Key performance indicators : developing, implementing, and using winning KPIs / David Parmenter.

Includes index.

"Streamline KPIs to craft a simpler, more effective system of performance measurementKey Performance Indicators provides an in-depth look at how KPIs can be most effectively used to assess and drive organizational performance. Now in its third edition, this bestselling guide provides a model for simplifying KPIs and avoiding the pitfalls ready to trap the unprepared organization. New information includes guidance toward defining critical success factors, project leader essentials, new tools including worksheets and questionnaires, and real-world case studies that illustrate the practical application of the strategies presented. The book includes a variety of templates, checklists, and performance measures to help streamline processes, and is fully supported by the author's website to provide even more in-depth information. Key Performance Indicators are a set of measures that focus on the factors most critical to an organization's success. Most companies have too many, rendering the strategy ineffective due to overwhelming complexity. Key Performance Indicators guides readers toward simplification, paring down to the most fundamental issues to better define and measure progress toward goals. Readers will learn to: separate out performance measures between those that can be tied to a team and result in a follow-up phone call (performance measures) and those that are a summation of a number of teams working together (result indicators) look for and eradicate those measures that have a damaging unintended consequence, a major darkside Sell a KPI project to the Board, the CEO, and the senior management team using best practice leading change techniques Develop and use KPIs effectively with a simple five stage model Ascertain essential performance measures, and develop a reporting strategy Learn the things that a KPI project leader needs to know A KPI project is a chance at a legacy - the project leader, facilitator, or coordinator savvy enough to craft a winning strategy can affect the organization for years to come. KPI projects entail some risk, but this book works to minimize that risk by arming stakeholders with the tools and information they need up front. Key Performance Indicators helps leaders shape a performance measurement initiative that works"-- Provided by publisher.

Title Page; Copyright; Table of Contents; About the Author; Preface; Why This Book Should Interest You; Barriers to KPIs Working Properly; Changes in Winning KPI Methodology; Chief Measurement Officer's Toolkit; Leading and Selling Change; Acknowledgments; Part I: Setting the Scene; Chapter 1: The Great KPI Misunderstanding; Key Result Indicators; Result Indicators; Performance Indicators; Key Performance Indicators; Seven Characteristics of KPIs; Difference between KRIs and KPIs and RIs and PIs; Lead and Lag Confusion; Number of Measures Required-The 10/80/10 Rule

Importance of Timely MeasurementWhere Are You in Your Journey with Performance Measures?; Notes; Chapter 2: The Myths of Performance Measurement; Myth #1: Most Measures Lead to Better Performance; Myth #2: All Measures Can Work Successfully in Any Organization, At Any Time; Myth #3: All Performance Measures Are KPIs; Myth #4: By Tying KPIs to Remuneration You Will Increase Performance; Myth #5: We Can Set Relevant Year-End Targets; Myth #6: Measuring Performance Is Relatively Simple and the Appropriate Measures Are Obvious; Myth #7: KPIs Are Financial and Nonfinancial Indicators

Myth #8: You Can Delegate a Performance Management Project to a Consulting FirmThe Myths Around the Balanced Scorecard; Notes; Chapter 3: Unintended Consequence: The Dark Side of Measures; Example: City Train Service; Example: Accident and Emergency Department; Examples from Dean Spitzer's Book; Performance-Related Pay; Dysfunctional Performance Measures Checklist; Notes; Chapter 4: Revitalizing Performance; Five Foundation Stones; The Many Facets of Performance Management; Notes; Chapter 5: Strategy and Its Relevance to Performance Measures

Articulate Your Organization's Mission, Vision, Values, and Lean Management PrinciplesCreate a Strategy That Is Understood by Staff; Ensure That Your Strategy Is Balanced; Monitor Implementation of Your Strategy; Creating the Future; Notes; Part II: Winning KPI Methodology; Chapter 6: Background to the Winning KPI Methodology and Its Migration; The Original 12-Step Process; The New Six-Stage Process; Winning KPI Methodology and Its Migration; An Overview of the Six Stages; Chapter 7: Foundation Stones for Implementing Key Performance Indicators

"Partnership with the Staff, Unions, and Third Parties" Foundation Stone"Transfer of Power to the Front Line" Foundation Stone; "Measure and Report Only What Matters" Foundation Stone; "Source KPIs from the Critical Success Factors" Foundation Stone; "Abandon Processes That Do Not Deliver" Foundation Stone; "Appointment of a Home-Grown Chief Measurement Officer" Foundation Stone; "Organization-Wide Understanding of the Winning KPIs Definition" Foundation Stone; Notes; Chapter 8: Getting the CEO and Senior Management Committed to the Change (Stage 1)