Performance Management Overview
DR. Tubagus Donny Syafardan
Topics
Why Performance Management?
What is Performance Management?
What is a Key Performance Indicator (KPI)?
What is a Scorecard?
Improving Performance Requires Organizational Alignment
Align the organization to strategic
goals
Link managerial action to
accomplish those goals
What is Performance Management?
A disciplined approach to understanding, monitoring
and managing drivers of performance of organizations.
It leverages performance management methodologies
and business intelligence capabilities.
“Performance Management is a focused and specific
type of BI initiative when it integrates performance
management users, processes and metrics with
What is Performance Management?
Clarification of vision and strategy across silos
Translation of strategy into operational terms using
scorecards
Comprehension and alignment of multiple perspectives, all of
which are vital to the institution
Alignment of internal activities with the strategic plan
Fostering employee abilities and commitment to objectives Defined measures of performance and target called key
performance indicators
Driving Decisions Based on Data
Easy accessibility to “single version of truth” by all
information consumers using BI technologies such as dashboards
Line-of-sight across business processes to the status and
trends key performance indicators
Culture of using information in the planning and
Business Intelligence Needs for
Performance Management
EXECUTIVES:
Need visibility into progress towards our goals, objectives
“Am I achieving my goals?”
MANAGEMENT:
Need timely trends, summaries, analytics of our operations
“How am I doing?”
“What should we be doing?”
KNOWLEDGE WORKERS:
Need to analyze trends and root causes
“Why is this happening?”
STAFF:
Need detailed reports in many formats and ad-hoc access
“What is going on?” “What do I need to do?”
Detailed data
Performance Management Process
Report and Analyze
Review and Plan
Monitor and Measure Performance
PM Process Example: Recruiting and Admissions
Report and Analyze
Review and Plan
Monitor and Measure
•Enrollment Levels •Campaigns
•Financial Aid Levels
•Track Enrollment Funnel •Recruiting programs •Budget Execution •Yield rates, Trends and Causes
•Campaign Effectiveness
•KPIs vs. External Benchmarks
PM Process Example: Advancement Campaign
Management
Report and Analyze
Review and Plan
Monitor and Measure
•Budget Expectations •Fund-Raising Campaigns
•Capital Campaign Targets
•Spending Patterns
•Campaign Effectiveness •Budget Execution
• Accounts to Donors
• Financial Statements • Variances and Trends
PM Process Example: Grant Management
Report and Analyze
Review and Plan
Monitor and Measure
•Grant Budget Expectations •Indirect Cost Recovery Rates
•Grant Expense Timing
•Proposal pipeline •Grant Spending
•Indirect Cost Recovery •Effectiveness/Burn rate
• KPIs, Trends and Variance •Granting Agency reports
Metrics
OK – I know I want performance
What is a “KPI”?
10 Characteristics of Effective KPIs
1.
Aligned
Always aligned with your institution’s strategy and objectives
2.
Owned
Someone must be accountable
3.
Predictive
“Leading” indicators of desired performance
4.
Actionable
Timely data, providing owners and managers with opportunities to intervene and impact
5.
Easy to understand
Definition, trends and status should be obvious to user
10 Characteristics of Effective KPIs
1.
Few in number!
Too many = loss of focus
As few as reasonably possible
6.
Balanced and linked
KPIs should balance and reinforce each other Don’t create KPIs that undermine others
7.
Trigger changes
Measuring should enable insight leading to positive changes
9.
Standardized
Calculations, numbers, assumptions should be the same across the institution so that metrics can be compared
10.
Context driven
KPIs tailored to user roles and their processes
Pitfalls of KPIs
Less is more
Too many metrics will cause metric overload and nobody will use them
Have one version of “the truth”
Indicators need to be looked at as a group
Cannot focus on one area at expense of others
People start making decisions that undermine other KPIs
Performance indicators don’t tell the whole story
Show trends but not why trend is occurring
Be wary of simplistic comparisons
Explore the drivers of performance for comparative insight
Scorecards and Dashboards
Scorecards vs. Dashboards
Scorecard
Monitor the execution of strategic
objectives and initiatives
Network of metrics, planning targets,
thresholds, history, and
accountabilities that connect strategy to individuals
Often deployed using a formal
methodology such as the Balanced Scorecard or Malcolm Baldridge Criteria
Emphasize collaboration
Dashboard
Compound view of
performance information made up of scorecards, graphs, and summary views
Monitor overall
performance daily at a glance
Provide data visualizations
of performance status and trends
Personalized for user
Both provide data navigation and analysis capabilities so that users can quickly analyze root causes and effects as
Scorecard Example
Begins with institutional plans
Scorecard View
Goals
Objective s
Assessment of progress towards goals and objectives
Goals, objectives, performance targets configured into Scorecard
Assessment of progress provides visibility into performance
Scorecard Example
Objectives enable executives to monitor progress towards related
Scorecard Example
KPIs have targets, actuals, assessments, management comments Actual values loaded from data warehouse foundation
Dashboards
Different dashboards for different purposes
and user types
Strategic
Executives, managers
Tactical
Managers, analysts
Operational
What Makes a Good Dashboard?
Fits Role of Target User
What are the most important business questions they need to answer? What KPIs are they accountable for?
How much time is spent on monitoring vs. analyzing vs. collaborating?
Meets performance monitoring needs
What is the time horizon they monitor (hourly, daily, year-over-year)? Which KPIs are leading (process) vs. lagging (outcome)?
What is the highest meaningful level of detail?
Provides easy data navigation/analysis
What type of visualization or chart is appropriate for the user? Which KPIs should have their trends compared?
What is the lowest level of detail needed to analyze cause-effects?
Dashboards are not one size/fits all
What Makes a Good Dashboard?
Monitor overall performance at a glance
Multiple charts provide coverage of all KPIs
Charts highlight good and bad performance exceptions Data is refreshed at required frequency
Navigate and filter data to analyze trends
Population filters are simple to apply and shared Drill-down navigation paths are intuitive
Level of detail required for cause-effect analysis available
Support for collaborative, data-driven decision-making
Views and analysis can be shared
Level of detail for taking corrective actions available
Dashboard
Example
Multiple charts provide status at-a glat-ance
Personalized view of KPIs
Leading and lagging indicators of
performance
Common KPI and business rules definition
Good Performance Management Solutions
Aligns the organization
Strategy has driven development of objectives and measures Common KPI definition with shared dimensions
Monitors Key Performance Indicators (KPIs) of both strategic and operational
performance
Sets targets for measures that are achievable
Enables understanding of what’s important and what’s changed
Promotes proactive versus reactive decision making
Crystallizes “single version of the truth” Reduces time and effort required to answer ad-hoc questions
Exposes business trends sooner and supports shortened decision cycles Allows management by exception
Based on data warehouse foundation
Reduce risks to development and deployment Acceleration of ROI Designed for analytics performance
EXECUTIVES
Scorecards for Performance Management
MANAGEMENT
Dashboards, Reports and Analytics to Monitor Progress
KNOWLEDGE WORKERS
Ad-hoc analysis tools to identify and understand trends
STAFF
Production reports and ad-hoc access for daily operations
Detailed
Bringing Value to All Levels of the Institution
August 17, 2019
