We are thrilled to announce the refresh of the Global Performance Audit Unit (GPAU) platform! Our team has been hard at work, and we’re excited to unveil the following updates:
Improved Browsing Experience: The refreshed visuals reflect our commitment to innovation. You’ll notice a cleaner, more modern look across the platform.
New Case Studies: Whether you prefer a detailed reading of our clients success stories or just the highlights of the awarding ceremonies, all are available on our homepage (www.gpaunit.org) through brochures and video materials.
Enabling Tools: Discover our assessment services and understand how it can take your business to the next level. Try the FREE self-assessments to gauge your current maturity level and apply for theorganizational Performance Excellence Recognition!
Celebrating Excellence: PIF Receives Prestigious Award
GPA Unit is proud to announce that the Public Investment Fund (PIF) has successfully achieved the highest Maturity Level: 5: Optimized. This follows a comprehensive assessment of PIF’s strategy and performance management system on 3 key areas: Strategic Planning, Performance Measurement and Performance Improvement.
Congratulations to the entire PIF team for their dedication and exemplary performance!
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“What constitutes a good KPI example?”, “How should KPIs be measured?”, “Which KPI is suitable for our organization?”, and “How well will employees understand and participate in tracking these KPIs?” These questions often loom large for companies seeking to select the right KPIs to accurately measure their performance and progress toward strategic objectives.
According to The KPI Institute’s (TKI) State of Strategy Management Practice Global Report – 2023, choosing the right KPIs ranks as the second most significant obstacle in strategy planning.
The report further reveals a concerning trend regarding the challenges associated with working with KPIs. Results indicate a surge in the hurdles associated with KPI selection compared to the previous year.
Several factors contribute to the challenging nature of KPI selection, including the need to align with strategic objectives; the common practice of defining initiatives before KPIs rather than defining KPIs and targets first and then developing initiatives to reach them; clearly differentiating between strategic and operational KPIs at the departmental level; and focusing too much on task-related KPIs rather than impact KPIs at the employee level.
3 stages of KPI selection
Selecting the right KPIs requires careful planning, analysis, and collaboration across various organizational areas. A rigorous KPI selection process typically involves three major stages (see Figure 1).
Your initial step in the process is to set a clear direction for KPI selection by recognizing the business objectives and goals that must be attained. This is essential to ensure that all personnel are working towards the same objectives and that progress can be efficiently monitored. This stage clarifies the necessity and application of measurement while precisely defining the intended purpose of the KPIs.
Next, conduct thorough research to gather a range of KPI examples. This serves a dual purpose: educating your internal stakeholders and fostering meaningful discussions about KPIs. This process, labelled as the KPI expo, entails compiling a comprehensive list of KPIs that will later be filtered based on a set of criteria.
You should review both internal and external data sources (see Figure 2) to leverage existing practices while also gaining insights into industry best practices. The KPI expo can include existing KPI lists from various organizational levels, which may already be in use or have been tested within your organization.
In the next stage, use intelligence gathering and conduct workshops to identify suitable KPIs. You can obtain insights from a diverse range of stakeholders, including clients, suppliers, employees, and management. This approach will foster broader buy-in and support.
TKI recommends the following selection methods to ensure the identification of relevant KPIs:
Question framing: Guide discussions toward relevant contexts and gather participant perspectives. Questions might include, “How many KPIs should we select?” or “What is the procedure for validating the selected KPIs?”
Value flow analysis: Examine the flow of value within business processes—from inputs to outcomes—to understand how objectives can be measured from different perspectives.
KPI balancing: Avoid narrow perspectives by selecting at least two complementary KPIs per objective, ensuring the measurement of both quantity and quality, subjectivity and objectivity, and efficiency and effectiveness.
Additionally, among the existing criteria in practice, TKI suggests using these five to ensure KPI relevancy:
Measurable: Can the KPI result be quantified?
Accessible: Can your organization feasibly gather the necessary data?
Specific: Does the KPI address a specific issue you have?
Actionable: Does it provide information for decision-making?
Balanced: Does it reflect various facets of performance?
The final stage in the KPI selection process involves monitoring the selected KPIs for necessary recalibrations. This can be achieved through two key activities: KPIs documentation and the performance review meeting.
KPI documentation can reveal limitations associated with data collection or reporting and gaps in the cost-benefit analysis of the KPI’s usage. Develop a comprehensive set of information for each selected KPI to facilitate data collection, reporting, and analysis.
