Professional Documents
Culture Documents
BY
mbam@IAB.MOE 08 1
BIODATA PENCERAMAH
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
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.
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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
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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
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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
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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
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To use KPIs Effectively, You
need to be able to:
Identify /create KPIs
Analyse KPIs
Cascading KPIs
Make strategic decisions based on
your KPIs
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CHALLENGES ORGANISATION’S FACE
Vision Barrier
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.
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Mission,
Vision,
Values
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A word of caution!
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!
Complexity of Analysis
Ratio
Absolute
Numbers
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Leadership System: M,V,GP, G, O
8. Customer & Stakeholder
Satisfaction
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MODEL PENGUKURAN PRESTASI
BERASASKAN PROSES
Maklumbalas Pelanggan
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Step 1
•Clarifying Your
Organisational Mandates,
Mission, Vision and Values
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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)
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Definisi Mandat?
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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
Sample values:
Contribution, Alignment, Mutual support, Service,
Compassion, Competence, Appreciation,
Energy, Wonder, Risk, Fun, Safety, Excellence,
Integrity, Responsibility, Awareness
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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
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THE ORGANIZATION AS
AN ICEBERG
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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
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Step 3:
Identifying
Strategic Issues,
Goals, Objectives,
KPI and Target
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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)
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3.2: What are Goals?
Goals
… are targets set for performance.
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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
MATLAMAT STRATEGIK:
Melahirkan Modal Insan Kelas Pertama
OBJEKTIF 4: OBJEKTIF 5:
Memupuk masyarakat Meningkatkan akses kepada pendidikan dan latihan
berbudaya dan memiliki berkualiti di semua peringkat
kekuatan moral
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3.3 Objectives
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What are SMART Measures?
MEASURABLE
SPECIFIC AGREED TO
SMART
MEASURES
REALISTIC
TIMELY
What are SMART-A Measures?
MEASURABLE
SPECIFIC AGREED TO
SMART
MEASURES
ALIGNED
REALISTIC
TIMELY
3.4: Developing KPI
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What are performance
indicators?
Performance indicators are measures
that describe how well a program is
achieving its objectives.
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PRINSIP-PRINSIP ASAS
Indices
Percentages
Complexity of Analysis
Ratio
Rating
(surveys)
Rankings
(Benchmarks)
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: E.g.
Are simplistic in the information that • Number of tons of exported
they generate • Number of patients admitted
Direct comparisons between
departments/ divisions/ organizations is • Number of days of sick leave taken
difficult because the relative importance of • Number of passenger journeys
what is being measured may be different for
each
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
Usually found in the ‘bottom half’ Usually found in the ‘top half’ of
of the Strategy Map the Strategy Map
• 3. Data Presentation
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The Measurement Pyramid
Goal
Outcome
Strategic Goals/Objectives
Performance
End-Outcomes Measures
Program
Longer-Term Intermediate
Outcomes Program Performance Measures
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• 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)
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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?
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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
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Target
Link KPI with target &
Initiatives
• Target: Desired level of performance for a
performance measure (e.g., % of
customer satisfaction target = 95%)
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Potential areas to consider when
setting targets:
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Tip (target)
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Contoh Perhubungan: Isu strategik,
Matlamat Strategik, Objektif, KPI
dan Sasaran Prestasi.
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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
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
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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.
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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.
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
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STEP 5: Cascading kpi
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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
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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
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Pelan Tindakan untuk strategi 1
Bil Pelan Tanggung Tempo Kos/ Output KPI Pelan
Taktikal -jawab h Sumber Kontigens
(RM) i
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Contoh Pelan Operasi
Perkhidmatan KPI Sasaran
9 PI Terima bayaran 2
Tangkap imej 1
3 PI
3 PI Laminate 1
3 PI Encoding 1
1 PI Sah keluar 2
Serahan 11
4 PI
MISI VISI
MATLAMAT:
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Sample Performance Report
Performance Measure
Performance Indicator
Performance Standard/Target
Performance Accomplishments
Assumptions
Comments/Lessons learned
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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.
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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.
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THANK YOU
From
Muhd Bustaman Abdul
Manaf
Institute Aminuddin Baki
Ministry of Education
bustaman@ iab.edu.my
0199890524