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Posts Tagged ‘project plan’

How to implement a KPI measurement framework

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A well-functioning KPI measurement framework is more important then ever. In the fast-changing post-COVID-19 environment, organizations without a well-designed performance management system are not able to collect data-driven and real-time feedback, which is more important than ever because organizations need to make quick decisions as they respond to new challenges. 

Organizations with no formal KPI measurement framework in place might consider implementing KPIs, and this process starts with a KPI implementation project plan.      

The importance of a KPI implementation project plan

A KPI implementation project plan provides a structure for the implementation of an organization’s performance management system. Once the project plan is set, all types of activities would have a clear deadline and designated responsibilities.

Because a KPI implementation plan lays out all pertinent details, it promotes effective communication among the stakeholders of the project and reduces the impact of the project implementation gaps. Some of these gaps are the lack of buy-in from key stakeholders, unrealistic deliverables, and the inefficient assessment of organizational resources.

A good plan also serves as a compass for employees and other stakeholders in uncertain times because it guides stakeholders/employees towards reaching the strategic objectives of the organization. 

Project plan stages    

The most common elements of a KPI implementation project plan are key activities, deadline, responsibility, status, and comments. 

A KPI implementation project plan must be aligned to the organizational strategy and objectives.  Before the implementation starts, a meeting with the stakeholders of the project should be organized to discuss their expectations and make sure that everybody is on the same page. After the plan is developed by the project team in coordination with the project manager, the resource assessment of the project needs to be created. Then, another meeting with all employees is necessary in order to share the vision and benefits of such a project and delineate the first tasks to be finalized. 

The second phase is the actual implementation of the performance management system.  Start with proper training for the stakeholders to establish a common language and to avoid any misunderstanding. The appropriate KPIs should be selected in a KPI selection workshop. Then, they should be documented using a pre-defined, standardized template.  Moreover,  the data should be gathered and reported by the data custodians. The report should be presented with good visuals that are easy to interpret. This will help ensure a clear and effective decision-making process.  

During the post implementation assessment phase, a performance review meeting should be conducted to gather feedback from internal stakeholders and  analyze the situation and the progress of the result. It is also important to evaluate the possible corrective actions to be addressed in the performance management system. 

KPI implementation project plan example:

Conclusion

In order to arrive at the benefits of a well-functioning KPI management system, companies need to understand how to efficiently implement it and to ensure that all employees have a clear picture of the whole system.

Find out more about the performance management system implementation process through The KPI Institute’s Certified KPI Professional and Practitioner course. 

Project plan: developing a performance management system based on KPIs

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Image Source: Redd | Unsplash

When formalizing and implementing a performance management system (PMS) based on key performance indicators (KPIs), there are multiple activities to be considered and many stakeholders to be engaged in the process. Therefore, you’ll need a project plan to make performance management an ongoing process within your organization.

What matters most is not to have an extra process in place, but to do it right by connecting strategy formulation with strategy implementation and KPI across the organizational levels. The way you will design and implement the PMS based on KPIs will play a huge role in the way it will be perceived by the employees. This is exactly why our approach is based on a combination of analysis and research, workshops and feedback activities.

Zooming out, the proposed project plan includes 14 stages:

  • 5 Stages: System Design
  • 5 Stages: System Activation
  • 4 Stages: Project Management

Zooming in, all 14 stages include major sub activities that indicate how granular this puzzle can be. A real image of efforts and resources engaged.

What are the key elements to ensure that a KPI implementation project plan will be a success story?

The differentiator in creating successful conditions is represented by the employees’ trust in the project. Why? Because change brings fear, and fear must be managed in connection to the implementation of KPIs.

  • Fear of becoming replaceable or unnecessary
  • Fear of unrealistic (too high) targets
  • Fear of extra work

As what I wrote in a previous article, if fears exist, then managers should consider looking for a course, training, or coaching session on how to guide their employees in managing their fears. Another step is to have an organizational message with a system that reinforces the organizational culture and the real intentions and effects of such a project, reassuring everyone that they will not be swept away by it.

Could this project be considered for departmental level only?

The KPI implementation project plan can be applied to the departmental level only. It has advantages and disadvantages Since this KPIs system is not a stand alone, the departmental level will ultimately get connected to the strategic (superior) and individual level (lower).

One advantage of this approach is the system will be founded on a strong understanding of operations and specific processes and developed at departmental (mid) level. Another advantage is increased involvement of employees in developing the system. This can generate a high sense of commitment and engagement based on their contribution.

Meanwhile, the disadvantage of this approach is that starting with the lowest level may not ensure a strategic orientation, and it may be predominantly narrow instead, given the limited understanding of the overall organization’s mid- and long-term commitments.

If you would like to learn more about KPI measurement and KPI implementation, sign up for The KPI Institute’s Certified Professional and Practitioner training course.

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