1. Key Performance Indicators in Measuring Institutional Performance Case Study Use of Board Level KPIs
John Lauwerys
Secretary & Registrar

2. Overview Part 1 - John Lauwerys
University of Southampton – facts & figures
Corporate Strategy, Strategic Planning & Budgeting
Early assessments of University performance
Approach to Developing KPIs
Development of KPIs at Southampton

3. Part 2 - Dame Valerie Strachan Part 3 - Questions & Discussion
Overview
Part 2 - Dame Valerie Strachan
Governing Body’s requirements
Observation on the two approaches
- KPIs based on strategic themes
- KPIs based on critical success factors
Part 3 - Questions & Discussion

4. University of Southampton
Over 20,000 students (5000 postgraduates)
Over 2,000 international students
5200 staff including 2100 academics
£300 million turnover (40% from research)
6 campuses
Research links across the world

5. University of Southampton
Top-10 in UK for research income
Top-10 in National Student Survey 2006
Top- 5 for enterprise activity
Queen’s Anniversary prize for Higher Education awarded to Institute of Sound & Vibration Research
But further ambition to be top-10 across the board by 2010

6. Strategic Planning & Budgeting
Corporate Strategy developed ahead of restructuring in August 2003
7 faculties, 50+ departments  3 faculties, 23 Schools & Research Institutes
Annual strategic planning and budgeting round designed to meet changing requirements
Planning horizon – “5 years” for University but “current year +2” for Schools & Professional Services
Role of Council

7. Early assessments of University performance
Abstract of statistics (to 2002)
Student numbers (mode and level)
Domicile of students (UK/EU, overseas)
Residence (catered, self-catered, home, private sector)
Degrees awarded
Academic staff (numbers and categories)
Income & Expenditure

8. Early assessments of University performance
Abstract of statistics (to 2002)
Presented core information and trends for student numbers and income
Useful indicator of the scale of operations and as a reference tool but no link to corporate aims

9. Approach to Developing KPIs
Aug University restructuring implemented
Dec Corporate Strategy published. Council
asks for KPIs to be developed
Dec KPIs based on strategic aims presented to Council
Sep Revised KPIs based on critical success factors presented to Council
Nov Development of KPIs continues

10. KPIs based on Strategic Aims (2004)
Development of KPIs
KPIs based on Strategic Aims (2004)
Strategic aims from Corporate Strategy
Objectives derived from strategic aims
Performance indicators flow from objectives
Status and progress indicators
Year-on-year change indicators

11. Example of KPI based on Strategic Aims

12. Development of KPIs – new approach
Revised KPIs based on Critical Success Factors (2006)
Critical success factors – key issues requiring management attention
Represent real issues faced “here and now”
Performance indicators relate to critical success factors not strategic aims – offers greater flexibility
Critical success factors can be mapped to strategic aims

13. Development of KPIs - CSFs
Revised KPIs based on Critical Success Factors (2006)
11 Critical success factors identified covering
Student recruitment
Staff recruitment
Staff and student experience
Enterprise
Reputation
Funding
Business processes
Research activity

14. Part 2 - Dame Valerie Strachan
Overview
Part 2 - Dame Valerie Strachan
Governing body’s requirements
Observations on the two approaches
KPIs based on strategic themes
KPIs based on critical success factors

15. Governing body’s requirements
Monitor the University’s progress in achieving its strategic aims
Identify areas of activity that require greater attention
Performance indicators that are grounded in data
Striking a balance between a comprehensive set of KPIs and information overload

16. Examples of Strategic Aims
Strategic Aim 1
Positioned amongst the top 10 universities in the UK. 2
Recognised as a well managed, autonomous institution demonstrating excellence across our activities. 3
Conducts world-class research and is recognised as an innovative, intellectual leader of international standing. 4
Provides research-led teaching and learning that is informed by leading edge concepts

17. KPIs based on Strategic Themes
Do the KPIs provide Council with a clear indication of progress to date and areas requiring greater attention?
Strategic aims do not always lend themselves to measurement and require associated objectives
No difficulty with objectives extracted from the Corporate Strategy but derived objectives may have no real ownership

18. KPIs based on Strategic Themes
Metrics may not always provide good evidence of progress and need to be chosen carefully
Tendency to use metrics that are readily available rather than collecting data that reflect what needs to be measured

19. KPIs based on Strategic Themes
Strategic Aims do not all easily lend themselves to proof, for example number 4 above ”Provides research-led teaching and learning that is informed by leading edge concepts”
Reports against this aim might look fine while the University may not actually be succeeding

20. Mapping of CSFs to Strategic Aims

21. Example of Critical Success Factor

22. Example of metrics used in CSF
Maintain our premier position as a research intensive University

23. KPIs based on CSFs
CSFs are more tangible and down-to-earth; success or otherwise is more easily seen, and if we are doing well on all of them we can be confident that the University really is in good shape
Provide flexibility to adopt or retire new CSFs as circumstances change e.g. Mountbatten fire
Can be cascaded to operational levels of management more easily and usefully than strategic aims

24. In Summary Introduction of KPIs represents a major step forwards
Enables governing body to understand where progress is being made towards achieving strategic aims and those areas which need to be addressed
Development of KPIs continues in response to Council’s requirements
Commend adoption of KPIs by other higher education institutions

25. Questions & Discussion