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Basics
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Industry:
Telecommunications
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Location:
Turkey
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The Company has set aggressive targets for growth in a highly competitive environment. To support this strategy, the management team needed a clear picture of business performance. In particular, they were looking for a structured way to identify risks to meeting their targets, and enable corrective action in a timely way. Moshe was engaged to help create an integrated set of key performance indicators (KPIs) covering both financial and non-financial metrics, and clearly linked to company strategy.
The Challenge
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Current KPIs used by the Company had “evolved” over time, and lacked the systematic and integrated approach needed to manage the business
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Primarily focus was on financial results, without sufficient attention to critical non-financial performance metrics
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No explicit link between each department’s performance and overall company strategy
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How We Approached the Challenge
Identify
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Working closely with CxOs, understand and define a set of KPIs for each department that capture true strategic business drivers
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Extent of interdependence between department, i.e. how one department’s success in meeting its KPIs depends upon the success of other, supporting departments, reaching theirs
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Understand
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The gap between what reports currently delivered and the performance indicators managers needed
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The difference between metrics and key performance indicators. All KPIs are metrics. However, not all metrics are KPIs
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Apply
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Fresh, objective look at each department’s critical business performance measurements
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Clear criteria for selecting each KPI, based on agreed and quantifiable definitions
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Complete competency transfer
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Value Delivered
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Customized set of coherent KPIs for each department clearly linked to overall company strategy
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"Touchpoints”
clearly showing where the KPIs of one department depend upon the KPIs of other, supporting departments
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KPIs integrated with employee performance appraisal and compensation
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One, consistent set of targets cascading down through organisation. Clearer picture to
“predict the present”
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Clear management focus on what needs attention, leading to better, faster decision-making
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