Use a standard template, known as a KPI documentation form (see Figure 3), capturing each KPI’s details, definition, calculation formula, target, data source, reporting frequency, KPI owner, and data custodian. For more examples, you can explore TKI’s comprehensive repository of KPIs at smartKPIs.com.
The first reporting and performance review meeting for the new KPIs will reveal their utility for decision-making. It provides managers with an overview of how the KPIs cover all aspects of the business and helps identify necessary adjustments to the corporate scorecard, ensuring that the most relevant data is available for decision-making. Facilitate this first meeting through your strategy office.
After this final stage, your KPIs can be maintained as initially selected, recalibrated and updated, or even phased out of use based on their effectiveness and relevance to your organizational goals.
By following these stages, you can select and implement KPIs that accurately measure performance and support strategic objectives, ultimately driving your business success and growth.
Ready to take your KPI selection to the next level? Head over to the KPI section on our website for more in-depth articles and expert advice.
Banks have beenbuilt on trust for more than six centuries. Bank relationship managers, a specialized type of banker, are vital in maintaining lasting relationships between their respective institutions and their consumers. As frontline officers, they are responsible for growing the business volume by selling various lending and funding products. Traditional approaches in trust-building put too much value in physical interaction above everything else—with modern technology only acting as an aid in supporting the exchange in order to be perceived as more genuine. This obsession with “I only trust what I can see with my own eyes” on both parties is not unfounded as bankers are handling very valuable assets.
Digitalization has presented a new challenge for banks as it changed how customers interact. Digitally savvy millennials for example are expecting
seamless omni-channel interactions with instantaneous service delivery akin to the ones offered by tech giants like Google or Netflix. Media consumption has also shifted to social media dominating the landscape. Even information gathering has also changed, with Gen-Z preferring to learn by their own rather than under the company’s sales personnel. These changes were further normalized with the pandemic in the 2020s, which discouraged physical interactions.
Recent developments have prompted banks to invest in more robust information technology (IT) architecture, which has led to the high demand for top tech talent.Smaller banks adopted partial digitalization through mobile banking applications, while larger banks created entirely new digital banks as subsidiaries. The allure of scalability, efficiency, and centralized operation is also driven by profit as digital banks do not need to operate multiple physical branches, which means they can employ fewer frontline staff, including bank relationship managers. As traditional banks plan to close more branches in 2024, there is a need for their relationship managers to leverage technology in building trust and loyalty with their consumers.
Building trust through technology
To create genuine interactions with customers, relationship managers mustshift their role from sales and marketing, to a more consultative-driven approach as the former has been taken over by digital media. Bank relationship managers must focus their effort in helping customers make the right decision amidst the abundance of available information. This role is beneficial across multiple generations as it helps the older generation navigate the digital ecosystem and helps younger customers take their first step in their financial journey. These interactions may also be implemented in social media by offering helpful banking guidance without pushing products.
Synergizing customer-facing and technology talents is also crucial in bridging the gap between customer needs and their digital banking solutions. Relationship managers in digital banks must be able to leverage the data offered by various digital platforms. By triangulating information acquired in the field and available from Customer Relationship Management (CRM) systems, relationship managers are able to identify the most effective interaction channels. Key performance indicators (KPIs) such as # Customer engagement and % Customer satisfaction must be considered another piece of the puzzle in decision-making. This triangulation of data will also enable personalized interactions through digital platforms to generate closeness and trust with customers. In addition, this digital record would also facilitate seamless transitions from one relationship manager to the next.
Bank relationship managers must also take a proactive role in improving their bank’s various digital platforms as these are essentially their organization’s extension in the digital landscape. They should move forward with the development of technology and work in a more horizontal and inter-functional structure. Their consultative role will be involved in introducing the human aspect of mobile applications and digital marketing to tech developers. Thus, modern relationship managers must also understand the digital design of the ecosystem. While this does not mean that banks should hire tech talents as relationship managers anytime soon, the talent they acquire should at least have a strong ownership towards digital applications so that they can help guide their consumers in navigating this new technology.
Digitalization has been both a blessing and a challenge for traditional banks. On one hand, it has allowed them to revolutionize their offerings to a wider range of consumers through mobile banking services and digital marketing campaigns. On the other hand, it has also forced them to adapt their approach in relationship-building. While these changes may put traditional banks into obsolescence, it has also created a new opportunity for them to synergize with the new digital ecosystem.
For more than 20 years, the KPI Institute (TKI) has been a pioneer in the field of strategy and performance management, known worldwide for setting the global standard in structured knowledge and foundational principles across a diverse range of sectors.
