Performance Magazine Issue 16 Compressed

ISSUE no.
16
OCTOBER 2019
2019
MARCELA PRESECAN
Performance Management
Redefining and reshaping
organizational behaviours
49 66 63
COVER STORY - KPIs LIFESTYLE

Best Practices in Fresh water Optimal Nutrition Key
Environmental withdrawn In Boosting
Sustainability Reporting: for Professional
DyStar business use Performance
PERFORMANCE MAGAZINE
Issue 16 Content.
STAFF
NEWS 07
ARTICLES 17
COVER STORY 49
EDITORIAL COORDINATION PORTRAIT 54

Aurel Brudan
CEO, The KPI Institute
Andrei Costea LIFESTYLE 63

Head of Publishing & Media
KPIs 66
EDITORIAL TEAM
Alina Miertoiu
RECOMMENDED RESOURCES
76
CONTRIBUTORS
Kayla Matthews
Nora Mork
Stuart Hearn
Mostafa Sayyadi
Holly Shaw
Josh Carlyle
Danish Wadhwa
Adrian Ciocoi
Peter Davidson RE AD MORE
DESIGN RE AD BE T TER
Bogdan Mihut
Head of Graphic Design
02
Welcome to Our
Monthly Magazine
Andrei Costea
Head of Publishing & Media,
This edition provides details on subjects such as

OKRs, KPIs, Employee Performance, Organizational
Performance, Personal Development and Leader-
ship, among others.
Flip through pages of extensive articles, concept

presentations, insights from practice, alongside KPI
in-practice examples and book recommendations,
all related to performance management.
In our 16th issue of PERFORMANCE Magazine,

we took a stroll down memory lane with our very
own Head of Research, at The KPI Institute, Marce-
la Presecan. Ms. Presecan has accrued over 10
years of experience in managing and measuring
performance, both in the performance manage-
Encompassing The KPI Institute’s experi-
ment and financial worlds, having been published
ence, research and expertise,
in the Unicredit Consumer Financing Magazine as
PERFORMANCE Magazine – Printed
the consultant with the biggest financial value in a
Edition provides its readership with first-
credit sold until that point.
hand how-to, resources, and insights
from practice, so as to assist them in
Furthermore, over the years, Ms. Presecan has be-
their performance endeavors and in be-
come one of TKI’s leading research figures, as she
coming state-of-the art professionals.
has spearheaded numerous projects that provided
assistance to companies worldwide, from con-
With these thoughts in mind, we proudly
sultancy services, to publishing research studies,
announce the launch of our sixteenth
dictionary series, top KPI series and state of the
issue of PERFORMANCE Magazine.
field reports.
PERFORMANCE Magazine is The KPI
So now we invite you to take part in a world dedicat-
Institute’s prime resource for insights
ed to improving performance and all that is com-
into the discipline of Performance Man-
prised in the search for improvement, in its smallest
agement.
details. Enjoy this September’s PERFORMANCE
Magazine!
The content published in PERFOR-
MANCE Magazine pursues high and wide
As we are always interested in gaining insights from
for some of the best, latest and most
practitioners who activate in a multitude of environ-
pressing topics of discussion in Perfor-
ments, contact us at editor@kpiinstitute.org if you
mance Management and in adjacent
are interested in becoming a Guest Post Editor, or
areas of interest.
having your interview featured in PERFORMANCE
Magazine.
As we are always interested in gaining
insights from practitioners who activate
in a multitude of environments, contact
us at editor@kpiinstitute.org if you are
interested in becoming a Guest Post Ed-
itor, or having your interview featured in
PERFORMANCE Magazine.
03
PERFORMANC
INDICATO R
KEE Y CERTIFIED KPI PROFESSIONAL AND PRACTITIONER

PERFORMANC E
INDICATORS This program is meant to improve the practical skills in working with KPIs and developing instruments like
C-KPI
scorecards and dashboards. Participants will acquire a sound framework to measure KPIs, starting from the
Framework
v 2.0 2015 moment they are selected, until results are collected in performance reports.
Fram
v2 CERTIFIED OKR PROFESSIONAL
This three-day course trains participants in how to set and work with OKRs and offers them the opportunity to
get certified on the ability to deploy and use OKRs in accordance with The KPI Institute’s standards, developed
through extensive research and practical knowledge in the field of Performance Management and Objective
Setting.
CERTIFIED STRATEGY AND BUSINESS PLANNING PROFESSIONAL

The course will help improve the business planning process and long-term organizational performance,
through the use of strategic planning tools that will ultimately lead to smarter and quicker strategic
decisions.
CERTIFIED AGILE STRATEGY EXECUTION PROFESSIONAL

The Certified Agile Strategy Execution Professional course reflects on the best methodologies to
leverage the benefits of deploying an integrated strategy and performance management framework within
organizational settings.
CERTIFIED PERFORMANCE MANAGEMENT PROFESSIONAL

This course offers insights and best practices for improving performance in different scenarios, from data
analysis and reporting, decision making and initiative management, to building a performance culture.
CERTIFIED EMPLOYEE PERFORMANCE MANAGEMENT PROFESSIONAL

Attendees will gain exposure to best practices and key concepts and will learn how to establish and
use criteria for performance evaluations, from implementation to improvement and maintenance of the
company’s employee performance management system.
CERTIFIED BALANCED SCORECARD MANAGEMENT SYSTEM PROFESSIONAL

This course offers insights and best practices for improving performance in different scenarios, from data
analysis and reporting, decision making and initiative management, to building a performance culture.
04
CERTIFIED DATA ANALYSIS PROFESSIONAL

Attendants will understand through practical learning how to effectively collect, analyze and interpret data
by enabling managers/ analysts to draw insights from both quantitative and qualitative data, based on
historical statistics and trend analysis.
CERTIFIED DATA VISUALIZATION PROFESSIONAL

An exclusive framework that provides insights on effective visual communication, through a rigorous
approach to creating visual representations of vast information, techniques of standardization and tailored
data visualization tools.
CERTIFIED BENCHMARKING PROFESSIONAL

Benchmarking methodological uniqueness is represented by the identification and analysis of the processes
that lead to a superior performance of a company, offering the opportunity to compare an organization’s
performance against industry competitors.
CERTIFIED SUPPLIER PERFORMANCE PROFESSIONAL

Participants’ skills in managing supplier performance and developing a strategic approach to procurement
will be developed by enabling the identification of performance gaps and implementing action agreements
with suppliers.
CERTIFIED CUSTOMER SERVICE PERFORMANCE PROFESSIONAL

Participants will not only understand the importance and implementation phases for the Customer Service
Excellence standards, but they will be given the necessary tools to implement it internally and measure its
impact externally.
CERTIFIED PERSONAL PERFORMANCE PROFESSIONAL

The two-day interactive program will help you understand personal performance, by explaining the benefits
and clarifying the process of measuring it. It focuses on identifying ways to boost your performance outside
working hours.
CERTIFIED INNOVATION PERFORMANCE PROFESSIONAL

This course provides an interactive practice-based learning environment, focusing on best
practices for developing and maintaining an innovation-oriented organizational culture within
organizations.
05
IMPROVEDSKILLS
IMPROVED PERFORMANCE
Skills have a direct impact on productivity.

We support professionals and organisations with
business skills development through experiential learning.
UNIQUE VALUE FEA-
E: office@skills.ac06| W: www.skills.ac
NEWS
 
From the KPI Institute
China - United States of America - Trade - Manufacturing - GameStop - TuSimple - HR Trends -

Tech - Course Stories - Certified OKR Professional - ECADEMY
07
The China-USA trade war is hitting

the manufacturing industry industry
Earlier this year, Bloomberg specialists noted that bers, known as the ISM Manufacturing Purchasing
chinese industrial production will be hitting a new Managers’ Index (PMI) number. This number is
year on year low level of 5.2%. With recent data an economic indicator that surveys purchasing
from Capital Economics, we know how that esti- managers at businesses that make up a given sec-
mate was quite optimistic. The actual level, as re- tor. Investors use PMI surveys as leading indicators
ported in July, was around 4.8%, while last month of economic health, given their insight into sales,
– in August, it fell all the way down to 4.4%. employment, inventory, and pricing.
What makes this especially noteworthy is the fact Normally, the ISM number is somewhat stable
that China is the second economy in the world, when compared to its Chinese counterparts,
and even more important, it is heavily tied with however because of the current situation, it hit a
the American economy. Such a downturn in their continuous 3-month low last August.
manufacturing sector is bound to affect the US’s
already ailing manufacturing industry. With US manufacturing output slowly declining,
there are two factors that may yet improve the
China already suffered from a cyclical slowdown, situation. The first one is that China announced
year by year, however the recent escalating trade it will restart purchasing American agricultural
war only made matters worse. items, while Trump delayed his next round of
tariffs. The second factor are next year’s American
As Ian Shepherdson, chief economist at Pantheon elections. While this may not seem like much,
Macroeconomics noted, “the US manufacturing is there are several swing states that rely heavily on
in recession and there aren’t any signs of recovery manufacturing.
any time soon, with the ongoing trade war.”
With politicians trying to eek out advantages at all
The conflict has escalated to the point where the points, working with industry representatives to
ISM manufacturing survey is being dragged down find a solution for the current situation might just
mainly because of it. The Institute of Supply Man- yield good results not only for their personal gain,
agement collects data that it compiles into num- but for everyone in the US and China.
08
GameStop looking to
stop the bleeding
L
Last year, the vid- since prices were very close
eo game indus- in value to those featured in a
try’s sales peaked GS shop.
at $40 billion dol-
lars. However, the With downloads quickly be-
largest physical video game coming the preferred way of
retailer – GameStop, faced procuring video games, the
a monumental stock price situation looked quite dire
crash, from $16, to $4. The for GameStop. Fortunately
reason? Electronic stores cap- for them, as a final measure
turing an increasing part of to stem the bleeding, they
the consumer market share appointed a new CFO and With that said, it will
for that industry. Stores such CEO, whose combined attrib- be interesting to fol-
as Steam, Epic Games, the utes were to simply save the low GS in their jour-
PlayStation Network, or Xbox company from its would-be ney, as they strive to
Live all started to take away downfall. maintain relevancy
large portions of GameStop’s in a more and more
customers, mostly due to two George Sherman, the newly digitized world, in
factors – convenience and in- appointed CEO, teamed up which almost every
significant price differential. with his CFO partner, James product can be ac-
Bell, and began working on a quire at the click of a
The first and most important clear-cut, 3-point plan to redi- button.
one, convenience, simply rect the organization towards
meant that people found it a sustainable & competitive
way more accessible to pur- future. This plan revolved
chase a video game online, around the following ideas:
rather than go all the way to
a physical store. The second 1. Cut down the num
factor, referring to price, sim- ber of stores.
ply meant that you no longer 2. Lowering the cost
experienced a significant op- of nonproduc-
portunity cost if you decided tion expenses.
to buy your games online, 3.Reducing the price
tag of video games.
Exploration is the engine that

drives innovation. Innovation
drives economic growth.
So let’s all go exploring.
09
TuSimple – Moving
Merchandise in Style
S
Since Elon Musk’s Diego, operating self-driving
Tesla, the concept trucks out of Tucson, Arizona.
of driverless vehi- Now, their trucks are not fully
cles has really start- autonomous just yet, featuring
ed taking flight, as a back-up driver, as well as an
more and more people have engineer on board, just in case.
1. become aware of the many However, it is the first and only
advantages they bring. If we company capable of provid-
were to name some, the two ing depot-to-depot self-driving
that spring to mind first and transportation.
foremost are improved safety
and efficiency. Started back in 2015, with oper-
ations in China and the USA, it
First off, safety is nominated raised around $55 million dollars
because the combination of in 2017, with plans to fund two
tech & software can often- full truck fleets in both countries.
times be better at gauging One year later, it began tests on
poor situations and condi- public roads, starting off with a
tions than humans. Second- 120-mile stretch between Tucson
ly, efficiency here means and Phoenix, Arizona, and anoth-
eco-friendliness, as well as er one in Shanghai. Nowadays, it
fuel consumption. Whether has over 50 trucks and deals with
we’re looking at the future over 18 contracted customers,
in terms of autonomous tax- one of which is none other than
is or trucks, a large portion UPS.
of a vehicle’s carbon imprint
is laid upon starting and rev- What’s interesting about their
ving the engine. Those same relationship with UPS is the fact
actions also use a significant that for the most part of 2019,
amount of fuel, therefore hav- TuSimple had been shipping
ing the option to streamline their merchandise between Tuc-
these actions leads us to bet- son and Phoenix, without any-
ter results in the mid to long one taking note.
run.
One such company that has With efficiency and timeliness

seen great, but silent suc- becoming so highly valued in
cess on this front is TuSim- this day & age, TuSimple might
ple. TuSimple is a self-driving just be the solution that many
truck company based in San customers, like UPS, need.
010
HR Trends within the Tech Industry
T
The Consumer Technology Association opment, 54% data analytics, 52% engineering and
(CTA) released a study, Future of Work, 48% noted AI/ML were the main skills that pro-
in which they weighed in the opinions spective employees would have to showcase, in
and information of over 250 tech indus- order to be granted a spot in their company. Other
try leaders within the US, on the future abilities of importance were those related to cloud
of human resources. computing, computer networking and cyber se-
curity.
Now, HR has always been a big point of debate
and contention within the business industry, as In addition to this, employers want their future
numerous companies have achieved great perfor- members of staff to also be acquainted with con-
mance in this regard, by employing wildly differ- cepts from the soft skills pool, especially those
ent strategies or focusing on fundamentally differ- pertaining to emotional intelligence. If in the past,
ent skills. knowing how to deal with a non-work related issue
was mostly a given, for better or for worse, today’s
While the study does mostly center around those generation of workers finds this to be a much
skills and developments – what leaders think will more active and engaging task.
be needed in the future, there are some interest-
ing non-skills tidbits in it nonetheless. With the global population increasing over the
years, it is only logical that the number of arche-
Among the first aspects tackled were technical types encountered at work would also increase,
abilities, namely what should new hires posess in resulting in a regular day at work meaning way
terms of know-how. 63% replied software devel- more than it used to.
011
Moving on from skills, leaders men-

tioned that recruitment channel
trends have also changed. 67% of
respondents said that hiring portals
like Monster and Zip Recruiter are a
must, while 62% prefer advertising
jobs on social media. However, both
get trumped by the oldest play in
the book, which is employee refer-
rals, coming up at 73% of replies.
One other avenue that is worth
bringing up is internship, however
this one is more of a hit-or-miss, as
only 56% considered intern pools as
valuable sources for finding quali-
fied personnel.
One other trend we would like to

mention are non-financial incen-
tives retaining their strong stand-
ing. 91% of respondents claimed
health insurance to be very impor-
tant, 88% said the same about paid
time off, with 85% noting flexible
work arrangements as a big talking
point between employers and em-
ployees. Aside from these aspects,
other noteworthy incentives, such
as planned recreational events, gym
or pool subscriptions, free food and
so on, can also sway workers one
way or another.
While the study contained many

other trends worth talking about,
this sneak-peak shows us that cer-
tain trends remain strong over the
years, while others crop up as a re-
sult of the ongoing evolution of job
requirements.
012
Course Stories: Certified OKR

