The implementation of KPIs - Revision history

Tehass 7: /* Wrong implementation of KPIs */

2019-03-04T22:40:39Z

Wrong implementation of KPIs

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	===Wrong implementation of KPIs===		===Wrong implementation of KPIs===

	In addition to their shortcomings, KPIs can indeed provide non desirable outcomes when interpreted in the wrong manner. A common mistake can be the hurried brainstorm of a list of KPIs for a particular CSF. KPIs should not be chosen for the sake of it but rather for their relevance and feasibility. Numerical metrics tend to form a stigma around respective employees and stakeholders who emotionally associate performance measurement with fear, anxiety and stress. The organisational culture should instead ease KPIs and performance measurement as a natural aspect of project management. The organisational culture should encourage their acceptance and importance in delivering success by associating performance measurement with feedback and as a gateway for potential improvement.		In addition to their shortcomings, KPIs can indeed provide non desirable outcomes when interpreted in the wrong manner. A common mistake can be the hurried brainstorm of a list of KPIs for a particular CSF. KPIs should not be chosen for the sake of it but rather for their relevance and feasibility. Numerical metrics tend to form a stigma around respective employees and stakeholders who emotionally associate performance measurement with fear, anxiety and stress. The organisational culture should instead ease KPIs and performance measurement as a natural aspect of project management. The organisational culture should encourage their acceptance and importance in delivering success by associating performance measurement with feedback and as a gateway for potential improvement.<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>

	=Conclusion=		=Conclusion=

Tehass 7: /* Why do KPIs fail ? / Limitation of KPI implementations */

2019-03-04T22:36:09Z

Why do KPIs fail ? / Limitation of KPI implementations

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	Additionally, intangible KPIs for e.g. KPIs focused at a strategic level are at risk of being misinterpreted where there is a lack of simple,lucid objectives and measurable goals.		Additionally, intangible KPIs for e.g. KPIs focused at a strategic level are at risk of being misinterpreted where there is a lack of simple,lucid objectives and measurable goals <ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
			.

	As a tool under the wing of Performance Management Systems (PMS), KPIs have tendency to be limited to only projecting numerical information. The notion of using purely numerical KPIs is not challenged. <ref name="KPI3">Pidun, T., & Felden, C. (2011). Limitations of Performance Measurement Systems based on Key Performance Indicators. Retrieved from https://aisel.aisnet.org/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1013&context=amcis2011_submissions</ref>		As a tool under the wing of Performance Management Systems (PMS), KPIs have tendency to be limited to only projecting numerical information. The notion of using purely numerical KPIs is not challenged. <ref name="KPI3">Pidun, T., & Felden, C. (2011). Limitations of Performance Measurement Systems based on Key Performance Indicators. Retrieved from https://aisel.aisnet.org/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1013&context=amcis2011_submissions</ref>

Tehass 7: /* The use of Dashboards for KPI monitoring */

2019-03-04T22:35:08Z

The use of Dashboards for KPI monitoring

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	*Contain retention<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>		*Contain retention<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>

	[[File: Dashboard1.PNG\|500px\|thumb\|right\|Figure 3: An example layout of a Dashboard<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>		[[File: Dashboard1.PNG\|500px\|thumb\|right\|Figure 3: An example layout of a Dashboard containing multiple analytic tools such as pie charts, line charts and histograms<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>

	]].		]].

Tehass 7: /* The use of Dashboards for KPI monitoring */

2019-03-04T22:31:54Z

The use of Dashboards for KPI monitoring

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	==The use of Dashboards for KPI monitoring==		==The use of Dashboards for KPI monitoring==

			''The final goal of practically implementing KPIs in a Performance Management System can be realized through the effective development of a dashboard.''

