kpis simplified workshop 2

KPI’s Simplified

PRESENTERS:

Ian Mackenzie AND Stephen Lynch

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Set a good example.Remove distractions.

a guide to a productive session

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➔ Full participation

➔ Ask for everyone’s point of view

➔ Productive conflict is important

➔ No “group think”

➔ Make a clear decision

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everyone commits to the decision

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Process Overview

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➔ Workshop 1: Company Metrics

➔ Workshop 2: Team Metrics

➔ Workshop 3: Individual Metrics

Where we Got to Last Week!

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Teams? Teams?Teams?Teams?

deliver the product / service

manage financesget the lead

1. make the sale2. 3. 4.

Team & Individual KPIs

Teams Have Been Captured!

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Team Goals - This Week

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Next Week

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PURPOSE: Understand a process for defining Team Metrics that align to Company Metrics and Deliver top performance for the Team.

OUTCOME: Team metrics (KPI’s) aligned to Company Metrics (Drivers of The Company Desired Result). Also identify the Lead Indicators and whether you cascade them using Child Goals.

Today’s Session

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Huge trends changing management...

Greater Individual Responsibility

Digital Engagement

Gen Y / Millennials

Work from home - flexitime

Radical Transparency

Remote Workforces / Contractors

Globalisation

Increased customer expectations

management 2.0

“We are going to have to reinvent management;

the way we lead, we plan, we organise, we hire,

we motivate… because today, organisations

are facing a set of challenges that are truly

unprecedented.”

Dr. Gary Hamel

has arrived

SHARED VISION + STRATEGY

your company’s

DIGITAL BLUEPRINT

your company’s

COMMUNICATION +COLLABORATION

company-wide

the new age of

MEETINGS

Everyone knows their ACCOUNTABILITIES

Key Performance Indicators

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Further Breakdown is required:

KPI Terminology

Company Desired Result: This is an outcome, often a financial outcome normally determined by the owner and/or board of directors

Outcome Measure: The outcome related to an area of performance in the business

Lead Measure: Measure of performance that influences an outcome measure. These key drivers are normally activity or effectiveness related.

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Last Week we Established!

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Why KPI’s are Important

future people performance

rate of change

growth

profit

cash

freedom

Company Desired Result?

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Last Week we Established!

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The Challenge with KPI’s

THE CHALLENGE WITH KPIs

MEASURE TOO MANY

TEAM AND COMPANY KPIs NOT ALIGNED

PEOPLE DON’T UNDERSTAND THE RELEVANCE

PEOPLE PERFORMANCE NOT INFLUENCED BY THE KPI

“KPI Reality Check”

1. Can you keep them up to date

and live?

2. Power and Leverage, use the

One Thing

3. Relevant and Inspiring?

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Welcome to KPI’s simplified!

PART 2

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Establishing Team Goals

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Two Methods

1st - Consider Company MetricsWhich should your team own?What is the biggest impact your team can have on these?

2nd - Business Cycle - Best metric to track your team performance

What are the best lead measures?Can you involve your team?

STEP 1

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Please take time to update your Team Leaders on:

What the Company Desired Result is.

What you believe the Key Drivers are ie. Your Company Metrics

Where relevant which Teams will take ownership of the Company Metric

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Update your Team Leaders

Dashboard Template

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Teams? Teams?Teams?Teams?

deliver the product / service

manage finances, systems & people

get the lead

1. make the sale2. 3. 4.

Team & Individual KPIs

YOUR COMPANY BUSINESS CYCLE

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So what part of your economic engine is the biggest driver to achieve the Desired Company Result?

The economic engine

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STEP 1

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Please take time to update your Team Leaders on:

What the Company Desired Result is.

What you believe the Key Drivers are ie. Your Company Metrics

Where relevant which Teams will take ownership of the Company Metric

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Update your Team Leaders

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Review the Company Metrics.

Do some of these break down into Child Goals? Potentially if two or more Teams can contribute.

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STEP 2Establish the Biggest Impact your Team can have on The Company Metrics (Business Drivers)

Team Contribution - Child Goals

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Be Open to your Team being able to directly impact on the Company Metrics.

Consider each of the Company Metrics, which one can your team have a big impact on?

It is possible that not every team can directly impact on the Company Metrics… that is OK. We will also be looking at YOUR team performance.

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STEP 2Establish the Biggest Impact your Team can have on The Company Metrics (Business Drivers)

ONE

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the

thing!

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which machine will yield results?

Team Contribution - Child Goals

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Identify the ONE THING, the performance area within

your Team, that impacts on the Company Metric.

Write which Company Metric it relates too.

If you haven’t identified a performance measure related

to Company Metric for your team that is fine.

STEP 2:In your workbook

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Review the four parts of the Business Cycle and capture the key metrics.

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STEP 3:Ensure we measure the effectiveness of our Business Cycle

Teams? Teams?Teams?Teams?

deliver the product / service

manage finances, systems & people

get the lead

1. make the sale2. 3. 4.

Team & Individual KPIs

YOUR COMPANY’S BUSINESS CYCLE

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STEP 3 Business Cycle

How do you know when you have a lead?

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What is the event that signifies you have a lead?

What are the criteria that determine whether it is a qualified lead?

How can you measure qualified leads?

Which team should own this metric?

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Outcome

Activity Effectiveness

Outcomes are good, but what are the key Performance levers?

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Outcome

Activity Effectiveness

Create leads - The Lead Indicators

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No. Demo Requested

# Pay per clicks# website visits# Campaigns completed

% who click through

% visitors that request demonstration

Measure of success for campaign

Convert leads into sales

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Outcome

Activity Effectiveness

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What event signifies you have made a sale?

How are sales best measured?

Which team should own this metric?

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STEP 3 Business CycleKey measure in making sales?

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Convert leads into sales - Lead Indicators

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Activity

Outcome

Effectiveness

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What represents success in the eyes of customer?

What is key performance that impacts profit?

Which team should own this metric?

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STEP 3: Business CycleSuccess of product / service delivery?

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Provide product / service > delight customers

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Activity

Outcome

Effectiveness

Step 3: Business CycleManaging finance, systems and People?

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What best measures cash management?

How do you measure happiness of people?

Which team should own this metric?

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Grow cash & make profit - lead indicators

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Activity

Outcome

Effectiveness

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Review the outcomes from the Business Cycle overview

and identification of Outcome and Lead Indicators.

Capture them on each of the Team metric sheets.

STEP 4:In your workbook

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Team Metrics - Master Sheet

Enter Team Name = performance thresholds

If applicable, Company Metricthis measure impacts

KPI Measure Create Child goals?

Person Accountable

MeasurementFrequency

<80% target

80% target

on target

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the tropicalisland test

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Imagine

You’re on an extended holiday in the tropics...all you can access is your Results.com Dashboard. You can only view 3 performance metrics.

SO, if the KPIs are:

● GREEN: you can go back to sunbathing ● YELLOW: you need to ring the office

to see what is going on● RED: you need to cut your holiday

short and return home

What would those numbers be?

Are they on your Master Sheet

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Conclusion and Homework

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Questions

Next Group Session

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Next Week

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Team Manager Metrics - Master Sheet

Enter Team Manager Name = performance thresholds

If applicable, Company Metricthis measure impacts

KPI Measure Child goal Yes/no?

Person Accountable

MeasurementFrequency <80%

target80%

targeton

target

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Next Group Session

11am Wed 30th July

8.30am Fri 1st August

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