Defining Objectives & Key Performance Indicators
Opportunities Opportunities Opportunities
Now
Predicted Outcome Now
Risks Risks
Risks
Values
Risks
KPIs
Targets
Range of Possible Outcomes
Risk
Objectives
Opportunities Opportunities
Now Predicted Outcome
Now
Values
Risks
KPIs
Risks Risks
Targets
Range of Possible Outcomes
Risk
Objectives
Risks
Values
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What we value
Values
Risks
KPIs
Context
Targets
Objectives
Definitions
Objective Key Performance Indicator Target
Values
A broad statement that outlines the path that the company wishes to take A measurement metric used to evaluate the performance against the objective The target is the specific level of objective performance that we wish to attain
Risks
KPIs
Targets
Objectives
Definitions
Objective Key Performance Indicator Target
Values
AWhich broad statement thatwant outlines the path that the direction we to go company wishes to take A measurement metric used evaluate How we measure where weto are going the performance against the objective The is want the specific level objectiveof performance Howtarget far we to go in theofdirection the that we wish to attain objective
Risks
KPIs
Targets
Objectives
An example Respect Safety ENSURE SAFE TRANSPORTATION -Vehicle Accident rate/ Km
Target : Create a baseline recorded -Number of non-conformances with driving procedures /km
for employees and Stakeholders
- Insufficient driving skills of drivers - Alcohol and drug use of drivers
Values
Risks
KPIs
Targets
Objectives
An example Respect Safety ENSURE SAFE TRANSPORTATION
Target : Create a baseline
for employees and Stakeholders
- Insufficient driving skills of drivers - Alcohol and drug use of drivers
Values
Risks
KPIs
Targets
Objectives
KPI How we measure where we are going
• KPI = Key It creates meaning at all organization levels
Values
Risks
KPIs
Targets
Objectives
KPI How we measure where we are going
• No KPI is harmful • Too many KPIs is useless for the decision making and ...
Developping the wrong KPI may create more harm than help Values
Risks
KPIs
Targets
Objectives
KPI How we measure where we are going
• A KPI is decided by top management but proposed by YOU
Values
Risks
KPIs
Targets
Objectives
KPI How we measure where we are going
• A KPI is decided by top management but proposed by YOU • We will all own Performance Indicators
We will only share Key Performance Indicators Values
Risks
KPIs
Targets
Objectives
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
Today
We have defined values
Values
... And have defined our company risks
Risks
KPIs
Targets
Objectives
Today
Activity 1 Use 1 Risk as an example to personally define an objective and a KPI
Values
Risks
KPIs
Activity 2 Share them with your table, together agree on the objective and the KPI that will cover the risks and represent the + values
Targets
Objectives
Activity 1 Each table picks a risk and fill the triangle like in the example
An example Respect Safety ENSURE SAFE TRANSPORTATION -Vehicle Accident rate/ Km
for employees
-Number of non-conformances recorded with driving procedures /km
and Stakeholders
- Insufficient driving skills - Alcohol and drug use
Values
Risks
KPIs
Targets
Objectives
Objective : Use the statement
The organization Ensure
systems
is
assets
Managed Optimized ...
Adequately Successfully Safely Sustainably ...
performance etc...
Values
Risks
Objectives
KPIs
Objectives
Define your KPIs Are they SMART ? Specific
Measurable
Attainable
Relevant
Time-bound
Values
Risks
KPIs
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
The organization Ensure
systems
is
assets
Managed Optimized ...
Adequately Successfully Safely Sustainably ...
performance etc...
Values
Risks
Objectives
KPIs
Objectives
Now verify your KPIs • Check the attributes that apply to your KPIs Specific Measurable
Attainable Relevant
Time-bound
Values
Risks
KPIs
Targets
Objectives