KPI overview module

KPI Module Overview Measuring Role Take-up Effectiveness Connecting your people to the plan V1 AUGUST 2021 ©

Table of Contents Page 3 Page 4 KPI module purpose Page 5 KPI Framework Page 6 KPI Process Overview Page 7 KPI set up – choose your KPIs Page 8 Setting up KPIs Page 9 KPI Tab example Page 11 KPI description overview KPI DETAIL EXPLANATIONS Page 12 Strategy Leadership Page 13 1. Team Review Compliance Page 15 2. Team Review Effectiveness Page 15 3. Milestone Distribution Page 16 4. Deployment readiness* Page 17 5. Integration and collaboration Page 18 6. Delivery, correction and recovery 7. Cascaded elements correction and recovery Page 19 Strategy Delivery Page 20 1. Progress reporting compliance Page 21 2. Integration and collaboration Page 22 3. Progress status Page 23 4. Final result - completion assessment Page 24 5. Performance measure KPI 6. Milestone Delivery

KPI module purpose To deliver the full potential of a strategy by measuring and monitoring how people show up in their leadership and accountabilities. A stimulus to direct the right and/or corrective behaviours Clear expectations for what and how things get done Data informed performance and coaching conversations Equity for accountability and measurability for role take up The KPI module enables us to put targets and measures on the things we need to pay attention to and lead – methodical planning, deployment and disciplined execution of successive business plans. • It provides data and context to assess the effectiveness of a person’s leadership and delivery of the strategy – as an individual and, if activated, the effectiveness of the team they are a part of. • Measures are applied to enable clear and objective expectations of the standards you want for achievement of results, leadership and the governance of process. • Visibility of KPI status and ability to record comments (KPI owner and KPI reviewer) is an input to a more fulsome review of a persons performance. This in turn supports acknowledgement of success and improvement, and enables coaching conversations for correction where required progressively throughout the year. Connecting your people to the plan 3

KPI Framework INDIVIDUAL SHARED 'my role' 'Our role' STRATEGY LEADERSHIP - Leading indicators STRATEGY DELIVERY - Lagging indicators There are two types of KPIs that can be activated: 1. Individual – the delivery of my and my strategy team’s: • Leadership and role take-up expectations • Delivery of outcomes and execution accountabilities 2. Shared – our collective responsibility for: • Leading the strategy team • Achieving outcomes and execution management disciplines 4 Connecting your people to the plan

KPI Process Overview 1 2 Annual KPI Monthly data parameter ‘snapshot’ set up (admin role) Monthly data 3 4 5 ‘snapshot’ Quarterly 21 day Scorecard Monthly data ‘Scorecard’ commentary closes, ‘snapshot’ for review saves to window opens history files - Owner - Reviewer Task performed by relevant Task performed automatically within etviaTRACE role etviaTRACE KPI module 1. The client administrator: - sets up the annual KPIs and the agreed parameter after discussions with the MP Owner - adds the KPI reviewer to all KPI owners through their user profile 2. Monthly snapshots are taken and displayed for the previous quarter. 3. At the end of each quarter a Scorecard is captured and made visible to the KPI Owner and nominated Reviewer. Note: steps 2 and 3 happen automatically within etviaTRACE and draw on tasks already required as part of your leadership role e.g. Progress Assessments, Team Reviews, deployment readiness etc. 4. The commentary window opens for 21 days and is available to the KPI Owner and nominated Reviewer. Its purpose is to document insight as to what has contributed to the scorecard results and areas of focus moving forward. This should be the basis for coaching, correction and problem solving discussions between the KPI Owner and reviewer. 5. The scorecard then closes and a copy is saved. The cycle for the next quarter begins. Connecting your people to the plan 5

KPI set up – choose your KPIs 1 Annual KPI parameter set up Where's our lift? Reflect on the question – “where do we want to lift this next year?\" Consider that against each of the Performance Transformation dimensions – your answers to this should guide which KPI types you want to include, and where you want to set the target bar for performance. 6 Connecting your people to the plan

Setting up KPIs Each year, your client admin will set up the relevant KPIs as Individual and/or Shared. For each KPI included, they define: Target: Minimum expectation for performance Participants: Who it applies to The KPI calculation, then applies these setting to the available data and to the person or cohort. Applies the settings to the available data and to the person or cohort Connecting your people to the plan 7

KPI Tab example 1. 2. 4. 5. 3. 1. Lists each of the KPIs you are a participant in, and its status – Met/Not met. This is based on the KPI parameters for the year. Note: Click on a KPI row to view its associated graph in the right hand box. That graph will show the KPI's trend over time. The current month calculation reflect the current position, and may change 2. Past months are the snap shots of that KPIs final monthly position, for that month. The comparison bar plots your 3 month average for that KPI, as is the overall cohort’s result. 3. Indicator dials show the rolled up position of your KPI clusters for Strategy Leadership and Strategy Delivery. Plots your combined Strategy Leadership and delivery scores, combined with all other 4. KPI participants (anonymously). 5. Opens to the KPI Owner and Reviewer to document on feedback and commentary on the quarterly Scorecard. 8 Connecting your people to the plan

