Kupe Kupersmith, CBAP

President, Senior Instructor

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WE GET IT. WE’LL HELP YOU GET IT TOO.

Defining and Measuring

Expected Project Value (KPIs)

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@Kupe

@B2T_Training

#BAOT

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Making Learning Stick

People lose 50 – 80 percent of what they’ve learned after one day! This figure jumps to 97 percent after just 30 days.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Learning Objectives

• Explain the value validation model. Apply it to: Confirm the problem Ensure the solution proposed actually meets the need Validate the desired outcome with stakeholders

• Get introduced to and describe the 4-part KPI Impact Analysis Framework™

• Identify ways to measure and monitor your solution in real time to validate it is performing and meeting the desired outcome.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Is Your Business OK?

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Measures

KPI’s: those performance measures that are key to identifying that a solution is, or is not performing successfully

• a smaller subset of all the performance measures

• providers of early feedback

Success or Failure?!

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Measurable Doesn’t Mean Helpful

There’s plenty that can be measured – the question is, what should be measured?

Why measure at all?

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . How Do You Know If You’re OK?

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results to Desired Outcome

Example results for improved health:• Lower Blood pressure

• Decreased weight

• Improved Fitness

• Healthier Diet

• Taking vitamins regularly

• Improved sleep

• Reduced Stress

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Keys to Creating Success

Predicting – and planning for – solution successrequires:• Visualizing success, and articulating it as a

desired outcome

• Identifying the results that will drive the desired outcome

• Recognizing the key performance conditions that must exist or be delivered for solution success to be achieved

• Identifying metrics that measure the solution’s success

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1. Identify desired business success

2. Derive solution option results

3. Identify Key Performance Conditions

4. Select Key Performance Indicators (KPIs)

Process to Derive KPIs

Business Success

Solution Option Success

Performance Success

KPIs

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Value Validation Cycle

Put Your Ladder Against “The Right Wall”

Fills

SuccessProblem

Solution

OutcomeValue

Need or Goal

Solved by

Delivers

Provides

Impactedby

Desired

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Case Study: Example

Sales manager has requested a new Sales Pipeline report so that they can determine why they are not selling more training programs.

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Not enough calls by

some sales people

Pipeline report to

show sales by person

# of Calls by Sales Person

Maintain or increase call

volume

More Sales of training program

Solved by

Delivers

Provides

Fills

Impactedby

Desired

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Value Validation Cycle: New Solution

Organizations not requesting

additional training or

referring our program

Program extension to

address retention and

use

Training being applied by students

Increased referrals and Customers requesting

more training

More Sales of Training Program

Solved by

Delivers

Provides

Fills

Impactedby

Desired

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Solution Measurement Variations

Pipeline Report:

• Measuring Calls by sales person

• Measure # of Leads generated by marketing campaigns

Program Extension:

• Participation by students

• Application of training to projects

• Recommendation to peers

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1. Identify desired business success

2. Derive solution option results

3. Identify Key Performance Conditions

4. Select Key Performance Indicators (KPIs)

Process to Derive KPIs

Business Success

Solution Option Success

Performance Success

KPIs

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Identify Results Required for Success

If the desired outcome is clear:• A series of conclusions or decisions result in an outcome.

• Specific conclusions or decisions lead to the desired outcome.

Desired

Outcome

Solution Must

Support These

MustDrive

TheseResults

ToAchieve

Critical Needs

Before

It Will

Drive Results

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Solution Results are Derived

A distinct pattern of results drive

a solution to success.

Appreciates

Solution

Option as

Valuable;

Believes

Solution

Meets Needs

Solution is Needed & Option Identified

Solution Option Is Used

Solution Option Worked (Operated)

Solution Option Enabled & Delivered

Solution Option Provided Value & Benefits

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Training Program Extension Results

Customers Need our Program

Customers Buy our Program

Students participate in Program Extension

Students Apply what they Learned

Receive Referrals and Callsfor more Training

Sell More Training Programs

Success

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Desired Outcome

Create your Ladder to Success

The KPI Impact Analysis FrameworkTM

Result

Result

Result

Result

Success

Solu

tio

n P

erfo

rman

ce

• Key Performance Conditions

• Key Performance Conditions

• Key Performance Conditions

• Key Performance Conditions

• Key Performance Conditions

• Key Performance Conditions

• Key Performance Conditions

• Key Performance Conditions

Solu

tio

n P

erfo

rman

ce

Solu

tio

n P

erfo

rman

ce

Solu

tio

n P

erfo

rman

ce

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1. Identify desired business success

2. Derive solution option results

3. Identify Key Performance Conditions

4. Select Key Performance Indicators (KPIs)

Process to Derive KPIs

Business Success

Solution Option Success

Performance Success

KPIs

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance Conditions

Solution = Training Program Extension

What conditions need to be in the solution so it performs effectively to support my needs for results?

