = 30

minit (rujuk carta aliran)

Bilangan pasport yang boleh

dikeluarkan:
14,280 = 476
30
 CONTOH KPI DAN SASARAN PRESTASI UNTUK
PERKHIDMATAN PENGELUARAN PASPORT Malaysia ...sambungan

Perkhidmatan KPI Sasaran

Untuk mengukur Produktiviti Anggota
di Kaunter penerimaan
Perkhidm (Kumpulan 9 Pegawai Imigresen)
atan
Masa produktif:
Pengeluar
9 orang X 7 jam X 60 minit 3,780 minit
an Pasport
Malaysia Masa sebenar semak satu
permohonan dan terima bayaran 7 minit

Bilangan Permohonan pasport 540

permohonan
= 3,780/7
 BORANG PENGUKURAN PRESTASI DAN MAKLUM BALAS

MISI VISI

MATLAMAT:

Objektif KPI Tov Sasaran Prestasi Sebenar Ulasan

mbam@IAB.MOE 07 99
 Sample Performance Report
Performance Measure

Performance Indicator

Performance Standard/Target

Related Strategic Initiative

Performance Accomplishments

Outcome Supported Resources Used Impacts and Benefits

Assumptions

Environment (influencing factors)

Comments/Lessons learned
mbam@IAB.MOE 07 100
 10 Reasons Why KPI Systems Do
Not Succeed in Public Sectors
• Staff believe top management imposes a system under political pressure or
merely because it is the managerial fashion to have one.
• The real purpose of the organization escapes definition.
• The staff who have to contribute indicators cannot see their relevance to their
working life.
• Too many, too complicated, too incomprehensible.
• What is measured is not necessarily important, only measurable.
• Managers do not use the indicators to improve work, only compile them.
• Staff forget about them, until it is time for the annual returns.
• The available data is not reliable, or not sufficient, or too expensive to collect.
• The results are disappointing, and are suppressed.
• The KPI system is treated as an end in itself, not as means to an end.
mbam@IAB.MOE 07 101
 Main References
• 1. Allison and Kaye. (2003) Strategic Planning for Public and Non­profit 
Organizations. San Francisco: John Wiley & Son, Inc.
• 2. Bryson, J.M. (2004). Strategic planning for public and nonprofit 
organizations: A guide to strengthening and sustaining organizational 
achievement 3   rd
 ed. San Francisco: Jossey­Bass.
• 3. Hairuddin.M.A. & Muhamad Bustaman.A.M. (2007) Perancangan 
Strategik Pembangunan Sekolah: Memperkasa dan Melonjakkan 
Kecemerlangan Institusi Pendidikan. Genting Highlands, Pahang: Institut 
Aminuddin Baki, Kementerian Pelajaran Malaysia.
• 4. Kaplan & Norton. (1996) Balanced Scorecard: Translating Strategy Into 
Action. Boston, Massachusetts: Harvard Business School Press.
• 5. Kaplan & Norton. (2004) Strategy Maps: Converting Intangible Assets Into 
Tangible Outcomes. Boston, Massachusetts: Harvard Business School Press.
• 6. Kaplan & Norton. (2006) Alignment: Using the Balanced Scorecard to Create 
Corporate Synergies. Boston, Massachusetts: Harvard Business School Press.
• 7. Miller, B.A. (2007) Assessing Organizational Performance in Higher 
Education. San Francisco: John Wiley & Son, Inc.
• 8. Niven, P.R. (2003). Balanced Scorecard: Step­by­step for Government and 
Nonprofit Agencies. San Francisco: Jossey­Bass.
• 9. Sevier, R. (2000). Strategic Planning for Higher Education Institution. 
Chicago, USA.
mbam@IAB.MOE 07 102
THANK YOU
From
Muhd Bustaman Abdul
Manaf
Institute Aminuddin Baki
Ministry of Education
bustaman@ iab.edu.my
0199890524

hak milik mbustamanIAB.KPM 103