The New Thinking on KPIs, part 3 of 4

/in /by

The four types of performance measures

I have come to the conclusion that there are four types of performance measures, as shown in Figure 3. This conclusion has come from: the research I have conducted; workshop feedback across diverse industries; and as a by-product of writing my book “Key Performance Indicators – developing, implementing and using winning KPIs”.


Figure 3: A scorecard with six perspectives

  • key result indicators (KRIs) – give an overview on past performance and are ideal for the Board as they communicate how management have done in a critical success factor or balanced scorecard perspective
  • performance indicators (PIs) – tell staff and management what to do
  • result indicators (RIs) – tell staff what they have done
  • key performance indicators (KPIs) – tell staff and management what to do to increase performance dramatically.

Hi there! This article is available for free. Simply register as a StrategyDriven Personal Business Advisor Self-Guided client by clicking here.

Already a client? Login to access this article.
 

About the Author

David Parmenter, author of Key Performance Indicators: Developing, Implementing, and Using Winning KPIs and Pareto’s 80/20 Rule for Corporate Accountants, is an international presenter who is known for his thought provoking and lively sessions, which have led to substantial change in many organizations. He is a leading expert in developing winning KPIs, replacing the annual planning process with quarterly rolling planning, accelerating month-end processes, and converting reporting to a decision based tool.

David’s work on KPIs has received international recognition with clients in Auckland, Wellington, Sydney, Melbourne, Brisbane, Adelaide, Canberra, Perth, Kuala Lumpur, Singapore, Tehran, Prague, Dublin, London, Birmingham, Manchester and Edinburgh. David is a fellow of the Institute of Chartered Accountants in England & Wales and has worked for Ernst & Young, BP Oil Ltd, Arthur Andersen, and Price Waterhouse Coopers.

David’s recent thinking is accessible from www.davidparmenter.com. He can be contacted at [email protected] or telephone +64 4 499 0007.

This articles is an extract from his “Implementing winning KPIs” whitepaper which can be downloaded from http://davidparmenter.com/how-to-guides)

StrategyDriven Podcast Special Edition 35 – An Interview with Robert Kolb, co-author of Corporate Boards

/in , /by

StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.

Special Edition 35 – An Interview with Robert Kolb, co-author of Corporate Boards explores the motivations, conflicts, limitations, roles, and ethics of corporate boards; answering the often asked question of why Boards and their members behave the way they do. During our discussion, Robert Kolb, co-author of Corporate Boards: Managers of Risk, Sources of Risk and Professor of Finance and holder of the Frank W. Considine Chair of Applied Ethics at Loyola University Chicago, shares with us his insights and illustrative examples regarding:

  • the Board of Directors’ role in managing upside risk
  • how companies deal with the risk of diminished Board independence that occurs when the CEO is also the Chairman of the Board
  • what time-inconsistent misconduct is and why it occurs
  • why compensation plans may encourage executives to engage in exceedingly risky merger and acquisition deals and the actions Boards take to mitigate this risk
  • the Board’s role in establishing executive compensation, including those mechanisms that result in unduly rewarding failure
  • who the Board of Directors should serve… just shareholders or a broader group of stakeholders that includes shareholders, employees, the environment, and society

Additional Information

Robert’s book, Corporate Boards, can be purchased by clicking here.

About the Author

Robert Kolb, co-author of Corporate Boards, holds PhDs from the University of North Carolina at Chapel Hill in philosophy and finance and has taught at the University of Florida, Emory University, the University of Miami, the University of Colorado, and Loyola University Chicago, where he currently serves as Professor of Finance and holds the Frank W. Considine Chair of Applied Ethics. Robert is the author or co-author of more than 50 research articles and 25 finance texts on topics, including financial derivatives, investments, corporate finance, and financial institutions. Robert recently edited the Encyclopedia of Business, Society, and Ethics. He also founded Kolb Publishing, Inc., which published finance and economics university texts and was acquired by Blackwell Publishing, now part of John Wiley & Sons, Inc. To read Robert’s complete biography, click here.

Podcast: Play in new window | Download (Duration: 34:59 — 48.1MB)

Subscribe: RSS

StrategyDriven Podcast Receives Top Honors in May

/in /by

The StrategyDriven Team would like to thank you, our listeners, for helping us achieve the second place ranking for the StrategyDriven Podcast from among the over 2800 business podcasts listed on Podcast Alley in May!

In each episode, our co-hosts and their guests present a richer and deeper exploration of the principle, best practice, and warning flag articles found on the StrategyDriven website. Their discussions identify benefits, define implementation methods, and provide examples to help leaders increase alignment and heighten accountability within their organizations.

The strength of our community grows with the additional insights brought by our expanding member base. With your support, our community of listeners and readers has grown tremendously in the past several months. Please help us continue to grow by recommending the StrategyDriven Podcast to family, friends, and colleagues who you believe will benefit from listening.

Additionally, please consider voting for us monthly on Podcast Alley by clicking here. Casting your vote for the StrategyDriven Podcast improves our monthly ranking and helps us attract new listeners which, in turn, grows our community.

Thank you again for listening to and voting for the StrategyDriven Podcast!

StrategyDriven Change Management Forum

/in /by

“The number of transistors and resistors on a chip doubles every 18 months.”

Gordon Moore
co-Founder , Intel
Originally published in Electronics Magazine, April 19, 1965

When Gordon Moore made this famous comment, there were approximately 60 devices on an Intel chip. Four decades later, Intel placed 1.7 billion transistors on its Itanium chip; proving Moore’s Law to be fairly accurate.

Only a few things occur with certainty and one of those is change. Technology changes flattened the world and gave us access to individuals living thousands of miles away. And it did so in less than two decades. As business leaders, we no longer compete with local, regional, or domestic providers; we are challenged by rivals from Europe, India, China, and Japan.

Advances in technology altered the social fabric of the workplace too. While cell phones, email, and social networking connect us almost instantaneously from almost anywhere on the planet, medical breakthroughs enable us to live longer, more productive lives; bringing together four generations of employees in our workforce – each with differing values, goals, and needs.

Change is indeed occurring. Leaders who can motivate and inspire their employees to embrace change give their organization a significant competitive advantage. Those who do not place their organization at significant risk of becoming irrelevant.

Focus of the Change Management Forum

Materials contained within the Change Management Forum provide insight to the principles of change management as well as the best practices of those leaders recognized as top performers in this area. Each article is tailored to help readers improve their organization’s change management policies and practices so to achieve superior results and move ahead of the competition.

Articles

Principles

StrategyDriven Expert Contributor Articles

StrategyDriven Podcasts

StrategyDriven Podcast

StrategyDriven Podcast – Special Edition

Resources

Books