Professional - Bangkok July
Since the OKRs methodology is the new trend in Course journal
goal management, we are trying to expand our re-
lated learning services and products where the mar- While the topics and agenda stay roughly the same
ket demands. Last month, during 20th-22nd, we for most of our OKR courses, each delivery repre-
reached Bangkok, through our Senior Management sents a unique experience. Here is the story behind
Consultant, Alina Miertoiu. our course adventure in Bangkok.
Most of the participants came from the consultancy Day I

and entrepreneurship or HR fields, and were eager
to learn the secrets of a successful OKR implemen- Just as it is with any first day, this one started off by
tation strategy in different organizational contexts, introducing the company and the facilitator, being
from a practical point of view. We strive to deliver followed up by a short self-presentation from each
practical and hands-on material, so a big part of this participant, which included their expectations and
course focused on debriefing several exercises de- interests in the topics at hand. After that, we started
signed to simulate every step of the OKR implemen- discussing about OKRs, what they are, how they are
tation process. different and their benefits. The highlight of the day
were the exercises based on hybrid systems com-
Similar to our other Certified OKR Professional cours- prised from KPIs and OKRs.
es, all of the participants were very interested in how
to link OKRs with compensation and bonuses, which
was a recurring discussion topic during the three-
day learning experience.
013
Day II
The second day started off with an

overview and recap of the first day,
however the most interesting part
was when we began simulating
OKRs setting and alignment. Par-
ticipants received a case study and
each one of them was assigned a
certain position in the company.
The main task was to go through all
the steps of an OKR-setting process
and ensure alignment between all
the levels. Participants showed a lot
of involvement and considered the
exercise to highly engaging, given
the fact that it presented them with
hands-on experience, even though
it was based on a case study.
Day III
During last day of the course, we

continued with the case study from
the prior day, followed by an OKRs
review exercise, in order to help
participants understand the OKRs
review process as well as prepare
them for this type of activity. We
discussed several issues which can
appear during the OKRs review pro-
cess, such as employees’ lack of sat-
isfaction or involvement – and the
way we should address them.
We’d like to congratulate all of the
participants for their drive and in-
volvement, as well as for their ener-
gy during the course and we hope
that in future we can see you at our
next course and write even more
amazing stories.
014
Course Stories:
a TKI & ECADEMY JNS Smartnet Limited
Partnership in Dhaka, Bangladesh
The dissemination of best practices in the field of Performance Measure-
ment and Management continue with a new successful edition of our re-
nowned course – The Certified KPI Professional in another promising mar-
ket of the Asia-Pacific Region.
The KPI Institute, in partnership with ECADEMY, hosted the C-KPI course in
Bangladesh’s business centre and capital, Dhaka, between the 1st – 3rd Au-
gust, 2019.We’d like to congratulate all of the participants for their drive and
involvement, as well as for their energy during the course and we hope that
in future we can see you at our next course and write even more amazing
stories.
ECADEMY is a Dhaka-based, training venture of JSN SMARTNET which is a

wholly owned subsidiary of Jalal Ahmed Group of Companies offering high
quality IT, Project Management, Data Analytics and Soft Skill’s training and
education services maintaining leading international standard within the
country.
Regarding the course itself, the Certified KPI Professional – C-KPI for short,
brought a comprehensive new world of insights into how businesses can
and should strive for a continuous optimization of their performance oper-
ation and performance management processes.
During the 3-day learning experience, top ranking executives of several or-
ganizations from the Telecommunication, Textile and Furniture industries,
had the opportunity of being guided by one of our foremost consultants,
Andrea Minelli.
The attendees, via a combination of theoretical notions and hands-on-prac-

tice exercises and case studies, had the possibility to better understand and
practice concepts that are applicable in the current Bangladeshi corporate
contexts, such as:
• How to strategically select the relevant KPIs;

• How to align strategic objectives and KPIs among
different organizational layers;
• How to benefit from a sound Performance
Management Architecture and Framework;
• How to build a sound data gathering and data
reporting Framework.
015
Course Journal
This certification course has provided a solid theoretical and

hands-on-practice foundation on how to optimize all the tools
that are part of the performance management system.
Day I
During the first day of the learning experience, participants

have been exposed to several concepts associated with KPIs
and the Performance Management Architecture. Most impor-
tantly, they learnt the steps to building a proper framework
that will set up a sound foundation for the system.
Constructive comparisons were carried out, between the per-

formance management system currently implemented within
the participants’ organization and some of the best practices
around the world.
Day II
On the second day, we took a practical approach when it came

to one of the most important phases of a Performance Man-
agement System’s implementation, which is the selection and
alignment among organizational layers of KPIs and Strategic
Objectives. Understanding the behind-the-scenes of the KPI
selection process was a great source of discussion among the
attendees.
Day III
As the final day approached, participants talked about the im-

portance of not only selecting KPIs, but of also implementing
best practices in setting up realistic, yet challenging targets for
each KPI. Therefore, we put together a customized simulation,
in order for the participants to apply those practices in their
own organizational context.
The final session ended with a thorough discussion around the

alignment of individual KPIs with corporate objectives, and be-
ing able to measure the contribution that each division head
will have to achieve in order to meet the aforementioned ob-
jectives.
Overall, the course has taught the participants, all in manage-

rial positions, how to implement some of the best practices in
the industry, within their own Performance Management Sys-
tem Framework.
016
5 Tips to Increase Employee Charles Richard
Engagement within any Organization

 EMPLOYEE PERFORMANCE
Are you constantly worried about employee a crucial factor in employee engagement as a
engagement? Well, you’re not the only one, as whole. To truly understand the term, let’s break it
increasing employee engagement in the work- down into two parts.
place can indeed be a tricky task to pull off.
At first, we have Engagement, which is the ability
As an employer, it is necessary for you to find to be present, focused and energized and more
ways to improve employee engagement in the interestingly, fills the employee with great joy
entire workplace. The importance of employee and determination. Afterwards, we have Purpose,
engagement cannot be overstated and hence- which drives the foundation of engagement, pro-
forth, it has been proven crucial for reducing staff viding people with goals and aspirations.
turnover, improving productivity & efficiency,
and retaining customers at a higher rate to make
marginal profits.
Above all, engaged employees are happier both

at work and at home, which boosts the overall
energy and enthusiasm of any organization.
In this article, we will be looking at the five key
points which may help you increase employee
engagement.
Now, there are a handful of reasons that play
017
Allow a flexible environment bear truthful relationships, in Arrange social gatherings on a

order to develop more commit- regular basis
One of the keys to expanding ment at your workplace.
employee engagement at work
is to enable flexibility. This does When your employees un- Organizing a weekly or bi-weekly
not just give your employees derstand that their workplace gathering with your peers and col-
the opportunity to alter their promotes an open-minded en- leagues is a great way to know each
work routines as they find fit- vironment, with no phony coat- other on a personal basis. Having a ton
ting, it also allows them to do so ings, even the most introverted of fun together separates one’s daily
purposefully. individuals will progressively
practice, in addition to enabling inno-
open up and become part of
vation and coordinated effort.
On average, most businesses the team.
don’t believe their employees
with regards to completing Remind them to take breaks This does not mean that you need to
their work without the manag- have an extensive event every week;
er’s supervision, however most You can encourage your em- rather, organizing a group lunch or
employees’ in today’s knowl- ployees to take a short break team building activities during the
edge economy are unlike previ- from their desks, in order to
weekend can help wind down busy
ous generations. They value refresh their minds, after focus-
transparency and accountabil- ing on a stressful proposal or work schedules.
ity more heavily. documentation that needs to
be handled with utter attention.
When you offer your members
of staff flexible hours, instead To do so, you can enlist the help
of the rigid 9 to 5 desk timings, of a few apps which allow you
oftentimes they tend to be to set a reminder. Each time it
more productive, engaged and goes off, you know you should
happier. be taking a break and resting
your eyes.
Try to remain authentic
When your employees figure
Remember that strong team- out that you care about them
work can only happen if there is on a personal basis, viewing
a sincere relationship between them as more than mere rev-
the employer and their employ- enue streams, they tend to be-
ees. Such a relationship also come much more engaged and
strengthens the notion of trust. focused on the tasks at hand.
As a manager, try your best to Arrange social gatherings on a
018
Express gratitude frequently
There is always a great joy in saying ‘Thank You’ to

your employees when any task is achieved suc-
cessfully. This does not only boost the energy of
the employee but furthermore, makes them feel
better, ensuring they put extra effort into their
work.
Everyone wants to feel appreciated and a simple

form of appreciation can go a long way to moti-
vating your employees to be more productive and
work harder.
An important affirmation from the administration

and peers is probably the quickest approach to
building trust, re-establishing a stressed relation-
ship and selling your vision to your members of
staff.
Takeaways
We hope these different tactics used to boost em-

ployee engagement will help you build a livelier
atmosphere at work. About the author: Charles Richard possesses over 10
years of experience in the business analysis profes-
As you try out various policies and ideas, always sion. He has written dozens of tech and non-tech
remember that the key to expanding pieces for renowned publications. He also enjoys
mentoring BA professionals.
You can straightforwardly ask your employees
His well-rounded knowledge in engineering con-
what they feel needs to be improved or where
cepts provides an easy way to make non-tech savvy
there has to be some form of progression, so as
people understand basic theories. Currently, he is
to make their time investment at work beneficial working at TatvaSoft UK.
and productive. Keep learning, keep innovating
and keep trying to make your company the best
organization to work for!
019
Simplifying Performance Assessments

environment
for Remote Workers Cassandra Garrett

 EMPLOYEE PERFORMANCE
At present, nearly 3.9 million Americans work

remotely, while by 2027, it is expected that re-
mote workers will equate to more than 50% of
the workforce, according to a feature published
in Forbes.
Despite there not being any daily personal

interaction between remote workers and man-
agement, employee performance evaluations
remain of vital importance. When conducted
effectually, these evaluations can be a superb
source of information, while also providing great
insight into the viability of pay increases and
internal promotions.
While it is possible to apply a number of tradi-

tional methods generally used for in-office work-
ers, there are also a number of innovative ways
to effectively evaluate and optimize the perfor-
mance of remote workers.
020
Don’t focus on working hours Seek out internal feedback Don’t disregard self-evaluations
When you have remote employ- When evaluating the perfor- Despite self-evaluations often
ees working for you, it is impor- mance of remote employees, getting a bad rap, especially as
tant to shift your focus from internal feedback can prove to far as remote workers are con-
hours worked to the number of be exceedingly useful. If you have cerned, self-assessments can
tasks completed and their qual- a number of remote employees, play an important role in measur-
ity. it is vital to remember that they ing overall performance. Accord-
form part of a team that includes ing to an article in the Harvard
While there are remote work- their remote colleagues as well Business Review, employees can
ers who do, in fact, keep office as the management team. fall in one of two traps as far as
hours, freelancers, in particular, self-evaluation is concerned.
often have a very erratic work One way to successfully imple-
schedule. Although a number ment an internal feedback They either become over-confi-
of Key Performance Indicators procedure is through a series of dent, which leads to an overes-
(KPIs) can be used, it may be surveys that deal with not only timation of their competence,
easier (and more helpful) to use fellow remote employees and or they make a Fundamental
cloud-based methods, such as team leaders, but managers as Attribution Error, which involves
online time cards to gauge these well. attributing their successes purely
metrics. to wisdom and talent.
Apart from providing construc-
Ideally, a company should have tive feedback on how employees In order to combat this, self-
more than one remote employee are communicating with each evaluation should be viewed
working on a series of similar other and how they view their alongside an internal peer report
tasks in order to determine a leaders, a well-constructed sur- and the personal opinion of the
work standard and measure per- vey can also highlight how each manager. As a singular assess-
formance accordingly. employee feels about their own ment method, self-evaluations
talents, as well as pinpoint areas rarely succeed, but when viewed
Even freelancers such as blog- that may require further training. as part of a bigger picture, they
gers and virtual assistants, who can be very valuable.
may be juggling family responsi- Be careful when analyzing in-
bilities with their work, can keep ternal feedback, as you need to
track of their own performance ensure that non-work-related
in order to continuously improve grievances do not affect the ob-
their productivity. jectivity of the feedback.
021
Make use of one-on-one performance reviews
One of the traditional performance evaluation methods

that can be applied to a remote workforce is a one-
on-one review. Regular, personal performance reviews
eliminate any anxiety and pressure typically associated
with the traditional once-a-year review, and are one of
the best ways to keep abreast of your employees’ perfor-
mance.
The more frequently a one-on-one review takes place,

the faster any problem areas can be identified and recti-
fied. While team collaboration platforms such as Slack,
Hive and Chanty are ideal for text-based interactions, vid-
eo check-ins via Skype or Google Hangouts often make
for a more personalized and enjoyable experience.
Trust is everything
It is impossible to deny that evaluating the performance

