Preface xiii
Acknowledgments xxi
Part I Setting The Scene
Chapter 1 Background 3
Are Agencies Really Non Profit Agencies? 3
Measurement in Government and Non Profit Agencies 3
Unintended Behavior: The Dark Side of Measures 4
Balanced Scorecards within Government and Non Profit Agencies 6
Checklist: Where Are You in Your Journey with Performance Measures? 6
Major Benefits of Performance Measures 8
Notes 10
Chapter 2 Myths of Performance Measurement 13
Myth 1: Measuring Performance Is Relatively Simple and the Appropriate Measures Are Very Obvious 13
Myth 2: You Can Delegate a Performance Management Project to a Consulting Firm 14
Myth 3: Your In-House Project Team Can Achieve Success while Continuing with Their Other Duties 14
Myth 4: By Tying KPIs to Pay You Will Increase Performance 14
Myth 5: Most Measures Lead to Better Performance 15
Myth 6: Performance Measures Are Mainly Used to Help Manage Implementation of Strategic Initiatives 16
Myth 7: The Balanced Scorecard Was First Off the Blocks 17
Myth 8: Measures Fit Neatly into One Balanced-Scorecard Perspective 18
Myth 9: The Balanced Scorecard Can Report Progress to Both Management and the Board 18
Myth 10: There Are Only Four Balanced-Scorecard Perspectives 18
Myth 11: Strategy Mapping Is a Vital Requirement 20
Myth 12: All Performance Measures Are KPIs 22
Myth 13: Monitoring Monthly Performance Measures Will Improve Performance 23
Myth 14: KPIs Are Financial and Nonfinancial Indicators 23
Myth 15: The More Measures the Better 23
Myth 16: Indicators Are Either Lead (Performance Driver) or Lag (Outcome) Indicators 24
Myth 17: We Know What Good Performance Will Look Like Before the Year Starts and, thus, Can Set Relevant Year-End Targets 24
Notes 25
Chapter 3 Revitalizing Performance Management 27
Foundation Stone 1: Understanding Human Behavior 27
Foundation Stone 2: Knowledge of the Paradigm Shifters (Drucker, Collins, Welch, Hamel, Peters, Waterman, and Others) 29
Foundation Stone 3: Using an Appropriate Strategy 44
Foundation Stone 4: Critical Success Factors Known by All Staff 45
Foundation Stone 5: Abandon Processes That Do Not Work 45
Rejuvenating Human Resources 46
Performance-Related Pay: Correcting the Errors 47
Reviewing an Individual's Performance 48
Getting the Right People on the Bus 48
Jack Welch's 20/70/10 Differentiation Rule 49
Secrets from High-Performing Teams 49
Toyota's 14 Principles 50
Role of Performance Measures: Implementing Winning KPIs 51
Quarterly Rolling Planning: The Setting of Targets 51
Reporting Performance 52
Outside-In View 53
Adopting Kaizen 53
Working Smarter Not Harder 54
Getting Technology to Deliver 54
Moving from Management to Leadership 55
Notes 55
Chapter 4 Measurement Leadership Has to Come from the Chief Executive Officer 57
Barriers to Measurement Leadership 57
The Way Forward for the Chief Executive Officer 58
Appoint a Chief Measurement Officer 60
Notes 60
Chapter 5 Strategy and Its Relevance to Performance Measures 61
Define Your Organization's Mission, Vision, Values 61
Create a Strategy That Is Understood by Staff 63
Ensure That Your Strategy Is Balanced 64
Monitor Implementation of Your Strategy 66
Creating the Future 66
Replace the Annual Planning Process with Rolling Planning 67
Notes 67
Part II Winning KPIs Methodology
Chapter 6 The Great KPI Misunderstanding 71
Key Result Indicators 71
Performance and Result Indicators 73
Key Performance Indicators 74
Seven Characteristics of KPIs 76
Difference between Key Results Indicators and KPIs 78
Lead and Lag Confusion 79
10/80/10 Rule 81
Importance of Timely Measurement 82
Note 83
Chapter 7 Finding Your Organization's Critical Success Factors 85
The Missing Link 85
Importance of Knowing Your Organization's Critical Success Factors 86
Four Tasks for Identifying Organization-Wide Critical Success Factors 91
Strategy Mapping 100
Notes 103
Chapter 8 Foundation Stones for Implementing Key Performance Indicators 105
"Partnership with the Staff, Unions, and Third Parties" Foundation Stone 105
"Transfer of Power to the Front Line" Foundation Stone 107
"Measure and Report Only What Matters" Foundation Stone 108
"Source KPIs from the Critical Success Factors" Foundation Stone 110
"Abandon Processes That Do Not Deliver" Foundation Stone 111
"Understand Human Behavior" Foundation Stone 112
"Organization-Wide Understanding of Winning KPIs Definition" Foundation Stone 113
Notes 113
Chapter 9 Implementing the 12-Step Process 115
How the 12-Step Model and the Seven Foundation Stones Fit Together 115
Step One: Senior Management Team Commitment 115
Step Two: Establish a Winning KPI Team Working Full Time on the Project 120
Step Three: Establish a Just-Do-It Culture and Process 124
Step Four: Set Up a Holistic KPI Development Strategy 127
Step Five: Market the KPI System to All Employees 131
Step Six: Identify Organization-Wide Critical Success Factors 134
Step Seven: Record Performance Measures in a Database 134
Step Eight: Select Team-Level Performance Measures 137
Step Nine: Select Organizational Winning KPIs 143
Step Ten: Develop the Reporting Framework at All Levels 145
Step Eleven: Facilitate the Use of Winning KPIs 148
Step Twelve: Refine KPIs to Maintain Their Relevance 151
Notes 152
Chapter 10 Determining the Measures 155
How to Derive Measures 156
Brainstorming Measures 156
Stacey Barr's PuMP 157
Checking KPIs for Behavioral Alignment 159
Chapter 11 Case Studies 161
Golf Club (Non Profit Membership Organization) 161
Surf Life Saving (Non Profit Membership Organization) 166
Government Department 169
Professional Accounting Body 170
Chapter 12 Selling Change 173
Selling by Emotional Drivers 173
Selling the Move to Winning KPIs 174
Chapter 13 Common Critical Success Factors and Their Likely Measures for Government and Non Profit Agencies 177
Chapter 14 Reporting Performance Measures 185
The Work of Stephen Few in Data Visualization 185
Reporting the KPIs to Management and Staff 186
Reporting Performance Measures to Management 191
Reporting Performance Measures to Staff 195
Reporting Performance Measures to the Board 195
Reporting Team Performance Measures 201
How the Reporting of Performance Measures Fits Together 204
Notes 204
Epilogue: Resources 205
Appendix A: Foundation Stones of Performance-Related Pay Schemes 211
Appendix B: Effective Recruiting-Getting the Right People on the Bus 223
Appendix C: The Public Sector Can Abandon the Flawed Budget Process 229
Appendix D: Jack Welch's Strategy Slides 241
Appendix E: Suggested Success Factors for Government and Non Profit Agencies 243
Appendix F: List of Performance Measures Suitable for Government and Non Profit Agencies 273
Appendix G: Presenting the Critical Success Factors to the Board/Government Official 293
Appendix H: Main Differences between the Balanced-Scorecard and Winning-KPIs Methodologies 301
Index 305
