KPIs Simplified Workshop 2
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14-Sep-2014 -
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Transcript of KPIs Simplified Workshop 2
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KPI’s Simplified
PRESENTERS:
Ian Mackenzie AND Stephen Lynch
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slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Set a good example.Remove distractions.
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a guide to a productive session
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
➔ Full participation
➔ Ask for everyone’s point of view
➔ Productive conflict is important
➔ No “group think”
➔ Make a clear decision
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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everyone commits to the decision
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Process Overview
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
➔ Workshop 1: Company Metrics
➔ Workshop 2: Team Metrics
➔ Workshop 3: Individual Metrics
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Where we Got to Last Week!
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Teams? Teams?Teams?Teams?
deliver the product / service
manage financesget the lead
1. make the sale2. 3. 4.
Team & Individual KPIs
Teams Have Been Captured!
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Team Goals - This Week
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Next Week
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Slides available at:
www.RESULTS.com/slides
PURPOSE: Understand a process for defining Team Metrics that align to Company Metrics and Deliver top performance for the Team.
OUTCOME: Team metrics (KPI’s) aligned to Company Metrics (Drivers of The Company Desired Result). Also identify the Lead Indicators and whether you cascade them using Child Goals.
Today’s Session
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Huge trends changing management...
Greater Individual Responsibility
Digital Engagement
Gen Y / Millennials
Work from home - flexitime
Radical Transparency
Remote Workforces / Contractors
Globalisation
Increased customer expectations
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management 2.0
“We are going to have to reinvent management;
the way we lead, we plan, we organise, we hire,
we motivate… because today, organisations
are facing a set of challenges that are truly
unprecedented.”
Dr. Gary Hamel
has arrived
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SHARED VISION + STRATEGY
your company’s
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DIGITAL BLUEPRINT
your company’s
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COMMUNICATION +COLLABORATION
company-wide
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the new age of
MEETINGS
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Everyone knows their ACCOUNTABILITIES
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Key Performance Indicators
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Slides available at:
www.RESULTS.com/slides
Further Breakdown is required:
KPI Terminology
Company Desired Result: This is an outcome, often a financial outcome normally determined by the owner and/or board of directors
Outcome Measure: The outcome related to an area of performance in the business
Lead Measure: Measure of performance that influences an outcome measure. These key drivers are normally activity or effectiveness related.
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Slides available at:
www.RESULTS.com/slides
Last Week we Established!
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Why KPI’s are Important
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future people performance
rate of change
growth
profit
cash
freedom
Company Desired Result?
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Slides available at:
www.RESULTS.com/slides
Last Week we Established!
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
The Challenge with KPI’s
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THE CHALLENGE WITH KPIs
MEASURE TOO MANY
TEAM AND COMPANY KPIs NOT ALIGNED
PEOPLE DON’T UNDERSTAND THE RELEVANCE
PEOPLE PERFORMANCE NOT INFLUENCED BY THE KPI
“KPI Reality Check”
1. Can you keep them up to date
and live?
2. Power and Leverage, use the
One Thing
3. Relevant and Inspiring?
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Welcome to KPI’s simplified!
PART 2
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Establishing Team Goals
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Two Methods
1st - Consider Company MetricsWhich should your team own?What is the biggest impact your team can have on these?
2nd - Business Cycle - Best metric to track your team performance
What are the best lead measures?Can you involve your team?
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STEP 1
Slides available at:
www.RESULTS.com/slides
Please take time to update your Team Leaders on:
What the Company Desired Result is.
What you believe the Key Drivers are ie. Your Company Metrics
Where relevant which Teams will take ownership of the Company Metric
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Update your Team Leaders
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Dashboard Template
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Teams? Teams?Teams?Teams?
deliver the product / service
manage finances, systems & people
get the lead
1. make the sale2. 3. 4.
Team & Individual KPIs
YOUR COMPANY BUSINESS CYCLE
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Questions / Answers:#realKPIs || @RESULTSdotcom
So what part of your economic engine is the biggest driver to achieve the Desired Company Result?
The economic engine
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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STEP 1
Slides available at:
www.RESULTS.com/slides
Please take time to update your Team Leaders on:
What the Company Desired Result is.
What you believe the Key Drivers are ie. Your Company Metrics
Where relevant which Teams will take ownership of the Company Metric
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Update your Team Leaders
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Slides available at:
www.RESULTS.com/slides
Review the Company Metrics.
Do some of these break down into Child Goals? Potentially if two or more Teams can contribute.
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
STEP 2Establish the Biggest Impact your Team can have on The Company Metrics (Business Drivers)
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Team Contribution - Child Goals
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Slides available at:
www.RESULTS.com/slides
Be Open to your Team being able to directly impact on the Company Metrics.