of remote workers is somewhat more vexing than that
of in-office employees. As productivity is often an in-
tangible quality, especially as far as knowledge work is
concerned, traditional metrics may not be relevant. Due
to this, trust is key to maintaining a strong and lasting
relationship.
Unless there is definite proof to the contrary, manage-

ment has to trust that their employees are performing
to the best of their ability – even when working remotely.
You need to have trust in your employees as well as your
evaluation system, which should ultimately help you to
establish whether productivity is has been compromised
or not.
The number of Americans who work remotely has sky-

rocketed over recent years, with the workplace as we
know it having undergone a significant transformation.
As it has been predicted that the greater part of the U.S.
workforce will soon be working from outside a typical of-
fice environment, it is important to adapt current evalua-
tion systems to suit the changing industries.
022
10 Things to Know for a Dan Chapman

environment
Management Consultant Career
 PERSONAL IMPROVEMENT
When you leave your corporate position and decide 2. The Market
to start a consulting career, there’s quite a few things
you should know. When you’re on your own starting As per an entrepreneur at Research Papers UK and
a consulting business, these are the 10 most impor- Last Minute Writing, Dan Putman:
tant things to know to make sure you can have a suc-
cessful and sustainable business. “When you have to price a consulting project, you
need to know that the market is what sets the price.
1. Price When you want to price your project, think about
what it’s going for in the market and what they
You should price your project based on the value would be willing to pay; it’s as simple as that.”
to the client, and not to the hours worked on it. The
project actually has nothing to do with how long you 3. Statement of Work
spend doing the work.
When it’s time to price your project, you need to be
For example, if you have a conversation for ten min- very clear about the deliverables. This is listed in a
utes with a senior partner at a farm, you’re paying statement of work. The deadlines for your deliver-
not for ten minutes of time, but for all their years of ables need to be clear, as well as the client’s response
knowledge and experience, as well as their contacts time.
and resources. Determine how valuable your work is That way, if a client is slow to respond and you are
to the client and come up with an appropriate price past your deadline, you will not be held responsible.
for that. All of this must be included in the statement of work,
in the section for roles and responsibilities.
023
4. Travel 6. Negotiation 10. Specialize
If you need to travel for your con- You should never negotiate your Once you’re familiar with gen-
sulting, clients will try to impose fee with a client yourself, under eral consultation, you’ll want to
their travel policies, but you can- any circumstances. You must hire develop certain skills that few
not sustain this long term. You someone to negotiate your deals others have so you can stand out.
need to develop your own perfor you so that you can remain Consider which fields you’re in-
sonal travel protocols. separate from those details. terested in and focus your efforts
on that industry and networking.
Tell your clients what they are, You don’t want to muddy your
whether it’s that you only fly dur- relationship with your client with
ing the day time, or you only take these negotiations and this way
nonstop flights, or you only fly on you can remain apart.
an aisle seat, or in business class.
7. Hire an Admin
Do not let your clients dictate
and book your travel, unless it Even though a lot of technology
meets your protocol. Add some can do many administrative tasks
reimbursable expenses to your for you, you need to have an ad-
fees for travel expenses – no mat- min take your calls, schedule ap-
ter the amount, it will make you pointments, and who can write
responsible for your own travel. your correspondence and state-
ments of work. This will maximize
5. Never Turn Down a Project your time for what matters most.
You should never turn down a 8. Consult an Attorney and

project. On the one hand, if you Accountant
really want one, you can price
it below market value. On the According to Darryl Mulvey, a
other hand, if you don’t want a business analyst at Writinity and
job, raise the price to more than Draft Beyond:
double market value.
“All of your documents should be
This almost guarantees that the prepared by a trusted lawyer, like
client will choose another con- your statement of work, liabil-
sultant, but you’ll potentially still ity insurance issues, and billing
remain on their radar. If they do protocols. You attorney is a good
accept your inflated rate, then person to give advice, and it’s
you’ll know you can raise it even well worth the fee they charge.”
higher next time, and you should
usually take a project from a 9. Be Online
client willing to pay more than
double the going rate, regardless You’ll want to have an online
of your initial reasoning. presence because clients are
sure to Google you to find your
About the author: Dan Chapman, an editor
at Lucky Assignments and Gum Essays,
LinkedIn, Twitter, and social me-
writes articles to help businesses and entre- dia. This presence should match
preneurs get off the ground and become
successful. He loves to share his own success your offline presence, down to
story in the hopes it will inspire others.
your mobile friendly website.
024
Lessons for a Leader: Improving theenvironment

Employer-Employee Relationship Cristina Lerinț
 LEADERSHIP
Employees are a company’s most valuable asset.

The way they feel at work has a huge impact on
an organization’s results. For them to have an en-
vironment that nurtures safety & support, where
they are encouraged to be productive, creative,
disciplined and come up with novel ideas, they
need strong relationships that they can count on.
Most of them are inhibited, because the relation

with their superior is precarious. Therefore, the
leader has the responsibility of building relation-
ships with his subordinates, but also creating
an environment where people feel comfortable
communicating with each other, regardless of
their level in the hierarchy.
Here is a short list of suggestions for those lead-

ers out there that need guidance in managing
the relationships within their organizations.
025
Horizontal hierarchy structures
Employees feel more comfortable in horizontal hierarchical structures,

because it naturally provides a simpler way of communication. While
this is highly dependent on the organizations’ size and internal consti-
tution responsibilities tend to become distributed more equally.
This is due to the fact that in large corporations, there are many de-
partments and small teams which respond to a team leader, and one
can supervise and encourage team members in cooperating with
each other and cultivate relationships.
Networking
Feeling comfortable in approaching a person is directly connected

with the time spent together and context. The same principle applies
to business world, where leaders will talk to their members of staff
only on occasion, which creates a “stage freight” sensation for em-
ployees.
Instead of doing this, it is recommended to plan activities that involve

leaders and employees as well, like team-building events or lun-
cheons. For leaders, the best piece of advice is to retrace their career
steps and lead by personal example, knowing that a few years in the
past, the tables were turned the other way.
A trip down memory lane might help them an create an environment

that nurtures relations, just like the one they either experienced or
always wanted to have.
Developing employees
The primary responsibility of a leader is to develop their employees on

a professional level. In doing so, they leave a lasting & positive impact
on interpersonal relationships. By preparing one’s employees for the
next steps in their careers, leaders establish a relationship of trust
which helps improve all types of communication.
026
The 3 stages of a relationship of positive interaction between Open communication, trust

these two parties might result in and mentoring will have a posi-
In their 1987 research paper – the employees’ self-esteem levels tive impact on all of the parties
Toward a Psychology of Dyadic dropping altogether. involved and will create a sustain-
Organizing, Graen and Scandura able & productive working envi-
noted that there are three stages It is also important to note the ronment.
to a relationship. way feedback is communicated.
Positive reinforcement will al-
1. role assignment – assigning a ways provide better outcomes
role in the team after the inter- than negative reinforcement.
view;
Moreover, there is no one-size-fits
2. role making – solving tasks all feedback method. Everything
after being assigned a role; is dependent on your employees’
characters. Some people respond
3. role routinization – nurturing better to hype & excitement,
a sympathetic relation between while others prefer a much more
the leader and their employees, serious and grounded approach.
learning to know each other, Getting to know each employee’s
trust each other, and growing a personality will allow you to tailor
mutual sustainable relationship. your attitude, in order to match
theirs.
Impact on performance
Be there for your employees
Maintaining a healthy relation- One of the easiest and most
ship between a leader and their important concepts, at the same
employees is of paramount im- time, is availability or in lay-
portance and has a tremendous man’s terms, being there for your
impact on their performance. employees, when they need it.
People are beings that rely on When leaders are available, they
their emotions in general, but break a barrier in communica-
even more so in relationships. tion. Employees suddenly feel
confident in making contact,
One’s relation with their superior knowing they are going to be
is no exception. Those employees listened to.
that are motivated, encouraged,
offered support in their time of Prioritizing one’s employees has
need and whose accomplish- invaluable effects on the relation-
ments are acknowledged will ship between them and their
generally bloom and become manager, which will ultimately
more productive. trickle down to impact the end
results.
A leader that does not support,
motivate or guide their employ- A leader sets the tone for their
ees, and is generally absent- team in terms of communication,
minded about such things will work ethic and behavior at the
not result in determined staff workplace. A leader’s approach to
members, who push for the very relationships will leave a lasting
best. In addition to this, a lack mark on all of their interactions.
027
Transformational Leadership: Financial

and Non-financial Performance Mostafa Sayyadi
 LEADERSHIP
When looking at leadership from a new perspective, performance as an outcome of various factors such
an executive should understand its transformational as leadership, interactions and communications, for-
value and place more emphasis on applying what mal policies and rules, as well as a climate inspiring
works best for them in their current work environ- innovation and creativity within organizations.
ment.
With this in mind, executives are encouraged to
One tool for executives to use, when looking to improve the overall bottom line and increase total or-
lessen the gaps between success and possible fail- ganizational performance. For instance, every execu-
ure, is transformational leadership, allowing them to tive is held to the grindstone of maximizing financial
become a social architect. and non-financial measures – their careers are tied to
company performance measures.
Executives can contribute to organizational perfor-
mance through developing relationships with sub- However, the focus on financial performance alone
ordinates that link a follower’s individual interests to is insufficient, as firms need to also consider a range
the organization’s collective interests. Transforma- of other factors such as non-economic performance
tional leadership focuses on developing relationships that is also reflective of their big picture perfor-
that create valuable resources for companies. mance.
Moreover, transformational leaders increase organi- As executives attempt to manage people more and
zational performance, by reducing the times a com- more in-depth, they find that intellectual capital rep-
pany will falter. Many executives see organizational resents the forefront of success.
028
In order for executives to apply the

knowledge conveyed in this article,
we have incorporated both financial
and non-financial performance in-
dicators as targets to break through
performance gaps in organizations.
Identifying needs, financial and

non-financial
For example, executives know that

financial aspects include human
capital ROI, gross margin ROI, earn-
ings per share and stock price per-
formance.
Scholars have also left an array of

managerial implications for execu-
tives, such as the fact that non-fi-
nancial performance is determined
thorough aspects like active re-
sponse to environmental changes,
production and service quality, cus-
tomer focus, innovation, and pro-
viding learning & growth opportu-
nities for employees. Armed with
these two tools, executives can ef-
fectively increase firm performance.
Transformational leadership is a employee’s needs, individuals perhaps decrease organizational

leadership style that aggregates begin to contribute more and costs.
human capital into social capital they become more inspired to
and develops organizational com- put extra effort into their work. In conclusion, it is important to
munications aimed at providing This extra effort improves the raise vital questions about how
valuable resources for all organiza- quality of products, customer transformational leaders can
tional members. satisfaction, and impacts the re- successfully improve perfor-
turn on assets, sales, shareholder mance at all levels of the organi-
Thus, transformational leaders ap- value, and improves operational zation. In today’s article, we have
ply intellectual stimulation to en- risk management. very briefly outlined how trans-
hance knowledge sharing among formational leadership can im-
their human capital, across their Transformational leadership pact financial and non-financial
entire organization. This leads to highlights just how important performance.
your employees becoming empow- your employees’ attitudes are
ered, and empowered employees when it comes to accomplishing This style of leadership can influ-
can enable an organization to ac- commercial objectives. ence more far-reaching aspects
tively respond to environmental of a company than other previ-
changes and hurdles. For example, inspirational mo- ous styles. Therefore, it is up to
tivation can strengthen your each individual CEO, CIO, CFO
The key to take into consideration is workforce through tough times and so on to embrace transfor-
identifying needs – both the orga- and allow you to set highly de- mational leadership if they wish
nization’s and those of the employ- sired expectations more easily. to improve their results, whilst
ee. When transformational leaders The higher the level of expecta- employing today’s generation of
show concern for the tion, the higher the motivation workers.
to enhance productivity and
029
A Business Perspective on the IT Neetu Choudhary
Enterprise Architecture, BSC and KPIs

 BALANCED SCORECARD
Enterprise Architecture (EA) is a function used to per- This brings us to the use of a worldwide renown tool,
form enterprise analysis, design reviews & recommen- the Balanced Scorecard, which is widely employed in
dations and monitor its successful implementation defining business strategies across 4 critical aspects:
through the use of a holistic approach that aligns with Financial, Customer, People, Processes.
the business strategy. Using the same concept for EA not only enables lead-
ers and Top Management to see how EA contributes
Enterprise architecture applies architecture prin- to meeting business objectives, but also helps the EA
ciples and practices to guide organizations through team to align their work with the corporate strategy.
the business, information, process, and technology
changes necessary to execute their strategies. • At the strategic level, EA can provide guidance
on IT planning, investment priorities and resource uti-
While many leaders realize the importance of EA, lization.
their focus prominently is on the internal activities of
the EA program, rather than measuring how the EA • At the tactical level, EA is expected to enable
program contributes to the organization achieving businesses to mitigate development risks through
targeted business outcomes and financial objectives. guidance and the use of standards, best practices,
benchmarking etc.
030
The Balanced Scorecard (BSC) is

a tool for defining and manag-
ing strategy, holistically. It is an
approach to connect the dots
between the Vision, Mission, Val-
ues to the next level of strategic
focus areas like goals/themes and
to operational elements such as
objectives, KPIs, Targets and ini-
tiatives..
1. Capability development
2. Operational performance The BSC links Business Enablers to Results. People and Internal
3. Project performance Process are the Enablers, which lead to Financial and Customer
4. Financial performance Results
Aligning EA activities to
corporate objectives en-
ables Leaders to visualize
the value brought by EA.
BSC facilities can feel the
same effect with 4 compo-
nents under the direct in-
fluence of EA, as a contrib-
utor to the corporate BSC
From a corporate perspective, EA Balance Scorecard- understanding that business leaders don’t care about
Enablers would build in-house capabilities, improving what the EA is doing at an operational level. Instead,
operational performance and adding value to proj- they want to understand and, more importantly, mea-
ects, which would ultimately result in financial perfor- sure how the EA program helps enable the organiza-
mance. tion’s future-state business capabilities, which in turn
contribute to its financial performance.
While EA is a critically positive function, because it
has several benefits like improved business agility, Business leaders are the least interested to know how
reduced business & IT risks, cost optimization, tech- many architect reviews are performed or which tech-
nology-based innovation, it indirectly complicates nology is used; they are simply keen to find out how
your business objectives, which poses a challenge for EA helps enable their business, to achieve its future
many CIOs and CTO looking to establish the clear link state in the most cost-effective and efficient way, with
between EA and business objectives. sustainable growth, while building in-house capabili-
ties. The EA – BSC alignment offers such details to
This limitation must be recognized and addressed by business leaders.
031
Benefits of defining EA metrics

