The Public Investment Fund (PIF) has proudly attained the highest accreditation for excellence in strategy and performance management, awarded by the Global Performance Audit Unit (GPA Unit), a division of The KPI Institute. This esteemed Level 5: Optimized recognition is the result of a thorough evaluation of PIF’s strategy and performance management system.
A Mark of Distinction
“This distinguished accolade underscores PIF’s unwavering dedication to strategic excellence, performance measurement, and continuous improvement,” remarked Adrian Brudan, General Manager of the GPA Unit and Vice President of The KPI Institute. “Our commitment to unlocking organizational potential through rigorous research, expert insights, and cutting-edge solutions remains steadfast.”
Key Areas of Excellence
The accreditation highlights PIF’s outstanding performance in three pivotal areas:
Strategic Planning: Crafting a comprehensive and cohesive strategic framework that ensures alignment between organizational goals and operational activities.
Performance Measurement: Deploying precise and thorough Key Performance Indicators (KPIs) that promote informed decision-making and accountability.
Performance Improvement: Continuously refining processes and practices to achieve superior results and foster a culture of ongoing excellence.
The assessment, conducted by the GPA Unit, utilized their PMS Maturity Model framework, which included an in-depth analysis of over 300 statements reflecting industry best practices. This robust methodology measures the complexity and efficiency of organizational capabilities in the realm of strategy and performance management.
A Global Investment Leader
PIF, a leading global investment entity, plays a critical role in driving Saudi Arabia’s economic development, diversification, and transformation. Known for its long-term investments aimed at maximizing sustainable returns, PIF has become the preferred partner for global investment opportunities. The fund’s stability is further validated by top-tier credit ratings: A1 with a positive outlook from Moody’s and A+ with a stable outlook from Fitch.
Partnership for Growth
PIF’s collaboration with GPA Unit is part of its ongoing effort to enhance its performance management practices. This partnership enables PIF to identify areas for growth and improvement, further solidifying its position as a pioneering sovereign wealth fund.
A Testament to Success
This achievement is a testament to PIF’s effective strategy and robust performance management system, underscoring its position as one of the most influential sovereign wealth funds worldwide. The recognition also reinforces PIF’s status as the leading brand among sovereign wealth funds globally.
Ceremonial Recognition
The milestone was celebrated during an award ceremony in Riyadh on June 6, 2024, hosted by Saad Alkroud, PIF Chief of Staff and General Secretary of the Board of Directors. The event highlighted PIF’s exceptional achievements and its ongoing journey towards strategic success.
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To learn more about the GPA Unit and its services, please visit their website at www.gpaunit.org. For any inquiries or detailed information, contact Adrian Brudan, General Manager of the GPA Unit and Vice President of The KPI Institute, at +40 721 233 084 or via email at [email protected]
“If you aim at nothing, you will hit it every time.” — Zig Ziglar
When the cost of managing and measuring your performance is less than the tragic risk of hitting nothing, it pays to get your KPIs right.
KPIs, or key performance indicators, can prove that success is a result of not just one huge undertaking but a series of actions. These actions are taken by decision-makers that consistently rely on data rather than guesswork.
In this guide, you will learn the basics and benefits of KPIs and beyond. Explore the top articles, webinars, reports, and other materials produced by The KPI Institute, a leading global research institute specializing in business performance and KPI research for over 17 years.
Topics include:
What Is a Key Performance Indicator?
Why Companies Should Use KPIs
KPI Examples
Applying the KPI Best Practices
The KPI Measurement Framework
What Is a Key Performance Indicator?
The definition of a KPI, according to The KPI Institute, is “a measurable expression for the achievement of a desired level of results in an area relevant to the evaluated entity’s activity.”
“If a decision support system is put in place, users need the right data granularity and the guidelines or context for making the right decisions. All of these reasons have an underlying story, and top-performing organizations are able to clearly communicate that story to their employees.”
“As performance management & measurement is shaping up as a fundamental capability for organizations across the globe, there are still multiple challenges to be overcome.”
“Nowadays, the challenge is not about accessing information, as most companies are managing large volumes of data. The challenge is to decide which data is the most important for decision making.”
“What have been some of the changes that the Performance Management field has experienced over time? What are some one-size-fits-all style KPIs that any company can employ?”
Discover the role of KPIs in designing a rigorous Performance Management System (PMS) to ensure an optimized implementation across all organizational levels.
Compare KPIs and other performance evaluation criteria, identify the common KPI pitfalls, and discover how to use KPIs to create synergies between departments.
“In many cases, the key performance indicators (KPIs) monitored do not seem relevant as they are not connected to the strategy. To better understand how this problem can be addressed, we must first identify its possible causes.”
“What are the most important guidelines to follow when selecting KPIs for strategic objectives? What are the most efficient KPI Selection techniques, most recommended KPI selection environments, and some Value Flow Analysis technique examples?”
“A KPI implementation project plan provides a structure for the implementation of an organization’s performance management system. Once the project plan is set, all types of activities would have a clear deadline and designated responsibilities.”
“When formalizing and implementing a performance management system (PMS) based on key performance indicators (KPIs), there are multiple activities to be considered and many stakeholders to be engaged in the process. Therefore, you’ll need a project plan to make performance management an ongoing process within your organization.”
“An important component of performance measurement is represented by the data collection capability. However, when applied in the organizational context, this process is neither easy nor lacking obstacles, as practitioners often discover.”
