Key Performance Indicators: Developing, Implementing, and Using Winning Kpis, 3rd Edition

by David Parmenter

Breathtaking in its simplicity and profound in its impact, Key Performance Indicators (KPI) distills the balanced scorecard process into twelve logical steps, equipping users with an implementation resource kit that includes questionnaires, worksheets, workshop outlines, and a list of over 500 performance measures. Author David Parmenter provides you with everything you need to master and implement a KPI-driven strategy.

Genres: Business, Management, Nonfiction, Finance, Professional Development, Reference

Audio CD

First published January 16, 2007

Reviews

[KitCat · Rating 4 out of 5]

I thought this was a very straight forward, step by step guide on implementing Key Performance Indicators (KPI). My company is presently working on our strategy and is developing our measurement system. I thought this book was particularly helpful in giving us a path and some key considerations that need to be worked out prior to starting down the path.

I would recommend this book to any of my friends involved in developing measurements for a business strategy.

[Jose Papo · Rating 5 out of 5]

I strongly recommend this book if you want to learn deeply about KPIs, PIs, KRIs and RIs. It also stresses the importance of having CSF (Critical Success Factors). Part I, with 5 chapters, it's already worth the price of the book. In Part II the author outlines his methodology to implement KPIs in an organization.

Excellent and recommended!

[Nghiem Duy Thai · Rating 5 out of 5]

Sự khác biệt giữa KPI, KRI, PI, RI và cách áp dụng trong thực tế. Cuốn sách là cẩm nang guide rất chi tiết, từng bước để áp dụng vào doanh nghiệp.

Ngoài ra, những tài liệu được tác giả cung cấp cho người đọc có tính tham khảo rất cao, CEO có thể modify tùy vào thực tiễn, loại hình kinh doanh của doanh nghiệp.

Cuốn sách này phù hợp với doanh nghiệp tầm Medium trở lên nhưng cũng rất hữu ích với Small enterprise muốn xây dựng bài bản ngay từ đầu.

[Daniel Rutman · Rating 1 out of 5]

Good at defining the concepts but not one example of what a final set of KPIs would look like?? The section at the back has a chapter called case studies but the case studies only list Critical Success Factors?? The name of book is KPIs… it’s very strange that the case studies would not list at least one set of KPIs. Also a weird number of plugs for the webinars. Feels very upsell-y.

[Chris Esposo · Rating 2 out of 5]

The first thing one should understand about this book is that there are 220 pages of pictures, diagrams, and images in the PDF extract for the book out of 380 pages total. Visualization is a key dimension with respect to digesting the knowledge herein. That's good and bad. The good is that there's a lot of visuals to help one figure out the implementation of KPIs, the associated program/performance/portfolio management org that will support them, and the regular cadence that will bind those all together. The bad, is that a lot of graphics look like PowerPoint consulting fodder. I attempted to listen with pure audio, and it was very difficult to retain the information in a coherent manner, so audiobook listeners may have a rough time of this on their jog. That being said, once one does harmonize their listening/reading with the images, the material because easy to master (at least in "theory").

As stated, the book's subject is on the art of crafting and implementing KPIs in a large enterprise setting. The outline of the text is logical, starting with defining a KPI, and distinguishing it with other indicators/metrics that are also important to the enterprise, like key-risk indicators (KRIs), critical success factors (CSFs), general outcomes, as well as characterizing different types of measures, forward, current, backwards etc., and how/when those should be used/deployed, often in a "balanced scorecard" or some other similar semi-formalized dashboard/framework. Often times someone new to corporate America could find the jargon-ladden conversation confusing/disorientating, reading this book (and something like "Bulletproof Problem Solving") will help one cut through the noise and build a mental-model of what people are getting at in their meetings.

