Revolutionary in performance management, Key Performance Indicators demonstrates a new way of breaking performance measures into key result indicators (KRIs), performance indicators (PIs), and key performance indicators (KPIs). This work explains why so many balanced scorecards have not worked: they simply had the wrong measures. This important book provides readers with helpful resources including a twelve-step model, guidelines, and checklists for each step, an implementation resource kit with questionnaires and worksheets, workshop outlines, and a list of over 500 performance measures.
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DAVID PARMENTER is the CEO and Managing Director of Waymark Solutions (www.waymark.co.nz). For the last ten years, he has specialized in assisting organizations to measure, report, and improve their performance.He has an in-depth understanding of "winning KPIs" and how an organization can implement a balanced scorecard in sixteen weeks. Parmenter has worked with many corporate service functions in Europe and New Zealand to adopt and implement better practices. He is an international presenter and authority on a wide range of topics including quarterly rolling planning-replacing the annual planning process. He has also worked as a senior consultant for Ernst & Young in both London and Wellington, where he was involved in performing operational reviews and feasibility studies. He has also worked for BP Oil New Zealand Ltd, Arthur Andersen, and Price Waterhouse.David is a member of the New Zealand and English Institute of Chartered Accountants. He is a regular writer for professional and business journals.
Praise for Key Performance Indicators: Developing, Implementing, and Using Winning KPIs
"Developing the right KPIs is a problem for most organizations. David Parmenter′s insightful approach offers a practical guide that will help managers to overcome these problems and turn concepts into reality in a timely way."
Jeremy Hope, cofounder and Director of the Beyond Budgeting Round Table, and author of Reinventing the CFO
"Many organizations have struggled to match their balanced scorecard vision with actual implementation success. This book may well be the missing link. By distilling the process into twelve logical steps and by providing checklists and worksheets for each step, David Parmenter reduces the whole endeavor into attainable proportions. He also helps instill the confidence that senior leaders and managers need to both take on the task and see it to fruition."
Sam Sheikh, Editor, Scorecard and Performance Management, BetterManagement.com
"This is a must–read book for all senior managers. The correct selection and deployment of performance measures is essential to ensure that all resources and effort are focused on achieving business strategy . . . and yet so many organizations select the wrong performance measures. This is a straightforward and practical book that clearly explains what ′key performance indicators′ are and how they should be used as part of an integrated performance improvement strategy."
Dr. Robin Mann, Director, Centre for Organisational Excellence Research, Massey University, and BPIR.com, New Zealand
"With this book, David Parmenter has clearly established himself as the King of KPIs. Everything you need to master and implement a KPI–driven strategy is here."
Harry Mills, author of The Rainmaker′s Toolkit
KPIs, while used commonly around the world, have never been clearly defined until now. Management has often referred to certain measures as KPIs that have never been KPIs. The lack of understanding of performance measures has led to most monitoring and reporting of measures failing to deliver. The casualty has often been the balanced scorecard, a brilliant tool that can only work if the appropriate measures are in it.
By exploring measures that have transformed businesses, David Parmenter has developed a methodology that is breathtaking in its simplicity and yet profound in its impact. It has been said that Key Performance Indicators is the missing link between the balanced scorecard work of Robert Kaplan and David Norton and the reality of implementing performance measurement in an organization.
While adopting many of the approaches of the KPI manual first published in 1996, this proactive guide represents a significant shift in the way KPIs are developed and used, with an abundance of implementation tools, including:
* The four foundation stones that lead the development and use of KPIs
* A twelve-step model for developing and using KPIs with guidelines
* A KPI resource kit including worksheets, workshop programs, and questionnaires
* A new and pragmatic approach to finding critical success factors
* Over 500 performance measures
* Templates for reporting performance measures
* A resource kit for a consultant who is acting as a coach/facilitator to the in-house project team
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