I was recently researching the use of Key Performance Indicators (K.P.I's) in keeping individual teams aligned with overall business objectives. When starting to learn about K.P.I's, an easy illustrative introduction of what a system would look like would be great.
Months later, I stumbled across an opinion piece that did just that when describing reforms seen recently throughout the Arab world, The Other Arab Awakening:
"...Talk about reform — in Dubai, the government has set a strategy for 2021, and each of the 46 ministries and regulatory agencies has three-year Key Performance Indicators, or K.P.I.’s, they have to fulfill to get there, ranging from improving the success of Dubai 15-year-olds in global science, math and reading exams to making it even easier to start a new business. All 3,600 K.P.I.’s are loaded on an iPad dashboard that the ruler, Sheikh Mohammed bin Rashid, follows each week. Maryam al-Hammadi, 48, the director of government performance, strikes fear in the heart of every minister in Dubai because each month she ranks them by who is making the most progress toward achieving their K.P.I.’s, and Sheikh Mohammed gets the list. You don’t want to be at the bottom. Hammadi showed me the dashboard and explained that Sheikh Mohammed is demanding that “every government agency perform as well as the private sector in customer satisfaction and service.” The public will get an annual report."
This example, maybe extreme, shows the importance of some basic needs of a robust plan for using KPIs effectively:
- Clear overall objective/target
- Clear indicators to measure the success of initiatives
- A good reporting system that is rigorous, high profile, and very clear
- Motivational system for reaching goals
- Strong leadership dedicated to the plan and monitoring the reporting system
I also like that a powerful woman is at the hub of reporting.