3.Project Performance
By leveraging EA metrics in a measurement pro- 1.Percentage of architectural reusable
gram, IT practitioners and business stakeholders can compo nents to reduce development efforts
evaluate: 2.Component Reusability Index
(introduced vs deployed)
•The visibility of degree of alignment 3.The percentage of reuse of common de
between IT programs/projects with signs
business strategies 4.The percentage of projects architectur
•The tangible and intangible benefits allyaligned
of EA efforts 5.The percentage of reduction of develop
•The architectural risk and its impact on ment costs
achieving business objectives 6.The number of projects that utilize ap
proved designs
7.The number of times an EA product or
Important considerations to take into account guidance is downloaded from EA site
while defining EA Metrics 8.The number of projects using EA guidance
9.EA used to inform IT investment decisions
1.Define business-value EA metrics to 10.The percentage of reduction in
demonstrate the impact of EA on monetiz application development time
ing targeted business outcomes and
enabling businesses to achieve advantages 4.Financial Performance
over competitors. 1.Annual savings from digitization and en
2.How EA efforts and deliverables impact hanced process efficiency
technology-enabled investment decision- 2.Percentage of technology assets in use
making. after depreciation schedule
3.How EA can create new revenue streams 3.The percentage of cost reduction
4.How EA can support building in-house associated with adopting enterprise-wide
capabilities standards
4.Cost savings through reuse of software
Some of the Enterprise Architecture Metrics components and standardized purchase
agreements
1.Capabilities 5.Total cost savings to investment as result
1.Degree of EA awareness among con of EA
cerned teams 6.Total cost avoidance to investment as
2.The number of patterns and standards result of EA
developed
3.EA awareness session – effectiveness
2.Operational Performance
1.Number of applications reused by more
than one BU
2.Number of applications purchased vs
built
3.Number of technology assets out of sup
port by vendor
4.The number of patterns and standards
utilized
5.EA outcomes, including cost savings and
cost avoidance due to process effi
ciency, technology standardization,
retirement, and consolidation
032
OKRs Review Trends – Automation and

efficiency at long last Alina Miertoiu
 OKRS
As the Objectives and Key Results (OKRs) frame- OKRs have been practiced since the ’70s on pa-
work becomes increasingly well-known for per and later in spreadsheets, but capturing the
companies that want to better execute their true essence of the method manually, which is as
strategies, but still benefit from the flexibility and wide as an ocean, was nearly impossible.
innovation of their capabilities, its complexity in- While spreadsheets are good in organizing goals
creases as well due to the particularities of each and starting the journey towards OKRs, as teams
organization’s environment. and organizations mature and cooperation
becomes key for success, goals become more
The added complexity is made especially appar- interrelated.
ent by one of the main features of OKRs – trans-
parency. Increased transparency boosts strategic Understanding the link between objectives and
alignment by creating a seamless workflow that key results, both bottom-up and cross-functional,
builds a culture of peer and cross-functional is mandatory in order to ensure alignment dur-
support, inspiration, which in the end results in ing the OKRs setting stage and to ensure higher
success across the entire organization. objectives are achieved during the review stage.
033
 OKRS
”In today’s world, organizations – just as any other

dynamic organisms, need to ensure a complex in-
ternal network that is powerful, yet flexible enough
to adapt to chaotic changes in the environment.”
However, in a scenario with complex interactions

between departments or teams, OKRs cannot be
practiced on paper or with the help of spread-
sheets, because there is no way one can simplify
enough such complicated networks, so that there
is a logical use of these tools.
Moreover, since they are not engaging, updating

them becomes a daunting task in the daily routine
of employees, rather than an engaging one, which
is supposed to trigger their involvement and coop-
eration.
Fast forward to 2019, automation has already taken

over the concept. OKRs monitoring and review,
in the present day, has seen a transition from the
age-old spreadsheets, to modern & agile OKR soft-
ware, which can be integrated with all the leading
industry tools and can be adapted by organizations
with ease, allowing teams to deliver with speed &
accuracy.
Bottom line, how does automation help organiza-

tions work better with OKRs?
034
1
It helps organizations align, by
providing easy access to any-
one’s OKRs and a high degree
of visual interconnectivity be-
tween teams or departments.
2
Enables easy and speedy
results tracking, as well as
linking OKRs with initia-
tives through a seamless
integration with other
software or apps used by
the organization.
3
Assists managers with reviewing
their employees’ progress in a timely
manner.
4
Supports regular OKRs review, by keeping
employees actively engaged.
5
Supports regular OKRs review, by keeping employ-
ees actively engaged.
One of the software providers who prides them- Offering a highly customizable solution, which
selves on owning a comprehensive and efficient integrates seamlessly with all other main plat-
solution for world-wide organizations is our forms that organizations use, our partner Profit
partner, Profit, headquartered in California, USA. seeks to provide easy access to OKRs progress
Their solution offers an innovative user experi- monitoring and to increase employee engage-
ence and enhanced connectivity, in order to ment with the OKRs process.
help organizations in their endeavour of imple-
menting the OKR methodology with ease.
035
Using meaningful KPIs for

measuring performance Aurel Brudan
 PERFORMANCE MEASUREMENT
Have a look at your indicators that you’re currently It represents how innovative the company is. But
using – for targets-setting and measurement. Are how do you really measure it: by percentage of ideas
you measuring the right thing? Are you measuring implemented from all those suggested? If so, are
something meaningful for your organization? you collecting all the suggestions andenvironment
feedback from
your employees, clients or other stakeholders? Or do
When measuring performance, it is absolutely neces- you measure it through the percentage of finances
sary to understand what each indicator means, why saved with innovations? Or by the number of ideas
it is important and how does its measurement im- put forward by individuals to the team leader?
pact the decisions and actions in your company.
Before answering any of the above, first of all, why do
”Measuring performance should not be about wast- you want to measure innovation? Does innovation
ed time, but about time invested in better decision- bring an added value to your company or is it a busi-
making and direction-setting.” – Aurel Brudan, CEO ness trend? Do other similar companies in your field
of The KPI Institute of activity measure innovation? If so, why and how do
they do this?
The organization needs to share a single, sharply fo-
cused, easily imaginable vision of the result it wants Before measuring any indicator, ask yourself:
to create, otherwise any effort to assess it will waste
time. •why is it important to measure it?
If in your past experience with measuring perfor- •how will assessing this indicator help your
mance, you had a report full of many indicators organization?
graphed in their entire splendor, but virtually none
of them useful in the decision-making process, then •what concrete actions will you take, after
reconsider what you are measuring. measuring this indicator, according to
its level?
Let’s take an example of an indicator that you may
see some companies use: In conclusion, remember to answer these questions,
every time you find yourself before the monthly
Innovation level within the organization – at first report, contemplating whether it is the best use of
look, it seems understandable. your time to go through the pages, to check if there
is anything useful in there for you
036
Key performance indicators (KPIs) are measurements enterprises use to determine how they’re doing
with meeting their goals. High-level KPIs relate to the overall performance of the business, while low-
level ones typically evaluate the processes of respective departments.
Regardless of your company’s history and its aims for this year and the foreseeable future, there are
some essential supply chain KPIs to track. Here are six of them.
1. Customer Order Cycle Time more useful if your company has sume normal operations after
guarantees that center on filling an event such as a hurricane or
One of a company’s primary customer orders within a speci- flood. Once you know how fast
goals is to decrease the amount fied timeframe. the business demonstrates resil-
of time that passes between iency, look deeper to see how the
when a customer places a pur- 2. Disruption Impact respective disasters affect the
chase order and the company company in more generalized
fulfills that request. A supply Natural disasters such as hurri- ways. Keep in mind that the dis-
chain business often uses the canes can significantly interfere ruption impact varies depending
customer order cycle time met- with supply chain workflows. on the ramifications of the event
ric to gauge its success with this Scientists warn that as climate experienced.
aim. change worsens, the severity of
storms’ impacts will likely go up. You may also want to break
You can calculate this supply When supply chain businesses down the disruption impact KPI
chain KPI by subtracting the are in disaster-prone areas, they into two components — time-to-
order delivery date from the day know the best mindset to have recover (TTR) and time-to-survive
the customer created the pur- regarding preparedness is “not if, (TTS). The first one deals with
chase order. but when.” So, one of the newer measuring how long the recov-
KPIs often cited for supply chain ery process takes after a disrup-
Alternatively, check the customer performance is disruption im- tion happens. TTS evaluates how
order cycle time by subtracting pact. long a company can stay sustain-
the requested order delivery date able and keep meeting demands
from the purchase order creation It allows you to assess how following an interruption.
date. The second option may be quickly your company can re-
037
3. Conversion Rate 4. Inventory Days of Supply during certain times of the year,
it could be useful to look at past
It’s also essential to engage in Supply chain professionals know data. You’ll want to see how in-
lead tracking at your supply there is a fine line between hav- ventory needs went up or down
chain business. Keeping tabs on ing too much inventory on hand based on things like weather pat-
the number of leads you have and not enough to meet custom- terns or regions of the country.
and how they behave as your ers’ needs. The inventory days Then, take that information into
relationship changes should help of supply metric measures how account while making forecasts
your enterprise avoid becoming long it would take your company this year.
stagnant. It’s excellent if your to run out of supplies if replen-
company has enough satisfied ishment didn’t happen. Figuring
customers in its pipeline now out this metric requires knowing
where it seems like lead acquisi- how much inventory you have on
tion can take a back seat. How- hand, plus the average amount
ever, that almost certainly won’t used in a day.
be the case forever.
Once you divide those two
Using a lead-tracking tool such results, you’ll have your answer.
as a customer relationship man- However, getting a handle on
agement (CRM) interface can this KPI is not as straightforward
also offer numerous business ad- as it may seem at first. That’s
vantages. It allows you to analyze because various things can make
the effectiveness of your com- the demand for items in your
pany’s marketing strategies and inventory go up, resulting in
determine how well those efforts depleting the stock faster than
align with your business goals. anticipated. It’s best to keep your
Additionally, a CRM tool can inventory days of supply metric
bring more organization to your as low as possible so you don’t
enterprise by making it easier to risk having unnecessary supplies.
identify sales cycles and where
your leads exist within them. Reducing your days of supply
metric may require working with
You should strongly consider your suppliers and determining
conversion rate as an essential how those parties could take
supply chain KPI to track in 2019 care of your orders faster. Also,
and beyond. Start calculating it keep track of internal company
by dividing the number of con- operations that tell you how fast
versions by the number of clicks. your supply chain business can
By using that formula, you can tackle orders once you receive
determine which marketing the necessary components.
materials — whether e-books, in-
fographics, white papers or other Manage your customers’ expec-
collaterals — cause the most con- tations to ensure their waiting
versions. time calculates the capabilities
of your supplier, plus the length
Your organization’s needs help of time needed to go through in-
define what constitutes a conver- house processes before shipping
sion. In some cases, it might be an item. Forecasting and data
a form submission, but in others, analysis software could both help
it occurs when a person orders a you improve this KPI, especially
product. for seasonal items.
For example, if your company

manufactures an item only used
038
5. Quality Assurance Time that shows your OTD is getting

worse, investigate to see wheth-
Numerous time-based supply er there are internal practices to
chain KPIs exist, and one you blame, slowdowns from external
should pay especially close atten- parties or both. Next, consider
tion to is quality assurance time. It whether it’s possible to make
measures how long it takes your changes that are within your con-
company to go through the entire trol to get closer to the ideal OTD
quality assurance (QA) procedure. rate. If not, you may need to alter
This kind of KPI could become es- the promises made to customers.
sential for determining whether
your existing process works as Staying on Top of Supply Chain
well as it should or could. KPIs Could Make Your Business
More Sustainable
A 2018 survey of CEOs looked at
the QA metrics they care about Once you start measuring these
most. One of the top-ranked six useful KPIs, it’ll be easier to see
measurements was cost of poor if your company’s performance
quality (COPQ). If you find your meets expectations or falls short.
quality assurance time is getting Knowing how your enterprise
shorter, look at the COPQ metric stacks up to others or how close it
and ensure you’re not decreasing comes to meeting internal goals
the time spent while sacrificing allows seeing where problems ex-
product quality. ist, then taking decisive steps to
fix them.
The poll also found that 42% of
people who specialize in gover- By using that approach, it’s pos-
nance, risk and compliance (GRC) sible to make your supply chain
spend a week or more compiling business thrive, even during chal-
relevant reports. Check to see if lenging economic conditions.
there are ways to cut down report
creation time for the people who
specialize in examining quality-
related aspects of your business.
6. On-Time Delivery
In today’s fast-paced society, cus-

tomers increasingly expect ship-
ments to arrive before or by the
times the associated companies
promise. That’s why it’s useful to
drill down and look at your on-
time delivery (OTD) KPI. You can
do so by dividing the number of
units that reach their destina-
tions on time by the total number
of units shipped.
Supply chain companies typical-

ly measure OTD by narrowing it
down to the units sent out on a
given month. If you find a trend
039
6 Supply Chain KPIs You Need to

