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Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, by David Parmenter
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Streamline KPIs to craft a simpler, more effective system of performance measurement
Key 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
- Sales Rank: #545839 in Books
- Published on: 2015-04-13
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x 1.50" w x 6.50" l, 1.72 pounds
- Binding: Hardcover
- 448 pages
From the Inside Flap
Most organizations use the wrong measures, most of which are incorrectly termed key performance indicators (KPIs). Measures are destroying value and encouraging inappropriate activities, inhibiting projects, strangling outsourcing arrangements, and limiting the effectiveness of balanced scorecards. Measures should be segregated between those that report on collective efforts (result indicators) and those measures that can be tied to a team that will enhance performance (performance indicators).
In Key Performance Indicators, performance measurement expert David Parmenter has developed a clear set of steps that enable leaders to avoid these pitfalls and create KPIs that meaningfully reflect short- and long-term organizational performance. The book includes:
- The seven characteristics of KPIs
- The important difference between result and performance indicators
- A new simplified six-stage process for developing and using KPIs
- The myths of performance measurement that impede your progress
- Why KPIs should not be used in performance-related pay
- The significance of the paradigm thought leaders (e.g., Peter Drucker's abandonment)
- The importance of understanding the dark side of performance measures
- How to ascertain performance measures that work
- A kit to help you find your organization's critical success factors, the source of all meaningful measures
- The need for an in-house measurement expert
- How to lead and sell change in measurement practices
- A web-based 90-page toolkit of worksheets, checklists, and questionnaires so the KPI team can get quick runs on the board
- Over 200 performance measures
From the Back Cover
Most measures are wrong and inappropriately labelled and are described so aptly by William Shakespeare's line, "Full of sound and fury signifying nothing." This book helps organizations develop, implement, and use key performance indicators (KPIs)—the performance measures that make a profound difference.
PRAISE FOR
KEY PERFORMANCE INDICATORS
"We have worked with David Parmenter's methodology since 2013. The 'winning KPIs' methodology works extremely well alongside the implementation of 'lean' in our business. I wholeheartedly recommend this book and methodology to those who have been tasked with developing KPIs that can change behaviors and deliver a broad range of improved business results."
—LOUISE O'CONNELL, Strategy and Performance Manager, Nelson Management Limited
"David's methods for the development and implementation of KPIs is straightforward, clear, and above all else, practical. Anyone interested in implementing KPIs for the first time in his or her organization will find this book an invaluable resource."
—SUZANNE TUCKER, CEO, The CFO Edge, Inc.
"David's KPI methodology is easy to understand and share, and facilitates the identification and implementation of KPIs in any business. His approach drives improvement in operational performance."
—SCOTT HODGE, President and Performance Architect, Associates in Management Excellence
"The KPI methodology clicked with me immediately and I used it at my previous employer, Stanley Black & Decker. Once our critical success factors were analyzed, interpreted, and measured, the project took off, leaving a lasting legacy."
—ANDREW BRAZIER, Head Coach, Bu$i-Coach Inc.
About the Author
DAVID PARMENTER is an international presenter known for his thought-provoking and lively sessions, which have led to substantial change in many organizations. He is a leading expert in the development of winning KPIs, replacing the annual planning process with quarterly rolling planning and lean finance team practices. Parmenter's work on KPIs is recognized internationally as a breakthrough in understanding how to make performance measures work. He has delivered workshops to thousands of attendees in 30 countries around the world. Parmenter has worked for Ernst & Young, BP Oil Ltd, Arthur Andersen, and PricewaterhouseCoopers, and is a fellow of the Institute of Chartered Accountants in England and Wales. He is a regular writer for professional and business journals. He is also the author of Winning CFOs: Implementing and Applying Better Practices, Key Performance Indicators for Government and Non Profit Agencies: Implementing Winning KPIs, and The Leading-Edge Manager's Guide to Success (all from Wiley). He can be contacted via parmenter@waymark.co.nz. His website, www.davidparmenter.com, contains many white papers, articles, and freeware that will be useful to readers.
The reader can access, free of charge, a PDF of the suggested worksheets, checklists, and templates from www.kpi.davidparmenter.com/thirdedition
Most helpful customer reviews
1 of 1 people found the following review helpful.
Rule based Selection of KPI
By qcridder
The book provides two lenses: an in-depth look at context and implementation to create and use key performance indicators (KPIs). An easy read and step-wise guide to implementing. Parmenter’s methodology simple, but profound in terms of its practical applicability. Parmenter utilizes a 10/80/10 rule that depicts the indicator representation that tis need for good business decision making. The discussion on critical success factors can facilitate organizations to identify and track KPIs to ensure continued or new successes.
1 of 1 people found the following review helpful.
Five Stars
By Arnoldo LeRoy Cordoba
Very useful, totally aplicable for my requirements
0 of 0 people found the following review helpful.
More managerial reference than technical one
By Zaher Alhaj
The book focuses more on the management side (communication, elicitation, team building, etc. ) of developing KPIs, and falls short on the technical aspects of how to develop and structure KPIs, although it provides very interesting point on the concepts of : Result Indicators, and Performance Indicators.
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