Among the many things this book does well, the most important may be: Setting the context for key implementation steps. In addition to his 12 step process, Parmenter presents 5 critical aspects of a KPI system.
One, he open's the dialogue by providing all important distinctions between; Key Results Indicators (KRIs), team Performance Indicators (PIs), and leadership's Key Performance Indicators (KPIs). He says these should be balanced 10/80/10. This is foundational to successful implementation.
Two, he links these to strategy thru a clear understanding of well thought out (and few in number) Critical Success Factors (CSFs) - one of the most critical and hardest parts of for making measurement effective at a working level.
Three, he exposes the 'best practice' myth; rightly acknowledging that the goal is the continuous adaptation of 'better' practices and not a misguided belief in the redemptive qualities and often misapplication of someone else's "best practice".
Four, he stresses the importance of understanding measurement as a constantly evolving process and not a one-time establishment of the "right" measures.
And, five, he places performance measurement within the overall context of organizational development. A part of the whole, but not the whole.
An in-depth look at how to create and use key performance indicators (KPIs), from the King of KPIs – now updated and expanded!
By exploring measures that have transformed businesses, David Parmenter has developed a methodology that is breathtaking in its simplicity and yet profound in its impact. Now in an updated and expanded Second Edition, Key Performance Indicators is a proactive guide representing a significant shift in the way KPIs are developed and used, with an abundance of implementation tools, including:
The four foundation stones that lead the development and use of KPIs
A 12-step model for developing and using KPIs with guidelines
A KPI resource kit including worksheets, workshop programs, and questionnaires
A new and pragmatic approach to finding critical success factors
Over 300 performance measures
Implementation variations for small to medium enterprises and not-for-profit organizations
New implementation short cuts
How to brainstorm performance measures
Templates for reporting performance measures
A resource kit for a consultant who is acting as a coach / facilitator to the in-house project team
Now including a discussion of critical success factors, as well as new chapters that focus on implementations issues and 'how to sections' on finding your CSFs and brainstorming the performance measures that report progress within the CSFs, Key Performance Indicators, Second Edition will help you identify and track your organization's KPIs to ensure continued and increased success.
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