Consider in 2019 Kayla Matthews
 KPIS
Key performance indicators (KPIs) are measure- customer created the purchase order.
ments enterprises use to determine how they’re Alternatively, check the customer order cycle time
doing with meeting their goals. High-level KPIs by subtracting the requested order delivery date
relate to the overall performance of the business, from the purchase order creation date. The second
while low-level ones typically evaluate the process- option may be more useful if your company has
es of respective departments. guarantees that center on filling customer orders
Regardless of your company’s history and its aims within a specified timeframe.
for this year and the foreseeable future, there are
some essential supply chain KPIs to track. Here are 2. Disruption Impact
six of them.
Natural disasters such as hurricanes can signifi-
1. Customer Order Cycle Time cantly interfere with supply chain workflows. Scien-
tists warn that as climate change worsens, the
One of a company’s primary goals is to decrease severity of storms’ impacts will likely go up. When
the amount of time that passes between when a supply chain businesses are in disaster-prone
customer places a purchase order and the com- areas, they know the best mindset to have regard-
pany fulfills that request. A supply chain business ing preparedness is “not if, but when.” So, one of
often uses the customer order cycle time metric to the newer KPIs often cited for supply chain perfor-
gauge its success with this aim. mance is disruption impact.
You can calculate this supply chain KPI by sub-
tracting the order delivery date from the day the
040
It allows you to assess how quickly your company can resume normal
operations after an event such as a hurricane or flood. Once you know
how fast the business demonstrates resiliency, look deeper to see
how the respective disasters affect the company in more generalized
ways. Keep in mind that the disruption impact varies depending on
the ramifications of the event experienced.
You may also want to break down the disruption impact KPI into two
components — time-to-recover (TTR) and time-to-survive (TTS). The
first one deals with measuring how long the recovery process takes
after a disruption happens. TTS evaluates how long a company can
stay sustainable and keep meeting demands following an interrup-
tion.
3. Conversion Rate
It’s also essential to engage in lead tracking at your supply chain busi-
ness. Keeping tabs on the number of leads you have and how they
behave as your relationship changes should help your enterprise avoid
becoming stagnant. It’s excellent if your company has enough satis-
fied customers in its pipeline now where it seems like lead acquisition
can take a back seat. However, that almost certainly won’t be the case
forever.
Using a lead-tracking tool such as a customer relationship manage-

ment (CRM) interface can also offer numerous business advantages. It
allows you to analyze the effectiveness of your company’s marketing
strategies and determine how well those efforts align with your busi-
ness goals. Additionally, a CRM tool can bring more organization to
your enterprise by making it easier to identify sales cycles and where
your leads exist within them.
You should strongly consider conversion rate as an essential supply

chain KPI to track in 2019 and beyond. Start calculating it by divid-
ing the number of conversions by the number of clicks. By using that
formula, you can determine which marketing materials — whether
e-books, infographics, white papers or other collaterals — cause the
most conversions.
Your organization’s needs help define what constitutes a conversion.

In some cases, it might be a form submission, but in others, it occurs
when a person orders a product.
041
4. Inventory Days of Supply you improve this KPI, especially

for seasonal items.
Supply chain professionals know
there is a fine line between hav- For example, if your company
ing too much inventory on hand manufactures an item only used
and not enough to meet custom- during certain times of the year,
ers’ needs. The inventory days it could be useful to look at past
of supply metric measures how data. You’ll want to see how in-
long it would take your company ventory needs went up or down
to run out of supplies if replen- based on things like weather pat-
ishment didn’t happen. Figuring terns or regions of the country.
out this metric requires knowing Then, take that information into
how much inventory you have on account while making forecasts
hand, plus the average amount this year.
used in a day.
5. Quality Assurance Time
Once you divide those two
results, you’ll have your answer. Numerous time-based supply
However, getting a handle on this chain KPIs exist, and one you
KPI is not as straightforward as it should pay especially close atten-
may seem at first. That’s because tion to is quality assurance time.
various things can make the It measures how long it takes
demand for items in your inven- your company to go through
tory go up, resulting in depleting the entire quality assurance (QA)
the stock faster than anticipated. procedure. This kind of KPI could
It’s best to keep your inventory become essential for determin-
days of supply metric as low as ing whether your existing pro-
possible so you don’t risk having cess works as well as it should or
unnecessary supplies. could.
Reducing your days of supply A 2018 survey of CEOs looked at

metric may require working with the QA metrics they care about
your suppliers and determining most. One of the top-ranked
how those parties could take measurements was cost of poor
care of your orders faster. Also, quality (COPQ). If you find your
keep track of internal company quality assurance time is getting
operations that tell you how fast shorter, look at the COPQ metric
your supply chain business can and ensure you’re not decreasing
tackle orders once you receive the time spent while sacrificing
the necessary components. product quality.
Manage your customers’ expec-

tations to ensure their waiting
time calculates the capabilities
of your supplier, plus the length
of time needed to go through in-
house processes before shipping
an item. Forecasting and data
analysis software could both help
042
The poll also found that 42% of people who spe-

cialize in governance, risk and compliance (GRC)
spend a week or more compiling relevant re-
ports. Check to see if there are ways to cut down
report creation time for the people who special-
ize in examining quality-related aspects of your
business.
6. On-Time Delivery
In today’s fast-paced society, customers increas-

ingly expect shipments to arrive before or by
the times the associated companies promise.
That’s why it’s useful to drill down and look at
your on-time delivery (OTD) KPI. You can do so
by dividing the number of units that reach their
destinations on time by the total number of units
shipped.
Supply chain companies typically measure OTD

by narrowing it down to the units sent out on a
given month. If you find a trend that shows your
OTD is getting worse, investigate to see whether
there are internal practices to blame, slowdowns
from external parties or both. Next, consider
whether it’s possible to make changes that are
within your control to get closer to the ideal OTD
rate. If not, you may need to alter the promises
made to customers.
Staying on Top of Supply Chain KPIs Could Make

Your Business More Sustainable
Once you start measuring these six useful KPIs,

it’ll be easier to see if your company’s perfor-
mance meets expectations or falls short. Know-
ing how your enterprise stacks up to others or
how close it comes to meeting internal goals
allows seeing where problems exist, then taking
decisive steps to fix them.
By using that approach, it’s possible to make

your supply chain business thrive, even during
challenging economic conditions.
043
7 Trends Likely to Impact Every Business

environment
from 2019-2020 Kayla Matthews
 ORGANIZATIONAL PERFORMANCE
The world is in a constant state of flux as technol- ics will likely be out of business by 2021.
ogy evolves, customs change and priorities shift. Companies that are looking to survive past the
These fundamental truths affect business as well, turn of the decade should acquaint themselves
and professionals have to be willing to adapt if with the analytics software and tools that simplify
they’re going to ensure their company’s survival in decision-making, solve problems and find new op-
the coming decade. portunities.
Of course, it isn’t always easy to prepare. As a Many organizations have already recognized the
business owner plans ahead, they’re not always power in analytics, coming up with innovative new
sure what to expect from tomorrow’s consumer ways to reap the benefits. What’s more, they’re
landscape. We’re here to help with that, looking at founding or acquiring data analysis companies to
seven trends that are likely to affect every business help others while raking in the profits themselves.
between 2019 and 2020.
2. Funding Will Come From Alternative Sources
1. Analytics Software Will See Even Greater Adop-
tion In the past, an entrepreneur couldn’t start a busi-
ness without full investment or a loan from a bank.
Business owners can’t afford to operate on intu- Things have only become more difficult, and those
ition alone. Luckily enough, there’s a wealth of hoping to start a small company of their own face
consumer data that can help uncover trends and lenders who hesitate to give them the money they
insights to make a struggling company more suc- need. In fact, banks reject 80% of small business
cessful. More than that, Forbes suggests that busi- loans, as of 2017.
ness owners who aren’t investing heavily in analyt-
044
Entrepreneurs and venture capitalists have developed new strategies

to avoid rejection, and this roundabout funding style will only contin-
ue to grow in 2019 and beyond. For one thing, peer-to-peer lending is
on the rise. These agreements often come with low interest rates and
other attractive features that bank loans can’t offer.
Sites like Kabbage further prove that the future of funding will be non-
traditional. The automated lending platform can provide prospective
business with a loan based on their business’s earning potential, aside
from a credit score. This degree of freedom and choice could mean a
greater number of small businesses are going to open in the years to
come. Companies that want to expand or diversify can do so as well,
thanks to new funding avenues.
3. Artificial Intelligence Will Be Everywhere
Countless companies have already started to harness the power of

artificial intelligence, as well as machine & deep learning. These trends
will only continue into 2019, 2020 and beyond.
For one thing, AI goes hand in hand with the rise of analytics. This
technology will be vital in sifting through such a massive amount of
data. AIs can do so quickly and efficiently, and they’re far less expen-
sive than a bona fide data analyst. Of course, the latter group won’t
be out of work. They’ll just review the findings that an artificial intel-
ligence provides.
AI will also have a hand in revolutionizing a range of industries like

manufacturing, healthcare, technology and so on. No matter how
professionals use AI, it’s sure to push businesses forward, streamlining
processes and giving those who use it an advantage over their com-
petitors.
4. Personalization Will Continue to Increase
Consumers want personalized experiences — they’ve shown this al-

ready. In an Epsilon survey released in 2018, a whopping 80% of cus-
tomers said they felt more likely to buy something when they were of-
fered an individualized experience. The study also found that, in most
cases, buyers wanted a personalized coupon based on their location,
purchase history or channel of use.
045
To that end, customers want to clients have sought out smart de-
be able to interact with brands vices that heat and cool without
through their favorite channels affecting the environment.
of communication. For instance,
some consumers don’t want to Much of a company’s green ef-
have to pick up the phone and forts will come from its adoption
call to find out what they want to of advanced technology, as we’ve
know. already mentioned. AI-led analy-
sis can help hone and stream-
Some of them may want to text line processes, thus saving time,
or Tweet, and brands should of- energy and resources.
fer these options. Chatbots — a
form of AI — can help with this 6. Subscription Services Will
as well. They serve as a type of Survive and Thrive
digital representative that can
field basic questions and provide The rising popularity of subscrip-
relevant information without tion services has left some execu-
making a customer wait. tives baffled. How many consum-
ers need a monthly delivery of
5. Green Technologies Will Still dog toys, stationery or beauty
Be Prevalent products? Despite the confusing
nature of this particular trend,
Consumers are becoming more consumers have kept subscrip-
and more scrutinizing about the tion services alive and thriving.
companies they do business The industry continues to grow
with. As such, they don’t want by 1% each month, according to
to buy from or support an entity Forbes.
that’s shown it doesn’t care for
the earth, supports a cause with With that in mind, business own-
which they disagree and so on. ers should analyze their offer-
In fact, such trends have already ings to see if they have anything
manifested in the workplace. that might delight subscription-
Millennials don’t want to work seekers. Putting together that
for companies without a strong type of offering would likely
mission or service to the greater prove a boon to overall sales as
good. well. Subscription holders tend to
make more purchases on a given
With this in mind, expect busi- website than those who have yet
nesses to take up a greater num- to sign up for the service.
ber of green initiatives in 2019,
2020 and beyond. One major
trend, for instance, will be the
adoption of renewable energy
sources. Technology will make
production more efficient, thus
preserving resources. Consumers
will also demand products that
create less waste. Even industries
such as HVAC will change, as
046
7. 5G Data Networks Will Reign Supreme izing their internet experience. They’ll head online
for more resources, so business owners should
The smartphone is already king, but 2019 and 2020 adjust accordingly to these trends.
will see its popularity spike. That’s because con-
sumers will have far more access to 5G data net- Adapt and Improve
works. Apps and websites will load more quickly No one can know exactly what’s ahead, but these
and efficiently, making a company’s presence in trends have started to show themselves already.
the digital sector even more crucial. 5G will also al- They’re likely going to make an even greater im-
low smart technology to find a place in even more pact in the years to come.
non-smartphone products, ranging from cars to
manufacturing processes. As such, business owners should take note and
plan accordingly to accommodate the future of
To prepare for this inevitability, companies should technology, business and consumer behavior. Plan-
ready themselves for even quicker and more reli- ning now will all but ensure your success now and
able Wi-Fi services. This technology is separate in the next decade.
from 5G, of course, but it opens up the same op-
portunities. Consumers will be able to log on and
download faster than ever before, thus revolution-
047
BUILD A PERFORMANCE CULTURE THROUGH

INTEGRATED STRATEGY COMMUNICATION SOLUTIONS
FROM THE KPI INSTITUTE
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GET SMARTER AT BUILDING A

STRONG PERFORMANCE CULTURE
048
COVER
STORY
architecture from the
 
DyStar - Global Reporting Initiative - Sustainability Reporting Standards - Climate Change - KPI Dashboard -
Best Practices - SDG Index - Leadership - Stakeholder Engagement
049
Best Practices in Environmental

