Key performance indicators for government and non profit agencies : implementing winning KPIs

333 Pages·2012·17.58 MB·English

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Key Performance Indicators
for Government and
Non Profit Agencies
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Key Performance Indicators
for Government and
Non Profit Agencies
Implementing Winning KPIs
DAVID PARMENTER
JohnWiley&Sons,Inc.
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Copyright © 2012 by David Parmenter. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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LibraryofCongressCataloging-in-PublicationData:
Parmenter,David.
Keyperformanceindicatorsforgovernmentandnonprofitagencies:implementing
winningKPIs/DavidParmenter.–1
p.cm.
Includesindex.
ISBN978-0-470-94454-7(cloth);ISBN978-1-118-22146-4(ebk);
ISBN978-1-118-23530-0(ebk);ISBN978-1-118-26004-3(ebk)
1. Performancetechnology. 2. Performancestandards. 3. Organizational
effectiveness. 4. Nonprofitorganizations–Management. 5. Administrative
agencies–Management. I. Title.
HF5549.5.P37P3732012
658.4(cid:2)013–dc23
2012004859
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
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To Jeremy Hope, a guru, mentor, and friend. His thinking
has been an inspiration to me and I am sure, in years to
come, his work will sit alongside the great work of the giant
paradigm shifters: Peter Drucker, Jim Collins, Tom Peters &
Robert Waterman, Gary Hamel, and Jack Welch.
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Contents
Preface xiii
Acknowledgments xxi
PARTI SETTING THE SCENE
CHAPTER1 Background 3
Are Agencies Really Non Profit Agencies? 3
Measurement in Government and Non Profit Agencies 3
Unintended Behavior: The Dark Side of Measures 4
Balanced Scorecards within Government and Non
Profit Agencies 6
Checklist: Where Are You in Your Journey
with Performance Measures? 6
Major Benefits of Performance Measures 8
Notes 10
CHAPTER2 Myths of Performance Measurement 13
Myth 1: Measuring Performance Is Relatively Simple
and the Appropriate Measures Are Very Obvious 13
Myth 2: You Can Delegate a Performance
Management Project to a Consulting Firm 14
Myth 3: Your In-House Project Team Can Achieve
Success while Continuing with Their Other Duties 14
Myth 4: By Tying KPIs to Pay You Will Increase
Performance 14
Myth 5: Most Measures Lead to Better Performance 15
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viii Contents
Myth 6: Performance Measures Are Mainly
Used to Help Manage Implementation of
Strategic Initiatives 16
Myth 7: The Balanced Scorecard Was First
Off the Blocks 17
Myth 8: Measures Fit Neatly into One
Balanced-Scorecard Perspective 18
Myth 9: The Balanced Scorecard Can Report Progress
to Both Management and the Board 18
Myth 10: There Are Only Four Balanced-Scorecard
Perspectives 18
Myth 11: Strategy Mapping Is a Vital Requirement 20
Myth 12: All Performance Measures Are KPIs 22
Myth 13: Monitoring Monthly Performance Measures
Will Improve Performance 23
Myth 14: KPIs Are Financial and Nonfinancial
Indicators 23
Myth 15: The More Measures the Better 23
Myth 16: Indicators Are Either Lead (Performance
Driver) or Lag (Outcome) Indicators 24
Myth 17: We Know What Good Performance Will
Look Like Before the Year Starts and, thus, Can Set
Relevant Year-End Targets 24
Notes 25
CHAPTER3 Revitalizing Performance Management 27
Foundation Stone 1: Understanding Human
Behavior 27
Foundation Stone 2: Knowledge of the Paradigm
Shifters (Drucker, Collins, Welch, Hamel, Peters,
Waterman, and Others) 29
Foundation Stone 3: Using an Appropriate Strategy 44
Foundation Stone 4: Critical Success Factors Known
by All Staff 45
Foundation Stone 5: Abandon Processes That Do
Not Work 45
Rejuvenating Human Resources 46