Customers Need our Program

Customers Buy our Program

Students Participate in Program Extension

Students Apply what they Learned

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions Enable the Solution

Solution = Training Program Extension

Customers Need our Program

Customers Buy our Program

Students Participate in Program Extension

Students Apply what they Learned

• Program details accessible to customers

• Ability to request program

• Option to customize

• Contracting process in place

• Qualified instructors available

• Training locations available

• Pre-call process with managers

• Have a template for student action plans

• Technology in place to conduct retention program

• Students are using techniques from class

• Students are asking questions from mentors

• Quality of work is increasing

• Consistency on projects is increasing

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . From Conditions to Measurements

Solution = Training Program Extension

Key Performance Conditions

Corresponding Measures

• Program details accessible to customers

• Ability to request program

• Option to customize

• # of website visits• # of proposals submitted

• # of request received

• % of customized versus standard training requested

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• # of pre-call discussion occurring

• # of students talking with managers

• % of students participating in retention program

• # of website visits• # of proposals

submitted• # of request

received• % of customized

versus standard training requested

• # of contracts processed

• % of time qualified instructor is available when needed

• % of time training has to be rescheduled due to location issues

Measuring Success

• % of students using techniques from class within 60 days

• # of mentoring hours requested by students Quality of work survey scores

• Consistency on projects survey scores

Customers Need our Program

Customers Buy our Program

Students Participate in Program Extension

Students Apply what they Learned

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KPIs are Measures

Each measure must be translated into a clearly defined metric. • Measure: The standard or system for measurement that is

quantifiable Ex: KPI*: “User Satisfaction Ratings on User Experience”

• Metric: The real-valued or quantified function of measurement Ex: KPI-Related Metric: “UX Satisfaction Score= ‘Rating Given’ on a standard 1-10 scale where 10

is outstanding and 1 is terrible”

• Project objective (SMART-ly defined) Ex: “Achieve an average UX Satisfaction rating of > 7 by 2nd Quarter next year”

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1. Identify desired business success

2. Derive solution option results

3. Identify Key Performance Conditions

4. Select Key Performance Indicators (KPIs)

Process to Derive KPIs

Business Success

Solution Option Success

Performance Success

KPIs

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Key Indicators of Performance

Select KPIs by identifying those measures that would be “key” to identifying that a solution is (or is not) performing.

Consider measures that would indicate:• A delayed or inefficient process or solution

• A roadblock in the process or solution

• Excessive costs in the process or solution

• Idle or ineffective solution

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No Single KPI Will Predict or Prove Solution Success

Look for combinations of KPIs that will provide

more insight or perspective.

X Y Z

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Y: Solution delivery &

performance

X: Need for solution

Z: Solution

outcome & value

Questions KPIs must answer:

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Training Program Extension Results

Customers Need our Program

Customers Buy our Program

Students participate in Program Extension

Students Apply what they Learned

Receive Referrals and Calls for more Training

Sell More Training Programs

• # of website visits

• # of proposals submitted

• # of request received

• % of customized versus standard training requested

• # of contracts processed

• % of time qualified instructor is available when needed

• % of time training has to be rescheduled due to location issues

• # of pre-call discussion occurring

• # of students talking with managers

• % of students participating in retention program

• % of students using techniques from class within 60 days

• # of mentoring hours requested by students

• Quality of work survey scores

• Consistency on projects survey scores

• # of referrals• # of

additional training programs sold to existing customers

Success

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluate Success, Interpret Results

How is the Solution Performing?

• Review instances and trends of KPI results

• Assess results and evaluate outcomes

• Determine business impacts and conclusions

• Identify issues and root causes Don’t decide to enhance until you know

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What did you learn?

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Thoughts: It’s All About Value

• Validate the business outcome before designing a solution

• Then, architect success : identify right results to get there

• Focus on critical needs; define conditions needed to support them and drive results

• Identify measures & select KPIs

• Measure progress & analyze data for insights: so what?

• Create improvement strategies based on performance gaps

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