Download - KPI workshop May 2014
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KPI Workshop
PRESENTER: Stephen Lynch @StephenLynch #RealKPIs || @RESULTSdotcom
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#RealKPIsJOIN THE CONVERSATION ONLINE
PRESENTION AVAILABLE POST PRESENTATION:
www.RESULTS.com/slides
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Full participation
Questions / Answers:#realKPIs || @RESULTSdotcom
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Ask for everyone’s point of view
Questions / Answers:#realKPIs || @RESULTSdotcom
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Productive conflict is important
Questions / Answers:#realKPIs || @RESULTSdotcom
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No “group think”
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Make a clear decision
Questions / Answers:#realKPIs || @RESULTSdotcom
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Everyone commits to the decision
Questions / Answers:#realKPIs || @RESULTSdotcom
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Key Performance Indicators
Questions / Answers:#realKPIs || @RESULTSdotcom
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However beautiful the strategy, you should occasionally look at the results
“
Questions / Answers:#realKPIs || @RESULTSdotcom
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92% of companies don’t measure KPIs [3]
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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RED = Unacceptable performance standard
YELLOW = Watch closely. Need help?
GREEN = Target performance standard
Key Performance Indicators / Key Metrics
Questions / Answers:#realKPIs || @RESULTSdotcom
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In the past, we used Spreadsheets / MS Excel
Questions / Answers:#realKPIs || @RESULTSdotcom
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IDENTIFY WHAT’S HAPPENING IN YOUR BUSINESS RIGHT NOWVISIBILITY INTO WHAT DIFFERENT PEOPLE AND TEAMS ARE WORKING ON
IDENTIFY WHICH AREAS ARE WORKING WELL AND WHICH REQUIRE ATTENTIONUNDERSTAND WHO’S EXCELLING AND WHO NEEDS HELP
Now we use Software
Questions / Answers:#realKPIs || @RESULTSdotcom
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Key Performance Indicators / Key Metrics
Questions / Answers:#realKPIs || @RESULTSdotcom
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Everyone knows their own individual accountabilities
Questions / Answers:#realKPIs || @RESULTSdotcom
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They can also see how other teams are performing
Questions / Answers:#realKPIs || @RESULTSdotcom
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They can also see how other teams are performing
Questions / Answers:#realKPIs || @RESULTSdotcom
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Team leaders can drill down to identify the cause
Questions / Answers:#realKPIs || @RESULTSdotcom
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Looks like one person is holding the team back
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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What is happening here Craig?
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Assign a Task to address the issue
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Always aim for the STARS,
if you miss…
..you’ll at least reach the moon
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Industry / Business Model KPIs
Teams / Functional Area KPIs
Individual KPIs(What’s your daily / weekly number?)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Business Model / Industry KPIs (example)
Industry Type = (e.g. Restaurant) Performance Thresholds
KPI DescriptionPerson
AccountableMeasurement
Frequency RED YELLOW GREEN
# Customers Chloe Weekly 2700 3000
$ Average spend per customer Rajesh Weekly $35 $40
# Complaints Rajesh Weekly 10 5
$ Revenue per available seat hour (RevPASH) Mark Weekly $12 $15
Labor cost as % of revenue Mark Weekly 35% 30%
Questions / Answers:#realKPIs || @RESULTSdotcom
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Single point accountability
Questions / Answers:#realKPIs || @RESULTSdotcom
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Many can be involved, but only 1 person can be named accountable
for each KPI
Questions / Answers:#realKPIs || @RESULTSdotcom
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Industry / Business Model KPIs
Teams / Functional Area KPIs
Individual KPIs(What’s your daily / weekly number?)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Activity Effectiveness Outcome
# Sales Presentations (activity)
% of Prospects that purchase (effectiveness)
# Sales -> Sales revenue (outcome)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Team / Functional Area KPIs (example)
Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds
KPI DescriptionPerson
AccountableMeasurement
Frequency RED YELLOW GREEN
# New appointments booked Hans Daily average 20 25
% Appointments that did not show up Hans Weekly 25% 20%
# Sales Presentations delivered Tyler Weekly 55 75
% Prospects that purchased on the day Tyler Weekly 50% 60%
$ Weekly Sales Revenue Jenny Weekly $45,000 $55,000
Questions / Answers:#realKPIs || @RESULTSdotcom
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KPI Hierarchies (roll ups) (example)
Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds
“Parent” Goal KPI Description Person Accountable
MeasurementFrequency RED YELLOW GREEN
# Sales presentations – total team Tyler Weekly 55 75
“Child” Goals Person Accountable
MeasurementFrequency
# Sales presentations - Jeff Jeff Weekly 15 20
# Sales presentations - Marie Marie Weekly 15 20
# Sales presentations - Sergey Sergey Weekly 15 20
# Sales presentations - Arzu Arzu Weekly 10 15
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Industry / Business Model KPIs
Teams / Functional Area KPIs
Individual KPIs(What’s your daily / weekly number?)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Imagine this…
You are on an extended holiday in the tropics.
