kpi setting at badwi group
Post on 12-Apr-2017
20 Views
Preview:
TRANSCRIPT
Key performance indicators!BADWI GROUP
MANAGEMENT TEAM TRAINING ON KPI
BY KELVIN NG’ANDWETECHNO FIRE AND SAFETY SOLUTIONS
LTD
THE THREE LEADERSHIP TRENDS
WHERE ARE YOU AS BADWI LEADERS?
HERE
OR HERE
OR HERE
What is strategy and innovation?
STRATEGY IS NOT CELEBRATING THE PAST CELEBRATING THE
PRESENT
STRATEGY IS ADAPTING TO
CHANGE STRATEGY IS
INNOVATION Strategy is
leadership in the future
BOX ONE- MANAGING THE
PRESENT- IMPROVING THE EFFICIENCY OF
YOUR CURRENT MODEL- COMPETITION FOR THE PRESENT
- EFFICIENCY- SCISSORS- 4FT 2INC- HURDLING MOTION- DOMINANT LOGIC- Self-Imposed boundaries- USEFUL but need to be
overcome- EXECUTION - CURRENT BUSINESS
BOX TWO- SELECTIVELY
FORGETTING THE PRESENT
- COMPETITION FOR THE FUTURE
- STRATEGY- INNOVATION- CHANGE THE BUSINESS
MODEL- WESTERN ROLL- EASTERN ROLL (straddle)
BOX THREE- CREATE THE
FUTURE- COMPETITION FOR THE FUTURE
- STRATEGY- INNOVATION- FOSBURY FLOP- COMMERCIALIZING THE IDEA- 1% Inspiration and 99% perspiration- 1% Ideas + 99% Execution- FUNDAMENTAL - NEW TEAM- INNOVATION = Idea + leader + team + plan- ITS AN EXPERIMENT
INNOVATION CHALLENGE – DOING IT RIGHT
INNOVATION LEADER
- (IS NOT TO BREAK ALL RULES AND BE A SUBVERT)
- HUMBLE- WORK WITH
BEREAUCRACY- HARNESS THE GREAT
CAPABILITIES OF THE PERFORMANCE ENGINE
INNOVATION
- INNOVATION IS ABOUT FLEXIBILITY
- WHAT WOULD MAKE INNOVATION FAIL?
- INNOVATION CANNOT HAPPEN INSIDE THE PERFORMANCE ENGINE
- NOT CONSTITUTING THE TEAM AND THE PLAN CORRECTLY
CONSTITUTING THE TEAM
- DISTINCT AND SEPARATE TEAM- SEPARATE PLAN IS NEEDED- RECRUIT RIGHT CAPABILITIES- DIFFERENT PROCESSES- DEIFFERENT METRICS- DIFFERENT CULTURE- SET UP A DEDICATED TEAM - LINK IT TO THE PERFORMANCE
ENGINE (TO USE SOME OF THE CONTENT)
- LINKING THO CREATE CONFLICT
- SHARED STAFF BECAUSE SOME PARTS OF THE PERFORMANCE ENGINE ASSETS ARE STILL USEFUL FOR BOX THREE
THIS IS WHAT WE HAVE BEEN DOING AT
BADWI GROUPCONSTITUTING THE TEAM
ALL TEAM MEMBERS ARE BADWI
BADWI GROUP
TEAM MEMBERS NEED LEADERS
BADWI GROUP
THE LEADERSHIP REQUIRED MUST BE COURAGEOUS
MOST LEADERS “COLD FEET” TO LEAD DIFFICULT SITUATIONS! NELSON MANDELA – 27 YEARS IN PRISON FOR BEING COURAGEOUS
CONSTITUTED THE TRUTH AND RECONCILIATION COMMISSION THE MOST FAMOUS MANDELA QUOTE AT “FAMOUS RIVONIA TRIAL”
“ENDING APARTHEID WAS THE CAUSE HE WAS FULLY PREPARED TO FIGHT FOR EVERY REMAINING DAY OF HIS LIFE AND IF NEED BE , HE SAID, IT’S A CAUSE AM FULLY PREPARED TO DIE FOR “
VISION IS A PICTURE OF THE FUTURE THAT CREATES A PASSION IN PEOPLE LEADERS SHOULD ENVISION THE VISION AND CREATE PASSION IN PEOPLE THE SAM DOHERTY’S FOUR “V”s THE CHALLENGE IS TO MOVE PEOPLE FROM WHERE THEY ARE TO THE HIGH!
FROM HERE TO HERE
THE WAY TO GO IS KPI’s
SMARTClearance SolutionsS Enterprises Limited
WHAT ARE KPI’s?
DEFINITION OF KPI’sQuantitative and qualitative measures used to review an
organisation's progress against its goals. These are broken down and set as targets for achievement
by departments and individuals. The achievement of these targets is reviewed at regular
intervalsWe note that : Definitions of KPIs have a consistent thread, generally
centred on quantifiable, measurable progress towards achieving organizational goals and objectives.
DEFINITION OF KPI’s
PRINCIPLE OF KPI’s “85% of organizational problems can be attributed to
processes and management, while workers are responsible for only 15%” Aurel Brudan, CEO of smartKPIs.com
KPIs - Most commonly used tools that companies employ tohelp manage more effectively guide their progress. allows transparency to any “trouble-spots” provides illumination to potential opportunities.
In brief, KPIs are the top level data companies use to measure performance and plan for the future.