	Dashboards are powerful communication tools that help convey and project results from KPIs. When properly implemented, dashboards can be very effective for e.g. they provide business intelligence. Their primary intention is to provide the most important information without the unnecessary clutter and confusion. Hence, dashboards aren't detailed reports. When effectively used, they reduce the meddling between stakeholders and top executives<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>		Dashboards are powerful communication tools that help convey and project results from KPIs. When properly implemented, dashboards can be very effective for e.g. they provide business intelligence. Their primary intention is to provide the most important information without the unnecessary clutter and confusion. Hence, dashboards aren't detailed reports. When effectively used, they reduce the meddling between stakeholders and top executives<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>

Tehass 7: /* KPI systems for the modern project manager */

2019-03-04T22:29:15Z

KPI systems for the modern project manager

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	=KPI systems for the modern project manager=		=KPI systems for the modern project manager=

			''The following section summarizes the most common ways for project managers to monitor project performance''

	There are three primary ways to implement, monitor and keep tabs on the selected KPIs for the present day project managers. They are namely:		There are three primary ways to implement, monitor and keep tabs on the selected KPIs for the present day project managers. They are namely:

Tehass 7: /* Steps for successful KPI implementation for projects and organisations */

2019-03-04T22:27:01Z

Steps for successful KPI implementation for projects and organisations

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	[[File:KPI_steps.png\|622px\|thumb\|center\|Figure 1:Building blocks for achieving successful implementation of KPIs in organisations and projects<ref name="KPI2">Wiley, Key Performance Indicators, ''Developing, Implementing, and Using Winning KPIs'', Third Edition, 2013</ref>]]		[[File:KPI_steps.png\|622px\|thumb\|center\|Figure 1:Building blocks for achieving successful implementation of KPIs in organisations and projects<ref name="KPI2">Wiley, Key Performance Indicators, ''Developing, Implementing, and Using Winning KPIs'', Third Edition, 2013</ref>]]

	According to the book "Developing, Implementing, and Using Winning KPIs" by David Parmenter, seven foundation stones in addition to seven main steps are required in order to successfully develop, utilize and implement KPIs in an organisation. It is important to note that the following steps are directly applicable to implementing KPIs in an organisation but can assure that these steps and foundation principles can be translated and adapted from an organisation and workplace based application to a project, program or portfolio based one. The ~~the~~ steps as presented in '''Figure 1''' include:		According to the book "Developing, Implementing, and Using Winning KPIs" by David Parmenter, seven foundation stones in addition to seven main steps are required in order to successfully develop, utilize and implement KPIs in an organisation. It is important to note that the following steps are directly applicable to implementing KPIs in an organisation but can assure that these steps and foundation principles can be translated and adapted from an organisation and workplace based application to a project, program or portfolio based one. The six steps as presented in '''Figure 1''' include:

	*It is of utmost importance for a project or organisation to have the CEO and top management on board and committed to change		*It is of utmost importance for a project or organisation to have the CEO and top management on board and committed to change

Tehass 7: /* Why do KPIs fail ? / Limitation of KPI implementations */

2019-03-04T22:26:00Z

Why do KPIs fail ? / Limitation of KPI implementations

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	==Why do KPIs fail ? / Limitation of KPI implementations==		==Why do KPIs fail ? / Limitation of KPI implementations==

	The failures of KPIs implemented on projects primarily correlates to the lack of an overview available to the project manager. The relevant members in the organisation believe that tracking the KPIs ends in the first line manager level which is a common misconception as represented by the balance scorecard. Another reason for failure of KPIs is the lack of power for the measuring officers or KPI responsible to take timely regulatory action towards negative indications. This also applies to project managers not taking timely actions towards certain "urgent" KPI indications. This particular risk is however, lower in the case of project managers when they are solely responsible for the tracking and monitoring. Sometimes, KPIs implementations fail due to non-frequent monitoring. A slow rate of change deludes the responsible manager into its frequent monitoring. Over reliance on a whole host of KPIs also creates a recipe for failure within organisations. It creates confusion among the members responsible for recording the measurements. <ref name="~~KPI~~">~~Wiley~~, Project ~~Management~~		The failures of KPIs implemented on projects primarily correlates to the lack of an overview available to the project manager. The relevant members in the organisation believe that tracking the KPIs ends in the first line manager level which is a common misconception as represented by the balance scorecard. Another reason for failure of KPIs is the lack of power for the measuring officers or KPI responsible to take timely regulatory action towards negative indications. This also applies to project managers not taking timely actions towards certain "urgent" KPI indications. This particular risk is however, lower in the case of project managers when they are solely responsible for the tracking and monitoring. Sometimes, KPIs implementations fail due to non-frequent monitoring. A slow rate of change deludes the responsible manager into its frequent monitoring. Over reliance on a whole host of KPIs also creates a recipe for failure within organisations. It creates confusion among the members responsible for recording the measurements. <ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
	~~Metrics~~, KPIs, and ~~Dashboards ''~~A Guide to Measuring and Monitoring Project Performance'', ~~Third Edition, 2013~~</ref>

	Additionally, intangible KPIs for e.g. KPIs focused at a strategic level are at risk of being misinterpreted where there is a lack of simple,lucid objectives and measurable goals.		Additionally, intangible KPIs for e.g. KPIs focused at a strategic level are at risk of being misinterpreted where there is a lack of simple,lucid objectives and measurable goals.

