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P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance IndicatorsStephen Few’s contribution to report design is immense.His workshops, books, whitepapers and articles are a mustattend/read for all those involved in reporting performance tothe Board, senior management, staff and the general public. Allreporting of winning KPIs and other performance measures isvastly improved if one adopts his design techniques in all formsof balanced scorecard reporting.Few has come up with a very useful list of 11 commonpitfalls in dashboard design:1. Exceeding the boundaries of a single screen (where managers have a multiple choice as to what they can see—in other words the designer has not determined what isimportant).2. Supplying inadequate context for the data. (Graphs whichdo not clearly show what is good or bad performance).3. Displaying excessive detail or precision (not roundingenough).4. Expressing measures indirectly (Few prefers, on occasion toto hold one data series as a constant and express the otheras a percentage deviation).5. Choosing inappropriate media of display (choosing thewrong graph, especially a pie chart; using a graph whena table would be better; etc.).6. Introducing meaningless variety (using a myriad of differentgraphs on one page, just because we can do them).7. Using poorly designed display media (lack of thought regarding the real issues).8. Encoding quantitative data inaccurately (by setting the starting scale away from zero).9. Arranging the data poorly (by not linking issues togetherand not positioning graphs on the same point together).168

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeTemplates for Reporting Performance Measures10. Not highlighting what is important (all data competing forattention).11. Cluttering the screen with useless decoration (too manyrocket scientist’s toys).Each one of these pitfalls is explained in detail in his whitepaper on the topic.3Reporting Performance Measures to StaffTeam Balance ScorecardsExhibit 5.7 is an example of a team scorecard using Excel. Excelis a useful tool to design and test a template before a morerobust and integrated solution is sourced.Some providers supply graphs, help you develop them, andthen charge by usage. One such provider is Ergometrics (www.ergometrics.com).Exhibit 5.8 presents another speedometer report. Exhibit 5.9explains how the graphs in Exhibit 5.8 are interpreted.Reporting Organizational Progress to StaffIt is a good idea to have some form of monthly icon report forstaff, a report that would not be damaging to the organizationif it found its way to a competitor. Icon reports are ideal, asthey tell you what is good, what is adequate, and what needs tobe improved without giving away core data. Exhibit 5.10 is anexample of an icon staff report that covers the CSFs and remindsstaff about the strategies.169

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance IndicatorsIS Team's ScorecardProjects StatusCustomer focusHelp deskProgramme visits to managersService requests outstanding (faults,works requests)at month endService requests closed in month% Fixed by Help Desk from 1st callInitiatives underway based on satisfaction surveyCurrentTarget462415455555%65%05 by 30/6/xxxxxxxxxxxxxxServices outages Vs SLA'sCurrentAverage Mainframe Response TimeTarget0%25% 0.75 secDoneOutage time per month / # of timesNone 1hr/mthInternal capabilityTargetNo. of training hours provided by key staff28 / month412In-house training courses for IS staff02 per year264 by 30/6/0XPPRs completed on IT projects02 per yearCurrentTargetDeveloping Intellectual CapitalSuccession plans for key positions25 4Staff who have had a coaching session in last month310Staff who have verbal feedback about performance in month40Target60%55%65%45150CurrentTargetProjects in progress7 8Reports/documents still in draft mode15 5Project value kStatus 20 2FinancialIS Function Expenditure600450300 15Annual PlanForecast CumulativeDec xxOct xxNov xxTarget 3 in yearSep xx0Current1 in last 12months10Jul xx150Environment and communityAug xx9701Staff functions planned for in next three monthsJun xxxxxNo. of formal staff recognitions made in the monthApr xx14516targetMay xx495xxx8currentIS team satisfactionMar xxxxxNumber of Finance staff involved in communityactivities2 per year0100%25Presentations given to local professional BodiesTarget1Initiatives underway based on PPRs344%Progress on major IS capex projectsCurrentPost project reviews (PPRs) performedNo. of PPRs participated in100%CurrentCompletionsTargetTargetOur ability to deliverStaff trained to use xxxxxxxCurrentCurrentRolling checks on C drives% of jobs completed on time on budget% of time of developers spent on highpriority / high value workLearning & Growth 1hr/mthThis cycleJan xxMonths since last back-up tested at remote site100% 1hr/mthInternal processBackup every night75%Risk of Non-CompletionNoneProgramme visits to managersPresentations of ISSP to managersDisaster recoveryBehind15 mins / 5Feb xxServers (file and print)Servers (email)Servers (transactional)ISSP50%Percentage completeOn-TrackActual CumulativeLast YearFindings:xxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxx xxxxxx xxxxx xxxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxx xxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxxxxxxxxxxx xxxxxx xxxxx xxxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxx xxxxxx xxxxx xxxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxAction to be taken:xxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxx xxxxxx xxxxx xxxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxx xxxxxx xxxxx xxxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxx xxxxxx xxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxx xxxxxxxxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxx xxxxxxx xxxxxxxxx xxxxxx xxxxxEXHIBIT 5.7 Team Scorecard Designed in Excel Example170

