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Peter Geelen
Peter Geelen
CPM Partners

CPM Partners
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Ten golden rules for building a world-class KPI structure

Posted over 10 years ago

Building an excellent KPI structure is critical for implementing a good Performance Management framework for your company. It is the foundation for communicating and improving performance, day in day out. But how do you build a KPI structure that lasts?

Many companies think that just a list of KPIs suffice. Well, the good news is that at least you are measuring and, I hope, discussing performance. The bad news however is that you miss a lot of potential benefits in case you would have set up the structure in a way I’m going to explain in the next ten articles. Below, you can read the ten golden rules. Follow the ten rules and you will create a world class KPI structure for your company.

Golden rules for setting up a world class KPI structure:
1. it starts with strategy / change
2. finding the ultimate goal
3. determine your growth strategy
4. customer value proposition fuel your growth strategy
5. what about productivity
6. processes determine performance
7. cause and effect
8. triangle for KPI’s (influence able and not too many)
9. think in dimensions
10. push and pull

These golden rules are the way we build KPI structures with our customers. This is part of iPM®, a very practical Performance Management method, that is applied successfully in profit and non-profit organizations and explained in a couple of my books.

Please join the journey and implement your KPI structure for your company and I case of difficulty you can always contact me through peter.geelen@cpmpartners.nl.

Comments (6)

khalil B.
khalil B.
Cisco

Peter,
Great article and useful tips.Where can i find more details on how to build a KPI framework?

Posted over 10 years ago | permalink
Peter Geelen
Peter Geelen
CPM Partners

Khalil,

Thank you. I will explain a rule every 14 days. They are also explained in my books, unfortunately only available in Dutch.

Posted over 10 years ago | permalink

In general I like to David Parmenter’s tips (I am not linked to him, other than I like his webcasts). I think the one that is the most relevant to you is: http://www.bettermanagement.com/seminars/seminar.aspx?l=15012
Good luck with it,
Gian
(Cisco Alumnus)

Posted over 10 years ago | permalink
naveen rawat
naveen rawat
QEHS Administrator

If possible please provide details of 10 golden rules.

Posted over 10 years ago | permalink
Peter Geelen
Peter Geelen
CPM Partners

Please follow KPI Library in coming months

Posted over 10 years ago | permalink
Nugrawan M Amin
Nugrawan M Amin
Strategic Management Team at PT Sierad Produce Tbk

sorry i just see now, if possible can you give me examples of golden rules

thank you

Posted about 10 years ago | permalink

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