Tehass 7: /* KPI systems for the modern project manager */

2019-03-04T22:25:25Z

KPI systems for the modern project manager

← Older revision		Revision as of 22:25, 4 March 2019
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	3. '''Reports''': Reports are the most common and simple way of presenting KPIs. They offer an easy to read, classic yet deep overview of the project progress to the respective stakeholder<ref name="~~KPI~~">~~Wiley~~, Project ~~Management~~		3. '''Reports''': Reports are the most common and simple way of presenting KPIs. They offer an easy to read, classic yet deep overview of the project progress to the respective stakeholder<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
	~~Metrics~~, KPIs, and ~~Dashboards ''~~A Guide to Measuring and Monitoring Project Performance'', ~~Third Edition, 2017~~</ref>
	.

	[[File:Boundary Box KPI.png\|550px\|thumb\|center\|Figure 2: A boundary box for the KPI target]]		[[File:Boundary Box KPI.png\|550px\|thumb\|center\|Figure 2: A boundary box for the KPI target]]
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	==The use of Dashboards for KPI monitoring==		==The use of Dashboards for KPI monitoring==

	Dashboards are powerful communication tools that help convey and project results from KPIs. When properly implemented, dashboards can be very effective for e.g. they provide business intelligence. Their primary intention is to provide the most important information without the unnecessary clutter and confusion. Hence, dashboards aren't detailed reports. When effectively used, they reduce the meddling between stakeholders and top executives<ref name="~~KPI~~">~~Wiley~~, Project ~~Management~~		Dashboards are powerful communication tools that help convey and project results from KPIs. When properly implemented, dashboards can be very effective for e.g. they provide business intelligence. Their primary intention is to provide the most important information without the unnecessary clutter and confusion. Hence, dashboards aren't detailed reports. When effectively used, they reduce the meddling between stakeholders and top executives<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
	~~Metrics~~, KPIs, and ~~Dashboards ''~~A Guide to Measuring and Monitoring Project Performance'', ~~Third Edition, 2017~~</ref>. The project manager's responsibility includes the explanation and interpretation of the KPIs displayed on the dashboard to the stakeholders. Typically, cluttered dashboards lead the way to project failure as the stakeholders are confused when keeping track of the KPIs and are unable to direct accurate and relevant strategic decisions. Hence, as mentioned in the previous sections, it is critical to keep the dashboard layout, the end user's needs and basic project management concepts in mind when designing the very Key Performance Indicators. Dashboards also propagate visual thinking as the information is presented and perceived visually. There are three main criteria that need to be considered when designing a dashboard:		. The project manager's responsibility includes the explanation and interpretation of the KPIs displayed on the dashboard to the stakeholders. Typically, cluttered dashboards lead the way to project failure as the stakeholders are confused when keeping track of the KPIs and are unable to direct accurate and relevant strategic decisions. Hence, as mentioned in the previous sections, it is critical to keep the dashboard layout, the end user's needs and basic project management concepts in mind when designing the very Key Performance Indicators. Dashboards also propagate visual thinking as the information is presented and perceived visually. There are three main criteria that need to be considered when designing a dashboard:

	*They need have aesthetic appearance		*They need have aesthetic appearance
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	*Lucid and easy to understand		*Lucid and easy to understand

	*Contain retention<ref name="~~KPI~~">~~Wiley~~, Project ~~Management~~		*Contain retention<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
	~~Metrics~~, KPIs, and ~~Dashboards ''~~A Guide to Measuring and Monitoring Project Performance'', ~~Third Edition~~, 2017</ref>
			[[File: Dashboard1.PNG\|500px\|thumb\|right\|Figure 3: An example layout of a Dashboard<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>

	~~[[File: Dashboard1.PNG\|500px\|thumb\|right\|Figure 3: An example layout of a Dashboard<ref name="KPI">Wiley, Project Management~~
	~~Metrics, KPIs, and Dashboards ''A Guide to Measuring and Monitoring Project Performance'', Third Edition, 2017</ref>~~
	]].		]].

