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The Bank of Nova Scotia
2020-01-06 14:10:40

Defining KPIs and Creating Dashboards

Hi All,
I am a fresh member of the portal. Looking for some insights in regards to defining KPIs. We are a team of 3 Contract Managers and our manager has asked us to define KPIs and create a dashboard biweekly for her to have an insight of what we are doing. I believe the next step will be having score cards to measure the performances. I have been searching the web and thinking about this deeply for some time now. I was only able to come up with 3 KPIs but still need to define 1 more. And I am not sure if this has been answered before. Is there a document I can relate on to? Would appreciate any leading.
Thank you in advance.
 
 •  Fire and Emergency NZ  •   2020-01-09 09:09:52
God day Sedef - well, again, I hate to see a good question like this sitting there all along unanswered, so here goes my contribution.

Firstly, if you get to create your own KPI's, I think that this is an awesome opportunity for you. It's a great opportunity for you to pick some criteria on which to have your performance judged by.

I think it's an opportunity though for you to think about whether or not you want these KPI's to relate to your performance alone, or contribute to or align directly with organisational performance. This could be a factor of where you feel you are as a team with procurement maturity, as well as your ability to influence the organisation's plans. Let me explain by way of example.

Four years ago, for our team, it was all about how quickly we could turn around tenders, time to contract, and the number of complaints (which thankfully were none) about the conduct of our tenders. So for us then, the KPI's were team focussed and didn't really track well into organisational plans.

Fast forward to the present day, the team has pushed back into the business to be engaging with them at a much earlier stage. The KPI's we are moving to are around developing category plans with the business and presenting them to the senior leadership team, monitoring and reporting on the significant contracts in their portfolio and working with the teams on meaningful social procurement outcomes that are relevant to their categories. As you can see, these are less about the team, and track really well into where we want to be as an organisation.

Oh, and like all KPI's, it perhaps goes without saying, but make sure that they're SMART (Specific, Measurable, Attainable, Relevant, and Time-Bound) or SMARTER (adding Explainable and Relative to the mix).

So Sedef, my advice would be to jump the opportunity to set your KPI's, and make them relevant to where you are and where you want to be. I think you are the best person to work that out, rather than me just telling you what you need based upon your one paragraph question.

Have fun with making them - and it would be great learning for others within the forum for you to tell everyone what you ended up with !
 
 
 •  Ngamuru Advisory  •   2020-02-02 07:41:45
Hi Sedef,

Following on from Darren's excellent points, I wanted to find out how you went? Did you find the missing one? I started my Performance Based Contracting (PBC) journey in 2004 designing, implementing and managing performance measures (not just KPIs!). Over this time I have seen many, many performance measure that can be used depending on what you are trying to achieve. Indeed, over the years we have actually formed the opinion that there are more than simply KPIs, since most humans can only handle 3 - 5. Therefore, having dashboards of 20 it too much information. So while there are a number of websites that can give you a variety of performance measures, can I suggest you have a look at why you want to measure; what is the outcome you are trying to achieve? Is it the standard project ones (scope, schedule and cost), or are there other things such as the health of the relationship, the culture of safety, etc. And if you think you can't measure the last ones, you can! Just takes a bit more work to set-up. So best to work that out first.

To help, as an IACCM Fellow I write on blog where I write about this (www.performancebasedcontracting.com), which sometimes become articles for IACCM (part of the role of an IACCM Fellow). Therefore, I'd suggest you have a look here and see if this helps. There is probably a lot of content (all free!), but hopefully it helps.

Anyway, I hope this helps you on your journey. And don't be afraid to ask for help!


Regards
Dr Andrew Jacopino - IACCM Fellow
 
 
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