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Key Performance
Indicators
►Measurable indicators that will be
used to report progress that is chosen
to reflect the critical success Strategic
► A factor considered to be most conducive
to the achievement of a successful
Critical Success Factors
(CSF)
►Generally there are Two approaches :
- KPI based on Strategic themes
- KPI based on Critical success factors
* They both drive from Objectives from
strategic aims Performance indicators
flowing from objectives Status and
progress indicators
* Year on year change indicators
What IS a KPI
?
 A KPI (Key Performance Indicator) is simply a metric
that is tied to a target.
 Most often, a KPI represents how far a metric is
above or below a pre-determined target.
 KPI’s usually are shown as a ratio of actual to target
and are designed to instantly let a business user know if
they are on or off their plan
A set of measures that a company or
industry uses to gauge or compare
performance in terms of meeting their
strategic and operational goals.
 KPIs vary between companies and industries,
depending on their priorities or performance
criteria.
The five conditions of good KPIs:
 Specific : – It has to be clear what the KPI exactly measures.
 Measurable : – The KPI has to be measurable to define a
standard, budget or norm, to make it possible to measure the
actual value and to make the actual value comparable to the
budgeted value.
 Achievable : – Every KPI has to be measurable to define a
standard value for it. It is really important for the acceptance of
KPI’s and Performance Management in general within the
organization that this norm is achievable.
 Relevant :– The KPI must give more
insight in the performance of the
organization in obtaining its strategy.
Therefore an irrelevant KPI is useless.
 Time phased :– It is important to express
the value of the KPI in time
 Improve personnel’s understanding of
Company .
 Improve personnel’s awareness of
maintenance performance.
+ =
Objectives of KPIof KPI
 KPIs are directly linked to the overall goals of
the company.
 KPIs are measurements that define and track
specific business goals and objectives.
Business
Objectives
Key Success
Factors (KSFs)
Key Performance
Indicators (KPIs)
Tracked by.Determine.
 The larger or smaller organizational strategies
require monitoring, improvement, and
evaluation.
 Once an organization has analyzed its mission,
identified all its stakeholders, and defined its
goals, it needs a way to measure progress toward
those goals.
 KPIs are utilized to track or measure actual
performance against key success factors.
 KPIs should be clearly linked to the strategy
 KPIs have to provide the answers to our most
important questions.
 KPIs should be primarily designed to empower
employees and provide them with the relevant
information to learn.
How to design
KPIs
 Identifies everything that is easy to measure and
count.
 Visibility on performance and strategic goal
 It helps to measure both the financial and
operational goals of a company.
 Efficient management
 A team work on the basis of shared and
measurable objectives.
 KPI’s do not give answers, rather they raise
questions and direct once attention.
Advantag
es
 The KPI’s is intended to simply
improve future results without reference to
external parties and benchmarks.
 Frequency of Data Collection.
 Should be measured frequently.
 No connection with the external
database.
 Short – term
 Used to punish rather than to motivate
and equip
Disadvantag
es
Process KPIs: - measure the efficiency or
productivity of a business process.
 Examples - Days to deliver an order.
Input KPIs: - measure assets and resources
invested in or used to generate business results.
 Examples - Dollars spent on research and
development, Funding for employee training, and
Quality of raw materials.
Types of
KPIs
Output KPIs:- measure the financial and
nonfinancial results of business activities.
Examples: Revenues, Number of new
customers acquired.
Leading KPI :- measure activities that have
a significant effect on future performance.
Lagging KPI :- is a type of indicator that reflect
the success or failure after an event has been
consumed.
 Such as most financial KPIs, measure the
output of past activity.
Outcome KPI: - Reflects overall results or impact
of the business activity in terms of generated
benefits, as a quantification of performance.
Qualitative KPI:- A descriptive characteristic, an
opinion, a property or a trait.
 Examples are employee satisfaction through surveys
which gives a qualitative report.
Quantitative KPI:- A measurable characteristic,
resulted by counting, adding, or averaging
numbers.
