Professional Documents
Culture Documents
Performance
Indicators
December 2020
Noha Radwan
ACC Coach & Consultant
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Workshop Contents
By crafting a clear mission & vision statements, you can powerfully communicate
your intentions and motivate your team.
Vision Statement
What is the vision statement?
Vision Statements also define the organizations purpose, but this time they do so in
terms of the organization's values rather than bottom line measures (values are
guiding beliefs about how things should be done.)
The vision statement communicates both the purpose and values of the organization
internally & externally.
Vision Statement Creation
Vision Statement Creation
Project five to ten years into the future
Imagine a future world in which your business is competing well in or dominating the market
What does that world look like?
Can you get there? For example, if you want to double your company’s profit in five years,
what would that entail?
Would you be in a different geographic area?
Would you sell different products or services?
Would you become a strategic partner with your clients rather than a third-party vendor?
This “world” is where your vision statement should live.
Describe what success looks like in your operations
This doesn’t mean going into detail about how your operations work, but rather what sets them
apart. Be succinct and clear with your definition
Reference your competitors or create an analogy
If you’re a smaller organization building into a new niche, consider referencing an organization
that your employees would quickly recognize. This will allow them to create an immediate
picture of your vision.
Vision Statement Tips
Vision Statement examples
Example
Using the example mission statement developed for Farm Fresh Produce:
The four most important things she identifies are: freshness, healthiness, tastiness
and "localness" of the produce:
"We help the families of Main Town live happier and healthier lives by pro
viding the freshest, tastiest and most nutritious local produce: From lo
cal farms to your table in under 24 hours."
Activity Time
Be specific
Don’t begin by trying to write something. Focus first on the mission itself
Ensure that board members and the chief executive agree on the mission
Keep The Mission Visible, Robust, Nimble, and Relevant
Offer opportunities for longer mission interaction
Consciously use mission as the basis for making tough Decisions
Activity Time
Setting specific organizational goals can also help a company measure their organization's progress
Determine the tasks that must be improved to meet those business goals.
Goal setting can also help an organization achieve increased efficiency, productivity and profitability.
Organizations use KPIs at multiple levels to evaluate their success at reaching targets.
High-level KPIs may focus on the overall performance of the business, while low-level KPIs
may focus on processes in departments such as sales, marketing, HR, support and others.
Key Performance Indicators
The key is to set the correct metrics and to have the right solution to show the performance
data effectively.
KPI is a tool to track or measure actual performance against the strategic goal
Characteristics of KPIs
EXAMPLE:
- % of employee turn over & % of retention
How Do KPIs Best Serve Organizations
KPIs are not company goals or targets, yet they are measurements of those targets.
A manager is usually aware of the performance of the team more if KPIs exist in the
company
The Benefits Of KPIs to the Company
2. Important Information is
revealed:
KPIs provide a look on the company’s overall performance which might help in the
long run, in gaining competitive advantage over competitors
The Benefits Of KPIs to the Company
3. Encourage
Accountability:
You and your team will introduce a new project to the company you work in;
Give a quick overview on the project and its benefits to the Company
Identify 3-5 KPIs that you plan to use to measure the success of the project
Measurements of Project Performance
Project impact
Financial
On-time
Resources
Quality
Return on investment
Solve the issue
What Types of KPIs Do You Know?
Key performance indicators
Consumer Delivery of
Brand Awareness %
Awareness Materials
Number of
Effective Reach client visits Staying in Budget
Return on marketing
Website Hits Brand Strength
investment (ROMI)
Examples of Customer Service KPIs
% Operational
% Average Production
# Processing Errors Equipment
Yield
Effectiveness
% Works Orders
% Production
Delivered within Value of back orders
variances
Standard Lead Time
Audience and access: Here you define the primary audience for this KPI - basically, who is
this data for and who will have access to it.
Key Performance Question (KPQ) : Your KPI template should state the Key Performance
Questions (KPQ) that the indicator is helping you to answer. This helps to provide context ar
ound why this KPI is being introduced and on which specific issue
Example: To what extent are our existing customers satisfied with our service?
How to Define KPIs
How will and won't this indicator be used: Specify how the KPI will be used so that everyone is
clear about how you plan to use the information. Also define how the KPI will not be used.
Example: The indicator will be used to assess and report on our customer success
internally. It will not be used to assess performance of individuals or to determine bonus p
ayments.
Indicator name: Every KPI needs a name so that you can discuss it collectively. Choose a name that c
learly explains what the indicator is about.
Example: Net Promoter Score (NPS).
Data collection method : Your KPI template should identify and describe the data collection metho
d you are going to use for each KPI. Data collection methods can include surveys,
questionnaires, interviews, sensor data collection, focus groups, automated machine data
collection as well as collection of archival data.
Example: The data will be collected using a mail-based survey.
How to Define KPIs
Assessment/formula/scale criteria: Describe how performance levels will be determined.
This can be qualitative, or it can be numerical or using a scale
Example: Using a 0-10 scale (Not at all likely to extremely likely) participants will answer:
How likely are you to recommend us to a friend?
NPS = percentage of Promoters (score 9-10) - 5 of Detractors (score 0-6).
Targets and performance thresholds: Define a target or benchmark for each indicator.
Here you can also outline the performance thresholds, that is, when performance levels are
judged to be good or bad.
Example: NPS of 55% by the end of 2020.
Source of data: Your KPI template should specify where the data is coming from so that people usin
g the KPI can be assured of its reliability and validity.
Data entry (responsible person): Your KPI template should also specify the individual or
job title of the person responsible for the data collection and data updates.