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	*Aid in better and informed decision making		*Aid in better and informed decision making

	*Help in alignment of strategic and project goals<ref name="~~KPI~~">~~Wiley~~, Project ~~Management~~		*Help in alignment of strategic and project goals<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
	~~Metrics~~, KPIs, and ~~Dashboards ''~~A Guide to Measuring and Monitoring Project Performance'', ~~Third Edition, 2017~~</ref>

	===Data gathering for the specific dashboard===		===Data gathering for the specific dashboard===
	A top down approach is required in determining the data required for projecting KPIs in a dashboard. There should be considerable input from relevant stakeholders to determine their specific needs for developing a KPI. It is important to determine the level at which the relevant stakeholder requires his/her KPI overview. A high level request could be, for e.g. "I want to have an overview on how the project is running compared to the intended schedule" and a low level request could be "I want the figure for the scheduled performance index = (earned value/planned value)" which determines if the project is ahead or behind the planned project schedule which is similar to the former request but is much more specific and involves other discrete parameters.<ref name="~~KPI~~">~~Wiley~~, Project ~~Management~~		A top down approach is required in determining the data required for projecting KPIs in a dashboard. There should be considerable input from relevant stakeholders to determine their specific needs for developing a KPI. It is important to determine the level at which the relevant stakeholder requires his/her KPI overview. A high level request could be, for e.g. "I want to have an overview on how the project is running compared to the intended schedule" and a low level request could be "I want the figure for the scheduled performance index = (earned value/planned value)" which determines if the project is ahead or behind the planned project schedule which is similar to the former request but is much more specific and involves other discrete parameters.<ref name="KPI4">Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: A Guide to Measuring and Monitoring Project Performance, (3rd ed.). Wiley.</ref>
	~~Metrics~~, KPIs, and ~~Dashboards ''~~A Guide to Measuring and Monitoring Project Performance'', ~~Third Edition, 2017~~</ref>

	=Discussion=		=Discussion=

Tehass 7: /* KPI systems for the modern project manager */

2019-03-04T22:20:53Z

KPI systems for the modern project manager

← Older revision		Revision as of 22:20, 4 March 2019
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	3. '''Reports''': Reports are the most common and simple way of presenting KPIs. They offer an easy to read, classic yet deep overview of the project progress to the respective stakeholder.		3. '''Reports''': Reports are the most common and simple way of presenting KPIs. They offer an easy to read, classic yet deep overview of the project progress to the respective stakeholder<ref name="KPI">Wiley, Project Management
			Metrics, KPIs, and Dashboards ''A Guide to Measuring and Monitoring Project Performance'', Third Edition, 2017</ref>
			.

	[[File:Boundary Box KPI.png\|550px\|thumb\|center\|Figure 2: A boundary box for the KPI target]]		[[File:Boundary Box KPI.png\|550px\|thumb\|center\|Figure 2: A boundary box for the KPI target]]

Tehass 7: /* Relevant examples and KPI types */

2019-03-04T22:18:47Z

Relevant examples and KPI types

← Older revision		Revision as of 22:18, 4 March 2019
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	=Relevant examples and KPI types=		=Relevant examples and KPI types=

	KPIs can designed in multiple categories such that they benefit a project manager. Primarily, these categories include: Time based KPIs such as Cycle time, On-Time completion percentage, Number of adjustments to the schedule etc. Budget based KPIs such as budget variance, number of budget iterations etc. Quality based KPIs such as customer satisfaction and complaints, number of errors ~~produced~~ etc. KPIs depicting effectiveness such as number of project milestones completed on time.		KPIs can designed in multiple categories such that they benefit a project manager. Primarily, these categories include: Time based KPIs such as Cycle time, On-Time completion percentage, Number of adjustments to the schedule etc. Budget based KPIs such as budget variance, number of budget iterations etc. Quality based KPIs such as customer satisfaction and complaints, number of errors committed etc. There are also KPIs depicting effectiveness such as number of project milestones that are completed on time.

	In addition to leading and lagging indicators as mentioned in PRINCE2, Harold Kerzner divides KPIs into five categories:		In addition to leading and lagging indicators as mentioned in PRINCE2, Harold Kerzner divides KPIs into five categories: