1. Sorting the wheat from the chaff – finding your winning KPIs Presented by David Parmenter waymark solutions limited April 2009 Website: www.waymark.co.nzwww.waymark.co.nz Blog: www.davidparmenter.com Email: Parmenter@waymark.co.nz

2. A ‘top ten’ performance management book on www.amazon.com for over two years see davidparmenter.com for Amazon link

3. How familiar are you with David Parmenter’s work? 1.First event, and no familiarity with his work 2.First live event, but have listened to some recorded web casts 3.Have listened to a few live web casts and read some of his work 4.Very familiar with his work

4. How are your measures derived in your organisation? 1.No idea, haphazard development 2.There is some method to constructing measures albeit there is not full compliance 3.Have a centralised unit that review and approve all measures

5. The ‘winning KPIs’ webcasts on www.bettermanagement.com 1.Introduction to winning KPIs 2.Implementing KPIs - A 12-Step Process 3.Implementing KPIs in Smaller Orgs (<200 Staff) 4.Finding your organization’s critical success factors 5.Balanced scorecard in 16 weeks not 16 months 6.Getting started or restarted with winning KPIs 7.Revitalizing a floundering balanced scorecard with winning KPIs 8.‘Winning KPIs’ - a question and answer session 9.‘Winning KPIs’ - a question and answer session 10.“Sorting the wheat from the chaff – finding your wining KPIs

6. The combination to unlock ‘winning KPIs’ 1.Working with the six perspectives 2.Identifying the critical success factors 3.Selling the change and keeping the SMT motivated 4.Getting the four foundation stones in place 5.Keeping it simple by following the basic rules  definitions of KPIs, PIs, RIs, KRIs  10/80/10  16 weeks not 16 months  full time in-house team  avoid BSC applications until you know what you want 6.Past, current and future measures

7. Relationship between strategy / CSFs and PMs Linkage of strategy to measurement Learning & Growth Customer satisfaction Financial Results Internal Processes Strategies (issues & Initiatives) Mission / Vision / Values Critical Success Factors Key Result Indicators (max 10) Performance and Result Indicators (80 or so) Key Performance Indicators (max 10) Staff satisfaction Community & environment Learning & Growth Customer satisfaction Financial Results Internal Processes Staff satisfaction Community & environment KPIs & PIs in a balanced scorecard and KRIs in a dashboard

8. The success factor list

9. Brainstorming the “maintain a happy, safe and healthy workplace ” SF

17. “Full utilisation of xxx system” SF

20. Be seen in the community as an ‘employer of first choice’  Number of employees involved in up-skilling local community organizations  Number of media coverage events planned for next month, months 2-3, 4-6  Number of media press releases planned for next month, months 2-3, 4-6  Number of photos/articles in papers last month, months 2-3, 4-6  Number of sponsorship projects in last 12 months by company  Number of students who have been offered holiday work for the next holiday period

21. Be seen in the community as an ‘employer of first choice’ #2  Number of initiatives implemented to improve perception by local community  Dollars donated to the community in last 12 months  Percentage of local residents in total workforce  Entries to environment/community awards to be completed in months 1-3, 4-6  Number of environmental complaints received last week, last 4 weeks

22. Delivery in full on time, all the time to our key customers  Late / incomplete deliveries to key customers  Key customer enquiries that have not been responded to within 24 hours  Complaints from key customers (notified to CEO)  Forecast stock out of any of the Key products (notified to CEO)  Number of Key customer complaints where senior management needed to instigate remedial action  Number of credits/returns from key customers

23. Delivery in full on time, all the time to our key customers  Key customer complaints not resolved in two hours  Accuracy and completeness of specifications for key customer orders  Manufacturing process quality measures re- work (how many items make it through the process without being reworked at any stage) %  Number of pricing errors to key customer invoices

24. Delivery in full on time, all the time to our key customers  Downtime due to different types of equipment failure  Engineering changes after design completion  Process part-per-million defect rates  Number of processes made foolproof  Production set-up/changeover time

