This document provides information on key performance indicators (KPIs) including:
1. A list of group members and the chapter topics to be covered, including the meaning and importance of performance indicators, types of performance measures, characteristics of KPIs, developing KPIs, and collecting performance data.
2. Descriptions of KPIs, their characteristics including being specific, measurable, attainable and timely. Types of KPIs include generic and specific indicators.
3. The steps involved in developing good KPIs which include identifying strategic objectives, developing key performance questions, choosing areas to measure, and consulting stakeholders.
This document provides information on key performance indicators (KPIs) including:
1. A list of group members and the chapter topics to be covered, including the meaning and importance of performance indicators, types of performance measures, characteristics of KPIs, developing KPIs, and collecting performance data.
2. Descriptions of KPIs, their characteristics including being specific, measurable, attainable and timely. Types of KPIs include generic and specific indicators.
3. The steps involved in developing good KPIs which include identifying strategic objectives, developing key performance questions, choosing areas to measure, and consulting stakeholders.
This document provides information on key performance indicators (KPIs) including:
1. A list of group members and the chapter topics to be covered, including the meaning and importance of performance indicators, types of performance measures, characteristics of KPIs, developing KPIs, and collecting performance data.
2. Descriptions of KPIs, their characteristics including being specific, measurable, attainable and timely. Types of KPIs include generic and specific indicators.
3. The steps involved in developing good KPIs which include identifying strategic objectives, developing key performance questions, choosing areas to measure, and consulting stakeholders.
This document provides information on key performance indicators (KPIs) including:
1. A list of group members and the chapter topics to be covered, including the meaning and importance of performance indicators, types of performance measures, characteristics of KPIs, developing KPIs, and collecting performance data.
2. Descriptions of KPIs, their characteristics including being specific, measurable, attainable and timely. Types of KPIs include generic and specific indicators.
3. The steps involved in developing good KPIs which include identifying strategic objectives, developing key performance questions, choosing areas to measure, and consulting stakeholders.
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KEY PERFORMANCE INDICATOR /KPIs/
GROUP TWO MEMBERS
1.Alemayehu Gebeyehu 2.Birhanu 3.Gebeyehu Tirusew 4.Meseret Asemare 5.Wubale Asmamaw 6.Zelalem Shitie CONTENT TO BE COVERED CHAPTER SEVEN 7.1 Meaning of performance indicators Types of PM KPI Characteristics Types of KPIs Types of KPIs Indicators Development of KPIs 7.2. Importance of performance indicators 7.3. Steps in designing of performance indicators 7.4. Performance data collection Meaning of performance indicators • Performance indicators are performance assessment criterions against which organizations asses their actual performance. • performance indicator as something that allows us to identify to what degree a variable is present. • Indicators are the input that allows us to assess performance. • Performance indicators are performance assessment yards that provide us with the information and evidence that help us -gain new insights, -enable us to learn, -assist us in our decision making and -allow us to act on it to improve future performance. Types of PM
• There are three types of performance measures:
1. Key result indicators (KRIs) - tell you how you have done in a perspective. 2. Performance indicators (PIs) - tell you what to do. 3. Key Performance Indicators (KPIs) - tell you what to do to increase performance dramatically. What are KPIs? • Simply defined, KPIs are measures that a sector or organization uses to define success and track progress in meeting its strategic goals. • Key Performance Indicators (KPIs) are quantitative and qualitative measures used to review an organization's progress against its goals. • KPIs provide a measurement tool What are KPIs? • KPIs represent a set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of the organization. • KPIs measure performance by showing trends to demonstrate that improvements are being made over time. • KPIs also measure performance by comparing results against standards or other similar organizations. KPI Characteristics KPI characteristics identified in the literature are: 1. Relevant to and consistent with the specific organization's vision, strategy and objectives. 2. Focused on organization wide strategic value rather than non-critical local business outcomes. 3. Representative – appropriate to the organization together with its operational performance. KPI Characteristics 4. Realistic – fits into the organization ’s constraints and cost effective; 5. Specific – clear and focused to avoid misinterpretation or ambiguity; 6. Attainable – requires targets to be set that are observable, achievable, reasonable and credible under expected conditions as well as independently validated; 7. Measurable – can be quantified/measured and may be either quantitative or qualitative; KPI Characteristics • Timely – achievable within the given timeframe; • Understood – individuals and groups know how their behaviors and activities contribute to overall agency goals; • Agreed – all contributors agree and share responsibility within the agency; • Reported – regular reports are made available to all stakeholders and contributors; KPI Characteristics • Governed – accountability and responsibility is defined and understood; • Resourced – the program is cost effective and adequately resourced throughout its lifetime. • Assessed – regular assessment to ensure that they remain relevant. Characteristics of good KPIs • People often use the acronym “SMART” to refer to the characteristics of good performance indicators. .. Types of KPIs Indicators • Generic KPIs measure aspects of