Key Performance Indicators for Government and Non Profit Agencies – Implementing Winning KPIS

<p>Preface xiii</p>
<p>Acknowledgments xxi</p>
<p>PART I SETTING THE SCENE</p>
<p>CHAPTER 1 Background 3</p>
<p>Are Agencies Really Non Profit Agencies? 3</p>
<p>Measurement in Government and Non Profit Agencies 3</p>
<p>Unintended Behavior: The Dark Side of Measures 4</p>
<p>Balanced Scorecards within Government and Non Profit Agencies 6</p>
<p>Checklist: Where Are You in Your Journey with Performance Measures? 6</p>
<p>Major Benefits of Performance Measures 8</p>
<p>Notes 10</p>
<p>CHAPTER 2 Myths of Performance Measurement 13</p>
<p>Myth 1: Measuring Performance Is Relatively Simple and the Appropriate Measures Are Very Obvious 13</p>
<p>Myth 2: You Can Delegate a Performance Management Project to a Consulting Firm 14</p>
<p>Myth 3: Your In–House Project Team Can Achieve Success while Continuing with Their Other Duties 14</p>
<p>Myth 4: By Tying KPIs to Pay You Will Increase Performance 14</p>
<p>Myth 5: Most Measures Lead to Better Performance 15</p>
<p>Myth 6: Performance Measures Are Mainly Used to Help Manage Implementation of Strategic Initiatives 16</p>
<p>Myth 7: The Balanced Scorecard Was First Off the Blocks 17</p>
<p>Myth 8: Measures Fit Neatly into One Balanced–Scorecard Perspective 18</p>
<p>Myth 9: The Balanced Scorecard Can Report Progress to Both Management and the Board 18</p>
<p>Myth 10: There Are Only Four Balanced–Scorecard Perspectives 18</p>
<p>Myth 11: Strategy Mapping Is a Vital Requirement 20</p>
<p>Myth 12: All Performance Measures Are KPIs 22</p>
<p>Myth 13: Monitoring Monthly Performance Measures Will Improve Performance 23</p>
<p>Myth 14: KPIs Are Financial and Nonfinancial Indicators 23</p>
<p>Myth 15: The More Measures the Better 23</p>
<p>Myth 16: Indicators Are Either Lead (Performance Driver) or Lag (Outcome) Indicators 24</p>
<p>Myth 17: We Know What Good Performance Will Look Like Before the Year Starts and, thus, Can Set Relevant Year–End Targets 24</p>
<p>Notes 25</p>
<p>CHAPTER 3 Revitalizing Performance Management 27</p>
<p>Foundation Stone 1: Understanding Human Behavior 27</p>
<p>Foundation Stone 2: Knowledge of the Paradigm Shifters (Drucker, Collins, Welch, Hamel, Peters, Waterman, and Others) 29</p>
<p>Foundation Stone 3: Using an Appropriate Strategy 44</p>
<p>Foundation Stone 4: Critical Success Factors Known by All Staff 45</p>
<p>Foundation Stone 5: Abandon Processes That Do Not Work 45</p>
<p>Rejuvenating Human Resources 46</p>
<p>Performance–Related Pay: Correcting the Errors 47</p>
<p>Reviewing an Individual s Performance 48</p>
<p>Getting the Right People on the Bus 48</p>
<p>Jack Welch s 20/70/10 Differentiation Rule 49</p>
<p>Secrets from High–Performing Teams 49</p>
<p>Toyota s 14 Principles 50</p>
<p>Role of Performance Measures: Implementing Winning KPIs 51</p>
<p>Quarterly Rolling Planning: The Setting of Targets 51</p>
<p>Reporting Performance 52</p>
<p>Outside–In View 53</p>
<p>Adopting Kaizen 53</p>
<p>Working Smarter Not Harder 54</p>
<p>Getting Technology to Deliver 54</p>
<p>Moving from Management to Leadership 55</p>
<p>Notes 55</p>
<p>CHAPTER 4 Measurement Leadership Has to Come from the Chief Executive Officer 57</p>
<p>Barriers to Measurement Leadership 57</p>
<p>The Way Forward for the Chief Executive Officer 58</p>
<p>Appoint a Chief Measurement Officer 60</p>
<p>Notes 60</p>
<p>CHAPTER 5 Strategy and Its Relevance to Performance Measures 61</p>
<p>Define Your Organization s Mission, Vision, Values 61</p>
<p>Create a Strategy That Is Understood by Staff 63</p>
<p>Ensure That Your Strategy Is Balanced 64</p>
<p>Monitor Implementation of Your Strategy 66</p>
<p>Creating the Future 66</p>
<p>Replace the Annual Planning Process with Rolling Planning 67</p>
<p>Notes 67</p>
<p>PART II WINNING KPIs METHODOLOGY</p>
<p>CHAPTER 6 The Great KPI Misunderstanding 71</p>
<p>Key Result Indicators 71</p>
