Key Performance Indicators for Government and Non Profit Agencies : Implementing Winning KPIs

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  • Edition: 1st
  • Format: Hardcover
  • Copyright: 5/1/2012
  • Publisher: Wiley
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Winning techniques and strategies for nonprofits and government agencies in creating successful and critical key performance indicators By exploring measures that have transformed businesses, David Parmenter has developed a methodology that is breathtaking in its simplicity and yet profound in its impact. Key Performance Indicators for Government and Nonprofit Agencies: Implementing Winning KPIs is a proactive guide representing a significant shift in the way KPIs are developed and used, with an abundance of implementation tools for government agencies and nonprofit groups. Implementation variations and short cuts for government and not-for-profit organizations How to brainstorm performance measures Templates for reporting performance measures A resource kit for a consultant who is acting as a coach / facilitator to the in-house project team Also by David Parmenter: Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, Second Edition Filled with numerous case studies and checklists to help readers develop their KPIs, this book shows government agencies and nonprofits how to select and implement winning key performance indicators to ensure that their performance management initiatives are successful.

Author Biography

David Parmenter is an international presenter who is known for his entertaining and thought-provoking sessions, which have led to substantial change in many organizations. He is a leading expert in the development of winning KPIs, replacing the annual planning process with quarterly rolling planning and management practices that will get you to the top. David has delivered workshops to thousands of attendees in many cities around the world, including Sydney, Melbourne, Hong Kong, Kuala Lumpur, Singapore, Tehran, Jeddah, Muscat, Johannesburg, Prague, Rome, Dublin, London, Manchester, Edinburgh, and Toronto. He has worked for Ernst & Young, BP Oil Ltd, and Arthur Andersen, and is a Fellow of the Institute of Chartered Accountants in England and Wales. David is a regular writer for professional and business journals. He is also the author of Winning CFOs: Implementing and Applying Better Practices and The Leading-Edge Manager's Guide to Success (both from Wiley). David can be contacted via parmenter@waymark.co.nz or +64 4 499 0007. His website, davidparmenter.com, contains many white papers, articles, and freeware that will be useful to readers.