“KPI selection is a process which seems simple, yet is inherently complex, due to the interdependencies involved. Here are 15 things to consider before embarking on this journey.”
“Just reporting performance data will not ensure the improvement of results. Improvement is only possible when decisions are made based on the insights provided by data.”
KPIs are not just about understanding and working with numbers. Using KPIs requires stakeholders to fulfill a vision and commit to ensuring success across all levels of their organization. If you would like to learn how to select the right KPIs for your organization, sign up for The KPI Institute’s Certified KPI Professional and Practitioner live online course today.
Organizational culture is the unique environment of an organization that is formed through shared beliefs, values, experiences, specific rituals, behavior, interactions, language, and norms. These elements of the culture are developed over time in both visible and invisible ways, such as the organization’s output, interactions, goals, branding, company policies, reward systems, among others.
It is possible that most of the members of an organization are not aware of the origin of their rituals and why they are expected to behave in a specific way. Or they may know exactly what they are doing for what reason and can explain everything with facts. Which of these contradictory approaches characterize your organizational culture more?
Is it a cargo cult organization or “The Credible Hulk”?
Cargo cult thinking in organizations
Cargo cult refers to the belief that a real achievement can be realized by simply imitating visible behavior. This belief exists even without understanding the correlations between the different steps of a process and the consequences of actions.
The origin of this terminology goes back to the first half of the 20th century, when some remote-island-based tribes saw American cargo planes landing on their island. The tribes tried to recreate the different tools and instruments they saw from the cargo planes without knowing how those goods were manufactured. They made radio from stone and wood but without getting the same effect.
This phenomenon can be observed even in advanced 21st century cultures, particularly in the modern corporate world.
Many organizations are adopting the same practices they observe in other companies, such as workplace habits and the design of an office, without fully knowing their impact on the organization. For instance, some companies would place bean bags in the office even if they are hardly used. Some do not observe the business casual dress code on Fridays. And some have ping pong tables.
The paradox is that it is also a rational strategy to follow organizations or people who seem to know what they are doing. When used responsibly, cargo cult thinking can be really useful when making decisions because it saves management a lot of time.
Oversimplification versus overcomplication
Have you seen the meme “The Credible Hulk”? Inspired by the film and the character “The Incredible Hulk,” “The Credible Hulk” is a monster that backs up anything with facts and documents.
The opposite of cargo cult thinking is supporting new initiatives or practices with facts and research. Organizations with this kind of practice are deemed more credible in terms of their innovation practices.
These companies are the ones that look beyond the surface in order to analyze the successful elements of the other innovative organizations, such as Amazon, Apple, and Netflix. They do not just use transparent glass doors because they look good, but also because they want to promote transparency and improve communication in the organization.
However, such an approach is time and resource consuming. Organizations have to justify everything with research, leaving little to no room for instincts and creative innovations that could drive success in the long run.
Cargo cult thinking cannot be completely eliminated. The only way to exclude it from the organizational culture is to learn and know everything, and that is, apparently, impossible. Therefore, organizations could either find the right balance between the two opposite poles or customize their approach based on their goals, the company size, or the nature of their business.
It is undeniable that the growth of the water utility industry has been remarkable in the recent decades and it still maintains a strong pace in terms of increasing turnover for water utility organizations, as well as when it comes to investments aimed towards water distribution network improvements and treatment plants.
Join us in our journey to interview some of the most extraordinary individuals that continue to make The KPI Institute a role-model for others to follow. In today’s edition, we will be featuring September’s Employee of the Month, Silvana Bădiță.
1. What is your role at The KPI Institute and what makes it special?
I have been working as a Research Analyst at The KPI Institute, for about a year. Some of my main responsibilities are to document KPIs, to conduct primary and secondary research on performance management-related topics, to provide support in the form of research customization for different functional areas, as well as provide assistance in consultancy projects.
This variety of tasks contributes to creating a special dynamic in my daily activities, which opens up a great opportunity to develop my skills and competencies, and to acquire more expertise in different functional areas & industries.
A truly special feature of my work is that I’m guided by inspiration and creativity, which gives me tremendous satisfaction.
Moreover, another aspect that makes my job special is that I’m encouraged to think outside the box, in order to find the best solutions to today’s organizational challenges. This provides a valuable perspective on discovering the things that really matter in the field of performance.
2. What do you find most challenging at The KPI Institute?
A particularly important aspect of my work is translating the theoretical side of research into practical changes, which can then aid an organization’s development and performance.
This is equal parts challenging and riveting, for the same reason – it’s not often easy to see how an idea on paper can be transposed into reality. However, when you do manage to do it successfully, it offers an exhilarating sense of success.
3. What would be the three main career lessons that you have learnt thus far?
Never stop learning – do not become complacent – this is very important to always keep at the back of your mind because otherwise, you will not be able to adapt to the requirements imposed by today’s constantly changing society.
Set clear and measurable results – it is important to understand how your activity contributes to the organizational results, so do not overshoot your markers – aim for pragmatism, not grandeur.
Work as a team – I think this aspect is often underrated and it is a great shame because goals become more aligned when you work as a team. Teamwork leads to a greater chance of achieving your common goals.
4. If you could interview one person, either from the past or present, who would it be and why?
Considering that I am passionate about creating organizational cultures that are based on the continuous employee commitment to achieving higher levels of performance, I wish I could interview Daniel Pink, to learn more about people’s intrinsic motivations and what drives us.