Example: Ian Miller, Marketing Assistant.
Expiry/revision date: The key performance indicator template should always include an
expiry date or revision date.
Example: In 12months’ time.
How to Define KPIs
How much will it cost: Measurement and data collection can be expensive. It's important
to estimate the costs for collecting and monitoring an indicator and evaluate whether the costs are justifie
d.
Example: Costs are significant but cheaper than a traditional customer satisfaction survey
How to Define KPIs
As an example,
Your objective is to increase sales revenue this year. You’re going to call this your Sales
Growth KPI. Here’s how you might define the KPI:
Describes predictive actions that can change Describes effects that have already occurred and
future performance and help achieve success. cannot be changed.
For example, employee satisfaction indicates For example, turnover rate indicates the success or
lack of success in employee engagement.
future retention rates and associated costs of
hiring.
Activity Time
KPI expo
KPI wall clustering
KPI selection criteria
Techniques to Choose KPI
The KPI Expo: consists in presenting a list of KPIs during the KPI selection workshop to offer participant
s an idea of how KPIs look like and to start the process with the end in mind. This is not a list that has to
be refined to finalize the selection.
KPI wall clustering is an exercise used to group KPIs based on objectives or relevant activities. It is imp
ortant to ensure interactivity between workshop participants during the exercise.
KPI selection criteria refers to defining clear specifications that will help to filter all the KPI examples
KPIs should be:
o Relevant
o Clearly defined
o Balanced
Key Performance Indicators
To be an innovative organization, we need to measure the number of initiatives that will happen in
the next week, fortnight, and month
To increase sales, we need to know the number of sales meetings that have been scheduled with
our key customers, in the next week, fortnight and month)
To maintain a close relationship with our key customers, list should be prepared with the next agreed
social interaction(to attend a sports event, a meal, the opera, etc....)
To maintain the profile of our CEO we need to monitor the public relation events that have been
organized for the CEO to attend in the next 1-3,4-6,7-9 months.
To maintain staff recognition, the CEO needs to monitor the formal recognitions planned for next
week/next fortnight by the CEO& senior management team
How To Evaluate Good KPIs
They have to reflect strategic value drivers
They are defined by executives
They are communicated and cascaded to the whole organization
They are based on corporate standards
They are based on valid data
They are understandable
They are relevant
They lead to positive actions and performance
Activity Time- Break out rooms 10:00
In your group evaluate the following KPIs:
Gross Revenue.
Total Visits ……………. not based on valid data
Employee Turnover Rate (ETR)
Employee Satisfaction
Internal Promotions Vs. External Hires ……………. not relevant
Cash Flow From Financing Activities
Day Sales Outstanding (DSO)
Good place to work for ……………. not defined,
Business is doing well ……………. not defined,
Number of Fatality/injuries in a Year
Organizational Values
Values are the principles that guide an organization’s internal conduct as well as its
relationship with its customers, partners, and shareholders.
Values define what the organization stands up for, highlighting an expected and ultimate
set of behaviours and skills.
Balanced
Scorecards
Creating Strategy
map to drive
corporate
performance
Corporate
Performance
Management
Performance Management framework
Performance Management Components
Performance Management cycle
Managing performance with balanced scorecards
Balanced Scorecards
Balanced Scorecards
Perspectives in Balanced Scorecard
Balanced Scorecards
Strategy and Balanced Scorecard
Strategy Map Framework
Strategy Map Framework
Financial Perspective
Strategic Objectives in Financial
Customer Perspective
Strategic Objectives in Customer
Internal Process Perspective
Strategic Objectives in Internal Process
Learning and Growth Perspective
Learning and Growth Perspective
Strategy Map Template
Strategy Map Template
Identifying
KPIs
Key performance indicators
KPIs Guidelines
KPIs Guidelines
KPIs Family Dimensions
KPIs Family Dimensions
KPIs Family Dimensions
KPIs Family Dimensions
KPIs Category Dimensions
KPIs Category Dimensions
KPIs Category Dimensions
Strategy Map for
corporate functions
(HR, IT, Marketing
and Finance
Integration between Corporate and Division/
Department
Corporate and Division Scorecard
Corporate and Division Scorecard
Corporate and Division Scorecard
Division Strategy Map Template
HR Strategy Map
IT Strategy Map
Marketing Strategy Map
Marketing Strategy Map
Performance Management
What Is Performance Management?
The continues process employers use to make sure employees are working toward
organizational goals in an effective and efficient manner.
Behaviors Results
Action Plan
Performance
Appraisal
Performance
Standard
1 Appraisals play an integral role in the organization’s performance management & talent
management processes
2 The appraisal lets the manager and the employee establish a plan for correcting any
deficiencies and to reinforce the things the employee performs correctly
Appraisals should serve as a useful career planning purpose. They provide an opportunity
3 to review the employee’s career plans in light of his or her exhibited strengths and
weaknesses
4 Salary Increases and promotional decisions should be based on the employee’s appraisal
outcome
Evaluating the Performance Management
System
Approaches to measuring effectiveness of performance
management system
Employees Objectives have to aligned with the Department’s Objectives which is already
aligned with the company’s strategy.
Employees Objectives need to be tied to KPIs and definitely need to be
How Many Objectives Per Employee
2-4
4-8 People Objectives
Business Objectives “Leaders”
1
Personal Development
Objective
Weighing Objectives %
Formula to obtain Fi
nal Score = Score x
Weight /100
KPI Table for HR Manager
In your Group, read the royal air force case study and answer the questions
What was the most challenging thing in your assignment
How comfortable are you in applying the same techniques in your current job
Remember the following areas