PRINCIPLE OF KPI’s
SMART • Specific – clear and focused to avoid misinterpretation or ambiguity;• Measurable – can be quantified/measured and may be either
quantitative or qualitative• Attainable – requires targets to be set that are observable,
achievable, reasonable and credible under expected conditions as well as independently validated;
• Realistic – fits into the company’s constraints and cost effective • Timely – achievable within the given timeframe;
PRINCIPLE OF KPI’s Representative – appropriate to the company together with its operational
performance; Used to identify trends – changes are infrequent, may be compared to
other data over a reasonably long time and trends can be identified; Understood – individuals and groups know how their behaviours and
activities contribute to overall company goals; Agreed – all contributors agree and share responsibility within the company; Reported – regular reports are made available to all stakeholders and
contributors focused on company’s wide strategic value rather than non-critical local business;
Outcomes – selection of the wrong KPI can result in counterproductive behaviour and sub optimised outcomes
PRINCIPLE OF KPI’sAND MUST BE : Governed – accountability and responsibility is defined and understood;
Resourced – the program is cost effective and adequately resourced throughout its lifetime; and
Assessed – regular assessment to ensure that they remain relevant.
GOOD MANAGERS NEED KPI’sManagers need KPIs for a number of reasons:1. To determine where you have been and
what performance looks like from the past
2. To track the progress of change3. To plan and prepare where you are going,4. What success looks like in the future and
identify how to achieve success
GOOD MANAGERS NEED KPI’sKey Performance Indicators (KPIs) help managers :
understand how their organizations are performing in relation to their strategic goals and objectives.
When set and used properly, KPIs provide: an indicator to senior managers and stakeholders
as to how the organization is performing and whether performance is on track with projections.
GOOD MANAGERS NEED KPI’sAnd as stated:KPIs assist the company to define and measure
progress towards its goals and objectives.Once the company has analysed its mission
and defined its goals, it needs to measure progress towards those goals.
KPIs provide and serve as a Measurement Tool
UNDERSTANDING KPI’sUse KPIs in business as you would in your daily life.
If your objective is to lose 10 kilograms, then that becomes your goal. To achieve this, you set KPIs (milestones along a timeline) to illustrate your progress toward your goal.
For example, how many kilograms do you want to lose each week; each month? Can you cut down on specific fatty foods and how will you measure that? Do you need to increase the amount of physical exercise? How do you plan to measure that?
Or if your goal is to run a marathon, your KPIs are how many kilometres you can run in a day or in a week, etc.
UNDERSTANDING KPI’s- IN REALITY:
- A simple example would be that your goal is to build your cash reserve to K100,000. Your KPI to reach that goal would be to add K10,000 per month to cash reserves.
- The metric would be how much cash you actually contribute toward the total goal
- This means you have to raise cash, save, and find a way to curtail on expenses
ESTABLISHING KPI’s In launching KPI’s, it is important to:
a. Establish goalsb. Create metrics to achieve your goalsc. Execute according to your metrics
In short, establishing measurements initially may seem overwhelming, and just another item to add to your plate of things to do. However, they pay off immensely in the long run. Once implemented, you won’t be able to make decisions until you see your KPI report! This is the due diligence for small businesses – the more you know, the better and more effective your decision making process will be.
ESTABLISHING KPI’s
ESTABLISHING KPI’sKPI BENCHMARK POSSIBLE
MEASURESPOSSIBLE TARGETS
METHOD RESPONSIBLE OWNER
FREQUENCY
UNDERTAKEN BY
Transport Requests from clients
Agreed response times for different request
Time X% response within x time
Systemreports/logsacross depts.
Operations and Marketing Manager
Monthly Operations Manager – Open Bodies
Delivery to clients
Agreed times for delivery ofdifferent service types
Time (EPA/ ETA)
X% delivery within xtime and/orMaintain a minimumof X%
Survey and/orsystemreports/logsacross clients
Operations and Marketing Manager
Monthly Operations Manager – open bodies and acid tankers
ALIGNMENT WITH STRATEGIC DIRECTION
Levels of KPI’sIt is also suggested that the company base
KPIs on two levels as follows:• Strategic KPIs; and• Operational KPIs.
It is important to note that some KPIs might be relevant and appropriate to both strategic and operational levels.
LEVELS OF KPI’SStrategic KPIsStrategic KPIs should address the measurements
required at a high level and take a top down approach, as illustrated in Figure below.
For example, strategic KPIs should start at or near the top of the pyramid and, in particular, address transportation management governance and accountability.
Levels of KPI’sVision
Strategy
Objectives
Critical success Factors
Key Performance Indicators
`Key Action Initiatives
Stra
tegi
c Visi
on a
nd O
bjec
tives
Levels of KPI’sOperational KPIsConversely, operational KPIs should be
approached from the ground up. At this level, KPIs measure functions and
activities of an operational nature, such as the delivery of goods management services. This is shown in Figure below:
Levels of KPI’s
Vision
Strategy
Objectives
Critical success Factors
Key performance Indicators
Key Action Initiatives
Stra
tegi
c Visi
on a
nd O
bjec
tives
KPI’sIS THE WAY TO GO!ESTABLISH AND ROLL OUT COMPANY
OBJECTIVES AND GOALSLET US GIVE OURSELVES TIMEFRAMES TO
COME UP WITH DEPARTMENTAL KPI’SINDIVIDUAL KPI’SCONSOLIDATION OF KPI’S INTO MASTER FILE
LET US NOW ESTABLISH OUR dept. KPI’sKPI BENCHMARK POSSIBLE
MEASURESPOSSIBLE TARGETS
METHOD RESPONSIBLE OWNER
FREQUENCY
UNDERTAKEN BY
TIME LINES
Administration / Overhead
Finance
Operations
Workshops
HR
YES WE CAN! Thankyou
GOD BLESS YOUBY KELVIN NG’ANDWE
TECHNO FIRE AND SAFETY SOLUTIONS LTD
top related