All you can receive is a weekly text from your business that contains a small handful of numbers (e.g. 5 max) that tell you how well your business (or team) is performing
If the KPI’s are “green” you can go back to sunbathing If the KPI’s are “yellow” you need to ring the office to see what is going on If the KPI’s are “red” you need to cut your holiday short and return home
What would those numbers be?
Questions / Answers:#realKPIs || @RESULTSdotcom
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Leadership Team: Industry / Business Model KPIs
Industry Type = Performance Thresholds
KPI Description Person Accountable
MeasurementFrequency RED YELLOW GREEN
Questions / Answers:#realKPIs || @RESULTSdotcom
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Business Model / Industry KPIs (example)
Industry Type = (e.g. Restaurant) Performance Thresholds
KPI DescriptionPerson
AccountableMeasurement
Frequency RED YELLOW GREEN
# Customers Chloe Weekly 2700 3000
$ Average spend per customer Rajesh Weekly $35 $40
# Complaints Rajesh Weekly 10 5
$ Revenue per available seat hour (RevPASH) Mark Weekly $12 $15
Labor cost as % of revenue Mark Weekly 35% 30%
Questions / Answers:#realKPIs || @RESULTSdotcom
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Industry / Business Model KPIs
Teams / Functional Area KPIs
Individual KPIs(What’s your daily / weekly number?)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Team / Functional Area KPIs
Team / Functional Area name = Performance Thresholds
KPI Description Person Accountable
MeasurementFrequency RED YELLOW GREEN
Questions / Answers:#realKPIs || @RESULTSdotcom
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KPI Hierarchies
Team / Functional Area = Performance Thresholds
“Parent” Goal KPI Description Person Accountable
MeasurementFrequency RED YELLOW GREEN
“Child” Goals Person Accountable
MeasurementFrequency
Questions / Answers:#realKPIs || @RESULTSdotcom
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Team / Functional Area KPIs (example)
Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds
KPI DescriptionPerson
AccountableMeasurement
Frequency RED YELLOW GREEN
# New appointments booked Hans Daily average 20 25
% Appointments that did not show up Hans Weekly 25% 20%
# Sales Presentations delivered Tyler Weekly 55 75
% Prospects that purchased on the day Tyler Weekly 50% 60%
$ Weekly Sales Revenue Jenny Weekly $45,000 $55,000
Questions / Answers:#realKPIs || @RESULTSdotcom
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Team / Functional Area name = (e.g. Fitness Center Sales Team ) Performance Thresholds
“Parent” Goal KPI Description Person Accountable
MeasurementFrequency RED YELLOW GREEN
# Sales presentations – total team Tyler Weekly 55 75
“Child” Goals Person Accountable
MeasurementFrequency
# Sales presentations - Jeff Jeff Weekly 15 20
# Sales presentations - Marie Marie Weekly 15 20
# Sales presentations - Sergey Sergey Weekly 15 20
# Sales presentations - Arzu Arzu Weekly 10 15
KPI Hierarchies (roll ups) (example)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Industry / Business Model KPIs
Teams / Functional Area KPIs
Individual KPIs(What’s your daily / weekly number?)