TKI was founded in 2004 by its CEO, Dr. Aurel Brudan, and it has evolved into a multi-disciplinary ecosystem across its two-decades-long existence. What began as a company that provided balanced scorecard (BSC) implementation eventually grew into a world-class provider of educational programs. It has since grown further, establishing new ecosystems—each with its own companies and brands—to share in its continued success.
Today, TKI holds a notable reputation for being a leading global research institute dedicated to defining standards and advancing the field of strategy and performance management.
Accomplishments as a research pioneer
Across its more than 20-year lifespan, TKI has published over 250 research reports, partnered with over 40 global organizations, and delivered educational programs to over 29,000 participants in 60 countries. The institute’s mission to empower the world to achieve performance excellence is evident in its commitment to making world-class education accessible by offering its courses in three formats: face-to-face, live-online, and self-paced.
TKI also offers a Postgraduate Diploma in Strategy and Performance. The most complex program in the institute’s portfolio, it aims to empower the next generation of business leaders with mastery over strategic planning, performance measurement, data analysis and reporting, and strategy execution in dynamic markets.
One of the institute’s most recognizable accomplishments is smartKPIs.com. With 21,000+ key performance indicators (KPIs) across 24 documentation fields, it is the largest collection of properly documented performance metrics in the entire world. The database is the result of thorough, ongoing research conducted by TKI and continues to be updated to keep pace with the ever-changing times.
Since 2022, TKI has released its State of Management Practices, a comprehensive annual report that examines pressing current issues, trends, and challenges affecting strategy planning and execution as well as KPI implementation.
Another notable publication from TKI is the Government Services Index, a comprehensive report that takes a deep look at the foundational elements that contribute to the success of public services while aligning them with globally recognized KPIs. The index assesses the capability of governments to deliver public services in five key dimensions: Future Readiness, Digitalization, Governance, Society Welfare, and Citizen Experience. It covers 100+ countries across five world regions, highlighting the top performers in each region and dimension.
TKI also publishes Performance Magazine, which features articles, case studies, expert interviews, and industry insights that cover topics like strategic planning and execution, performance measurement, and data analysis. The quarterly publication reaches thousands of subscribers and partner organizations worldwide and is a source of insightful information and best practices for professionals across a wide array of industries.
Follow The KPI Institute on LinkedIn for more surprises as we celebrate the company’s 20th anniversary.
Q: What is important in measuring public services performance?
A: Measuring performance in public sector organizations has many benefits. It allows managers to set up mechanisms to evaluate, control, budget, motivate, promote, celebrate, and improve their strategic decision-making.
The core use and benefit of setting up performance measurement systems in public sector organizations are: Prognosis, Diagnosis, Motivation, Legitimation, and Learning and Improvement.
In layman’s terms, public sector key performance indicators (KPIs) serve two important purposes: 1. Report important information to citizens. 2. Provide information that directly describes the government’s activities.
Therefore, without understanding and evaluating KPIs, governments cannot fulfill their commitment to responsible spending and transparency, and the public cannot verify if the required services are being adequately performed.
In most organizational structures, KPIs have two notable attributes: 1. They determine what is important to the success of the organization. 2. They indicate the expected level of performance by attaching a target to each metric.
Last but not least, how do we identify the most meaningful public sector KPIs?
Identify the key value drivers (research studies). This refers to identifying all stakeholders categories properly (internal and external) and conducting a stakeholders analysis to reveal what aspects are of interest. What matters most for citizens in terms of public transportation? Is it the arrival on time? The frequency of arrivals? How about the employees–what do they think is critical for the operations? What data is needed for optimizing processes and adjusting working flows to deliver the best customer experience?
Choose a balanced set of KPIs (efficiency versus effectiveness, process versus impact measurement, quality versus quantity). KPIs should be used in context and in correlation. For this reason, a successful scorecard or dashboard looks into performance from various perspectives.
Balance between simple and complex measurements. While many KPIs that capture impact may be survey-based and require significant resources for data collection and reporting, some KPIs can be tracked in real-life with the help of digitalization and enable proactive management.
Solid background in working with process and performance management.
Former consultant for the public sector – Ministry of Community Development – UAE
Former business excellence and process reengineer at Zain telecom – Jordan
Passion for knowledge sharing and supporting the growth and improvement of organizations and individuals.
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This feature was first published in the Ask Our Experts section of Performance Magazine Issue No. 24, 2023—Public Sector Edition. It offers deep dives and practical insights into the public sector’s performance in the post-pandemic era. To download the free digital copy, visit the TKI Marketplace. You can also purchase an additional printed copy via Amazon.