performance relevant to the majority of service users and do not target a specific service user population. For example, the number of service users awaiting admission from the emergency department for more than six hours. • Specific KPIs are related to a specific service user population and measure particular aspects of care related to those service users. For example, the percentage of children that have been referred for speech and language therapy that wait more than three months from referral to assessment. Types of Indicators • KPIs can be classified according to the type of care for which the measurement process was developed. For example: preventive, acute or chronic care: – Preventive care refers to the maintenance of health and prevention of illness such as in immunization programs. – Acute care usually refers to care given for a new onset illness or for a sudden deterioration in chronic conditions and may involve short term medical care or surgery. Development of KPIs • A number of factors should to be considered when developing and evaluating KPIs: 1. Define the audience and use for measurement. 2. Consult with stakeholders and advisory group. 3. Choose the area to measure. 4. Achieve a balance in measurement. 5. Determine selection criteria. 6. Define the indicator • Identify the target population • Define the target to be achieved • Threshold for action • Action Define the audience and use for measurement • It is important to define the intended audience -in order to identify and develop a suitable KPI. • The audience refers to the person or group for whom the KPI will aid decision-making and can be the service-user, the clinician, the public, the facility or the healthcare system. Define the audience and use for measurement • It is essential to note that whether the goal of the measurement is for benchmarking, either internally for quality improvement purposes or externally against standards or other organizations, will influence the KPI selection process. • Before embarking on the performance measurement process, it is necessary to identify the domains for which the measurement is intended, which may in turn be dependent on the audience Consult with stakeholders and advisory group • There should be consultation with all stakeholders throughout the data development process. • Consultation facilitates the identification of the needs of stakeholders while simultaneously contributes to the acceptance of the selected KPIs. Consult with stakeholders and advisory group • Consultation also facilitates agreement about data elements and assists in familiarization with the data and standards. • Consultation with decision-makers can assist in identifying their information needs and subsequent use for that information. • Consultation with service providers can also assist in identifying their information needs, and elicit what data they can provide. Choose the Area to Measure • Choosing the area to be measured should be based on the importance of the problem, service-user safety, potential for improvement and controllability by health or social care system/professionals • A healthcare problem is important if it is associated with significant morbidity and mortality, has high service-user volumes and is costly to treat. Importance of performance indicators • A performance indicator allows us to collect evidence and information that 1. helps us gain new insights and learning , 2. supports our decision making and 3. leads to improved organizational performance. Vital points of performance indicators 1. A performance indicator does not necessarily mean counting or quantifying. Evidence and information can also take the forms of written descriptions, observations and so on. Example use of mysteries shopping for call center or focus group discussion with students. 2. A performance indicator has to be relevant to the information needs of the organization. It therefore has to be linked to the strategic priorities of the organization and has to be connected to the important decisions that have to be made in an organization. Vital points of performance indicators 3. A performance indicator has to be meaningful : this means organizations have to -collect the right information, -from the right source, -at the right frequency, and -we have to provide the evidence and information to the right people, in the right format, at the right time. Steps in designing of performance indicators • To facilitate the design of more relevant and meaningful performance indicators, some scholars proposed the following steps for development of good performance indicators Step 1: identification of strategic objectives Any performance indicator has to be linked to our organizational priorities and strategic objectives. - Hence, we should clearly identify our strategic objectives before development of any indicators. - Indeed, it is strategic objectives that used as a base to develop performance indicators and the latter serve to asses the achievement in the former. Steps in designing of performance indicators Step 2: Develop KPQ • A KPQ is a management question that captures exactly what it is that people want to know when it comes to performance of each of the strategic objectives. • The rationale for KPQs is that they provide guidance for collecting relevant and meaningful PIs and focus our attention on what actually needs to be discussed when we review performance. Example from BDU STRATEGIC PLAN ONE OF THE Strategic objective: BDU will design and execute different strategies and programs with the intention of promoting staff satisfaction. • HOW performance indicator can be developed for the above objective? THE focus here is Formulation of KPQ: what strategies and programs do BDU design to ensure staff satisfaction? Steps in designing of performance indicators • N.B. The main reason for strategic performance management is to improve future performance. Performance improvement is based on learning. • Deep and significant learning occurs only as a result of reflection, and reflection is not possible without a question. KPQs are therefore essential components of good performance management. Steps in designing of performance indicators KPQs can be extremely powerful management tools as they: • enable us to design meaningful PIs; • wake us up and focus our attention; • help us to think clearly, logically and strategically; • allow us to challenge the status quo; • build a culture of engagement and accountability; • lead to reflection, new insights, learning and performance improvement. From where we drive KPQ? From strategic objectives to KPQs to KPIs Steps in designing of performance indicators Step 3: developing of possible PIs corresponding to each KPQ. Example from BDU ONE OF THE Strategic objective: BDU will design and execute different strategies and programs with the intention of promoting staff satisfaction. • HOW performance indicator can be developed for the above objective? 