how to make your - idg hocknell.pdf · stacey barr and pump • performance measure specialist •...

How to make your

KPIs meaningful

© Mark Hocknell 2017 How to make KPIs meaningful

CMO Sydney July 20 2017

Overview • Customer Centric approach to Business

• An approach to performance measurement

• Making Strategy Measurable

• Measure Selection

• Top Four Problems with how we use KPIs

© Mark Hocknell 2017 How to make KPIs meaningful

The Customer Centric approach to Business

Reject the industrial age models and structures that are now superseded

How to make KPIs meaningful © Mark Hocknell 2017

Customer Centric Business • Early commerce was relationship based • Industrial age focused on making things – production and

distribution

• Today: – Digital Age – Relationship Age – Connection Economy – Experience Economy

How to make KPIs meaningful © Mark Hocknell 2017

This signals a change. We can’t keep using the industrial age

business models and thinking.

The customer centric approach to business is matched to this new age.

The 5 Tenets of the Customer Centric approach to Business

1. Businesses exist for customers

2. It’s all about people

3. Not all customers are equal

4. Businesses are systems that deliver value

5. The need for progressive

improvement

How to make KPIs meaningful © Mark Hocknell 2017

Cust

omer

Val

ue

B X C

===

PuMP – The Performance Measurement Process

An approach to measuring organisational performance

How to make KPIs meaningful © Mark Hocknell 2017

Stacey Barr and PuMP • Performance measure specialist • Creator of PuMP • Author of:

– Practical Performance Measurement: Using the PuMP Blueprint for Fast, Easy, and Engaging KPIs

– Prove It! How to create a high-performance culture and measurable success.

• Blog at www.staceybarr.com

• PuMP is used and delivered around the world through a network of PuMP Partners

How to make KPIs meaningful © Mark Hocknell 2017

• What is your biggest struggle or challenge with performance measurement..?

How to make KPIs meaningful © Mark Hocknell 2017

It’s your approach to performance measurement that causes your struggles

with measuring performance.

Practical Insight #1

The Anatomy of a Performance Measurement Approach

steps frameworks templates tools

The PuMP Performance Measure Blueprint STEP 2 STEP 1 STEP 3 STEP 4

STEP 5 STEP 6 STEP 7 STEP 8

Understanding

Measurement’s

Purpose Fixing the focus firmly on

continuous improvement as

the purpose for measurement.

Mapping

Measurable

Results Translating our strategy into

clear, focused, and measurable

performance results.

Designing

Meaningful

Measures Choosing the most feasible

and relevant measures that

evidence our performance

results.

Building Buy-In

to Measures Getting ownership from our

stakeholders, quickly, easily and

engagingly.

Implementing

Measures Documenting in detail the

data, analysis and reporting

requirements for each of our

measures.

Interpreting

Signals from

Measures Focusing ourselves on gaps

between as-is and to-be

performance.

Reporting

Performance

Measures Creating useful and usable

performance reports that

inspire us to action.

Reaching

Performance

Targets Improving business processes

to move as-is performance

toward to-be.

> > >

> > >

How to make KPIs meaningful © Mark Hocknell 2017

Performance measurement is a process, not an event. There are essential steps to make it easier, faster, more meaningful and more

engaging.

Practical Insight #2

The PuMP Performance Measure Blueprint STEP 2 STEP 1 STEP 3 STEP 4

STEP 5 STEP 6 STEP 7 STEP 8

Understanding

Measurement’s

Purpose Fixing the focus firmly on

continuous improvement as

the purpose for measurement.

Mapping

Measurable

Results Translating our strategy into

clear, focused, and measurable

performance results.

Designing

Meaningful

Measures Choosing the most feasible

and relevant measures that

evidence our performance

results.

Building Buy-In

to Measures Getting ownership from our

stakeholders, quickly, easily and

engagingly.

Implementing

Measures Documenting in detail the

data, analysis and reporting

requirements for each of our

measures.

Interpreting

Signals from

Measures Focusing ourselves on gaps

between as-is and to-be

performance.

