KRIs PIs KPIs Key Result Indicators KRIs tell

KRIs, PIs, KPIs Key Result Indicators (KRIs) tell you how you havedone in a perspective Performance Indicators (PIs) tell you what to do Key Performance Indicators (KPIs) tell you what to do to increase performance dramatically 4

KRIs, PIs, KPIs KRIs are measures that have often been mistaken for KPIs, including: • customer satisfaction • Net profit before tax • Profitability of customers • Employee satisfaction • Return on capital employed KRIs give a clear picture of whether you are traveling in the right direction. They do not, however, tell you what you need to do to improve these results. 5

KRIs, PIs, KPIs provide information that is ideal for the board (i. e. , those not involved in dayto-day management). KPIs represent a set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of the organization. PIs that lie beneath KRIs could include: • Profitability of the top 10% of customers • Net profit on key product lines • Percentage increase in sales with top 10% of customers • Number of employees participating in the suggestion scheme source: Key Performance Indicators. Developing, Implementing, and Using Winning KPIs, by Parmenter David, John Wiley & Sons, Inc, 2007 6

KRIs, PIs, KPIs KRIs replace outcome measures, which typically look at activity over months or quarters. PIs & KPIs are now characterized as either past-, current-, or future-focused measures. The new concept called current measures refers to those monitored 24/7 or daily, for example, sales made yesterday. 7

Seven KPI characteristics • nonfinancial measures (not expressed in dollars, yen, pounds, euros, etc) • measured frequently (e. g. , daily or 24/7) • acted on by the CEO and senior management team • understanding of the measure and the corrective action required by all staff • ties responsibility to the individual or team • significant impact (e. g. , affects most of the core critical success factors [CSFs] and more than one balanced scorecard [BSC] perspective) • positive impact (e. g. , affects all other performance measures in a positive way) source: Key Performance Indicators. Developing, Implementing, and Using Winning KPIs, by Parmenter David, John Wiley & Sons, Inc, 2007 8

Uses and criticism of Balanced Scorecard & KPIs http: //www. slideshare. net/maxelsen/overview-of-key-performance-indicators 9

Uses and criticism of Balanced Scorecard & KPIs 10

An example (1/3) http: //www. slideshare. net/maxelsen/overview-of-key-performance-indicators 11

An example (2/3) http: //www. slideshare. net/maxelsen/overview-of-key-performance-indicators 12

An example (3/3) http: //www. slideshare. net/maxelsen/overview-of-key-performance-indicators 13

From KPIs to dashboards see from-kpis-to-dashboards-110510225933 -phpapp 02. pptx 14

From KPIs to dashboards (2/4) 15

From KPIs to dashboards (3/4) 16

From KPIs to dashboards (4/4) 17