(Finance & Management, September 2013)
In his second article on performance management, David Parmenter asks whether it’s time to leave key performance indicators behind and adopt more radical measurements
Key Performance Indicators (KPIs) in many organisations are a broken tool. Measures are often a random collection prepared with little expertise, signifying nothing. KPIs should be measures that link daily activities to the organisation’s critical success factors (CSFs), thus supporting an alignment of effort within the organisation, in the intended direction. I call this alignment the
of management. El Dorado
However, poorly-defined KPIs cost the organisation dearly. Some examples are:
- measures gamed to the benefit of executive pay which leads to the detriment of the organisation;
- teams encouraged to perform tasks that are contrary to the organisation’s strategic direction;
- costly “measurement and reporting” regimes that lock up valuable staff and management time; and
- a six-figure consultancy assignment resulting in a “door stop” report or balanced scorecard that doesn’t function well.
Ready the full article in: https://docs.google.com/file/d/0B7AYHSYhhLDoV19HTnVUekNKYUU/edit?usp=sharing
A Digitalflow irá organizar o Workshop "Winning KPIs - Measuring and improving performance in difficult times” com David Parmenter, nos dias 10 de Outubro de 2013 em Lisboa e 11 de Outubro de 2013 no Porto. Trata-se de uma oportunidade única para usufruir do conhecimento e experiência de David Parmenter, um dos mais reputados especialistas mundiais na área da gestão de performance.