{"id":12017,"date":"2009-05-07T16:49:12","date_gmt":"2009-05-07T15:49:12","guid":{"rendered":"http:\/\/timoelliott.com\/blog\/2009\/05\/its-all-about-kpis-whatever-youre-trying-to-achieve.html"},"modified":"2009-05-07T16:49:12","modified_gmt":"2009-05-07T15:49:12","slug":"its-all-about-kpis-whatever-youre-trying-to-achieve","status":"publish","type":"post","link":"https:\/\/timoelliott.com\/blog\/2009\/05\/its-all-about-kpis-whatever-youre-trying-to-achieve.html","title":{"rendered":"It\u2019s All About KPIs, Whatever You\u2019re Trying to Achieve\u2026"},"content":{"rendered":"<p>Here\u2019s a quick selection of articles from just the last couple of weeks that show that <a href=\"http:\/\/www.sap.com\/solutions\/sapbusinessobjects\/large\/enterprise-performance-management\/index.epx\" target=\"_blank\">performance management<\/a> and <a href=\"http:\/\/en.wikipedia.org\/wiki\/Key_performance_indicators\" target=\"_blank\">key performance indicators<\/a> are becoming mainstream in a variety of areas:<\/p>\n<h3>SAP And Enterprise Support<\/h3>\n<p><a href=\"http:\/\/www.sap.com\/about\/newsroom\/news-releases\/press.epx?pressid=11250\" target=\"_blank\">SAP has agreed a set of key performance indicators<\/a> with its user group <a href=\"https:\/\/cw.sdn.sap.com\/community\/sugen\" target=\"_blank\">SUGEN<\/a>, in order to measure the effectiveness of the <a href=\"http:\/\/software.silicon.com\/applications\/0,39024653,39264251,00.htm\" target=\"_blank\">controversial<\/a> SAP <a href=\"http:\/\/www.sap.com\/services\/bysubject\/support\/servicedetail.epx?context=0DFA5A0C701B93893897C14DC7FFA7D62DC24E6E9A4B8FFC77CA0603A1ECCF58A86F0DCC6CCC177ED84EA76F625FC1E9C6DCDA90C9389A397DAB524E480931FB6B96F168ACE1F8BA2AFC61C9F8A28B651682A04F7CEAA0C4|0E320720D451E81CDACA9CEB479AA7E5E2B8164BEC98FE2B092F54AF5F9035AA4A01993A7EDD436DE14075781B155A57912E721188072448A50185B6EC4ED469A4FBF8E060F7C08380A825A52882AB11E5C1064541352568A22DBA73C889378BCDDE61C7D05E9F5DD4738B0691A6F587028FA1FAED2B406766768856392A68249822A3D796E2405FCD25CB508234C3DA41D660BE675C4517734408E0D14B7A0D\" target=\"_blank\">Enterprise Support<\/a> services introduced <a href=\"http:\/\/www.sap.com\/about\/newsroom\/news-releases\/press.epx?pressid=9852\" target=\"_blank\">last year<\/a>. And there\u2019s real skin in the game: SAP has agreed to postpone scheduled price increases until the targeted improvements measured by the SUGEN KPI Index are met. <\/p>\n<p>The KPI Index, defined after discussions with customers, is calculated on KPIs in four categories: business continuity, business process improvement, protection of investment, and total cost of operations.<\/p>\n<blockquote>\n<p>\u201cWe are convinced that SAP Enterprise Support delivers unparalleled value to all customers and, as a demonstration of our commitment, we will provide tangible reductions in their operational costs on a defined schedule,\u201d said L\u00e9o Apotheker, co-CEO, SAP AG<\/p>\n<p>\u201cSAP\u2019s goal to provide a rating of application support via key performance indicators is innovative and challenging,\u201d said Peter Wesche, research director, Gartner. \u201cThe extensive benchmarking phase and mapping of key performance indicators to business value will allow customers to fully understand the benefits of a comprehensive support program.\u201d<\/p>\n<\/blockquote>\n<h3>Gross National Happiness<\/h3>\n<p>The <a href=\"http:\/\/www.nytimes.com\/2009\/05\/07\/world\/asia\/07bhutan.html?ref=world\" target=\"_blank\">New York Times reports today<\/a> that the tiny nation of Bhutan has put together a sophisticated set of indicators to try to measure \u201c<a href=\"http:\/\/grossnationalhappiness.com\/\" target=\"_blank\">gross national happiness<\/a>\u201d:<\/p>\n<blockquote>\n<p>\u201c\u2026the Bhutanese produced an intricate model of well-being that features the four pillars, the nine domains and the 72 indicators of happiness.<\/p>\n<p>Specifically, the government has determined that the four pillars of a happy society involve the economy, culture, the environment and good governance. It breaks these into nine domains: psychological well-being, ecology, health, education, culture, living standards, time use, community vitality and good governance, each with its own weighted and unweighted G.N.H. index.\u201d<\/p>\n<\/blockquote>\n<p>And it\u2019s not as daft as it sounds \u2013 as the New York times <a href=\"http:\/\/www.nytimes.com\/imagepages\/2005\/10\/03\/science\/20051004_HAPP_GRAPHIC.html\" target=\"_blank\">reported several years ago<\/a>, average happiness in many countries has hit a plateau even as median incomes have risen. Governments have always taken account of many different considerations when determining policy. To a certain extent, \u201cgross national happiness\u201d is just another way of looking at what voters want when they are looking to elect their democratic officials.<\/p>\n<h3>Measuring Government Ministers<\/h3>\n<p><a href=\"http:\/\/www.nst.com.my\/Current_News\/NST\/Sunday\/National\/2541238\/Article\/index_html\" target=\"_blank\">Malaysia\u2019s prime minister has announced<\/a> that his government\u2019s cabinet ministers and civil servants will be measured on KPIs, as part of his \u201c<a href=\"http:\/\/www.1malaysia.com.my\/index.php?lang=en\" target=\"_blank\">1Malaysia<\/a>\u201d plan. Many other countries around the world, of course, have already implemented various types of <a href=\"http:\/\/en.wikipedia.org\/wiki\/Performance_Based_Budgeting\" target=\"_blank\">performance-based budgeting<\/a>, based on achieving a variety of social KPIs. <\/p>\n<h3>Stopping Yourself From Being Too Self-Righteous<\/h3>\n<p>The New York Times <a href=\"http:\/\/www.nytimes.com\/2009\/05\/05\/health\/05mind.html\" target=\"_blank\">also has an article today about \u201cself-righteousness\u201d<\/a>. Studies show that we\u2019re hopeless at estimating our own willingness to do what\u2019s morally right, but pretty good at estimating what other people will do. It\u2019s not technically about KPIs, but if we regularly measured the delta between our expectations and what actually happens, we might get better at estimating our own real-life behavior!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>KPIs are everywhere! Here&#8217;s a quick selection of some articles from the last couple of weeks about performance management around the world.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[674,807,854],"class_list":["post-12017","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-kpis","tag-performance-management","tag-public-sector"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p3X9RF-37P","_links":{"self":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/12017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/comments?post=12017"}],"version-history":[{"count":0,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/12017\/revisions"}],"wp:attachment":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/media?parent=12017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/categories?post=12017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/tags?post=12017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}