Better KPIs: Metrics for Meaningful Organizational

Full Course Name: "Better KPIs: Metrics for Meaningful Organizational Behavior"

Applying the Fit-for-Purpose Framework to Drive Congruent Action at All Levels

• Learn how to define better OKRs
• Build better Balanced Scorecards
• Drive desirable change

Organizations often measure the wrong things. Often convenience of collection or a misunderstanding of what really drives organizational performance, lead organizations to measure the wrong things, take the wrong actions, optimize meaninglessly, and leave lots of potential on the table.

The Fit-for-Purpose Framework and its simple four category classification of fitness criteria, health indicators, improvement drivers and vanity metrics, cut right through this historic mess and align your organizational behavior to your desired outcomes. Learn what really drives customer selection and satisfaction and how to align your organizational behavior around those goals. Enable autonomous action, learn to move with agility, and create empowerment without loss of control, by defining the right organizational metrics at every level.

Do you use Balanced Scorecard or Objectives & Key Results (OKRs)? Do you want to get better at with these techniques? This class will teach you how! Augment what you do now with the Fit-for-Purpose Framework and unlock the hidden performance in your business.

Learning Objectives:

• Understand that all products or services have design, implementation and service delivery elements
• Learn how to identify and describe the design, implementation and service delivery elements
• Understand how to recognize and define or describe a customer purpose
• Understand the 4 types of metrics: Fitness Criteria (used to select your product or service in the market); general health indicators; improvement drivers and vanity metrics
• Understand that only fitness criteria are key performance indicators (KPIs)
• Learn how to correctly classify metrics
• Understand how to set objectives for each type of metric: fitness criteria have thresholds of acceptable performance and over serving; general health indicators have a range; improvement drivers have a target; while vanity metrics have an emotional need that may need addressed culturally and organizationally.
• Understand the 4 commonly recurring types of fitness criteria: Lead Time; Quality; Safety & Conformance; and Affordability.
• Recognize the 3 aspects of lead time (or time-to-market) as timeliness, predictability and duration, and learn how to describe them and when and how to recognize which is applicable.
• Learn how to describe and specify requirements in a measurable fashion
• Understand how Fit-for-Purpose metrics integrate with Balanced Scorecard, and OKRs

Who Should Attend?
This class is for executives and decision makers who set strategy and corporate objectives or those who carry responsibility for revenue, customer satisfaction, or other strategic business objectives It is appropriate for anyone performing the following functions: strategic planning; strategic marketing; human resources; product management; product design; service design; operations management; and portfolio management.

This class is useful for anyone who wants to understand how to set metrics in order to drive appropriate, congruent, aligned behavior in an organization and for those who wish to drive product and service improvement.

Prerequisites:
There are no specific prerequisites for this class. It is recommended that attendees have a business background or a role in marketing, strategic planning or portfolio management. A business degree or formal qualification in business is not necessary but attendees with such a background may find the contrasts with familiar material to be either interesting or challenging. Prior knowledge or experience with Balanced Scorecard, or OKRs (Objectives and Key Results) may also enhance the learning experience but is certainly not required.

Course Outline:

Agenda

• Understanding Customer Purpose and describing it
• Understanding Design, Implementation and Service Delivery elements in a product or service and developing the skill to describe and categorize them accurately

Break

• 4 Types of metrics: Fitness Criteria/KPIs; general health indicators; improvement drivers; vanity metrics
• Learn how to correctly classify them and set thresholds, ranges, targets or cultural and organizational goals to eliminate the need for unnecessary metrics.

Lunch

• 4 Commonly recurring fitness criteria: Lead time; Quality; Safety & Conformance; Affordability/Price

Break

• Bette Balanced Scorecard and/or OKRs using the lessons learned
• Discussion: Insights from today’s lessons. How will Fit for Purpose affect how you run your business? What will you change? How might you integrate the ideas with things you already do? What are the actionable, pragmatic ideas you are taking away and intend to implement?

Class Materials:
All students will receive a read only student edit of the classroom Powerpoint, a copy of the 2nd Edition of the book, Fit for Purpose – How Modern Businesses Find, Satisfy & Keep Customers by David J. Anderson & Alexei Zheglov, and a printed copy of the Fit for Purpose infographic poster.

Students will receive a certificate of completion recognizing participation in the class.