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeTemplates for Reporting Performance MeasuresIT Balanced ScorecardCustomerFinanceProcessQuality – impacted customer transactions01010Brand AccountATM501PC Banking6080Delivery vs Support95Charge outBeing Developed01000101Corporate Deskbank Internet Online BankingDo Right Things – Projects with Strategic Intent010050100Project NumbersLME Used0EFTPOS80Charge out - Contractors50010050Dollars SpentLearning800Expenses50500Apps Not Meeting SLs10080Outsourced chargesBenefit Review Intent1Training Days/FTEStability and Benefit EXHIBIT 5.8 Team Speedometer ReportCurrent PerformanceValueCurrentPerformanceRange Color(emphasis)Range of s LowestPerformancePrevious HighestPerformance104Range of GoodPerformanceTrendRange of ExcellentPerformanceRange of PoorPerformanceRaised/Flat Border(can drill)Gauge MeasurementScaleGauge Name0Production Rate150Performance Current Current 1 Current 2EXHIBIT 5.9 How One Company Has Made the Speedometer GiveMore Information171

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance IndicatorsOur missionTo provide energy at the right price at the right timeOur vision fornext five yearsTo be the preferred energy provider in the xxxOur strategies1. Acquire profitable customers2. Increase cost efficiencies3. Innovation through our people4. Use best business practicesOur perspectives and progressFINANCIALJKUtilization of assetsOptimization of workingcapital, EBIT, growth,etc.INTERNAL PROCESSJJLProcess delivery infull on timeOptimizing technologyWork JIncreasing customersatisfactionGaining profitablecustomers,etc.LJSupporting localbusinessesLinking with futureemployeesCommunity leadership,etc.EMPLOYEESATISFACTIONLEARNINGAND GROWTHJJKLPositive companycultureRetention of key staffIncreased sing staffadaptabilityCoaching Increasing,etc.EXHIBIT 5.10 Icon Report for Staff ExampleGraph Format ExamplesExhibits 5.11 through 5.22 provide graphs for demonstrationpurposes only. The KPI team will need to be experts in graphicaldisplays, ensuring, in each case, that the graph chosen conveysthe appropriate message.Good Features in Exhibit 5.11 Use of a five-point scale Grid lines to highlight “nearly 40% of all participants weresatisfied with . . .”172

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeTemplates for Reporting Performance Measures100%90%Percentage of staff80%70%60%50%40%30%20%10%0%SelectionAnalysts5 Very Satisfied2 DissatisfiedGeneralGroupadministrators4 Satisfied1 Very DissatisfiedLevel 3Power user3 Neither satisfied nor dissatisfiedEXHIBIT 5.11 Satisfaction Survey ResponseWhen showing this graph in color, you may wish to use redfor very dissatisfied as a warning.Good Features in Exhibit 5.12 A clear summary of a number of activities Graph incorporates an “overall” scoreThis graph would be shown with a yellow background.Good Features in Exhibit 5.13 Particularly useful for survey responsesThe vertical gridlines are lightly shaded.Good Features in Exhibit 5.14 Ease of sector comparison Overall trends clearly displayed Groups easily differentiatedBest suited for multicompany/unit comparison where similar units can be compared.173