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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SpecificMeasurableAchievableRelevantTime bound
S
AM
RT
“SMART” Goals
Questions / Answers:#realKPIs || @RESULTSdotcom
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Individual KPIs
What is each person’s daily / weekly number? Performance Thresholds
KPI Description Person Accountable
MeasurementFrequency RED YELLOW GREEN
Questions / Answers:#realKPIs || @RESULTSdotcom
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Review KPI performance thresholds every quarter
Review red, yellow, green thresholds to make sure they are SMART – especially “achievable” and “relevant”
based on your strategic reality / seasonal factors / other trends
Confirm each person “buys in” to the performance thresholdand is willing to be held firmly accountable
for their KPI being “in the green” as part of an ongoing monthly review of their performance
Questions / Answers:#realKPIs || @RESULTSdotcom
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By what day each week / month will the KPI data be posted?What 1 person will be accountable to post this data?
List your answers below:
Questions / Answers:#realKPIs || @RESULTSdotcom
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Questions / Answers:#realKPIs || @RESULTSdotcom
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They wish they had dealt with poor performance sooner!
#1 Regret of Business Leaders
Questions / Answers:#realKPIs || @RESULTSdotcom
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“He that is good for making excuses is seldom good for
anything else.”
Benjamin Franklin
Leaders owe it to the organization& their fellow workers, not to tolerate non-performing people in important jobs
– Peter Drucker
“
Questions / Answers:#realKPIs || @RESULTSdotcom
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“Accountability is meaningless without consequences”
What positive consequences can the person accountable expectif their KPI is consistently in the “GREEN” at the end of the month?
What negative consequences can the person accountable expect if their KPI is consistently in the “RED”…
• For 1 month?• For 2 months in a row?• For 3 months in a row?• For 4 months in a row?
Questions / Answers:#realKPIs || @RESULTSdotcom
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KPIs – getting it right
Growth inhibited by:- Wrong person in the role- Wrong KPIs - Too many KPIs- Unrealistic performance thresholds- Not keeping KPI data current and visible every week - Not holding person firmly accountable for performance- No consequences for poor performance- Waiting too long to address poor performance
Growth maximized by:- Right person in the role- Right KPIs - Realistic performance thresholds – adjusted regularly- KPI data kept current and visible every week- Person held firmly accountable for performance- Progress praised and recognized
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#RealKPIsJOIN THE CONVERSATION ONLINE
PRESENTION AVAILABLE POST PRESENTATION:
www.RESULTS.com/slides
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Strategy Centre 1-Page Plan
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Strategy Centre Thought Leadership Library
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RESULTS focused management dashboard
A COMPLETE SOLUTION FOR SMB
IDENTIFY WHAT’S HAPPENING IN YOUR BUSINESS RIGHT NOWVISIBILITY INTO WHAT DIFFERENT PEOPLE AND TEAMS ARE WORKING ON
IDENTIFY WHICH AREAS ARE WORKING WELL AND WHICH REQUIRE ATTENTIONUNDERSTAND WHO’S EXCELLING AND WHO NEEDS HELP
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FOR CEOs and business leaders of fast growth SMBs
WHO are trying to take control of their business, engage their workforce, and achieve extraordinary RESULTS
OUR PRODUCT
IS ARESULTS focused management dashboard
THAT PROVIDES
transparency into your entire organization from company-wide strategic goals to individual tasks
UNLIKE other software providers, we offer SMBs the complete suite of tools to manage their business and engage their team
OUR PRODUCT engages your workforce to accelerate your success
OUR PURPOSE to end employee disengagement by reprograming management
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#RealKPIsJOIN THE CONVERSATION ONLINE
PRESENTION AVAILABLE POST PRESENTATION:
www.RESULTS.com/slides