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Well brought up KPIs don’t bite!
Train your KPIs for process
improvement
November 19th, 2015 - 1pm Eastern Time Zone (USA)
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Today’s Presentation
Moderator:
Josh Amos, IFMA Components Liaison
Presentation Title:
Well brought up KPIs don’t bite! Train your KPIs for process improvement
Presenter(s): David Reynolds, CFM
Presentation Logistics
• Polls will be used throughout the webinar
• Q&A at the end of the presentation
• Quick survey at the conclusion of the Webinar
• PowerPoint & Recorded Webinar will be
available online via FMCC’s Website
(fmcc.ifma.org)
• Your Participation is Greatly Appreciated!
David Reynolds Bio• David Reynolds is an FM consultant based in Mississippi, in the
U.S. His involvement in FM arose out of work in engineering,
operations, and related information technology.
• He has a lifelong interest in how people experience the built
environment.
• He began consulting in offshore oil field and inland marine
transportation during the 1990s, building teams that streamlined
and transformed production processes.
• He has continued in technical operations and project management
roles since, concentrating exclusively in FM since joining IFMA in
2002. He earned the CFM in 2014.
• Helping FMs to gauge, interpret, and take action in order to make
processes reliable, productive, and resilient is the mission of FM-
CONSULT-CREATE, his consultancy.
Presenter Picture
Company Logo
KPIs
KEY
PERFORMANCE INDICATORS in FM
IFMA FMCC Webinar Series
David Reynolds, FMP, CFM
November 19, 2015
8
Well Brought Up
KPIs Don’t Bite!
Grow Your KPIs
for Process
Improvement
9
Measure? NO!
Just get it done.
We won’t miss - we have experts.
10
Agreed, right?
Keep ‘em leashed!11
So, how is your aim?
12
3 Part Presentation
13
A setting for KPIs
Doing KPI
KPIs in FM
Learning Objectives
1. Performance measurement is for process improvement, NOT for assigning blame
2. Strategic management is the right setting for KPIs
3. Create KPIs deliberately and systematically
4. Use KPIs and KRIs routinely to improve processes and mitigate risks
14 There must be a better way!
Part 1, a Setting for KPI
15
Organizational
Strategy
Know what we
are doing
16
Derive Strategies
Align with Strategies
Manage Strategies
Strategic Management
FOUNDATION for measurable
performance
BALANCE of organization
learning and capabilities - to
support work processes - that
support customer and financial
perspectives
ALIGNMENT of vision, mission,
objectives, and actions
INCORPORATES performance
measurement17
IFMA Balanced Scorecard
18
“The balanced scorecard provides a method for
aligning business activities to organizational strategy.
An organization's vision and mission statements are
translated into specific and calculable goals, and a set
of performance measures is established to monitor the
organization's success in achieving those goals.”
See more at: http://www.ifma.org/about/strategic-plan/balanced-
scorecard
Why Measure?
Control a process
Evaluate a provider
Build a budget
19
Motivate people
Promote projects
Recognize
completion
Continuous Improvement
What’s it all about?
Measurement Strategy
Measure
ongoing results
20
Identify strategic objectives
Build measurable work processes
Measure, monitor, improve results
What’s Key to Measure?
21
Results -
To support critical decision
making
Are ongoing, to track
performance over time
From each perspective and
level
Validity of Measures
Measure the right
things the right way
22
Clarify top tier themes and objectives
Cascade objectives from tier to tier
Create feasible, strong measures to guide
improvement
Nice!
Now improve.
ImproveMeasureImproveMeasure…
Measurement Results
Ready for KPI?
• That we have KPIS reflects deeply developed trends to use data,
measurement, and evidence alongside expert opinion in decision
making. Organizations vary along these lines.
• Comprehensive diagnostics and maturity models exist to aid in
initiating KPI use (See acknowledgements)
24
Part 2, doing KPI
25
Measurable Performance?
A KPI tell us:
1. How are we doing?
2. Better, worse, or the same?
3. What to do now (which involves how
arrived here)?26
Wakeup time☕️
Track by Control
Chart
27
Plot, calculate random limits, inspect, analyze,
interpret, report, set targets (to manage) and
triggers (against risks)
Am
ou
nt
>>
Time >>
Something happened
Count vs the Count
KPIs use objective measures to bring focus, feedback, and leverage to improve
28
KPIs don’t create royals, castles, or silos
Measure Results
29
Measure results, not just inputs or
activities
Test Key Measures
30
• Not an action or an input
• No weasel words (!)
• One goal for one measurement
• Should we, can we, will we… improve the process
to improve the goal
• Goal aligns well with the entire strategy
Check that the prospective measure…
Sign off
31
Buy in
is NOT
Obtain Commitment
Performance Targets
32
Communicate and collaborate to change
the process and set probable targets for
the goal
Part 3, KPIs in FM
33
FM Measurement
Culture
OK, now what?34
Stay ALERT
35
FM strategies reflect
organization strategies
Resources and Risks
36
Keep up to date - on strengths,
weaknesses, opportunities, and threats to
FM and to FM stakeholders
Take a SOCIAL PERSPECTIVE
37
Collaborate to translate FM strategy into KPIs for individuals and teams - staff or
outsourced
WHO implements?
38
Measurement roles in facilities
What else can this do?
• Key Risk Indicators (KRIs)
• Measure strategic projects
(initiatives)
• Work with any process tool
or description: Logic Model
(input-process-output),
Cause and Effect (fishbone
or Ishikawa), Process Flow
(swim lanes)39
Acknowledgements
My principal sources for the concepts and practices in this presentation are Stacey Barr, developer of The PuMP® Performance Measure Blueprint, who is relentlessly clear, systematic, and practical about the value of measurement in achieving results, and the Balanced Scorecard Instituteand their KPI consulting practice and Professional Certification. The two collaborate in training and certification, a strongly positive development for FM in implementing and promoting strategies that reflect the organization overall.
40
Learning Objectives
1. Performance measurement is for process improvement, NOT for assigning blame
2. Strategic management is the right setting for KPIs
3. Create KPIs deliberately and systematically
4. Use KPIs and KRIs routinely to improve processes and mitigate risks
41 There must be a better way!
Questions and
Discussion
42
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