OPEXCON 2013, Measuring Right: Case Study: KPI's & Performance metrics to sustain change. Operational Excellence. KPIs and Performance metrics to sustain change. Choosing the right KPIs and Metrics for your transformation. Tracking your performance and adjusting accordingly to sustain change.
International Business Environments and Operations 16th Global Edition test b...
2013 opex ivan broodryk_measuring kpi right
1. Measuring Right:
Case Study: KPIs &
Performance metrics to
sustain change.
Ivan Broodryk
DIRECTOR QUALITY ASSURANCE, EMEA
2. Objectives
KPIs and Performance metrics to sustain change.
Choosing the right KPIs and Metrics for your
transformation.
Tracking your performance and adjusting accordingly to
sustain change.
Measuring Right
4. About Me
Director Quality Assurance EMEA at Ecolab
Lead the EMEA Integrated Management System, and the Supply Chain Quality Teams in Multiple
Plant Locations (26) in Europe, Middle East and Africa.
Our company is a trusted partner at more than one million customer locations, Ecolab is the
global leader in water, hygiene and energy technologies and services that provide and protect
clean water, safe food, abundant energy and healthy environments. Founded in 1923 and
headquartered in St. Paul, Minn., Ecolab serves customers in more than 170 countries across North
America, Europe, Asia Pacific, Latin America, the Middle East and Africa. Our global workforce of
44,000 associates helps protect people and vital resources by delivering comprehensive solutions
to meet the unique needs of customers in the food, energy, healthcare, hospitality and industrial
markets..
I hold a Bachelor of Commerce, specializing in Business Management from University of South
Africa. I partcipated in various management development programs throughout my career, and are still
learning.
My career reflects career growth through diverse industry sectors and international business
environments.
I focus my energy on observing the world, and in generating ideas and possibilities, and active
participation in making a change. I place a great importance on honesty and integrity. I generally
take things seriously, but have a definite offbeat sense of humor and can be a lot of fun...
5. Terminology
KEY PERFORMANCE INDICATOR:
A performance indicator or key performance indicator (KPI) is a type of
performance measurement.
Are quantifiable measurements, agreed to beforehand, that reflect the critical
success factors of an organization.
METRIC:
Standards of measurement by which efficiency, performance, progress, or
quality of a plan, process, or product can be assessed.
OGSM
Objective, Goals, Strategies and Measures.
OGSM Framework forms the basis for strategic planning and execution as well
as subsequent reviews
6. Terminology
LEADING INDICATOR
A measurable factor that changes before the economy starts to follow a
particular pattern or trend.
Leading indicators are typically input oriented, hard to measure and easy to
influence.
Leading indicators are often related to activities undertaken by employees,
associates.
LAGGING INDICATOR
A lagging indicator is one that follows an event.
Lagging indicators are typically “output” oriented, easy to measure but hard to
improve or influence
7. Statement of the Case Study
26 Manufacturing Facilities
in 17 Different countries
Increase coverage of
Performance Scorecard due
to Mergers / Acquisitions.
Drive transformational
change in quality by
implementing the Regional
Quality Strategy.
Enhance System to be
auditable, data-driven, and
support the regions focus on
improvement, and resolution
of key issues.
8.
9. Why OGSM
Identify strategic priorities
Capture market opportunities
Optimize resources
Enhance speed and execution
Align team members
16. Criteria for evaluation of metrics
Strategic: Put simply, the best KPIs originate from the central objectives of the
organization – particularly those considered critical to the survival of the
enterprise.
Applicability: Refer back to the objectives – do the metrics and indicators help
you to understand whether the objectives have been met? Designed to show
whether processes are improving
Importance: Are you measuring the things that really matter? tell you what you
need to know. Designed to add value
Ease: Does the measurement ‘flow’ from the activity being monitored?
Economical and easy to collect
Actionable: Can the metric initiate appropriate actions?
Consistent and stable
Personalized: Developed by the people who will use them
17. Selection KPIs and Metrics
Application of OGSM Framework LAGGING
LEADING
18. Selection KPIs and Metrics
Application of OGSM Framework LAGGING
LEADING
26. Critical Elements
Network-Wide Culture
Regional Process, Tools, Metrics
Top-Down Leadership and Engagement in Process.
Clearly defined and linked roles & responsibilities; accountability
Consistent Methods for establishing, targets and reporting
performance
Consistent Criteria for prioritizing issues and aligning resources
Recognition of Positive Behaviour and Performance
33. 33
Questions?
Ivan Broodryk
DIRECTOR QUALITY ASSURANCE, EMEA
ECOLAB DEUTSCHLAND GMBH
Ecolab-Allee 1, D-40789 Monheim am Rhein
T +49 217 35991882
M +49 172 2916 905
E ivan.broodryk@ecolab.com
LinkedIN : de.linkedin.com/in/ivanbroodryk