Effective monitoring of Key

Performance Indicators (KPI)

… a key growth driver in a converged

business environment
 Content
1. • Introduction
2. • KPI Maturity Levels
3. • Challenges Effectiveness of KPI
4.
• Characteristics of Effective KPI

5.
• Driving Growth Through KPI
 Introduction



- To gauge the level of a metric for control and management;
- To record and communicate information that will guide
decisions to achieve business goals and objectives;
- Drive Service Assurance
- Socrates - An unexamined life is not worth living: Need to
know: “man know yourself”/“Know your business”.
Introduction - Classification of KPIs
1 Quantitative – Financials, Operations
(derived from
measurements, non-contestable data, generally
objective)
Qualitative KPIs: Customer Satisfaction, Net Promoter
Score, Quality of Experience/Service(derived mainly
from surveys, opinions, perceptions, generally
subjective);

 Outcome or lagging KPI and Driver or leading KPI

“One man’s outcome measure is another man’s value driver. An outcome KPI in one dashboard
could be a driver KPI in another;
 KPI Maturity Levels
1
0 Visualize
•Helps to visualize metrics and streamline performance • Strategy • Plan
consistently. Eg to know what was done and what was
not done.
Mission, Plan,
values, goals Forecast,
and Budget and
2 Manage Performance Objectives Targets
•View performance consistently across teams to improve
productivity: provide solutions then track and fix issues
Interpret, Reports,
•Gives ownership to the metrics; Collaborate, Dashboards,
evaluate and and
3 Drive Strategy track Scoreboard(s)
• Adjust • Monitor/
•Use KPI to drive strategic objectives and goals;
Analyse
•Correlate driver and outcome KPIs;
•Identifies behaviors that are beneficial to expected
outcomes;
•There are set targets
1. Strategic 2. Simple and few 3. Owned
Combination of all KPI tell the story of the Easy to understand and follow; The Someone is accountable for
organizations strategy; fewer the better every KPI
Every metrics links to a goal/objective What is measured, the target and how to improve Coordinate outcome, derivation, reporting,
the contributing teams.

4. Actionable 5. Timely 6. Correct/with

Trends are amenable to corrective &
improvement actions;
PPPs can provide empowerment to respond to issues
Performance is reported timely to
guide decisions;
Valid benchmark
Projects and timelines Truly represent the root metrics
e.g Volatile exchange rate; Revenue
adjustment for inflation; MOU vs CDR count

7. Correlated & Relevant 8. Re-performable 9. Aligned

Processes impact performance in the right KPI aligned with corporate
direction. i.e reinforce supply/value chain relationships
& can drill-down objectives & do not undermine
Explicit linkage between lagging (outcome) indicators and Top KPI (strategic KPI) can cascade to others.
driver/leading indicators-budgets, forecasts and project lower level contributing (process)
timelines man/hours
Regular performance optimization
performance for finer details. Can be Cost vs quality/compliance;
validated, verifiable. Delivery time vs quality; Profit vs
Data analysis, Monitor, Analyze, Drill MAD pyramid; Customer satisfaction and
Game-proof: Workers can’t circumvent the KPIs
sustainability
Driving Growth Through KPI Monitoring
The Enterprise Dashboard and Scoreboard
0
- A BI tool to visualize current status of metrics and KPIs
to facilitate enterprise governance; can tell the story
and health of the enterprise;
- Scorecards visualize the progress over time towards a
specific goal;
- Consolidates metrics and KPIs (and scorecards) in a
single screen or page;
- Pull real-time data from multiple sources in Business
Activity Monitoring (data analytics);
Driving Growth Through KPI Monitoring
The MAD Framework

0 Graph

Summary

Detailed Data
Driving Growth Through KPI Monitoring
Knowledge for Sustained Growth
-0Knowledge is key to staying ahead
- Appropriate proper earning;
- Control/Improvement – block leakages;
- Keep the goals in balance - aligned: compliance, cost, quality,
sustainability
- Maturity goals
- Knowing our maturity level
- The standards and certifications we claim;
- The products and services we package;
- The customers we serve;
- The alignment of functional KPIs with Maturity expectations;
 Driving Growth Through KPI Monitoring
Effect of Integration and Convergence
• Capacity attenuation/attritions coming from integration and convergence will
0
introduce shortfall in the expected service fulfilment and affect our brand.

• The hand-off points are major points of leakage even with the SLA and OLA tools
due to weak collaboration;
• KPI can indicate propositions to inform differentiation of services to align with
customer segments: some customers require precision availability while do not;

• Implementing the KPIs well will help smoothen the transitions, afford the agility
to support differentiation and segmentation needed to avail the emerging
opportunities.
THANK YOU