Quantitative data is most common in
measurement and therefore forms the backbone
of most KPIs.
 Examples are Units per man-hour.
Thanks
Shady Mohammed

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Key Performance Indicators

  • 1.
  • 2. Key Performance Indicators ►Measurable indicators that will be used to report progress that is chosen to reflect the critical success Strategic ► A factor considered to be most conducive to the achievement of a successful Critical Success Factors (CSF)
  • 3. ►Generally there are Two approaches : - KPI based on Strategic themes - KPI based on Critical success factors * They both drive from Objectives from strategic aims Performance indicators flowing from objectives Status and progress indicators * Year on year change indicators
  • 4. What IS a KPI ?  A KPI (Key Performance Indicator) is simply a metric that is tied to a target.  Most often, a KPI represents how far a metric is above or below a pre-determined target.  KPI’s usually are shown as a ratio of actual to target and are designed to instantly let a business user know if they are on or off their plan
  • 5. A set of measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals.  KPIs vary between companies and industries, depending on their priorities or performance criteria.
  • 6. The five conditions of good KPIs:  Specific : – It has to be clear what the KPI exactly measures.  Measurable : – The KPI has to be measurable to define a standard, budget or norm, to make it possible to measure the actual value and to make the actual value comparable to the budgeted value.  Achievable : – Every KPI has to be measurable to define a standard value for it. It is really important for the acceptance of KPI’s and Performance Management in general within the organization that this norm is achievable.
  • 7.  Relevant :– The KPI must give more insight in the performance of the organization in obtaining its strategy. Therefore an irrelevant KPI is useless.  Time phased :– It is important to express the value of the KPI in time
  • 8.  Improve personnel’s understanding of Company .  Improve personnel’s awareness of maintenance performance. + = Objectives of KPIof KPI
  • 9.  KPIs are directly linked to the overall goals of the company.  KPIs are measurements that define and track specific business goals and objectives. Business Objectives Key Success Factors (KSFs) Key Performance Indicators (KPIs) Tracked by.Determine.
  • 10.  The larger or smaller organizational strategies require monitoring, improvement, and evaluation.  Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals.  KPIs are utilized to track or measure actual performance against key success factors.
  • 11.  KPIs should be clearly linked to the strategy  KPIs have to provide the answers to our most important questions.  KPIs should be primarily designed to empower employees and provide them with the relevant information to learn. How to design KPIs
  • 12.  Identifies everything that is easy to measure and count.  Visibility on performance and strategic goal  It helps to measure both the financial and operational goals of a company.  Efficient management  A team work on the basis of shared and measurable objectives.  KPI’s do not give answers, rather they raise questions and direct once attention. Advantag es
  • 13.  The KPI’s is intended to simply improve future results without reference to external parties and benchmarks.  Frequency of Data Collection.  Should be measured frequently.  No connection with the external database.  Short – term  Used to punish rather than to motivate and equip Disadvantag es
  • 14. Process KPIs: - measure the efficiency or productivity of a business process.  Examples - Days to deliver an order. Input KPIs: - measure assets and resources invested in or used to generate business results.  Examples - Dollars spent on research and development, Funding for employee training, and Quality of raw materials. Types of KPIs
  • 15. Output KPIs:- measure the financial and nonfinancial results of business activities. Examples: Revenues, Number of new customers acquired. Leading KPI :- measure activities that have a significant effect on future performance.
  • 16. Lagging KPI :- is a type of indicator that reflect the success or failure after an event has been consumed.  Such as most financial KPIs, measure the output of past activity. Outcome KPI: - Reflects overall results or impact of the business activity in terms of generated benefits, as a quantification of performance.
  • 17. Qualitative KPI:- A descriptive characteristic, an opinion, a property or a trait.  Examples are employee satisfaction through surveys which gives a qualitative report. Quantitative KPI:- A measurable characteristic, resulted by counting, adding, or averaging numbers. Quantitative data is most common in measurement and therefore forms the backbone of most KPIs.  Examples are Units per man-hour.