elgaili h. ahmed - thebaselines.com · kpiinstitute.org73 73 kpi professional 1. understanding and...

Elgaili H. AhmedMBA KPI PMP CBAP

Saturday 03 March 2018 | Khartoum | Sudan

Baselines for Smart Solutions established 2007 (SCEES for Training and Consulting)

Baselines has representatives in:

Chad South Sudan

Dubai Senegal

KSA Mauritania

Malaysia

Course’s Attendees

Certified Alumni

Conducted Courses

Conducted Exams

Public Events

Plot No. 76 | Block No. 70

Southern Juba Intersection, Almaoura

P.O.Box: 7124 | Postal Code:11123 Khartoum, Sudan

Tel: +249 911036735

Tel: +249 999036735

Tel: +249 123036735

E-mail: info@thebaselines.com

Website: www.thebaselines.com

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

14

15

Name, Career & Profession

Experience and Education

Why you are here

Expectations

16

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

17

18

• 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

27

kpiinstitute.org 29

The KPIs World

The KPIs World

kpiinstitute.org 30

Terms & Words

kpiinstitute.org 31

The KPIs World

Strategy Map

kpiinstitute.org 32

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.

kpiinstitute.org 33

The KPIs World

KPI Typology

PIs

KRIs

KPIs

Measures

kpiinstitute.org 34

The KPIs World

Data Universe

KPIsPerformance Assessment

MetricsMeasurement

KRIsRisk Assessment

AnalyticsDecision Making

kpiinstitute.org 35

The KPIs World

Key Risk Indicators

kpiinstitute.org 36

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

kpiinstitute.org 37

The KPIs World

Analytics

kpiinstitute.org 38

The KPIs World

The KPI Definitions

kpiinstitute.org 39

The KPIs World

The KPI Definitions

A description of the project’s objectives interms of quality, quantity, target groups,time and place.

(European Commission).

kpiinstitute.org 40

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.

kpiinstitute.org 41

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

kpiinstitute.org 42

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?

kpiinstitute.org 43

The KPIs World

KPI Format

• Symbol: %, $, or #

• Expression:

– Employee Satisfaction

– Turnover Rate

kpiinstitute.org 44

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

kpiinstitute.org 45

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

kpiinstitute.org 46

The KPIs World

Case Study: Absenteeism

Source: Centrelink Annual Report 2010-2011

• Number• Percentage• Currency

#, %, or $

kpiinstitute.org 48

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

kpiinstitute.org 49

KPIs Dev. & MgtKPI Balance

Subjectivity Objectivity Industry

# Customer satisfaction# Customer complaints

receivedFinancial institutions

% Net promoter score # Clients from referrals Professional Services

kpiinstitute.org 50

KPIs Dev. & MgtKPI Balance

Efficiency Effectiveness Industry

$ New customers

acquisition cost# New customers Retail

# Call duration % First call resolution rate Call Centre

kpiinstitute.org 51

KPIs Dev. & MgtKPI Balance

kpiinstitute.org 52

KPIs Dev. & Mgt

VALUE FLOW ANALYSIS VFA

Desired

outcomesInputs Activities Outputs Outcomes

Effectiveness

Cost effectiveness

Efficiency

kpiinstitute.org 53

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

kpiinstitute.org 54

KPIs Dev. & Mgt

VALUE FLOW ANALYSIS VFA

kpiinstitute.org 55

KPIs Dev. & Mgt

Organizational Levels

Strategic

Individual

Operational

Team

56kpiinstitute.org 56

KPIs Dev. & Mgt

Personal Management

• Financial

• Work Performance

• Relationships

• Processes

• Personal Development

57kpiinstitute.org 57

KPIs Dev. & Mgt

Personal Management

• Financial:

– Income

– Expenditure

– Debt

– Savings

– Investments.

58kpiinstitute.org 58

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

59kpiinstitute.org 59

KPIs Dev. & Mgt

Personal Management

• Work Performance:

– Individual Performance

– Professional Goals

60kpiinstitute.org 60

KPIs Dev. & Mgt

Work Performance

Individual Performance

As per individual performance plan

Professional Goals

Achievement of professional goals

Personal Management

61kpiinstitute.org 61

KPIs Dev. & Mgt

Personal Management

• Relationships:

– Friends

– Colleagues

– Social Networking

62kpiinstitute.org 62

KPIs Dev. & Mgt

Relationships

Friends % Feedback and assessment survey

Colleagues % Feedback and assessment survey

Social Networking % Feedback and assessment survey

Personal Management

63kpiinstitute.org 63

KPIs Dev. & Mgt

Personal Management

• Processes:

– Time Management

– Reliability

– Communication

– use of tools

64kpiinstitute.org 64

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

65kpiinstitute.org 65

KPIs Dev. & Mgt

Personal Management

• Personal Development:

– Training

– Experience

– Introspection

66kpiinstitute.org 66

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

67kpiinstitute.org 67

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.

69kpiinstitute.org 69

The KPIs Framework

KPI lifecycle

70kpiinstitute.org 70

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

71kpiinstitute.org 71

The KPIs Framework

The performance management

process

72

73kpiinstitute.org 73

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

74kpiinstitute.org 74

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)

75kpiinstitute.org 75

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

76kpiinstitute.org 76

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

77kpiinstitute.org 77

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

79kpiinstitute.org 79

KPI ReportingReports

• A report can be described as a document that contains data used for viewing and analysis.

80kpiinstitute.org 80

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.

81kpiinstitute.org 81

KPI Reporting

82kpiinstitute.org 82

KPI Reporting

83kpiinstitute.org 83

KPI Reporting

84kpiinstitute.org 84

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

85kpiinstitute.org 85

86

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 - info@thebaselines.com