Finance Corporate Finance

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

By David Parmenter
John Wiley & Sons April 2012

Specifications

ISBN-13
9780470944547
Publisher
John Wiley & Sons
Publication
April 2012
Format
Hardback , 309 pages
Jurisdiction
International or US ? Countri(es) for reference only

Details

Winning techniques and strategies for nonprofits and government agencies in creating successful and critical key performance indicators

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. Key Performance Indicators for Government and Nonprofit Agencies: Implementing Winning KPIs is a proactive guide representing a significant shift in the way KPIs are developed and used, with an abundance of implementation tools for government agencies and nonprofit groups.

  • Implementation variations and short cuts for government and not-for-profit organizations
  • 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
  • Also by David Parmenter: Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, Second Edition

Filled with numerous case studies and checklists to help readers develop their KPIs, this book shows government agencies and nonprofits how to select and implement winning key performance indicators to ensure that their performance management initiatives are successful.

Table of Contents

Preface

Acknowledgments

Part I Setting the Scene

Chapter 1 Background

Are Agencies Really “Nonprofit” Agencies

Measurement in Government and Non Profit Agencies

Unintended Behavior: The Dark Side of Measures

Balance Scorecards within Government and Non Profit Agencies

Checklist: Where Are You in Your Journey with Performance Measures?

Major Benefits of Performance Measures

Notes

Chapter 2 Myths of Performance Measurement

Myth 1: Measuring Performance Is Relatively Simple and the Appropriate Measures Are Very Obvious

Myth 2: You Can Delegate a Performance Management Project to a Consulting Firm

Myth 3: Your In-House Project Team Can Achieve Success while Continuing on with Their Other Duties

Myth 4: By Tying KPIs to Pay You Will Increase Performance

Myth 5: Most Measures Lead to Better Performance

Myth 6: Performance Measures Are Mainly Used to Help Manage Implementation of Strategic Initiatives

Myth 7: The Balanced Scorecard Was First Off the Blocks

Myth 8: Measures Fit Neatly into One Balance Scorecard Perspective

Myth 9: Balance Scorecard Can Report Progress to Both Management and the Board

Myth 10: There Are Only Four Balanced Scorecard Perspectives

Myth 11: Strategy Mapping Is a Vital Requirement

Myth 12: All Performance Measures Are KPIs

Myth 13: Monitoring Monthly Performance Measures Will Improve Performance

Myth 14: KPIs Are Financial and Nonfinancial Indicators

Myth 15: The More Measures the Better

Myth 16: Indicators Are Either Lead (Performance Driver) or Lag (Outcome) Indicators

Myth 17: We Know What Good Performance Will Look Like Before the Year Starts and thus Can Set Relevant Year-End Targets

Notes

Chapter 3 Revitalizing Performance Management

Foundation Stone 1: Understanding of Human Behavior

Foundation Stone 2: Knowledge of the Paradigm Shifters (Drucker, Collins, Welch, Hamel, Peters and Waterman, and Others)