<p>Performance and Result Indicators 73</p>
<p>Key Performance Indicators 74</p>
<p>Seven Characteristics of KPIs 76</p>
<p>Difference between Key Results Indicators and KPIs 78</p>
<p>Lead and Lag Confusion 79</p>
<p>10/80/10 Rule 81</p>
<p>Importance of Timely Measurement 82</p>
<p>Note 83</p>
<p>CHAPTER 7 Finding Your Organization s Critical Success Factors 85</p>
<p>The Missing Link 85</p>
<p>Importance of Knowing Your Organization s Critical Success Factors 86</p>
<p>Four Tasks For Identifying Organization–Wide Critical Success Factors 91</p>
<p>Strategy Mapping 100</p>
<p>Notes 103</p>
<p>CHAPTER 8 Foundation Stones for Implementing Key Performance Indicators 105</p>
<p> Partnership with the Staff, Unions, and Third Parties Foundation Stone 105</p>
<p> Transfer of Power to the Front Line Foundation Stone 107</p>
<p> Measure and Report Only What Matters Foundation Stone 108</p>
<p> Source KPIs from the Critical Success Factors Foundation Stone 110</p>
<p> Abandon Processes That Do Not Deliver Foundation Stone 111</p>
<p> Understand Human Behavior Foundation Stone 112</p>
<p> Organization–Wide Understanding of Winning KPIs Definition Foundation Stone 113</p>
<p>Notes 113</p>
<p>CHAPTER 9 Implementing the 12–Step Process 115</p>
<p>How the 12–Step Model and the Seven Foundation Stones Fit Together 115</p>
<p>Step One: Senior Management Team Commitment 115</p>
<p>Step Two: Establish a Winning KPI Team Working Full Time on the Project 120</p>
<p>Step Three: Establish a Just–Do–It Culture and Process 124</p>
<p>Step Four: Set Up a Holistic KPI Development Strategy 127</p>
<p>Step Five: Market the KPI System to All Employees 131</p>
<p>Step Six: Identify Organization–Wide Critical Success Factors 134</p>
<p>Step Seven: Record Performance Measures in a Database 134</p>
<p>Step Eight: Select Team–Level Performance Measures 137</p>
<p>Step Nine: Select Organizational Winning KPIs 143</p>
<p>Step Ten: Develop the Reporting Framework at All Levels 145</p>
<p>Step Eleven: Facilitate the Use of Winning KPIs 148</p>
<p>Step Twelve: Refine KPIs to Maintain Their Relevance 151</p>
<p>Notes 152</p>
<p>CHAPTER 10 Determining the Measures 155</p>
<p>How to Derive Measures 156</p>
<p>Brainstorming Measures 156</p>
<p>Stacey Barr s PuMP 157</p>
<p>Checking KPIs for Behavioral Alignment 159</p>
<p>CHAPTER 11 Case Studies 161</p>
<p>Golf Club (Non Profit Membership Organization) 161</p>
<p>Surf Life Saving (Non Profit Membership Organization) 166</p>
<p>Government Department 169</p>
<p>Professional Accounting Body 170</p>
<p>CHAPTER 12 Selling Change 173</p>
<p>Selling by Emotional Drivers 173</p>
<p>Selling the Move to Winning KPIs 174</p>
<p>CHAPTER 13 Common Critical Success Factors and Their Likely Measures for Government and Non Profit Agencies 177</p>
<p>CHAPTER 14 Reporting Performance Measures 185</p>
<p>The Work of Stephen Few in Data Visualization 185</p>
<p>Reporting the KPIs to Management and Staff 186</p>
<p>Reporting Performance Measures to Management 191</p>
<p>Reporting Performance Measures to Staff 195</p>
<p>Reporting Performance Measures to the Board 195</p>
<p>Reporting Team Performance Measures 201</p>
<p>How the Reporting of Performance Measures Fits Together 204</p>
<p>Notes 204</p>
<p>Epilogue: Resources 205</p>
<p>Appendix A: Foundation Stones of Performance–Related Pay Schemes 211</p>
<p>Appendix B: Effective Recruiting Getting the Right People on the Bus 223</p>
<p>Appendix C: The Public Sector Can Abandon the Flawed Budget Process 229</p>
<p>Appendix D: Jack Welch s Strategy Slides 241</p>
<p>Appendix E: Suggested Success Factors for Government and Non Profit Agencies 243</p>
<p>Appendix F: List of Performance Measures Suitable for Government and Non Profit Agencies 273</p>
<p>Appendix G: Presenting the Critical Success Factors to the Board/Government Official 293</p>
<p>Appendix H: Main Differences between the Balanced–Scorecard and Winning–KPIs Methodologies 301</p>
<p>Index 305</p>