Sustainability Reporting: DyStar
In recent years, sustainability reporting has evolved ity report, using a predefined structure and apply-
from best practice to practically the norm in almost ing independent standards is very helpful in terms
all large companies around the world. Ensuring trans- of both the effectiveness of disclosing ESG (envi-
parency of sustainability efforts is gaining increased ronmental, social and governance) information and
importance, particularly with reference to the busi- ensuring you release a highly qualitative report. The
ness environment. For example, a 2018 research re- most widespread and comprehensive standards, as
port prepared by the Sustainable Investments Insti- far as sustainability reporting is concerned, can be
tute found that 78% of the 500 largest companies found with the Global Reporting Initiative (GRI), and
in the US have issued a sustainability report for the their Sustainability Reporting Standards. They in-
most recent reporting period. Most of these reports clude 3 universal standards that are applicable to all
are especially inclusive of environmental and social organizations (foundation, general disclosures and
performance metrics. The global rate comes in even management approach) and 33 topic specific stan-
higher, with approximately 93% of companies having dards, structured into Economic, Environmental and
published their sustainability reports worldwide. Social measures.
According to the same report published by the Sus- DyStar Group, “a leading dyestuff & chemical manu-
tainable Investments Institute, the main reasons be- facturer and solution provider that provides custom-
hind such important developments in the field of ers across the globe with a broad portfolio of colo-
sustainability reporting are the more widespread use rants, specialty chemicals, and services”, is one of the
of the Internet, increased awareness of and debate companies that applies the GRI standards in their
around climate change and “dwindling public trust 2018-2019 sustainability report. While abiding by all
in institutions”. GRI requirements, the report is a good example on
how to present relevant information in a concise and
While it is the decision of every company to choose clear manner. Here are some of the strong suits of
the preferred outline and content of their sustainabil- DyStar’s Sustainability Report for 2018-2019:
050
GRI Content Index
If the reader wants to learn more specifically about criteria, because it presents all GRI dimensions, the
how DyStar adopted the GRI standards, they can indicators and descriptions for each dimension, and
use the GRI Content Index as a navigation tool that most importantly the page numbers under which
makes information traceable and increases transpar- one can find the information related to each specific
ency. This approach is especially useful when com- indicator. By using a table to present the data, it is
paring different sustainability reports based on GRI easily searchable and relevant information can be ex-
tracted from the report without any difficulties.
KPI Dashboard SDG index
It has been proven that information retention can DyStar reviewed how their sustainability activities
be improved by using visual means instead of sim- contribute to the achievement of the United Na-
ply describing or listing relevant information. While tions’ Sustainable Development Goals. The struc-
it is not overdone, there is a visual representation ture of this part of the report is very similar to their
of the most important sustainability KPIs measured GRI Content index, as follows:
by the organization, as follows:
Leadership close-up
To create a strong sustainability culture, culture shifts the following:

need to be encouraged across all organizational lev- “Our future is about sustainability - this is how we as
els, starting with top management. DyStar intro- a company differentiate ourselves. For us, it is essen-
duced a section in their sustainability report that tial to protect our planet and the colorful life on it. We
does just that. Fanny Vermandel, Vice President of strive to be an environmental and innovation leader,
the Global Marketing Coloration at DyStar Group, and therefore it is our obligation to provide “Best in
gave an interview on their e-confidence program, a Class” products and competitive solutions. Every day,
program especially dedicated to ensuring the sus- we strive to prove and communicate that our prod-
tainability of the value chain. In its closing, she said ucts are high-performing.”
051
Stakeholder engagement Overall, the DyStar report is a great example on how

to present information on sustainability in a clear,
Another great feature of this report is that it mentions concise and engaging way, thus motivating all stake-
all relevant stakeholders, when it comes to achieving holders to contribute to the achievement of the pro-
sustainability goals, and presents a mechanism for posed sustainability goals, while also becoming part
engagement for each of them, while also mention- of the international initiative towards ensuring a bet-
ing the typical frequency of each mechanism: ter and more sustainable future for all.
052
PERFORMANCE LABS
THE GO-TO SOURCE FOR

PERFORMANCE IMPROVEMENT IN UTILITIES
The KPI Institute has worked extensively in helping Utilities professionals from around
the world to measure and improve their performance. This expertise is comprised in all
the Utilities related resources gathered in an exhaustive performance lab.
WHAT MAKES US UNIQUE?
Through our researchers expertize and flexibility we can provide all our customers with:
A unique experience A tailored approach for Objective analysis Timely results

gained from working with your organizations’
a lot of utility companies own needs
In a world where information travels with the speed of light, we acknowledge the
importance of taking the time to understand specificity and to create personalized
solutions.
2200+ 600+ 200+ 140+

Utilities professionals Utilities KPIs Utilities participants Utilities companies
in our community documented trained benchmarked
053
PORTRAIT
 
from the KPI Institute
Redefining and reshaping organizational behaviours
054
 PORTRAIT - MARCELA PRESECAN
When it comes to finance and business manage-

ment, few people within the TKI family can boast a
more impressive path to professionalism than our
Head of Research, Marcela Presecan.
Having started early on in life, with a bachelor’s de-

gree in Economics at the Babes-Bolyai University
in Cluj-Napoca, followed by a master’s degree in
Business Administration at the Lucian Blaga Uni-
versity of Economics in Sibiu, her studies were then
complemented by the Business Acumen in Princi-
ples of Management and Small Business Manage-
ment course, acquired at the Montgomery County
Community College, SUA, zBlue Bell, Pennsylvania.
Following her studies, she delved right into her

trade of choice, first acquiring 5 years of profes-
sional experience in financial services and retail
banking, which were then augmented by a 5-year
practice in designing and implementing perfor-
mance management systems for organizations
worldwide.
During the 10 years she has spent thus far into the
financial & business management fields, her fo-
cused intent on maximizing knowledge bestowed
upon her several moments of particularly high im-
portance, such as when the Unicredit Consumer
Financing Magazine featured her as the consul-
tant with the biggest financial value in a credit sold
in 2010.
055
One year later, in 2011, Ms. Prese- exceptionally adept at keeping a

can was chosen to be a financial low profile. Performance does not
consultant for ING Bank Am- need a parade or bells & whistles.
sterdam N.V., spending 4 years It simply requires the drive and
working with financial indicators, skills to be the best.
performance indexes and prod-
uct performance mechanisms. Lastly, Ms. Presecan mentions
This gave her insight into how that the colleagues she interacts
to best facilitate client account with on a day-by-day basis pres-
management and how to struc- ent her with increasingly creative
ture financial advisory services, in ways of thinking about problems
such a way that the client’s expe- and solutions, which she sees as a
rience is always maximized. blessing, in a line of work as chal-
lenging as Performance Manage-
Later on, in 2014, she joined the ment.
TKI family as a junior researcher
and was assigned her most sig- With all that said though, our
nificant project up to that point Head of Research fondly posited
– redesigning & publishing the that her greatest source of un-
new Top 25 KPIs Reports, a multi- wavering support and inspiration
publication series in the field of has been her partner in life, be-
performance management. cause regardless of circumstanc-
es, he has always been there for
While Ms. Presecan’s determined her, as a stalwart pillar of affec-
personality was one of the big- tion, insight and reason.
gest driving factors in her suc-
cess, she attributes part of her
achievements to several sources
which provided her with guid-
ance and inspiration. For her, Har-
vard Business Review represents
a valuable pool of knowledge
when it comes to business writ-
ing & smart management think-
ing. Moreover, Kaplan & Norton’s
books and papers provided her
with a strong theoretical founda-
tion over Performance Manage-
ment’s core basic tenets.
In addition to this, she notes that

“The Accountant” can provide a
valuable lesson to many people
who aim for excellence without
necessarily being in the spotlight
– you don’t have to be the star to
be the most important person in
the room. You can be exception-
ally talented at your work, whilst
056
Performance Management – early beginnings can became the main off-site liaison for lead on-site
projects that involved the design, development and
Her first dip into the sea that is Performance Man- implementation of performance management sys-
agement began as a researcher for The KPI Institute, tems & solutions, like the Balanced Scorecard (BSC).
where she worked on several projects right from the
get-go: Besides that, due to her expertise, she became one
of the main individuals within the company provid-
•Maintaining and updating smartkpis. ing secondary research expertise for a consistent
kpiinstitute.org, the world’s largest database portfolio of assignments conducted by The KPI In-
of documented KPIs stitute, which were either self-owned or contracted.
•Coordinating and releasing the Top
25 KPI Reports – 2016 and 2018 editions Furthermore, her knowledge allowed her to aid the
•Coordinating and releasing the Perfor company in the design of both standard and cus-
mance Management in 2014: ASEAN Special tomized performance management tools, whilst
Edition report providing full support for an entire network of on-site
TKI consultants and assisting with the successful de-
Additionally, Ms. Presecan became an active mem- livery of performance management architectures for
ber of the editorial team, where her profound knowl- companies activating in a wide range of industries,
edge of the field enabled her to provide highly in- such as public governance, IT, telecommunications,
sightful information for numerous publications, such healthcare and finance.
as The KPI Dictionaries Series, the State of Employee
Performance Management Report series, the GCC It was only natural that with such outstanding mas-
Hospitals Performance Reports, the State of Perfor- tery over the field, she’d develop into a fully-formed
mance Improvement and Key Performance Indica- practitioner in her own right, moving on to becom-
tor Practice Report, as well as the PERFORMANCE ing the lead auditor delegated by the Global Per-
Magazine series. formance Audit Unit, the audit division of The KPI
Institute, which assesses, validates and offers best
After several years, having mastered the core re- practice recommendations for business strategies
search activities within TKI, she moved on to becom- and performance management.
ing a consultant. In this newfound role, Ms. Prese-
057
Performance Management – als – they wanted more. Thirdly – arguably one of PM’s
a sea of knowledge in a cup of most important functions, it
practice Luckily for them, Performance provides you with an opportunity
Management, whilst a vast field to reshape organizational behav-
At its inception, Performance of expertise, is also quite beginner iours as defined by the sum of
Management represented a revo- friendly, in that it has a low barrier elements that proactively con-
lutionary way of viewing business of knowledge entry and a high tribute to how employees act and
management – an approach that skill ceiling. What this entails is perform in the overall organiza-
continuously evolved and shifted, that anyone can get into PM and tional environment. This capacity
along with the organization that those that are especially adept allows performance manage-
made use of it, turning economic at picking up information can ment to have a significant impact
paradigms on their heads. become exceptional practitioners, over organizational design, HR
which is exactly what Ms. Prese- management, leadership capa-
“Similar to a car engine, perfor- can loves about her work. bilities and internal motivational
mance management is what structures.
drives organizational decision- Performance Management is
making, steering the organization synonymous with a language
in the desired direction.” that I can easily understand and
can also be easily understood by
Whilst PM has mostly remained women and men entrepreneurs
the same for the past almost 30 that want their businesses to hold
years, as it did back when Norton out and succeed. Performance
& Kaplan first theorized its basic management is, as I view it, the
concepts, its status as a practice razzmatazz of microeconomics
and discipline have yet to fully nowadays.”
mature. For all intents and pur-
poses, PM feels very much in its Precisely this aspect was what
infancy still, lacking the theoreti- sold our Head of Research on Per-
cal rigor needed to bring unifor- formance Management – the fact
mity to practice. that it is a clarity-centered system
that ensures transition towards
This is one of the reasons why superior organizational manage-
to this day, there is a shocking ment, from a plethora of perspec-
amount of confusion regarding tives.
the differentiation of organiza-
tional PM and individual PM – two Firstly, it clearly defines an organi-
elements that share the same zation’s identity, by guaranteeing
field, but are otherwise quite dif- that work will be done and that
ferent in concept and application. resources will be allocated to-
wards those elements that mat-
That being said, PM’s novelty is ter the most.
precisely its biggest selling point
for most businesses. When com- Secondly, PM allows you to quick-
panies saw the sensational suc- ly make use of your newfound
cess of companies such as GM, identity to pinpoint the current
Adobe, Google and so on, they state of your processes, enabling
began going past merely con- the company to implement proj-
ducting yearly employee apprais ects that actively support growth.
058
Knowing thyself – a core aspect of That is why, as an organization, you

business management have to know yourself first – your
values, vision and mission, before
Performance & business manage- you claim to know what others
ment are areas of expertise that may want of you. A best practice
come with their highly specific as- for implementing a reliable PM sys-
sortment of challenges and issues. tem requires it to be built on a clear
One distinct hurdle pertains to find- strategic identity, which the main
ing a solution that befits an organi- stakeholders of the organization
zation in the most effective man- can identify thmeselves with. Once
ner, regardless of the PM area that this is established, you can look to
that solution applies to. For most employ the right framework & tools,
organizations, there will always be to link your organizational strategy
that grey area which matches their to your everyday operations.
needs, which requires a solution
that is personalized according to In doing so, you can then strength-
their identity. en your internal capabilities, which
govern the organizational struc-
Speaking of identity, this is another tures, through a process of continu-
hurdle of Performance Manage- ous learning and development. This
ment. Generally speaking, when nurtures enhanced communica-
companies look to establish an or- tion, transparency and a shared vi-
ganizational persona, this is done sion among all company employ-
from a marketing perspective. ees, enabling you to implement
Therefore, when many CEOs, direc- performance management prac-
tors or heads of departments look to tices with the utmost effectiveness.
implement a management system,
they get the wrong idea by thinking However, none of this is possible if
that such a framework will unequiv- you do not understand what your
ocally match the current identity of identity is, first and foremost. Just
the organziation they work for. like you cannot chart a mission be-
fore deciding what type it will be –
What they need to understand is trade, reconaissance, military, you
that PM requires a more intrinsic cannot implement a management
perspective – it demands for an system without understanding
identity that matches that of a com- your fundamental traits, what you
pany’s internal stakeholders, while stand for. Whether you prefer an
taking into account the various re- agile, easily-adaptable, small-sized
quirements of the same company’s company or a large-scale, compre-
external ones. hensive, multi-layered entity, this
aspect dictates how you will ulti-
mately shape up your sytem from
inside.
059
Generating value & clarity for employees have over the company’s end results and how these
correlate to expectations.
Aside from helping companies build a cohesive iden-
tity, Ms. Presecan mentions that another achieve- Moreover, with a system of this nature, one’s employ-
ment of Performance Management is the overall im- ees get to be active participants within open perfor-
proved process of communication between different mance discussions, thus generating a better under-
organizational functions. standing over what is being measured and why. This
also allows them to get better insight into manageri-
Today’s companies start small, but success rewards al tidbits, enabling the possibility of improved career
them with increased wealth, whether in financial prospects, as they get accustomed to the system’s
form or human resources. This leads to a growing structure.
layer of organizational complexity, with several levels.
PM attempts to bring clarity over every individual’s With all that said though, clarity and value won’t do
role as a part of the whole, providing them with an much good if organizations don’t accept the fact
avenue to more effectively contribute to the organi- that people are unique and they must be approach
zational strategy. differently based on their inherent distinctiveness.
Talent goes to waste if it is squandered, suppressed,
“By setting clear roles and responsibilities for all em- mismanaged or not provided with the correct envi-
ployees, communicating performance results more ronment in which it can grow.
often, encouraging individual initiatives and putting
mechanisms in place that ensure effective informa- Even more challenging is the fact that talent can still
tion sharing, organizations that benefit from Per- go to waste in the right environment, as a result of
formance Management put into practice ensure a people defaulting on it because there is a lack of ap-
transparent and accountable working environment, propriate reward for their efforts.
characterized by trust and loyalty.”
“It is my opinion that talent management is the hard-
These last two mentions, of trust and loyalty, are par- est thing there is and that poor communication &
amount for the maturation of the system, because feedback are the main reasons for underperforming
the only way PM can thrive is when one gets the teams. I have come to the conclusion that there is
employees’ buy-in. However, how does one do that? a lot of attachment in any professional relationship,
Two words – explaining benefits, or in more words, and harnessing that attachment is in itself a leader-
clearing up what’s in it for the employee. ship skill.”
In layman’s terms, employees offer their labour in ex- From a people perspective, managing employees in
change for remuneration. In similar fashion, employ- what is essentially an Individual Performance Man-
ees offer their buy-in willingly when they understand agement system format (IPM) means creating a
what such a management system bestows upon healthy environment, based on principles of mutual
them. respect & understanding for different values and phi-
losophies.
Performance Management entitles them to receive
periodic feedback, based on their performance and From a more technical one, a successful organiza-
predefined conditions, which shirks any of the old tion must see that individual objectives and KPIs are
issues relating to criticism on personal grounds. aligned to the departmental ones and that employ-
Through PM, employees gain much more clar- ees are adequately rewarded, based on their contri-
ity around the impact that their individual activities bution levels to the organization’s achievements.
060
Managing life in a sensible fashion
Arriving at the end of our interview, Ms. Presecan “As long as you manage your time effectively during
notes that one of the newest trending topics nowa- work, it will never interfere with your personal life. In
days, personal performance - whilst an interesting the same manner, if you manage your time effective-
and tentatively positive addition to family perfor- ly in your personal life, you will always be prepared
mance, has to be handled with great care, lest we for successfully handling a busy day at work.”
wish to end up in the negatives.
She does state that ultimately, the choice of allocat-
Measuring and managing our performance in the ing time & resources is ours and no guide or hand-
private sphere, in an objective fashion, can improve book can ever override what we have set out to do.
our health or enable us to acquire new skills, how- Nonetheless, we should always come to terms with
ever we have to be realistic when looking to setting our abilities and boundaries. We can look to push to
personal targets. On more than one occasion, un- the limits, but if we practice that for too long, it might
avoidable outside factors become deciding variables spill over into negative consequences.
for our personal performance. If we push ourselves
too much just to overcome them, we might end up On the one hand, it’s always a welcomed sight to see
feeling disappointment, dismay, discontent or even someone that is so driven, they are looking to learn
depression instead of accomplishment or happiness. new things every day, in every moment. Such indi-
viduals push and develop the world further.
Ms. Presecan mentions that for her, 10,000 steps a
day has been the main performance target outside On the other, it is equally welcomed to notice some-
work, which is a reasonable enough approach to her one who has accepted who they are and what they
personal performance overall. Anything else related can do at a certain point in time, understanding
to performance in her personal life is casual and far when to take things at a slower pace.
from over-demanding.
“Listen to your inner compass when it tells you to
This brings us to the last point we talked about - bal- take it easy, share the load, take some extra time
ance, which our Head of Research considers a crucial off, spend some time with yourself and decide
aspect of maintaining a healthy lifestyle. whether you want to go on or just pause.”
061
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062
LIFESTYLE
 