1. Formulate KPQ: what strategies and programs do BDU design to ensure staff satisfaction? 2. Develop possible performance indicators: some of them can be - Salary increment - Resident provision - Well furnished recreation center (cafeteria, gymnasium, bar and restaurant) - Transportation service - Health insurance - Improve social relationship - Further education opportunity - Good leadership ( collegial and supportive relation with supervisors at all level) Steps in designing of performance indicators Step 4: Analyze each PIs and develop Limited and focused number of performance indicators • N.B. analysis criterions here include 1. The extent to which PI answers the KPQ 2. The extent to which we can collect meaningful data for indicators 3. COST consideration: amount of budget required to collect information 4. The extent to which the indicator help us to make a better decision. • N.B. If no decisions are made on the data, then no improvements will follow, and the indicators will be pretty worthless. • Too often do we end up with data that is interesting to know but which is not really enabling us to make better informed decisions. Steps in designing of performance indicators 5. The extent to which the indicator invite cheating • For instance: If we want to improve service delivery and measure call duration as a key measure that is tracked by the automated system, then this leaves considerable room for cheating because call center agents could just hang up – the system wouldn’t know whether the call was handled satisfactorily or not. - It is worth to note that no indicator will ever be 100% cheat-proof - However If the indicator makes it too easy to cheat, it would make sense to reflect on the indicator, redesign it or not to use. • - N.B. THE ABOVE FIVE CRITERIONS TAKEN BY SOME SCHOLARS AS A SEPARATE STEPS. Step 5: collect performance data Steps in designing of performance indicators example in case of BDU: develop Limited and focused PIS - Based on criterion discussed in this chapter, we should redesign or eliminate some of PIs - FOR INSTANCE, salary and provision of insurance need to redesign or eliminate on the ground of cost ( beyond the university internal revenue generation capacity) or decision factor ( the university has not legal mandate to decide on such issues and hence no need to collect information on such indicators since the indicators don't help the university management to make a better decision). - Similarly, we need to reconsider the use of improving of social relationship on the ground of availability and meaningfulness of data in this PI. - finally we deal with Collection of performance data. This can be done through staff satisfaction survey or focus group discussion KPI Key Performance Indicator KPI Advantages KPI Advantages KPI Disadvantages KPI Disadvantages Performance data collection A number of different measurement instruments that can be used to collect performance data. Major once include: 1. Surveys and questionnaires: commonly used by service providers to asses their performance in relation with satisfaction of customers. For instance CS organizations service delivery assessment OR internal employee job satisfaction assessment and so on • N.B. It is always a good idea to reduce the amount of time and effort required to collect performance data, not only for your organization, but also for your customers, employees, suppliers, etc. Performance data collection 2. In-depth interviews are guided conversations with people, rather than structured queries such as surveys. • Interviews can be conducted face-to-face or via telephone or videoconference. • In-depth interviews can, for example, be used to assess elements such as relationship with key customers, suppliers or partners. Performance data collection 3. Focus groups are facilitated group discussions (5 – 20 participants) in which participants can express and share their ideas, opinions and experiences. • Focus groups are good ways of assessing employee- and customer-related performance indicators such as customer experience, customer or staff engagement, team-working climate or trust. Performance data collection 4. Mystery shopping approaches are the assessment of a service by a ‘ secret shopper ’ posing as a client or customer. For example, instead of the ubiquitous and intrusive customer satisfaction survey, many service providers, such as hotels or banks, now use focus groups to identify what really matters to their target customers and then employ professional mystery shoppers to assess service levels according to the criteria identified. 5. External assessments: External organizations and institutions can provide independent performance assessments and indicators. N.B. external assessment is hardily to provide meaningful information in politicized environment. Performance data collection 6. Observations allow us to collect information by observing situations or activities with little or no manipulation of the environment. • Observation outputs can take the format of score sheets, checklists, narrative reports and video- or audio taping. 7. Peer-to-peer evaluation is the assessment of performance in which participants vote or assess each other’s performance. • This can either be done openly or anonymously and enables people to learn from each other and to consider their own performance from the perspective of other people. • Peer to- peer evaluations have been successfully used to gauge elements including trust, knowledge and experience, teamwork and relationships. …