Table of Contents

Prefacep. xiii
Acknowledgmentsp. xxi
Setting the Scene
Backgroundp. 3
Are Agencies Really Non Profit Agencies?p. 3
Measurement in Government and Non Profit Agenciesp. 3
Unintended Behavior: The Dark Side of Measuresp. 4
Balanced Scorecards within Government and Non Profit Agenciesp. 6
Checklist: Where Are You in Your Journey with Performance Measures?p. 6
Major Benefits of Performance Measuresp. 8
Notesp. 10
Myths of Performance Measurementp. 13
Measuring Performance Is Relatively Simple and the Appropriate Measures Are Very Obviousp. 13
You Can Delegate a Performance Management Project to a Consulting Firmp. 14
Your In-House Project Team Can Achieve Success while Continuing with Their Other Dutiesp. 14
By Tying KPIs to Pay You Will Increase Performancep. 14
Most Measures Lead to Better Performancep. 15
Performance Measures Are Mainly Used to Help Manage Implementation of Strategic Initiativesp. 16
The Balanced Scorecard Was First Off the Blocksp. 17
Measures Fit Neatly into One Balanced-Scorecard Perspectivep. 18
The Balanced Scorecard Can Report Progress to Both Management and the Boardp. 18
There Are Only Four Balanced-Scorecard Perspectivesp. 18
Strategy Mapping Is a Vital Requirementp. 20
All Performance Measures Are KPIsp. 22
Monitoring Monthly Performance Measures Will Improve Performancep. 23
KPIs Are Financial and Nonfinancial Indicatorsp. 23
The More Measures the Betterp. 23
Indicators Are Either Lead (Performance Driver) or Lag (Outcome) Indicatorsp. 24
We Know What Good Performance Will Look Like Before the Year Starts and, thus, Can Set Relevant Year-End Targetsp. 24
Notesp. 25
Revitalizing Performance Managementp. 27
Foundation Stone 1: Understanding Human Behaviorp. 27
Foundation Stone 2: Knowledge of the Paradigm Shifters (Drucker, Collins, Welch, Hamel, Peters, Waterman, and Others)p. 29
Foundation Stone 3: Using an Appropriate Strategyp. 44
Foundation Stone 4: Critical Success Factors Known by All Staffp. 45
Foundation Stone 5: Abandon Processes That Do Not Workp. 45
Rejuvenating Human Resourcesp. 46
Performance-Related Pay: Correcting the Errorsp. 47
Reviewing an Individual's Performancep. 48
Getting the Right People on the Busp. 48
Jack Welch's 20/70/10 Differentiation Rulep. 49
Secrets from High-Performing Teamsp. 49
Toyota's 14 Principlesp. 50
Role of Performance Measures: Implementing Winning KPIsp. 51
Quarterly Rolling Planning: The Setting of Targetsp. 51
Reporting Performancep. 52
Outside-In Viewp. 53
Adopting Kaizenp. 53
Working Smarter Not Harderp. 54
Getting Technology to Deliverp. 54
Moving from Management to Leadershipp. 55
Notesp. 55
Measurement Leadership Has to Come from the Chief Executive Officerp. 57
Barriers to Measurement Leadershipp. 57
The Way Forward for the Chief Executive Officerp. 58
Appoint a Chief Measurement Officerp. 60
Notesp. 60
Strategy and Its Relevance to Performance Measuresp. 61
Define Your Organization's Mission, Vision, Valuesp. 61
Create a Strategy That Is Understood by Staffp. 63
Ensure That Your Strategy Is Balancedp. 64
Monitor Implementation of Your Strategyp. 66
Creating the Futurep. 66
Replace the Annual Planning Process with Rolling Planningp. 67
Notesp. 67
Winning KPIs Methodology
The Great KPI Misunderstandingp. 71
Key Result Indicatorsp. 71
Performance and Result Indicatorsp. 73
Key Performance Indicatorsp. 74
Seven Characteristics of KPIsp. 76
Difference between Key Results Indicators and KPIsp. 78
Lead and Lag Confusionp. 79
10/80/10 Rulep. 81
Importance of Timely Measurementp. 82
Notep. 83
Finding Your Organization's Critical Success Factorsp. 85
The Missing Linkp. 85
Importance of Knowing Your Organization's Critical Success Factorsp. 86
Four Tasks For Identifying Organization-Wide Critical Success Factorsp. 91
Strategy Mappingp. 100
Notesp. 103
Foundation Stones for Implementing Key Performance Indicatorsp. 105
"Partnership with the Staff, Unions, and Third Parties" Foundation Stonep. 105
"Transfer of Power to the Front Line" Foundation Stonep. 107
"Measure and Report Only What Matters" Foundation Stonep. 108
"Source KPIs from the Critical Success Factors" Foundation Stonep. 108
"Abandon Processes That Do Not Deliver" Foundation Stonep. 111
"Understand Human Behavior" Foundation Stonep. 112
"Organization-Wide Understanding of Winning KPIs Definition" Foundation Stonep. 113
Notesp. 113
Implementing the 12-Step Processp. 115
How the 12-Step Model and the Seven Foundation Stones Fit Togetherp. 115
Step One: Senior Management Team Commitmentp. 115
Step Two: Establish a Winning KPI Team Working Full Time on the Projectp. 120
Step Three: Establish a Just-Do-It Culture and Processp. 124
Step Four: Set Up a Holistic KPI Development Strategyp. 127
Step Five: Market the KPI System to All Employeesp. 131
Step Six: Identify Organization-Wide Critical Success Factorsp. 134
Step Seven: Record Performance Measures in a Databasep. 134
Step Eight: Select Team-Level Performance Measuresp. 137
Step Nine: Select Organizational Winning KPIsp. 143
Step Ten: Develop the Reporting Framework at All Levelsp. 145
Step Eleven: Facilitate the Use of Winning KPIsp. 148
Step Twelve: Refine KPIs to Maintain Their Relevancep. 151
Notesp. 152
Determining the Measuresp. 155
How to Derive Measuresp. 156
Brainstorming Measuresp. 156
Stacey Barr's PuMPp. 157
Checking KPIs for Behavioral Alignmentp. 159
Case Studiesp. 161
Golf Club (Non Profit Membership Organization)p. 161
Surf Life Saving (Non Profit Membership Organization)p. 166
Government Departmentp. 169
Professional Accounting Bodyp. 170
Selling Changep. 173
Selling by Emotional Driversp. 173
Selling the Move to Winning KPIsp. 174
Common Critical Success Factors and Their Likely Measures for Government and Non Profit Agenciesp. 177
Reporting Performance Measuresp. 185
The Work of Stephen Few in Data Visualizationp. 185
Reporting the KPIs to Management and Staffp. 186
Reporting Performance Measures to Managementp. 191
Reporting Performance Measures to Staffp. 195
Reporting Performance Measures to the Boardp. 195
Reporting Team Performance Measuresp. 201
How the Reporting of Performance Measures Fits Togetherp. 204
Notesp. 204
Epilogue: Resourcesp. 205
Foundation Stones of Performance-Related Pay Schemesp. 211
Effective Recruiting-Getting the Right People on the Busp. 223
The Public Sector Can Abandon the Flawed Budget Processp. 229
Jack Welch's Strategy Slidesp. 241
Suggested Success Factors for Government and Non Profit Agenciesp. 243
List of Performance Measures Suitable for Government and Non Profit Agenciesp. 273
Presenting the Critical Success Factors to the Board/Government Officialp. 293
Main Differences between the Balanced-Scorecard and Winning-KPIs Methodologiesp. 301
Indexp. 305
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