Key Performance Indicators

KEY PERFORMANCE INDICATORS

FOURTH EDITION

"This book, already a performance measurement classic, firmly establishes David Parmenter as the 'King of the KPIs'. His first chapter, a timeless classic, is worth the cost of the book alone." —Harry Mills, subject matter expert on persuasion for the Harvard ManageMentor program

Rife with examples, worksheets, practice exercises, templates, and other valuable tools, Key Performance Indicators is truly a field guide. Readers will walk away with an understanding of the what, why, and—most importantly—the how of building appropriate and effective KPIs into organizations of all sizes.

Key performance indicators are crucial to defining and tracking your organization's progress toward its goals. Setting up the wrong performance measures can lead to unwanted behaviors across an organization, perhaps even destroying value through misalignment and confusion.

If you are building KPIs for your organization, Key Performance Indicators will help you avoid these common mistakes and ensure your efforts result in ownership, empowerment, and fulfillment at all levels.

This Fourth Edition has been improved by:

• Simplifying, reorganizing, and refining the Winning KPI methodology process into a three-stage process
• Refining the "selling the change" process by incorporating more reference to the psychology behind resistance to change
• A new chapter on the rules for designing measures
• New methods David Parmenter has used in KPI implementations
• A further refined performance measures database

The new edition of the bestselling guide on creating and using key performance indicators—offers significant new and revised content

Key Performance Indicators (KPIs) help define and measure the organizational goals which are fundamental to an organization’s current and future success. Having solid KPIs is crucial for companies that are implementing performance management systems, such as balanced scorecards, six sigma, or activity-based management. In many organizations, KPIs are often too numerous, randomly assembled, and overly complex—essentially rendering them ineffectual, or at worse, counterproductive. Key Performance Indicators provides a model for simplifying the complex areas of KPIs while helping organizations avoid common mistakes and hazards.

Now in its fourth edition, this bestselling guide has been extensively revised and updated to incorporate practical lessons drawn from major implementations. Fresh content includes a more concise KPI methodology with clear implementation guidance, original insights on how other areas of performance management can be corrected, and new in-depth case studies. A revised starter kit is included to identify critical success factors, and the KPI resource kit contains updated worksheets, workshop programs, and questionnaires. Helping readers to better define and measure progress toward goals, this important guide:

• Dispels the myths of performance measurement and explains a simple, yet powerful KPI methodology
• Explains the 12-step model for developing and using KPIs with guidelines
• Helps readers brainstorm performance measures, sell KPI projects to the Board and senior management, and accurately report performance
• Features the “KPI Project Leaders Corner” which provides readers with essential information and useful exercises
• Includes an array of practical tools—templates, checklists, performance measures—and a companion website ()

Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, 4th Edition is important resource for C-suite executives, senior management, project teams, external project facilitators, and team coordinators involved in all aspects of performance management systems.