Key Performance Indicators
Amplios Academy www.amplios.net
White Paper Series
KPIs Galore
Wilson Fyffe, Singapore, 1 April 2011
Summary
Purpose – The purpose of this paper is to examine why and how firms find resistance to performance measurement in the presence of proliferation of the same, leaving very valuable management information potential unrealized.
Design/methodology/approach – The paper presents a framework for organizing performance measures into a manageable hierarchy, suitable for computerization and easily maintained as the organization changes.
Findings – The prime cause of resistance to performance measurement is the reluctance to be measured against outcomes which are beyond the control of the individual being measured.
Practical implications – The approach enables firms to prepare for redesign of their framework for performance measurement, in particular where there are implications for compensation.
Originality/value – The ideas presented provide a means of achieving rapid progress in the overall design of a performance management solution.
Keywords Performance measures, Quality
Paper type Research paper
1. Introduction
This white paper gives a high level view of the issues faced by organizations finding that they have a proliferation of performance measures and need to arrive quickly at a means of focusing them in an easily managed and maintained framework.
2. The KPI Hierarchy
The Chart of Accounts
Accountancy is the basic form of performance measurement used in all organizations, both private and public. Most organizations are required to appoint an external auditor to provide the shareholders and other stakeholders with an assurance that the periodic financial statement present a ‘true and fair view’ of the status and activities of the organization in financial terms.
The external auditors need to comply with standard forms of reporting and are thus greatly assisted if the Chart of Accounts employed by a client organization is in a standard
White Paper Series
KPIs Galore
Wilson Fyffe, Singapore, 1 April 2011
Summary
Purpose – The purpose of this paper is to examine why and how firms find resistance to performance measurement in the presence of proliferation of the same, leaving very valuable management information potential unrealized.
Design/methodology/approach – The paper presents a framework for organizing performance measures into a manageable hierarchy, suitable for computerization and easily maintained as the organization changes.
Findings – The prime cause of resistance to performance measurement is the reluctance to be measured against outcomes which are beyond the control of the individual being measured.
Practical implications – The approach enables firms to prepare for redesign of their framework for performance measurement, in particular where there are implications for compensation.
Originality/value – The ideas presented provide a means of achieving rapid progress in the overall design of a performance management solution.
Keywords Performance measures, Quality
Paper type Research paper
1. Introduction
This white paper gives a high level view of the issues faced by organizations finding that they have a proliferation of performance measures and need to arrive quickly at a means of focusing them in an easily managed and maintained framework.
2. The KPI Hierarchy
The Chart of Accounts
Accountancy is the basic form of performance measurement used in all organizations, both private and public. Most organizations are required to appoint an external auditor to provide the shareholders and other stakeholders with an assurance that the periodic financial statement present a ‘true and fair view’ of the status and activities of the organization in financial terms.
The external auditors need to comply with standard forms of reporting and are thus greatly assisted if the Chart of Accounts employed by a client organization is in a standard