The real heart of the book though is less on the management theory that supposedly informs these notions, but on the implementation of them from a portfolio-management (or higher) perspective. Though the author makes pains to point out that a lot of this implementation should be done from in-house champions/experts/resources, a lot of what I read is pretty on-par with the methodology a strategy consultant may deploy on their client site, and hence, could be used as a manual for new hires to get a feel for what they have to look "forward to" once their off the bench.

The book spends a lot of time on the best practices of meeting/KPI/KRI cadence, and how/when each should be related, and what relationships these reports should have with respect to each other. There are probably at least half a dozen images of white boards with sticky notes on how one should organize group meetings to suss out collective intelligence. Confused yet, or seems abstract? Although fairly concrete in nature, if one has never done any of this before, it will seem totally random upon initial reading. Which is why, as with cooking, reading a book like this should be done at least twice. Once before the "preparation" (while you're on the bench say) and once after you've "burned the bird", and have gone through the exercise of standing up a performance management organization (also program/project management will be similar work but much more focused/"tactical").

Is any of this actually efficacious? To the point of the author, if you're a consultant, this is not a question of much concern, since' they'll be long gone before the program has probably reached it's first few milestones. Though, there's very little hard evidence provided by the author to validate what he's recommending, the book is definitely not want of material to use on projects, example scorecards, with appropriate icons, mind-maps, dashboard demos, as well as basic scripts for elevator pitches (cause you have to sell the idea before you can implement it). I can't fault the text on content.

Who is this book for? Anyone from a consultant to corporate middle-management. I can't see an executive going through this stuff. I'll have to read this a few more times to see if it jives with my experiences in the field, but otherwise, if one is tasked to do anything within the performance or portfolio management (possibly change management as well), this is probably not a bad resource to have to provide some fodder and ideas. Conditional recommend

[Phuongvu · Rating 5 out of 5]

Trong suốt thời gian làm chiến lược mình đã phải dùng quyển này rất nhiều. Có những cái đọc mà toát mồ hôi. Đặc biệt khi áp dụng cho làm BSC. Chắc chắn phải giở quyển này ra nhiều lần nữa để đọc, nghiên cứu và áp dụng. Cảm ơn tác giả rất nhiều ạ.

[Dimitri · Rating 5 out of 5]

📕 Why (Not) to read this book (Target Audience)

Practical book on how to start with KPIs.

👀 How this book changed my daily live (Takeaways)

Linkages between Strategy, Critical Success Factors, and Performance Measures
⁉ Spoiler Alerts (Highlights)

Result Indicators
The result indicators (RIs) summarize the activity of more than one team. They are good to review as an overview of how teams are working together. The difference between a key result indicator and a result indicator is simply that the key result indicator is a more overall and more important summary of activities that have taken place.

Performance Indicators
Performance indicators (PIs) are those indicators that are nonfinancial (otherwise they would be result indicators) that can be traced back to a team. The difference between performance indicators and KPIs is that the latter are deemed fundamental to the organization's wellbeing.

[Mohammadreza Seifollahi · Rating 3 out of 5]

This book is a good source for consultants who don't have a solid plan to do the performance measurement indicators development and implementation in a company. The book provides 12 steps and many tasks for each step to facilitate the job. It also includes a good tool kit with detailed information for each step.
Although it has some insightful comments and suggestions for improvement of the process, but it lacked the technical rigour of indicator selection, development, and validation. Also, the chapters 2 and 3 are repeated the same process with different levels of details.

I recommend it for planning purposes only. You can jump the second chapter without losing much.

[Firdaus Aris · Rating 4 out of 5]

This book cuts through the noise and gets straight to what KPIs should be tools that drive behavior and align with strategy. Parmenter’s key point is that not all metrics are KPIs. Real KPIs are non-financial, measured frequently, and tied to team actions.
The 12-step model for implementation is practical and detailed. It’s not a one day fix, but it gives you a clear roadmap. I found it especially useful for structuring KPI tracking in software project I currentlty working on.
If you’re in charge of performance at any level, this book helps you stop tracking what’s easy and start measuring what matters. Definitely worth reading.