Nutrition - Brigham Young University - Boosting Professional Performance - Diet - Vitamins - EFAs -
Antioxidants - Healthy Habits
063
Optimal Nutrition Key In Boosting

Professional Performance Cassandra Garrett
 LIFESTYLE
According to research conducted by scientists at concerns that can have a direct impact on perfor-
Brigham Young University in Utah, business pro- mance. Apart from being left lethargic, irritable or
fessionals who followed unhealthy diets were 66% depressed to the extent that even performing the
more likely than healthy eaters to experience a dip most mundane of tasks seem impossible, an un-
in productivity. When considering the benefits of healthy diet can also cause hypertension, diabetes
optimal nutrition, most people tend to think of and obesity. These conditions can all result in a loss
long-term advantages, such as boosting longevity of productivity and increased absenteeism.
and avoiding common diseases.
A healthy, nutrient-dense diet can boost your phys-
What you eat, however, can also have a huge, al- ical and mental well-being tremendously, which
most immediate effect on your productivity in the in turn, will ensure that your performance remains
workplace. This makes it imperative to not only pay impeccable. By indulging in nutritious foods, you
closer attention to what you eat, but also to under- will be able to ward off illnesses and boost your
stand to what extent your food intake can influ- mood, which will result in increased productivity.
ence your professional performance.
B vitamins are vital for brain health
Not all foods were created equal
In order for the brain to use the glucose supplied
At present, as much as 60% of the typical Ameri- by the carbohydrates, the body requires suffi-
can diet consists of processed foods such as crisps, cient amounts of Vitamin B6, B12, and folic acid.
pies, cakes and pastries that are hardly conducive A deficiency in B group vitamins can, in fact, lead
to optimal performance at work. to increased occupational stress, according to the
Following a diet that revolves around these nu- National Institutes of Health.
trient-deficient foods can lead to a host of health
064
In order to avoid such a deficiency, food such as Omega-3 fats, which occur in oily fish such as
cheese, eggs, lean red meat, legumes and nuts, trout, salmon and mackerel as Eicosapentaenoic
fish, and dark leafy greens should be consumed acid (EPA) and Docosahexaenoic acid (DHA), are
regularly. One of the easiest ways to incorporate among the most effectual EFAs. Other worthy
leafy greens and other important nutrients into sources include flaxseed oil, pumpkin seeds, soya
your diet is to start your day with a smoothie that, beans, and grass-fed red meat.
apart from boosting your brainpower, can facilitate
weight loss as well. Establish healthy habits
Don’t skimp on the antioxidants Establishing healthy eating habits is as important

as making good food choices. Make your eating
According to research conducted in 2017 at the decisions before you even get hungry by draw-
UCLA Medical Center, individuals who have high ing up a meal plan for yourself and prepping your
levels of omega-3s enjoy increased blood flow to food in advance. Prevent any spikes or drops in
the brain. Researchers further identified a pro- your blood sugar by eating smaller, more frequent
found connection between omega-3 levels and meals instead of three large ones, making lunch
enhanced cognition, reiterating that a deficiency your largest meal of the day.
in Vitamin A, C, and E can increase the prevalence
of age-related memory loss. As snacking is often the hardest part of a diet to
get right, it is imperative to ensure that you have
Brain function (and professional performance) can healthy snacks such as fruit, nuts, vegetable sticks
be boosted by eating foods that are rich in omega- or cheese portions on-hand to prevent you from
3s including oily fish, leafy greens, milk, nuts and reaching for the nearest bag of biscuits when hun-
pumpkin. ger sets in.
Boost your brain with EFAs Although there is more than one way to boost your
productivity, following a healthy diet is one of the
If you want to perform to the best of your ability most effective. Not only will you enjoy improved
in your career, you need to ensure that your brain performance when indulging in nutrient-dense
(and body) is fueled by the right nutrients. Essen- foods, but you will also see your overall health and
tial Fatty Acids (EFAs) are essential for brain health, well-being improve exponentially.
but because they can’t be produced by the body,
they have to be obtained from food sources.
065
KPIs
 
Performance - Strategy - Transformation - Innovation - Systems - People - Sustainability,

Productivity - Capability - Measurement - Benchmarking - Audit - Evaluation
- Excellence -
066
# Insurance claim processing time

Definition 

Measures the time
it takes, on average,
to process a claim,
from initiation to
a decision being
made.
Purpose 
To indicate how
efficient the insurer
is solzving claims, a
determinant of cus-
tomer satisfaction.
Recommendations
# Insurance claim processing time is measured by Different types of insurances may also require differ-
the avervzage time required to process a claim. The ent approaches. Travel insurances, for example, are
process implies all necessary steps from the ini- easier to claim as they have more generic conditions
tiation of the insurance claim to making decisions and well-defined criteria for reimbursement. Health
based on the data collected. Insurance claim pro- insurances, however, may possess more specific
cessing times reflect on multiple aspects of perfor- terms and conditions, therefore more expertise and
mance. time may be needed during their processing.
On the one hand, they can indicate the level of In order to reduce insurance claim processing times,
company efficiency: how efficient the insurer is in there are several steps that may be applied, such as:
solving claims. On the other hand, insurance claim
processing times reflect on customer satisfaction. •Digitized claim processing to save on time
In this respect, time as a determinant, suggests a and costs;
negative correlation between processing time and •Lean and Six Sigma implementation pro
customer satisfaction. grams;
•Outsourced claim processing to a third-par
As such, insurance companies are recommended to ty to increase efficiency.
make claim processing highly efficient. This is also
due to the fact that the task is laborious, time con- Completed insurance claim databases can provide
suming and bureaucratic. insight into the claim processing times. Integrated
technological solutions can aid on the spot data
gathering during claim processing.
067
# Insurance underwriting time
Definition 
Measures the time

taken, on average,
to calculate the rate
of an insurance ap-
plication.
Purpose 
To indicate the
speed of calculat-
ing underwriting
requests and decid-
ing whether the
company will take
on the risk or not.
This can influence
customer satisfac-
tion.
Recommendations
The # Insurance underwriting time is the time it Several recommendations on improving this KPI are
takes an insurance application to undergo the ba-
to d o
as follows:
sic underwriting processes of information collection
and risk assessment, before all available options for •Increasing data-driven information to re
coverage are presented to the client. The insurance duce manual processing;
underwriting time is an important measure of the in- •Improving internal communications to ac
surance application process. celerate underwriting decisions;
•Eliminating time-consuming procedures for
By measuring it on a regular basis, it may serve as an applicants who qualify;
indicator of process speed. The speed of the process, •Establishing structured system to cater im
defined as the time it takes an insurance request to mediate resolutions for clients.
be approved or not by the insurance provider, can
ultimately impact customer satisfaction. The insur- By measuring this KPI over time, acceleration or de-
ance underwriting time usually varies based on sev- celeration in the underwriting process can be ob-
eral factors, such as internal procedures, workload served. Improving processes and new innovations
and company standards. can increase the speed.
Moreover, the data collection process for this indica- One of the first steps in calculating this KPI is to de-
tor is also important. Accurate data capture and re- cide what types of insurance (life, health, home etc.)
sults over time can have a significant impact on the and which groups of underwriters (by age, by loca-
insurance underwriting process. An accurate record tion, etc.) should be aggregated and averaged. Also,
of insurance underwriting times can help insurance the indicator can be measured for one agent or for a
providers identify potential gaps in customer rela- group of agents within the company.
tionships and process efficiencies.
068
% Policy renewal rate
 Definition 
Measures the
percentage of
insurance policies
renewed, from the
insurance policies
sold.
Purpose 
To assess customer
satisfaction, as cus-
tomers will renew a
policy when satis-
fied with it.
Recommendations
In the insurance industry, the policy renewal rate is newal rate, will then depend on the number of dor-
often interpreted as a measure of customer satis- mant customers in the insurance company.
faction. It is believed that customers are more likely Nevertheless, recommendations on increasing poli-
to renew their policies when they are satisfied with cy renewal rates include the following:
them. Therefore, managers are recommended to
gain insight into the policy renewal pattern for indi- •Establishing a single global process to man
vidual clients. Such data can have multiple uses. age renewal opportunities;
•Investing in data-driven risk assessment sys
Firstly, it can identify which policies sell out more tems to increase efficiency;
than others. Secondly, it can help managers make •Building a complaints and feedback depart
valuable decisions, not only when it comes to policy ment for dissatisfied customers.
renewals, but also when closing on new customer
policies. Least but not last, it can level out costs, as Measuring this indicator will not just give managers
frequent policy renewals indicate loyal customers, an idea of which policy sells more, but it will also help
which are more reliable than newly acquired ones. them make changes in updating old and current
customers.
One of the downsides in monitoring this indicator is
that it does not provide any differentiation between Maintaining a high level of policy renewal is impor-
obsolete customers and dormant customers. Dor- tant for keeping costs down, as existing customers
mant customers, who will eventually renew their pol- are commonly less expensive to operate with than
icy, may distort the estimation. The level of impact new customers.
this deviation will have on the results for % Policy re-
069
# Conflicts arising during the project

Definition 
Measures the per-

centage of insurance
policies renewed,
from the insurance
policies sold.
Purpose 
To assess customer
satisfaction, as cus-
tomers will renew a
policy when satis-
fied with it.
Recommendations
Theoretical suppositions in behavioral research sug- # Conflicts arising during the project include the fol-
gest that when working together with others, one lowing:
does so unselfishly to achieve a common objective.
Nevertheless, project managers are frequently faced •Actively encouraging employee relation
with conflicts that arise amongst project team mem- ships by planning social events or communi
bers. cation sessions;
•Working towards motivating project team
Different backgrounds, conflicting orientations, per- members to be tolerant and patient;
ceptions, personalities or even simple miscommu- •Involving sponsors or communication ex
nication could cause significant delays in project perts if needed;
execution or even inhibit it from succeeding. It is •Assigning clear responsibilities so as to
therefore important for project managers to factor in avoid confusion and role conflict;
some conflict resolution strategies before embark- •Giving fair recognition and rewards for proj
ing on in the process of project development and ect teams and their individual members.
implementation.
Conflicts between project team members are hard to
One of the most important steps in managing such accurately track and record because of the random
situations is to identify the source of the conflict. This manner in which they appear. It does not indicate
can refer to resourcing issues, technical and design the outcomes of the conflicts and their influence to
disagreements, or general personality clashes and project success.
arguments.
Targets can vary according to the nature of the proj-
Nurturing interpersonal skills to cope with such is- ect and number of people involved. Conflicts be-
sues also comes in handy, as most employees will tween project team members are expected to arise
rely on the manager to resolve conflicts within a par- more extensively in newly formed project teams,
ticular project that they may not be able to tackle in- where members didn’t previously work with each
dividually. other during other projects. This KPI should be mea-
Several other recommendations to minimize sured along with the rate at which conflicts were re-
070
% Project budget overruns rate
Definition 
Measures the per-

centage of insurance
policies renewed,
from the insurance
policies sold.
Purpose 
Measures the actual

