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 email@example.com.
Great article and useful tips.Where can i find more details on how to build a KPI framework?
Thank you. I will explain a rule every 14 days. They are also explained in my books, unfortunately only available in Dutch.
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,
If possible please provide details of 10 golden rules.
Please follow KPI Library in coming months
sorry i just see now, if possible can you give me examples of golden rules