Latest trends in Performance Improvement Practices
0 likes36 views
The document discusses the latest trends in performance improvement practices with an emphasis on the importance of KPIs in decision-making and data management. It highlights challenges organizations face in utilizing data effectively, such as data quality and competency, and suggests improvements through alignment, automation, knowledge enhancement, and better communication. The report is based on insights from the KPI Institute and outlines steps for integrating and aligning KPIs across organizational functions.
Latest trends in Performance Improvement Practices
- 1. Click to edit Master title style Latest trends in Performance Improvement Practices Facilitator: Cristina Mihailoaie Head of Research Programs, The KPI Institute
- 2. 2 AGENDA 1 2 3 4 5 KPIs and decision making KPIs data management – who and how? KPIs alignment and integration in organization Challenges in improving performance Q & A 6 Improvement suggestions and hands-on recommendations
- 3. 3 KPIS AND DECISION MAKING The decision making process in the organization relies on data, rather than on instinct or managerial experience KPI performance results are analyzed in context, not as isolated events 45% 32% 22% High to Very High Moderate Small to Very Small High to Very High Moderate Small to Very Small 45% 33% 22% Source: The KPI Institute (2017)
- 4. 4 KPIS AND DECISION MAKING Why is it that we don’t use data more often? • Data quality issues? • Data availability/timeliness? • Competency? • Habit? • Time pressure? Not time to consult data?
- 5. 5 KPIS AND DECISION MAKING Why is it that we don’t use data more often? • Data quality issues? • Data availability/timeliness? Source: The KPI Institute (2017)
- 6. 6 KPIS AND DECISION MAKING Why is it that we don’t use data more often? • Time pressure? No time to consult data? • Habit? Source: Pixabay (2018) • Competency?
- 7. 7 KPI DATA MANAGEMENT - WHO ? KPI OWNERS VS DATA CUSTODIANS Governance of corporate performance Source: The KPI Institute (2017) 6% 8% 10% 11% 11% 16% 38% Commercial Internal Control and Audit Finance and Accounting There is no dedicated department/person (CEO) There is one FTE There is no dedicated department or person (C-suite) Strategy / Performance Management Office
- 8. 8 KPI DATA MANAGEMENT – HOW ? Data quality is outlined among top 3 challenges in managing performance Technology usage Source: The KPI Institute (2017) 6% 12% 23% 59% I don't know Standard software solution Customized software solution Microsoft Office (e.g. Excel, Word)
- 9. 9 KPI ALIGNMENT AND INTEGRATION – KPI ALIGNMENT Source: The KPI Institute (2017) Organizational strategy vs. Employee performance plan Organizational strategy vs. Departmental strategy 40% 39% 21% High to Very High Moderate Small to Very Small High to Very High Moderate Small to Very Small 32% 29% 39%
- 10. 10 KPI ALIGNMENT AND INTEGRATION – KPI INTEGRATION Most integrated processes with KPI measurement, according to our study: 1.Budgeting 2.Quality management 3.Process management Source: The KPI Institute (2017) Least integrated processes with KPI measurement, according to our study: 1.Innovation 2.Risk management 3.Project management
- 11. 11 CHALLENGES IN IMPROVING PERFORMANCE Source: The KPI Institute (2017) 2.83 3 3.01 3.21 3.32 3.57 Performance reporting Learning from performance results Data analysis Decision making The implementation of performance improvement initatives Building and nurturing a performance culture
- 12. 12 IMPROVEMENT SUGGESTIONS Source: The KPI Institute (2017) 1. Alignment “Strategy cascading” “Link employee goals to corporate goals” “Setting strategies and align KPIs to it” “Development of a performance management system aligned to departmental goals”
- 13. 13 IMPROVEMENT SUGGESTIONS Source: The KPI Institute (2017) 2. Automation “Use of dedicated software for data collection” “Introducing a performance management software” “Integrate all KPI measurement systems & fully automate it at all levels” “Give priority to PMS automation”
- 14. 14 IMPROVEMENT SUGGESTIONS Source: The KPI Institute (2017) 3. Knowledge and skills “Improve awareness” “Training of staff who will be responsible for corporate performance” “Basic education about performance management” “I would suggest to increase awareness on the importance of KPIs” “Greater education of lower level staff”
- 15. 15 IMPROVEMENT SUGGESTIONS Source: The KPI Institute (2017) 4. Culture and communication “Getting employees aware of the company’s strategic plans” “COMMUNICATION” “Greater transparency among lower level staff” “Better communication of strategic targets to all employees” “Transparency and engagement”
- 16. 16 WEBINAR TAKEAWAYS Source: The KPI Institute (2017) • Integration and alignment – consider from the start the need of KPIs in all areas of the organization and create a network of feedback and collaboration between FAs through them; • Automation – software may be expensive, but how about process streamlining, standardization and Excel usage? • Knowledge and skills – KPI champions, internal educational materials; • Culture and communication - strategy and performance communication plan.
- 17. 17 Our Services Put your Amazing Sub Title Here SOON BE RELEASE – MARCH 2018