DRIVING PERFORMANCE MANAGEMENT

KPIs in Practice - A Model for Success- Case Study

KPIs: Why Measure?

Because we want to or because we have to? Demonstrate level of service Drive improvement Internal drivers (Board/customers etc.) External drivers (Funders, auditors etc.) Competition for funding in Govt. funded work

Developing Successful Project KPIs Hearts and Minds approach Include in Selection process (QQ) Evidence based examples Start-up Workshop Implementation Plan (Golden Hour) Working Group to develop Core Group ownership Supply Chain workshop Training & Roll-out Test and evaluate Review process

About Raven Housing Trust

LSVT in 2002c5500 UnitsBased in Redhill, SurreyDelivery of Promises ProgrammeNew SystemsNew StaffResident Involvement5-Year Programme36 Million

The Merlin Project

Delivery Vehicle for Promises ProgrammeQualitative Selection ProcessOpen Book Cost ModelProfit Linked to PerformanceSingle Source Volume Supply Agreement( Travis Perkins)Residents at Centre (Round Table)NEC Option C (Target Contract) with X12 Partnering Option

Details of Cost Model

Open Book Model Complete Access to All Costs7.5% Head Office OverheadsProject Overheads at Cost (currently

Mutual Development of KPIs

Facilitated Workshop with all PartiesFocus on Project DeliveryLearn from Others WWHS & Partners ExperienceResident Input (Designed Customer Satisfaction Form)Agreement of Incentivised KPIsDevelopment of KPI Handbook

There are 9 KPIs:

Safety (Reportable Accidents and AIR)Resident SatisfactionHandover Inspection Pass RateDefects Impact at HandoverTime Predictability (average unit time)Completion of Health and Safety FileMerlin Satisfaction with ProductRaven Satisfaction with ContractorContractor Satisfaction with Raven

KPI Matrix

Measuring Performance

Work Packaged into Individual ProjectsTarget Cost AgreedKPI Targets Agreed for ProjectProject Review all Stakeholders Present KPI Data Populated into Review FormNarrative Against KPIs & Actions for Non-performanceIncentivised KPIs Only Paid if Target Cost Achieved

Some ExamplesResident Satisfaction

There are 10 questions scored 1-10

Some ExamplesDefects Impact at Handover

Note: Defects Impact KPI is paid on a sliding scale. The proportion of the 1% available is paid against the score (e.g. 70% will trigger 0.7% profit). However, the full 1% will is paid if a score in excess of 90% is achieved.

The Defects are recorded and discussed with the Contractor at the Review Meeting the number of defects at handover has reduced project by project.

The performance against the incentivised KPIs is recorded at the Review Meeting and the fee released against the out-turn cost of the project:

Using the data

Project Review Form issued to all stakeholdersContractor provides Performance Report to Merlin round TableRound Table made up of Residents, Board Members, Staff and ContractorsScores discussed and reviewed trends?KPI process evolves 7th version in place

Where do they go from here..?

Merlin model being utilised as primary procurement & delivery vehicle Full audit of Customer Satisfaction survey processTargets to be revised and bar raised!Development of peer group benchmark processCelebrating success of Merlin! Demonstration project with Constructing Excellence

Benefits of Partnering/Open/Book/KPI Process

Complete access to data from CustomersKPIs used as management toolLinks to incentives worked wellBuy-in from all stakeholders through engagementProcess has (and continues) to evolveFocus on what is important to Project

Lessons Learned

Hard workEngaged Staff (buy in) helping handsNimble contractor draw on experienceTrust and Openness (Alignment)Shared visionsRealistic targetsPain and Gain together

Lessons Learnt?Regular collection and analysisUse of ITDevelop and use standard forms Remove subjectivityRegular feedbackClient has to take lead

Contact Details:

John CogbillConsultantEchelon Consultancy Ltd

E-Mail: john@echelonconsultancy.co.uk

Tel:01707 339800

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