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