defining and measuring expected project value (kpis) · making learning stick people lose 50 –80...
TRANSCRIPT
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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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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• 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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Value Validation Cycle: Requested Solution
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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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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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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