Post on 23-Jan-2015
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Defining Objectives & Key Performance Indicators
Risk
Risks
Opportunities
Now
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Predicted Outcome
Opportunities
Risks
Now
Risks
Opportunities
Risks ObjectivesKPIs TargetsValues
Risk
Risks
Opportunities
Now
Predicted Outcome
Ran
ge o
f Pos
sibl
e O
utco
mes
Now
Risks
Opportunities
Risks ObjectivesKPIs TargetsValues
Values Risks
What we value Context
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Risks ObjectivesKPIs TargetsValues
Definitions
The target is the specific level of objective performance that we wish to attain Target
A measurement metric used to evaluate the performance against the objective
Key Performance Indicator
A broad statement that outlines the path that the company wishes to take Objective
Values KPIs TargetsRisks Objectives
Definitions
The target is the specific level of objective performance that we wish to attain Target
A measurement metric used to evaluate the performance against the objective
Key Performance Indicator
A broad statement that outlines the path that the company wishes to take Objective
Which direction we want to go
How far we want to go in the direction of the objective
Values KPIs TargetsRisks Objectives
How we measure where we are going
An example
Respect
Safety
- Insufficient driving skills of drivers- Alcohol and drug use of drivers
ENSURE SAFE
TRANSPORTATION
for employees
and Stakeholders
Values Risks ObjectivesKPIs Targets
-Vehicle Accident rate/ Km-Number of non-conformances recorded with driving procedures /km
Target : Create a baseline
An example
Respect
Safety
- Insufficient driving skills of drivers- Alcohol and drug use of drivers
ENSURE SAFE
TRANSPORTATION
for employees
and Stakeholders
Values Risks ObjectivesKPIs Targets
Target : Create a baseline
• KPI = Key
It creates meaning at all organization levels
ObjectivesRisks KPIs TargetsValues
KPI How we measure where we are going
• No KPI is harmful • Too many KPIs is useless for the
decision making and ...
Values ObjectivesRisks KPIs Targets
KPI How we measure where we are going
may create more harm than helpDevelopping the wrong KPI
• A KPI is decided by top management but proposed by YOU
Values ObjectivesRisks KPIs Targets
KPI How we measure where we are going
Key Performance IndicatorsWe will only share
• A KPI is decided by top management but proposed by YOU
• We will all own Performance Indicators
Values ObjectivesRisks KPIs Targets
KPI How we measure where we are going
• A KPI – is linked to organizational objectives– is easy to understand– is SMART
• A KPI leads to action!
Values Risks KPIs Targets Objectives
KPI How we measure where we are going
Today
... And have defined our company risks
We have defined values
Values Risks KPIs Targets Objectives
Today
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Activity 1Use 1 Risk as an example to personally define an objective and a KPI
Values Risks KPIs Targets
Activity 2Share them with your table, together agree on the objective and the KPI that will cover the risks and represent the values
Objectives
Activity 1 Each table picks a risk and fill the triangle like in the example
An example
Respect
Safety
- Insufficient driving skills- Alcohol and drug use
ENSURE SAFE
TRANSPORTATION
for employees
and Stakeholders
Values Risks ObjectivesKPIs Targets
-Vehicle Accident rate/ Km-Number of non-conformances recorded with driving procedures /km
Objective : Use the statement
Ensure is
The organization
systems
assets
performance etc...
ManagedOptimized...
AdequatelySuccessfullySafelySustainably...
ObjectivesValues ObjectivesRisks KPIs
Define your KPIsAre they SMART ?
Specific
Measurable
Attainable
Relevant
Time-bound
KPIsValues Risks Targets Objectives
Activity 2 Now share with your team (table) and :-agree on an objective and a KPI-Appoint a speaker who will present the objective and KPI of your table
Objective : Use the statement
Ensure is
The organization
systems
assets
performance etc...
ManagedOptimized...
AdequatelySuccessfullySafelySustainably...
ObjectivesValues ObjectivesRisks KPIs
Now verify your KPIs
• Check the attributes that apply to your KPIs Specific
Measurable
Attainable
Relevant
Time-bound
KPIsValues Risks Targets Objectives