KPI's & PuMP

This article discusses four options about how get started with your implementation of PuMP.

Also, some ways to help you get buy-in for deeper work to move away from those useless activity based KPIs to a new understanding of how to use performance measurement to improve your outcomes.

 

Firstly, what is PuMP?

PuMP is research backed method into designing, selecting, and using measurement to understand and realise improved performance (created by Stacey Barr and used around the world).

However, PuMP also brings a paradigm shift in how we see, understand, and improve the outcomes of our organisations.

 

1. Top-down Approach

Always it’s best to start at the top if you can.  In this approach we get the leaders of the organisation together. Provide a quick overview of PuMP (eight steps), focusing on their role in this (a) clear measurable strategic outcomes, (b) how to select performance measures for those outcomes, (c) target setting.

From that overview we then develop the first draft of their Results Map.  This focuses on the clear articulation of the outcomes that come from our vision, mission and/or purpose.

And, then in a cause-and-effect manner, describe the outcomes/results we need to get closer to, that will move the performance measures for the outcomes that come from our vision, mission and/or purpose.  These are mapped onto a Results Map.

Once the leadership group have got this in place and their minds around how this works, the PuMP team then progresses with the deeper implementation of the Results Map and use of the performance measures.

 

Related article: How to keep your strategy fresh

 

2. Bottom-up Approach

With this approach a team uses PuMP to develop their Results and Measures and then uses this as a case for change in the organisation, for broader adoption.

It is a show approach, rather than tell.

Rather than trying to convince people that PuMP will resolve so many issues we have with the way we create and use KPIs, this approach shows how this method can resolve those issues.

Often this bottom-up approach shows how a team is measured by recording all their activity (the KPI approach from last century).  These KPIs are about what they did, what they are doing, but does not show the impact of their work.

So, the team articulates the Results (or outcomes) that come from the work they do.  Then (using PuMP) design, select and use performance measures that are evidence of the impact their work is having on the Results/Outcomes.

This team now has the evidence they need to demonstrate the impact of their work, rather than metrics of how busy they are…

This team now has a story to share with the broader organisation about how the techniques within PuMP has helped them see, understand, and improve the outcomes they have influence over.

 

3. Project Based approach

Projects are typically focused on Time (project schedule), Cost (project budget, resource allocation/usage etc) and Quality (the intended outcomes).  The PuMP techniques are used in the Quality dimension.

To articulate the desired Outcomes from the project, and then design and select the most meaningful performance measures for those Outcomes/Results.

PuMP brings a paradigm shift

Again, using PuMP in this way brings a paradigm shift in how we see, understand, and improve the outcomes that we expect to come from the delivery of the project.

Rather than developing a set of KPIs (targets, more often than not, low-balled) that mark the success of the project.  We can now be clear about the outcomes.  Which are supported by performance measures that are evidence of those outcomes.

Demonstrating how PuMP can be used in this project-based context, gives us another case study for the organisation to have confidence in the broader adoption of the method.

 

4. MVP (Minimal Viable Product) based approach

Clearly, I have borrowed this idea from the start-up community.  However, I have also seen it applied in mature organisations.  To create a minimal set of Results and Measures to demonstrate how the PuMP is applid.  The method, techniques and process works to produce that change in thinking that is required to make the change stick.

The change in thinking is in how we create and use KPIs, currently – to using an outcomes-based approach to be the framework for our performance measures.

The MVP approach here is taking the PuMP techniques and applying them to one specific area, problem, challenge, or desired outcome.  Demonstrate how that the approach works for that specific situation.

Demonstrate how it gives us a new understanding on what improvement, with meaningful evidence to support it, looks like.

This MVP approach again will provide you with a real world, your world, case study.  That demonstrates the ‘new way’ of thinking about performance and evidence of change and impact.

 

Be Mindful

When using any of these ideas to get started with PuMP, there are a few things I suggest you be mindful of…

 (a) What needs to change.

If you are changing the ‘traditional’ way of selecting KPIs (measures with targets), some people may resist.  Perhaps they are comfortable feeling in control of their KPIs, and other barriers.  Bring about the change gently.  By understanding the current limitations with the existing approach, using curiosity and experimentation to seek and demonstrate a better way.

(b) Champions.

It is likely you may need to find someone to “champion” the change.  These people will likely be more like early adopters (reference here to: Everett Rogers, Diffusion of Innovation).  Having a favourable attitude to change, a willingness to try something out.  They are pragmatic enough to discover if there are more effective means out there.

(c) Communication.

The narratives that come from these internal case studies can be used to gently persuade.  If you get resistance, my preference is, to promote curiosity, testing, experimentation.  Rather than use the case study as a club…

 

Take Action

If you are curious about PuMP, you may be interested in a ‘lunch and learn’ session (no cost, online).  This session will give you a paradigm shift in how you see, understand, and figure out how to improve the outcomes of your organisation.  Message me or let me know in the comments.

 

Or if you are ready to get started – then ask me about the inhouse workshop, just for your team/organisation.  Can be five half days online or in person, two-and-a-half days.

In this inhouse workshop.  You will get the first draft of your results map done.  Be confident with the technique to design and select performance measures.  And learn how to brings those measures to life using the PuMP techniques.  Also, you can also get the internationally recognised PuMP Certification (through APMG).

 

If this has triggered a reaction in you, feel free to reach out to me for more context.

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More on PuMP on this page

An article on the Eight Steps of PuMP