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance IndicatorsSatisfaction with Delivery ActivitiesApplication supportStandards and ServicespecificationsCreating reportsDocumentation managementon intranet/InternetDrawings support serviceDesktop support (e.g., fixinghardware faults, installingnew equipment)Action center12345Average Rating (1 Very dissatisfied, 3 Neithersatisfied nor dissatisfied, 5 Very satisfied)OverallExpertise of staffQualityTimeliness (to deadline)Proactive/responsiveEXHIBIT 5.12 Satisfaction Graph Example 1Good Features in Exhibit 5.15 Two-line combination graph comparing financial and nonfinancial information Lines shaded to match the scalesNotice that the vertical scales do not match up—there arefour divisions on the left and six on the right-hand sidescale. It is always best to match them up.174

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeOverall Satisfaction for Working StyleOverallTeam’s accessibilityand promptnessTeam’s ability toanticipate issuesTeam’s understanding ofyour business issuesTeam’s service ethic(positive attitude, flexibility)Degree of respectdemonstrated toward youWillingness to takeownership of issuesTeamwork and ability to redirectkey issues to the appropriateperson within the teamDecision making withinthe teamTeam’s follow-through/abilityto close issues0%10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Percentage of respondents1 Very dissatisfied2 Dissatisfied4 Satisfied5 Very satisfied3 Neither satisfied nor dissatisfiedTotal Accounting StaffEXHIBIT 5.13 Satisfaction Graph Example 2 40Organizations with total FTE staff 5003020100050100150200250300350400450500Total Organization FTE StaffCouncilHealthCrown EntitiesManufacturing SectorGovernment SectorService SectorEXHIBIT 5.14 Scatter Diagram Example175

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance IndicatorsVisitor NumbersVisitors 000s7560453015Oct xxSep xxAug xxJul xxJun xxMay xxApr xxMar xxFeb xxJan xxDec xxNov xxOct xxSep xxAug xx0Visitor numbers300Operational WagesWages 000s25020015010050Oct xxSep xxAug xxJul xxJun xxMay xxApr xxMar xxFeb xxJan xxDec xxNov xxOct xxSep xxAug xx0Operational WagesEXHIBIT 5.15 Contrasting Two Relevant Data StreamsGood Features in Exhibit 5.16 A sparkline graph looks like a line graph without the axis’s.Even with this truncated diagram you can still see the trend.These sparkline graphs come with a bullet graph that showdifferent detail about current performance. The shades aregood to poor performance and the dark vertical line thetarget. The large bullet points indicates where action needsto be taken.176

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeTemplates for Reporting Performance MeasuresSales Dashboard(Data as of December 19, 2004)Key Metrics YTDPast 12 Months(MetricActual;Target;Poor,Satisfactory,% of Target 913,394 193,865 5,76694%1,2474.73 / 519%RevenueProfitAvg Order SizeOn Time DeliveryNew CustomersCust SatisfactionMarket Share0%Good )Actual50%100%150%EXHIBIT 5.16 Combination of Sparkline and Bullet GraphsSource: Stephen Few at www.perpetualedge.comThis color matching aids identification of results and comprehension. Note that gridlines match up. Both verticalscales have same number of divisions.Good Features in Exhibit 5.17 A stacked bar graph for ease of display of both total andindividual costs and not too many components (Four to fiveitems is about the maximum.)Good Features in Exhibit 5.18 Horizontal multibar graph allowing easy comprehensionand comparisonGood Features in Exhibit 5.19 Multiline graph showing a 15-month range with three clearlyidentifiable revenue streams177

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance IndicatorsMajor Costs 000s400300200100Expense 1Expense 2Expense 3Expense 4Oct xxSep xxAug xxJul xxJun xxMay xxApr xxMar xxFeb xxJan xxDec xxNov xxOct xxSep xxAug xx0EXHIBIT 5.17 Stacked Bar xxTransportXxxxxxxxProgramXxxxxxxxxxxxxservicingX provisionXxxxxxxxxxxstrategy024681012Count of purchase agreement activities by risk categoryDoneBehindOn TrackRisk of NoncompletionEXHIBIT 5.18 Horizontal Multibar Graph Example17814