Reporting

Performance

Measures Creating useful and usable

performance reports that

inspire us to action.

Reaching

Performance

Targets Improving business processes

to move as-is performance

toward to-be.

> > >

> > >

How to make KPIs meaningful © Mark Hocknell 2017

Why strategy is so hard to measure

• Action orientation

• Weasel words & vague ideals

• Multi-focus goals

• Confusion with business as usual

• Lack of rigour and logic Too fluffy to measure.

How to make KPIs meaningful © Mark Hocknell 2017

How to de-weasel: Strengthen student engagement and learning

outcomes

• strengthen: get more

More students participate in learning activities and

find work in their field of study

• engagement: participation in learning activities • learning outcomes: grades and ability to find

work in field of study

Two Results

More students participate in learning activities

More students find work in their field of study

Results Mapping • Provides a

framework for Results and Measures

• Results and Measures can be seen in the context of the business – interdependencies and other relationships

If you cannot understand a goal or objective well enough to visualise

what it looks like when it’s happening, you won’t be able to

measure it.

Practical Insight #3

The PuMP Performance Measure Blueprint STEP 2 STEP 1 STEP 3 STEP 4

STEP 5 STEP 6 STEP 7 STEP 8

Understanding

Measurement’s

Purpose Fixing the focus firmly on

continuous improvement as

the purpose for measurement.

Mapping

Measurable

Results Translating our strategy into

clear, focused, and measurable

performance results.

Designing

Meaningful

Measures Choosing the most feasible

and relevant measures that

evidence our performance

results.

Building Buy-In

to Measures Getting ownership from our

stakeholders, quickly, easily and

engagingly.

Implementing

Measures Documenting in detail the

data, analysis and reporting

requirements for each of our

measures.

Interpreting

Signals from

Measures Focusing ourselves on gaps

between as-is and to-be

performance.

Reporting

Performance

Measures Creating useful and usable

performance reports that

inspire us to action.

Reaching

Performance

Targets Improving business processes

to move as-is performance

toward to-be.

> > >

> > >

How to make KPIs meaningful © Mark Hocknell 2017

Badly written measures look like these:

• Milestones: ‘student learning outcomes analysis complete by Dec 2014’

• Activities: ‘gather ideas from students to improve the learning experience’

• Data sources: ‘Student Survey’

• Vague names: ‘Student Engagement’

How to make KPIs meaningful © Mark Hocknell 2017

What is a performance measure, really?

How to make KPIs meaningful © Mark Hocknell 2017

Therefore a KPI is...

A performance measure + a target

How to make KPIs meaningful © Mark Hocknell 2017

Student Participation Rate = The percentage of students who participated in learning activities, by week

Target = 85%

How to make KPIs meaningful © Mark Hocknell 2017

Data driven perspective of KPIs • GoS - 90% calls answered in 60 seconds • AHT – average handle time is 360 seconds • Average talk time • Post call processing time

Result or Outcome perspective of KPIs

Our customers have a great experience

Our customers love our service

• Average experience score from CX survey • Average score to the Q: I love the service provided by the contact centre • Call quality • Schedule adherence

What’s my focus..?

What’s my focus..?

The Top Four Issues with how KPIs are Used

1. We use gut-feel to choose KPIs

2. KPIs don’t signal priority areas, or what is really important

3. KPIs used to manage or reward people

4. We use KPIs to mix BAU with areas for improvement

How to make KPIs meaningful © Mark Hocknell 2017

What is accountability..? • “Monitoring performance + interpreting

performance + initiating action = accountability.

• Accountability is not hitting targets, it's pursuing them deliberately.”

Stacey Barr

How to make KPIs meaningful © Mark Hocknell 2017

What next... • Stop relying on the bad habits and adopt good practices in

measuring performance

• Visit: www.staceybarr.com - heaps of free resources

• Blueprint Workshops – Sydney Sept 5-7 2017

• In-house workshops / bespoke solutions

• Customer Centric Business newsletter

• Contact me: mark@markhocknell.com

How to make KPIs meaningful © Mark Hocknell 2017