[Guy Fawkes · Rating 2 out of 5]

It offers some interesting points but it felt outdated. There is a lack of examples from tech companies and the idea of creating a “KPI team” is kind of nonsense since the majority of companies have data teams that do this type of work. I would say the book is aimed towards old school leaders and organisations.

[Pakantji Oekoer · Rating 4 out of 5]

The author can clearly explain the differences between result indicators and performance indicators, so I have a clear guidance in starting my company project about performance indicators.

[Nhat Nguyen · Rating 3 out of 5]

Kiến thức hay, nhưng cách trình bày chưa phù hợp lắm theo bản thân mình.

[Julian Dth · Rating 4 out of 5]

It brings me a new point of view about KPIs, helps me to apply KPIs system to my company

[Momin · Rating 4 out of 5]

Good for upper management to read before demanding too much from their teams.

[Tu Pham]

good

[Anis Mohamed · Rating 1 out of 5]

The book starts out great, with explanations to the difference between KPIs, PIs, KRIs and RIs, linking them to the main dimensions of a Balanced Scorecard, Dashboards in general, uses, benefits,...etc (chapter 1 & 2)

Then starting chapter 3 is when you imagine that the next step would be how to dig into them, how to properly define them, use them, you only find a step by step guide on how to hold workshops about KPIs, it is not entirely useless, but missing a lot, I needed knowledge not someone narrating the exact steps and meetings and I have to repeat them blindly!

Also all the links mentioned in the book no longer exist, broken, useless, just like many of the advise written in the book itself.

[Patrick Taylor · Rating 2 out of 5]

I found this not very helpful. For one thing, many of the examples come from the for-profit world (airlines, for example) and not the nonprofit one. It was also more focused on very large organizations, and there wasn't much insight into indicators for the larger problems that many nonprofits work on. I was hoping for some ideas about what my organization might start tracking, and didn't come away with any.

[Liz · Rating 2 out of 5]

I like some of the principles, but I have seen many other sources define KPIs differently. I was disappointed that he only had two case steeds in the book and those only had 2 KPIs even though he recommends having up to 20 KPIs of the overall organization. The book was too focused on one exact plan he lays out.

[Zaher Alhaj · Rating 3 out of 5]

The book focuses more on the management side (communication, elicitation, team building, etc. ) of developing KPIs, and falls short on the technical aspects of how to develop and structure KPIs, although it provides very interesting point onthe concepts of : Result Indicators, and Performance Indicators.

[Adam Edwards · Rating 4 out of 5]

KPI (Key Performance Indicator) is overused. Parmenter does a great job in distinguishing between KPI's and KRI's(Key Results Indicators) as well as KPI's vs. plain 'ol "PI's" or Performance Indicators. This is the most useful book I found on KPIs.

[Aasim Waheed · Rating 3 out of 5]

A lot of (unnecessary) detail, but good if you are looking for something pre-cooked and want to do the least work. You'll also find some good KPI example that you may apply in your own business
My rating: 6/10

[Roland Fiege · Rating 5 out of 5]

Great Inspiration for my own book project "Social Media Balanced Scorecard"

[Sameh · Rating 4 out of 5]

good one

[Ltorrealba · Rating 2 out of 5]

Meh, easy read but nothing revolutionary.

[Gatot Widayanto · Rating 4 out of 5]

Very good as reference for those involved in balanced scorecard implementation of simply performance indicators implementation. It explains excellently about performance indicators and KRAs.

[Nopadol Rompho · Rating 4 out of 5]

Read my review (in Thai) at http://thaiscorecard.com/ContentDetai...

[Arini Tathagati · Rating 4 out of 5]

Good book. The explanation of KPI concept was easily understood.

[Xuan Hoang · Rating 5 out of 5]

Great book!

[Mavelous]

This is as such a good kind of book I have read

[Tranluuhuy]

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