Earlier this month we discussed the value of Key Performance Indicators (KPIs) with Jason Bryant. Now he returns to share his top 5 ‘dos and don’ts’ for you to get to grips with KPIs.
1. Remember the K!
By stepping back and first assessing what you really need to get out of your indicators, you can minimise the probability of having too many irrelevant KPIs in place. Resist the tempatation to measure things just because you can or should. Implement a range of valuable indicators in order to visualise the impact of your launches, take action on any issues flagged and look forward to embedding a culture of Launch Excellence in your organisation.
2. Apples with Apples
In order to receive true value from your KPIs you need to be able to compare like for like. Comparisons are valuable when they work across all relevant parts of an organisation. These could be affiliates, regions or functions. Pan-affiliate indicators are great because they facilitate meaningful comparisons and promote sharing and/or relevant action. Comparisons up and down the hierarchy are also very helpful. For this reason good KPIs should be able to roll-up to the top of the hierarchy e.g. patient acquisition rate can be measured locally and aggregated on exactly the same basis (data permitting) all the way up to Global.
3. Facilitate – don’t Overcomplicate
There is no point of having a KPI implemented that you cannot understand the resulting outputs! Furthermore, it needs to be suitably clear, digestible and simple for anyone within the wider team to assimilate, understand and articulate it. If stakeholders cannot easily discuss the implications of the indicator’s direction (i.e. is the trend heading positively or negatively), then I would argue that KPI is sub-optimal and could lead to wasted time and resources.
4. Cause and Effect
Only implement KPIs that you are determined to take action upon. Not only should they be clear enough to promote discussion around action planning but smart thinkers are linking KPIs to the relevant areas of their launch plans to facilitate hard wiring of cause and effect. Viewing the outcomes in isolation limits the ability to consider the likely causes and wider implications across the live launch plan. But linking them together facilitates a more informed discussion and a cohesive, plan-centric response. This makes it far clearer and easier to “course correct” earlier in the launch plan,
5. Don’t do it! Unless you are committed to sinking your teeth into KPIs
At IE we have seen how valuable KPIs can be to an organisation who has really thought about their implementation, used them consistently and taken action upon their results. However, unless you are willing to carry this process through your culture and future launches then the exercise in itself will be of limited purpose!
To discuss other important considerations when implementing KPIs in your organisation, contact IE. Our Professional Services include KPI definition and validation workshops to implement valuable KPIs initially and KPI reviews to refresh and reinvigorate your current KPIs.