cost of the projects
relative to the initial
estimation of costs.
Recommendations
A good estimation of costs in professional services collection and rigorous reporting tools, is but one
is very important, especially when dealing with proj- more step towards the better administration of bud-
ects bid at a fixed price, when no augmentations can gets for projects on the roll.
be done to the invoices sent to the customers.
Several other recommendations to reduce the %
With many industries, project management espe- Project budget overruns rate include the following:
cially, budget is one of the pivotal tools to succeed.
Aside from its close ties with the financial perfor- •A chart of accounts to make informed finan
mance of the organization, in terms of project man- cial decisions regarding project budget;
agement, % Project budget overruns rate is an im- •Regular budget reports to track progress
portant measure of cost control and cost analysis. and avoid overrun;
Although it may seem more important to keep track •Budget approval policies to have a check
on budget overruns for large projects, cost control and balance system;
on small projects is just as valuable. For both large •Baselines for both maximum and minimum
projects and small projects, realistic cost estimation expenses that need to be met;
is key. •Regular meetings to discuss budget targets
for projects in the pipeline.
Cost estimation generally includes forecasting on
spending amounts with supplies, man-hours, num- Concerning target-setting, too much or too little
ber of employees, meetings with clients and any oth- difference in the actual estimated costs can have a
er costs that may come as unforeseen throughout negative impact on project success. Even with an
project execution. With project management, esti- actual cost that is much lower than estimated, the
mation rarely meets execution in terms of spending. company may still be unsatisfied because resources
However, keeping close track of progress for projects could have been planned better.
in the pipeline can considerably reduce variance in
terms of project overrun. Making use of solid data
071
% Project schedule variance
Definition 
To track the operational
discipline in coordinat-
ing and executing a
project according to the
planned schedule.
Purpose 
Measures the variance
in terms of schedule,
highlighting the per-
centage of work that is
yet to be completed as
per project schedule.
Recommendations
Project managers would argue that an effective proj- limited to the following:
ect management is one that adheres to and fulfills
its pre-determined goals. It is therefore common for •Employing rigorous risk management to re
managers to strive to keep the project in line with the duce variance levels;
schedule planned, which means minimum % Project •Training the team to track and measure
schedule variance, in order to reach its goals. Such project progress regularly;
goals include meeting project milestones, controlling •Defining project goals and communicating
project cost and scope, efficient team performance, as them to everyone in the team;
well as high quality project outputs. •Preparing second and third risk mitigation
plans.
There are several ways to minimize % Schedule vari-
ance within a project. Arguably, the most important This indicator can be measured at the end of the proj-
step is to define the objectives and set the deliverables ect, but also during project execution for tracking the
of the project during the initiation stage of the project. status of different project stages.
Managers are expected to set realistic expectations for
the team, as well as set accurate estimation deadlines A high schedule variance in positive numbers could in-
for the project. dicate that the project management underestimated
the amount of time needed to complete the project
In addition, it is also essential for project managers to or that the budget and workforce were insufficient. It
regularly communicate with the project team regard- could also mean that the project management or the
ing their progress. Such activity is expected in order workforce suffered setbacks, foreseen or otherwise,
to identify and minimize variance early during process which may or may not have been avoided.
execution.
Several other recommendations include but are not
072
# Fresh water withdrawn

for business use
Definition 
Measures the total
quantity of fresh
water withdrawal
for industrial use
and sanitation by a
company from dif-
ferent sources, such
as water authori-
ties, lakes, rivers and
Purpose 
To monitor the wa-

ter consumption of
a company.
Recommendations
Withdrawal of freshwater, commonly sourced from Some recommendations on optimizing # Freshwa-

surface water, renewable and fossil groundwater, is ter withdrawal for business use include the following:
used mainly for irrigation and agricultural purposes.
According to a report from the Food and Agriculture •Creating incentives to support the creation
Organization of the United Nations, 70% of freshwa- of policies and frameworks for water with
ter withdrawals are channeled towards agriculture, drawal optimization within specific
19% are handled by businesses and the remaining industries;
11% are administered by municipalities. •Engaging employees in the process of iden
tifying problems and finding innovative prob
Freshwater withdrawal or abstraction for business lem-solving solutions to reduce water usage;
purposes is mainly used for the production of elec- •Implementation of greywater treatment sys
tricity (primarily for cooling water) and to a lesser ex- tems that allow water to be re-used
tent in the manufacturing industry. For the business/ internally or encourage water re-utilization
manufacturing industry water withdrawals are used between businesses.
especially for the manufacturing of refined petro-
leum products and basic metal products. This indicator is also known as the water footprint of
businesses. The water footprint of a business con-
The typology of this KPI can provide valuable insight sists of two components: the direct water use by the
into compliance levels with water efficiency usage producer (for producing / manufacturing or for sup-
given the increasing freshwater shortage that has porting activities) and the indirect water use (the wa-
been reported in business environments. Optimiza- ter use in the producer’s supply chain). This KPI can
tion of water use in business environments is impor- also be measured as fresh water withdrawn per unit
tant because it can lower water withdrawals from lo- of product.
cal surface sources thus increasing water availability.
073
# Power plant load factor
Definition 
Measures the ratio of the to-
tal power generated (MWh)
to the operating capacity
over a designated period of
time..
Purpose 
To monitor the capacity

utilization and the efficien-
cy of the power plant.
Recommendations
Many companies disclose load factors for their ma- age capacity for a given amount of supply. Hence
jor plants. When comparing load factors over time, the related costs with electricity generation and dis-
it is important to remember that large quarter-on- tribution.
quarter seasonal changes are likely to occur, which
can lead to more significant year-on-year changes. Some recommendations on optimizing the # Power
plant load factor thus include the following:
In the utilities industry, a # Power plant load factor
that maximizes output while reducing the average • Complying with industry standards
$ Cost per unit of MWh is preferred. In practice, the and technical procedures aimed at improving the
KPI can be influenced by functions of demand and utilization capacity of the power plant;
production. • Applying for grants to be invested in
R&D and modernization plans for the plants, hence
The # Power plant load factor is a measure of vari- supporting the optimization of their maintenance
ability in electrical consumption, and it is frequently costs;
used together with the # Availability factor, # Capac-
ity factor and # Utilization factor to provide an exten- • Assessing the level of the # Power
sive overview on performance. plant load factor in the power utility sector, to deter-
mine strategies that reduce the impact of different
A low # Power plant load factor may reflect on signif- variables (e.g. pipeline transmission costs, energy
icant variances in electricity demand, while a plant consumption costs) on the # Power plant load factor.
operating at its desirable full capacity will most likely A higher level of this KPI usually means higher out-
exhibit a high # Power plant load factor. put and a lower cost per unit. It shows that an elec-
Considered a valuable tool for generating cost esti- tricity generator can sell more electricity at a higher
mates, the # Power plant load factor can be driven spark spread.
by technical efficiencies of the plant in terms of us-
074
# Wastewater collected and treated

v
(WCT)
Definition 
Measures the average quantity

of wastewater collected and
treated per day during the re-
porting period.ties, lakes, rivers
and wells, during the reporting
period.
Purpose 
To monitor the volume of waste-
water collected and treated by
the plant or facility.
Recommendations
The production of waste from human and industrial as to indicate the actual level of wastewater directed
activities is unavoidable, and part of this waste fre- towards wastewater facilities for treatment.
quently ends up as wastewater.
Generally, # WCT can be used to measure wastewa-
Wastewater must be treated before it can be safely ter flow in open channels such as flumes and closed
returned to the environment. The specific process pipes. # WCT provides general indication of the ef-
used for treatment can vary by the source and vol- forts directed towards conserving and using water
ume that needs to be treated. Also, the process can more efficiently, as a provision for the possible im-
range from relatively simple to high levels of com- pacts of climate change.
plexity.
Some recommended actions on dealing with waste-
Common sources of wastewater include: domestic water so as to prevent negative environmental im-
facilities, industrial utilities, infiltration from ground- pact include the following:
water pipes and storm water. However, the amount
of # Wastewater collected and treated (# WCT) is •Initiating an audit of wastewater
influenced by several factors such as climate, socio- pumps and motors to identify the most and
economic factors, community sizes, household tech- least efficient equipment;
nologies and culture, for instance. •Converting water distribution channels such
as tree watering tankers to use reclaimed
Water consumption directly influences # WCT and water, where feasible;
varies for different geographical areas. Wastewater •Adopting water conservation measures to
accounts for 50% to 100% of the water demand. # monitor compliance levels with international
WCT can be measured on the spot or on a continu- regulations on environmental issues;
ous basis and this can be done by using various tech- •Developing an educational community pro
niques such as the flow sensor, the transmitter or the gram that engages residents and organiza
flow recorder. These water flow measurement devic- tions in efficiently utilizing water sources.
es can collect relevant and accurate information so
075

READING
LIST
 
The following is a list of must-haves for your reading list:
076
1.Sales Management Success: area of your business. Covering 6.Supplier Performance Man-
Optimizing Performance to such topics as hiring, orientation, agement A Complete Guide -
Build a Powerful Sales Team mentoring, performance, and so 2020 Edition
By Warren Kurzrock much more, the author has given By Gerardus Blokdyk
us a much-needed reference that
Drawing on the author’s experi- you will turn to again and again. Defining, designing, creating,
ence as the CEO of Porter Henry and implementing a process to
& Co. (the oldest sales-force train- 4.Improving Human Perfor- solve a challenge or meet an ob-
ing company in the world), War- mance in Dynamic Tasks: Ap- jective is the most valuable role...
ren Kurzrock details the 8 most plications in Management and In EVERY group, company, orga-
critical abilities and strategies Industry nization and department. Un-
in the sales manager’s job. The By Hassan Qudrat-Ullah less you are talking a one-time,
Porter Henry process has proven single-use project, there should
to routinely help teams and indi- This book is about improving be a process. Featuring 2213
viduals multiply their bottom-line human decision making and new and updated case-based
results. performance in complex, dy- questions, organized into seven
namic tasks. Decision making in core areas of process design,
2.How to Take Action for Suc- dynamic tasks can be improved this Self-Assessment will help
cessful Performance Manage- through training with system you identify what process areas,
ment: A Pragmatic Constructiv- dynamics–based interactive in which Supplier Performance
ist Approach learning environments (ILE’s) that Management improvements can
By Falconer Mitchell, Hanne Nør- include systematic debriefing. be made.
reklit Some key features of the book
include its didactic approach,
This text uses the philosophy numerous tables, figures, and
of pragmatic constructivism to the multidimensional evaluative
show how managerial beliefs model.
that underlie action can be made
explicit and so facilitate their 5.Change-Friendly Leadership:
assessment and improvement. How to Transform Good Inten-
This involves recognizing and tions into Great Performance
integrating the four dimensions By Rodger Dean Duncan
(facts, possibilities, values, and
communication) that represent Change by announcement,
how managers relate to the real- change by slogan, and certainly
ity in which they operate. change by executive decrees
are doomed to failure. Effective
3.The Golden Rules of Human change requires genuinely en-
Resource Management: What gaging the brains of the people
every manager ought to know expected to embrace and even
By Ali Asadi champion the new state of af-
fairs. In the change approach
Written by an acknowledged ex- prescribed here, the friendly fac-
pert in all areas of business man- tor is not just a play on words; it
agement, The Golden Rules of is the very foundation for effec-
Human Resource Management is tively engaging people’s heads,
a well-organized guide to under- hearts, and hopes.
standing this vitally important
077
078
POWERED BY
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We hoped you enjoyed reading our latest issue of Performance Magazine. If you'd like to be a
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interviews, editorials or lifestyle articles!
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ISSUE no.

COVER STORY - KPIs LIFESTYLE

EDITORIAL COORDINATION PORTRAIT 54

Andrei Costea LIFESTYLE 63

This edition provides details on subjects such as

Flip through pages of extensive articles, concept

In our 16th issue of PERFORMANCE Magazine,

KEE Y CERTIFIED KPI PROFESSIONAL AND PRACTITIONER

CERTIFIED STRATEGY AND BUSINESS PLANNING PROFESSIONAL

CERTIFIED AGILE STRATEGY EXECUTION PROFESSIONAL

CERTIFIED PERFORMANCE MANAGEMENT PROFESSIONAL

CERTIFIED EMPLOYEE PERFORMANCE MANAGEMENT PROFESSIONAL

CERTIFIED BALANCED SCORECARD MANAGEMENT SYSTEM PROFESSIONAL

CERTIFIED DATA ANALYSIS PROFESSIONAL

CERTIFIED DATA VISUALIZATION PROFESSIONAL

CERTIFIED BENCHMARKING PROFESSIONAL

CERTIFIED SUPPLIER PERFORMANCE PROFESSIONAL

CERTIFIED CUSTOMER SERVICE PERFORMANCE PROFESSIONAL

CERTIFIED PERSONAL PERFORMANCE PROFESSIONAL

CERTIFIED INNOVATION PERFORMANCE PROFESSIONAL

Skills have a direct impact on productivity.

UNIQUE VALUE FEA-

China - United States of America - Trade - Manufacturing - GameStop - TuSimple - HR Trends -

The China-USA trade war is hitting

Exploration is the engine that

One such company that has With efficiency and timeliness

HR Trends within the Tech Industry

Moving on from skills, leaders men-

One other trend we would like to

While the study contained many

Course Stories: Certified OKR

Most of the participants came from the consultancy Day I

The second day started off with an

During last day of the course, we

ECADEMY is a Dhaka-based, training venture of JSN SMARTNET which is a

The attendees, via a combination of theoretical notions and hands-on-prac-

• How to strategically select the relevant KPIs;

This certification course has provided a solid theoretical and

During the first day of the learning experience, participants

Constructive comparisons were carried out, between the per-

On the second day, we took a practical approach when it came

As the final day approached, participants talked about the im-

The final session ended with a thorough discussion around the

Overall, the course has taught the participants, all in manage-

5 Tips to Increase Employee Charles Richard

Engagement within any Organization

Above all, engaged employees are happier both

Allow a flexible environment bear truthful relationships, in Arrange social gatherings on a

Express gratitude frequently

There is always a great joy in saying ‘Thank You’ to

Everyone wants to feel appreciated and a simple

An important affirmation from the administration

We hope these different tactics used to boost em-

Simplifying Performance Assessments

for Remote Workers Cassandra Garrett

At present, nearly 3.9 million Americans work

Despite there not being any daily personal

While it is possible to apply a number of tradi-

Make use of one-on-one performance reviews