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeTemplates for Reporting Performance MeasuresKey Revenue Streams 000s1200900600300AdmissionsOct xxSep xxAug xxJul xxJun xxMay xxApr xxMar xxFeb xxJan xxDec xxNov xxOct xxSep xxAug xx0RetailMai OraEXHIBIT 5.19 Multiline Graph ExampleGood Features in Exhibit 5.20 Demonstrates acceptable range of performance as well asindicating that improvement is being sought over time(cascading downward target)3.0%High2.0%Business unit 1Business unit 2Aug xxJul xxJun xxMay xxApr xxMar xxJan xxDec xxNov xxOct xxSep xxAug xx0.0%Feb xxLow1.0%Business unit 3EXHIBIT 5.20 Acceptable Ranges Graph Example179

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Performance Indicators 000'sExpenditure is tracking over budget20015010050Actual expenditure (XX)Forecast (XX)Budget (XX)Actual expenditure (YY)Forecast (YY)Budget (YY)Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 00Jan 000EXHIBIT 5.21 YTD Cumulative ExampleGood Features in Exhibit 5.21 Ready comparison between actual/forecast and budget fortwo significant items of expenditure covering the year infocusNote that the budget year-to-date trend is not drawn in, asit would be a straight line in most cases, and where thereis a seasonal trend the line would be merely an error-proneguess.Good Features in Exhibit 5.22 Three lines beginning as actual and moving on to forecastIt is a good idea to show a clear distinction between actualand forecast numbers by changing the color of the line (e.g.,from dark blue to light blue).The checklist in Exhibit 5.23 will help ensure that yourgraphs help in the decision-making process.180

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeKey Revenue Streams 000s480ForecastActual40032024016080Xxxx - ActualYyyy - ForecastXxxx - ForecastZzzz - ActualJul xxJun xxMay xxApr xxMar xxFeb xxJan xxDec xxNov xxOct xxSep xxAug xx0Yyyy - ActualZzzz - ForecastEXHIBIT 5.22 Actual and Forecast Comparisons ExampleEXHIBIT 5.23 Better-Practice Graphics Checklist1. Insert graphs into tables in a Word documentto enable formatted text to be placedunderneath or to the side without the need forcomplex tab arrangements. Graphs will alsoauto size to the width of the table whenpasted, saving formatting time.Check asappropriate Yes No2. Where possible, show at least 15-month trendanalysis. Yes No3. Avoid more than three trend lines per graph,as they probably will cross over numeroustimes and cause confusion. Yes No4. In line graphs, thicken the standard line toallow colors to stand out. Yes No5. Use a pale-yellow background to maximizecolor impact. Yes No6. Avoid more than five divisions in a stacked bar. Yes No7. Wherever possible, print in color. Yes No8. Use high-quality glossy paper for the finalcopy. Yes No9. Put the title of the graph in the table ratherthan on the graph to enable an 11th-hourchange without having to go back to thesource graph. Yes No(Continued)181

P1: OTA/XYZP2: ABCc05JWBT214-ParmenterDecember 23, 200918:2Printer Name: Yet to ComeEXHIBIT 5.23 (Continued )10. Make the graph title mean something (e.g.,instead of RoCE, say “RoCE is improving”;instead of EBIT, say “EBIT is declining butexpected to recover.”)Check asappropriate Yes No11. Organize workbooks so that worksheet namesclearly show which graphs are in eachworksheet. Yes No12. Limit graphs to four per worksheet so thatthey can be viewed on one screen. This alsoavoids searching for graphs six months laterwhen you have forgotten which worksheetthey are in. Yes No13. Keep it simple; there are many graphicaloptions that do not convey their messagequickly (e.g., radar, bubble, and 3D surfacegraphs are so difficult to read that twoindividuals can read the same graph and endup with very different conclusions). Yes No14. When paste-linking graphs into the document,select the manual link option as opposed toautomatic. Word attempts to update allautomatic links when opening a document,and this can corrupt graphs or lock thecomputer if the source worksheet was notopened first. Yes No15. Integrate graphs with the text. Do not pla

example of a Stephen Few dashboard. Too often too little thought goes into the design of these management reports. A must visit for all report designers is Stephen Few’s Web site www.perceptualedge.com), where you can access, free of charge, many high-quality white papers on graphical displays. His boo