Key Performance Indicator (KPI) Review Workshop

Intended recipient

Any organisation, business unit or team that would like to have their performance measures constructively reviewed for best practise by BMA Group experts.

Outline

This review helps to avoid the pitfalls of performance measurement. BMA applies principles such as validity, reliability, completeness, conciseness, comprehensibility, time comparability, peer comparability, time perspective status, diagnosis and action orientation.

Purpose: Comprehensively review the set of key performance indicators (KPIs) to ensure that they reflect the objectives of the unit in delivering products or services to its customers (internal and external) and meeting the needs of each of its stakeholders.

Ensure that the KPIs are aligned with business unit objectives within each relevant perspective. The review would also seek to identify any gaps or redundancies in the KPI set. Other principles of performance measure design such as robustness, reliability, comparability, etc. would also be applied in making recommendations.

Review indicators of team processes and activities that measure drivers and enablers of team performance and point to action. Ensure that these are complete and test them for validity, reliability, etc. in relation to relevant KPI's. Highlight gaps and redundancies and make appropriate recommendations.

Examine or specify lead measures of performance that provide early warning of problems or opportunities. Test these measures for timeliness, accuracy, etc. Highlight gaps and redundancies and make appropriate recommendations.

Produce a report that shows the relationships between the full set of performance measures by perspective, suggests modifications to these measures that will enhance their value to management, identifies gaps and redundancies, and makes recommendations to improve the overall value of the set of KPI's to the unit.

Form

Largely carried out by email. Some telephone contact may be necessary to resolve difficult communications issues.

The project begins with you supplying the initial documents and information set out below. We will then contact you by email exchange until BMA has a full understanding of your information. BMA will then proceed with the analysis, asking about any issues that have been identified to ensure that our judgment is correct. When all issues have been resolved, our consultant will produce a draft report for your consideration.

What We Need

Statement of overall business unit or organisation vision, strategies and objectives.

Organisational chart that shows how the team relates to the organisation in a management sense. Also an organisational chart for the team that shows how the team is organised and managed.

Description of outputs delivered to each of the team's internal or external customers. What is it that you deliver to each of your customer groups (products and services, direct and indirect)?

• Description of planned outcomes to meet the expectations of other stakeholders (eg shareholders, employees).

• Description of inputs to your team. Which teams or external providers supply these inputs?

• Description of the processes undertaken by your team that transform inputs into customer outputs.

• List of key performance indicators (KPI's), their definitions, and the strategies and objectives to which they relate.

• List of supporting measures and their definitions together with explanations of how they relate to the KPI's.