Foundation Stone 3: Using an Appropriate Strategy

Foundation Stone 4: Critical Success Factors Known by All

Foundation Stone 5: Abandonment of Processes That Do Not Work

Rejuvenating Human Resources

Performance Related Pay: Correcting the Errors

Reviewing an Individual’s Performance

Getting the Right People on the Bus

Jack Welch's 20/70/10 Differentiation Rule

Secrets from High Performing Teams

Toyotas 14 Principles

Role of Performance Measures: Implementing Winning KPIs

Quarterly Rolling Planning: The Setting of Targets

Reporting Performance

Outside-in View

Adopting Kaizen

Working Smarter Not Harder

Getting Technology to Deliver

Moving from Management to Leadership

Notes

Chapter 4 Measurement Leadership has to Come from the Chief Executive Officer

Barriers to Measurement Leadership

The Way Forward for the Chief Executive Officer

Appoint a Chief Measurement Officer

Notes

Chapter 5 Strategy and Its Relevance to Performance Measures

Define Your Organization's Mission, Vision, Values

Create a Strategy that Is Understood by Staff

Ensure that Your Strategy Is Balanced

Monitor Implementation of Your Strategy

Creating the Future

Replace the Annual Planning Process with Rolling Planning

Notes

Part II Winning KPIs Methodology

Chapter 6 The Great KPI Misunderstanding

Key Result Indicators

Performance and Result Indicators

Key Performance Indicators

Seven Characteristics of KPIs

Difference between Key Results Indicators and KPIs

Lead and Lag Confusion

10/80/10 Rule

Importance of Timely Measurement

Note

Chapter 7 Finding Your Organization's Critical Success Factors

The Missing Link

Importance of Knowing Your Organization's Critical Success Factors

Task 1: Documenting the Already Identified Success Factors

Task 2: Determining the Critical Success Factors in a Workshop

Task 3: Presenting the Critical Success Factors to the Senior Management Team

Task 4: Explaining the Critical Success Factors to Employees

Notes

Chapter 8 Foundation Stones for Implementing Key Performance Indicators

“Partnership with the Staff, Unions, Key Suppliers, and Key Customers” Foundation Stone

“Transfer of Power to the Front Line” Foundation Stone

“Measuring and Reporting Only What Matters” Foundation Stone

“KPIs Are Sourced from the Critical Success Factors” Foundation Stone

“Abandonment of Processes That Do Not Deliver” Foundation Stone

“Understanding of Human Behavior” Foundation Stone

“Organizational Wide Understanding of Winning KPIs Definition” Foundation Stone

Note

Chapter 9 Implementing the 12-Step Process

How the 12-Step Model and the Six Foundation Stones Fit Together

Notes

Chapter 10 Determining the Measures

How to Derive Measures: Using the Winning KPI Methodology

Brainstorming Measures

Stacey Barr's PuMP

Checking KPIs for Behavioral Alignment

Chapter 11 Case Studies

Golf Club (Non Profit Membership Organization)

Surf Life Saving (Non Profit Membership Organization)

Government Department

Professional Accounting Body

Chapter 12 Selling Change

Selling by Emotional Drivers

Selling a Car

Selling the Move to Winning KPIs

Chapter 13 Common Success Factors and Their Likely Measures for Government and Non Profit Agencies

Chapter 14 Reporting Performance Measures

The Work of Stephen Few in Data Visualization

Reporting the KPIs to Management and Staff

Reporting Performance Measures to Management

Reporting Performance Measures to Staff

Reporting Performance Measures to the Board

Reporting Team Performance Measures

How the Reporting of Performance Measures Fits Together

Notes

Epilogue: Resources

Appendix A Foundation Stones of Performance Related Pay Schemes

Appendix B Getting the Right People on the Bus

Appendix C The Public Sector Can Abandon the Flawed Budget Process

Appendix D Jack Welch's Strategy Slides

Appendix E Suggested Critical Success Factors for Government and Non Profit Agencies

Appendix F List of Performance Measures

Appendix G Presenting the Critical Success Factors to the Board

Appendix H Main Differences between the Balanced Scorecard and Winning KPIs Methodologies

About the Author

Index

About the Author

David Parmenter is an international presenter who is known for his entertaining and thought-provoking sessions, which have led to substantial change in many organizations. He is a leading expert in the development of winning KPIs, replacing the annual planning process with quarterly rolling planning and management practices that will get you to the top. David has delivered workshops to thousands of attendees in many cities around the world, including Sydney, Melbourne, Hong Kong, Kuala Lumpur, Singapore, Tehran, Jeddah, Muscat, Johannesburg, Prague, Rome, Dublin, London, Manchester, Edinburgh, and Toronto. He has worked for Ernst & Young, BP Oil Ltd, and Arthur Andersen, and is a Fellow of the Institute of Chartered Accountants in England and Wales. David is a regular writer for professional and business journals. He is also the author of Winning CFOs: Implementing and Applying Better Practices and The Leading-Edge Manager's Guide to Success (both from Wiley). David can be contacted via [email protected] or +64 4 499 0007. His website, davidparmenter.com, contains many white papers, articles, and freeware that will be useful to readers.

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