From the Inside Flap
Most organizations use the wrong measures, most of which are incorrectly termed key performance indicators (KPIs). Measures are destroying value and encouraging inappropriate activities, inhibiting projects, strangling outsourcing arrangements, and limiting the effectiveness of balanced scorecards. Measures should be segregated between those that report on collective efforts (result indicators) and those measures that can be tied to a team that will enhance performance (performance indicators).
In Key Performance Indicators, performance measurement expert David Parmenter has developed a clear set of steps that enable leaders to avoid these pitfalls and create KPIs that meaningfully reflect short- and long-term organizational performance. The book includes:
- The seven characteristics of KPIs
- The important difference between result and performance indicators
- A new simplified six-stage process for developing and using KPIs
- The myths of performance measurement that impede your progress
- Why KPIs should not be used in performance-related pay
- The significance of the paradigm thought leaders (e.g., Peter Drucker's abandonment)
- The importance of understanding the dark side of performance measures
- How to ascertain performance measures that work
- A kit to help you find your organization's critical success factors, the source of all meaningful measures
- The need for an in-house measurement expert
- How to lead and sell change in measurement practices
- A web-based 90-page toolkit of worksheets, checklists, and questionnaires so the KPI team can get quick runs on the board
- Over 200 performance measures
From the Back Cover
Most measures are wrong and inappropriately labelled and are described so aptly by William Shakespeare's line, "Full of sound and fury signifying nothing." This book helps organizations develop, implement, and use key performance indicators (KPIs)the performance measures that make a profound difference.
KEY PERFORMANCE INDICATORS
"We have worked with David Parmenter's methodology since 2013. The 'winning KPIs' methodology works extremely well alongside the implementation of 'lean' in our business. I wholeheartedly recommend this book and methodology to those who have been tasked with developing KPIs that can change behaviors and deliver a broad range of improved business results."
LOUISE O'CONNELL, Strategy and Performance Manager, Nelson Management Limited
"David's methods for the development and implementation of KPIs is straightforward, clear, and above all else, practical. Anyone interested in implementing KPIs for the first time in his or her organization will find this book an invaluable resource."
SUZANNE TUCKER, CEO, The CFO Edge, Inc.
"David's KPI methodology is easy to understand and share, and facilitates the identification and implementation of KPIs in any business. His approach drives improvement in operational performance."
SCOTT HODGE, President and Performance Architect, Associates in Management Excellence
"The KPI methodology clicked with me immediately and I used it at my previous employer, Stanley Black & Decker. Once our critical success factors were analyzed, interpreted, and measured, the project took off, leaving a lasting legacy."
ANDREW BRAZIER, Head Coach, Bu$i-Coach Inc.