Consider each of the Company Metrics, which one can your team have a big impact on?
It is possible that not every team can directly impact on the Company Metrics… that is OK. We will also be looking at YOUR team performance.
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
STEP 2Establish the Biggest Impact your Team can have on The Company Metrics (Business Drivers)
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ONE
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
the
thing!
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slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
which machine will yield results?
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Team Contribution - Child Goals
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Slides available at:
www.RESULTS.com/slides
Identify the ONE THING, the performance area within
your Team, that impacts on the Company Metric.
Write which Company Metric it relates too.
If you haven’t identified a performance measure related
to Company Metric for your team that is fine.
STEP 2:In your workbook
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Slides available at:
www.RESULTS.com/slides
Review the four parts of the Business Cycle and capture the key metrics.
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
STEP 3:Ensure we measure the effectiveness of our Business Cycle
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Teams? Teams?Teams?Teams?
deliver the product / service
manage finances, systems & people
get the lead
1. make the sale2. 3. 4.
Team & Individual KPIs
YOUR COMPANY’S BUSINESS CYCLE
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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STEP 3 Business Cycle
How do you know when you have a lead?
Questions / Answers:#realKPIs || @RESULTSdotcom
What is the event that signifies you have a lead?
What are the criteria that determine whether it is a qualified lead?
How can you measure qualified leads?
Which team should own this metric?
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Questions / Answers:#realKPIs || @RESULTSdotcom
Outcome
Activity Effectiveness
Outcomes are good, but what are the key Performance levers?
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Questions / Answers:#realKPIs || @RESULTSdotcom
Outcome
Activity Effectiveness
Create leads - The Lead Indicators
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Questions / Answers:#realKPIs || @RESULTSdotcom
No. Demo Requested
# Pay per clicks# website visits# Campaigns completed
% who click through
% visitors that request demonstration
Measure of success for campaign
Convert leads into sales
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Outcome
Activity Effectiveness
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Questions / Answers:#realKPIs || @RESULTSdotcom
What event signifies you have made a sale?
How are sales best measured?
Which team should own this metric?
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
STEP 3 Business CycleKey measure in making sales?
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Questions / Answers:#realKPIs || @RESULTSdotcom
Convert leads into sales - Lead Indicators
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Activity
Outcome
Effectiveness
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Questions / Answers:#realKPIs || @RESULTSdotcom
What represents success in the eyes of customer?
What is key performance that impacts profit?
Which team should own this metric?
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
STEP 3: Business CycleSuccess of product / service delivery?
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Questions / Answers:#realKPIs || @RESULTSdotcom
Provide product / service > delight customers
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Activity
Outcome
Effectiveness
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Step 3: Business CycleManaging finance, systems and People?
Questions / Answers:#realKPIs || @RESULTSdotcom
What best measures cash management?
How do you measure happiness of people?
Which team should own this metric?
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Questions / Answers:#realKPIs || @RESULTSdotcom
Grow cash & make profit - lead indicators
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
Activity
Outcome
Effectiveness
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Slides available at:
www.RESULTS.com/slides
Review the outcomes from the Business Cycle overview
and identification of Outcome and Lead Indicators.
Capture them on each of the Team metric sheets.
STEP 4:In your workbook
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Team Metrics - Master Sheet
Enter Team Name = performance thresholds
If applicable, Company Metricthis measure impacts
KPI Measure Create Child goals?
Person Accountable
MeasurementFrequency
<80% target
80% target
on target
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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the tropicalisland test
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Imagine
You’re on an extended holiday in the tropics...all you can access is your Results.com Dashboard. You can only view 3 performance metrics.
SO, if the KPIs are:
● GREEN: you can go back to sunbathing ● YELLOW: you need to ring the office
to see what is going on● RED: you need to cut your holiday
short and return home
What would those numbers be?
Are they on your Master Sheet
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Conclusion and Homework
Questions / Answers:#realKPIs || @RESULTSdotcom
Questions
Next Group Session
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Next Week
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Team Manager Metrics - Master Sheet
Enter Team Manager Name = performance thresholds
If applicable, Company Metricthis measure impacts
KPI Measure Child goal Yes/no?
Person Accountable
MeasurementFrequency <80%
target80%
targeton
target
Slides available at:
www.RESULTS.com/slides
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs
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Questions / Answers:#realKPIs || @RESULTSdotcom
Next Group Session
11am Wed 30th July
8.30am Fri 1st August
slides available at:
www.RESULTS.com/slidessocial
@RESULTSdotcom#realKPIs