25. Increased repeat business from our key customers  Late / incomplete deliveries to key customers  Key customer enquiries that have not been responded to by the sales team (over 24 hours old)  Complaints from key customers (notified to CEO)  Number of Key customer complaints where senior management needed to instigate remedial action  Number of credits/returns from key customers  Key customer complaints not resolved in two hours  Accuracy and completeness of specifications for key customer orders

26. Increased repeat business from our key customers  Number of pricing errors to key customer invoices  Weekly sales to top customers by major product lines ( no more than five product lines shown)  Direct communications to key customers in month (average number of contacts made with the key customers)  Number of key customer referrals  Number of proactive visits to key customers planned for next month,  Date of next visit to key customers (by customer name)

27. Increased repeat business from our key customers  Number of visits made to key customers made last month  Number of initiatives completed from the recent key customer satisfaction survey  Service requests outstanding for key customers (faults, works requests)  Timeliness and accuracy of price quotations to key customers  Number of innovations introduced in last 4 quarters (1-3, 4-6,7-9,10-12 months)

28. Stay, say, strive engagement of staff  Number of employees attending courses to increase reading and math skills  Number of training hours achieved in last 12 months  Number of training hours-booked for next month, months 2-3, 4-6-in both external/internal courses  Dollars saved by employee suggestions  Number of staff who have attended the stress management course  Percentage of ‘customer-facing’ employees having on-line access to CRM

29. Stay, say, strive engagement of staff  Percentage of rising stars with mentors  Number of mentoring meetings held last quarter  Number of mentoring meetings to be held in next 1, 2-3 months  Total hours employees spend in mentoring  Number of employees that have improved skills during last six months  Number of employees with delegated spending authority  Number of leadership initiatives targeted to rising stars to be completed next month, months 2-3, 4-6

30. Stay, say, strive engagement of staff  Number of managers who have had performance management training  Number of current users of xxx system  Staff trained to use xxx system  Number of initiatives implemented from the staff survey  Number of internal promotions in the last quarter  Number of level 1 and 2 managers who were promoted internally  Number of new staff (less than three months) who attended an induction program

31. Stay, say, strive engagement of staff  % of managers who are women  % of teams having a team meeting once a week  % of cross-trained personnel per team  Number of suggested improvements from employees by team  Suggestions made to suggestions implemented  Training days last month, last 3 months  Turnover of female staff  Number of staff who are aware of new staff initiative (from staff survey)

32. Measures that maybe KPIs  Number of recognitions planned for next week, next fortnight  Number of health related training planned for next 1,2-3,4-6 months  Employees who have been sick for over 2 weeks who are not on a back to work programme  Number of new staff (less than three months) who attended an induction program  Number of mentoring meetings to be held in next 1, 2-3 months

33. Measures that maybe KPIs #2  Date of next visit to key customers (by customer name)  Date of next social interaction with our key customers  Late / incomplete deliveries to key customers  Number of key fields in xxx system that are incomplete  Customers with contracts that are to expire in the next 0-3,4-6 months  Number of runs planned in uneconomic quantities in next week, fortnight

34. Measures that may go in the wrong direction  Linking lost time injuries to performance related pay  % of deliveries made on time  Percentage of teams having a team meeting once a week  Time taken to process patient in accident and emergency  Staff with over 10 years of service

35. These books came out in 07 www.waymark.co.nz to order, see link to www.amazon.comwww.amazon.com

36. Next steps  Understand all the resources I have provided you webcasts and articles on www.bettermanagement.com www.bettermanagement.com whitepapers and templates can be bought from www.davidparmenter.com www.davidparmenter.com my KPI book the workshop outlines  Hold a focus group workshop to find your CSFs

37. Thank you for participating in this web seminar Thank you for participating in this web seminar Please keep in touch about your progress Please keep in touch about your progress see www.davidparmenter.com for my speaking engagements, white papers etc see www.davidparmenter.com for my speaking engagements, white papers etcwww.davidparmenter.com

38. Amazon link on www.davidparmenter.com John Wiley & Sons have published