KPI description overview Strategy Leadership Default Name Organisational Description Individual Shared Name (see screen shot) 1. Team Review Team Review Compliance to the Governance Compliance Compliance schedule for your Team Reviews. 2. Team Review Team Review The latest average Team Review Effectiveness Effectiveness Effectiveness score, for your Team Reviews. 3. Milestone Milestone The highest concentration of Distribution Due Milestones due in any single Distribution month. 4. Deployment Milestone Percentage of published readiness Deployment Milestones in execution, within Readiness your cascade scaled to full deployment recommendations. Integration Milestone Extent of Milestones assigned 5. and Integration between structural teams, from your cascade. collaboration Delivery, Trend Average of your Progress 6. correction Correction - Assessment status over the past responsible 2 months. and recovery person 7. Cascaded Cascaded Average of Assessment status elements Items Trend over the past 2 months for correction and Correction cascaded accountabilities . recovery Connecting your people to the plan 9

KPI description overview Strategy Delivery Default Name Organisational Description Individual Shared Name (see screen shot) Progress Progress Compliance to the Governance 1. reporting reporting schedule for your Progress compliance Assessments. compliance 2. Integration Integrated Milestones completed on time Delivery Milestones to other teams, for the past 3 delivery months. 3. Progress Progress Average of the progress status status assessment status for all of your accountabilities. Final result 21-22 Average final Completion 4. - completion Business assessment (Successful/ Plan Unsuccessful) for your cascaded assessment) Completion accountabilities. 5. Performance Performance Average of your accounabilities measure Measures most recent Performance Measures. 6. Milestone Milestone Percentage of Milestones Delivery Delivery completed on time within your cascade. 10 Connecting your people to the plan

KPI Detail Explanations On the following pages we have described all of the KPI types in detail. The title reflects the default name shown in the KPI tab. There is also a box provided to record your organisation's tailored name (personalised by your administrator for intuitiveness). The tailored names are shown in the tables on the preceding pages.

1. Team Review Compliance Your organisational label: INTENT: To focus the leaders of the strategy on staying visible and active in their role. This means helping people work as an integrated team across the organisation, holding the team accountable for delivery, problem solving and providing support and encouragement. WHAT IT MEASURES: The percentage of ‘Compliant’ Team Reviews as a percentage of ‘Non-Compliant’ Team Reviews: • Compliant being the Team Review occurs and is recorded in the compliant date range. • Measures how consistently the team adhere to the requirement to hold ‘Team Reviews’ in accordance with the governance framework. • A minimum expectation for adherence is set by element (as required) in accordance with the governance framework. • The strategy elements this KPI can be set for are: Strategic Goals, Business Plan Objectives, Action Plans. HOW THE KPI RESULT IS CALCUATED: Scores are calculated on all content the Responsible Person has a requirement to hold a Team Review for, as per the governance framework and applies the KPI parameter for meeting/not meeting a KPI. Only strategy elements that have Team Reviews set up as a governance requirement are included in the count: • An individual Team Review Compliance KPI is the average of ‘Compliant’ Team Reviews over ‘Non Compliant’, for all the ‘Responsible Person’s strategy elements. • A team or shared Team Review Compliance KPI is the average of ‘Compliant’ Team Reviews over ‘Non Compliant’, for all the strategy elements, for all the nominated team members or cohort members. • Set the minimum acceptable percentage for Team Review compliance - higher is better. LEADERSHIP AND CULTURAL MESSAGING: ‘Team Reviews’ that become a regular rhythm and pattern across an organisation are pivotal to giving confidence to all that progress is being reviewed, corrective actions are being taken and communication channels are flowing up, down and across the team. 12 Connecting your people to the plan

2. Team Review Effectiveness Your organisational label: INTENT: To focus the leaders on what makes for a useful team review. The Team Effectiveness score measures whether documented progress assessments are being reviewed, actions are being recorded and whether there is follow through on commitments given in the meeting. It also measures the involvement of a broad set of contributors to underpin the achievement of integrated outcomes. This kind of formalised practice builds a disciplined approach to reviewing the strategy and gives confidence to all involved that the right conversations are being had with the right data, with the right people at the right time. WHAT IT MEASURES: The KPI records the ‘Team Review Effectiveness’ score for all ‘Compliant’ and ‘Non- Compliant’ team reviews that are recorded for the month: • A minimum expectation for ‘Team Review Effectiveness’ is set by element (as required) in accordance with the governance framework. • The strategy elements this KPI can be set for are: Strategic Goals, Business Plan Objectives, Action Plans'. HOW THE KPI RESULT IS CALCUATED: Scores are calculated on all content the Responsible Person has a requirement to hold a Team Review as per the governance framework and applies the KPI parameter for meeting/not meeting a KPI. Only strategy elements that have Team Reviews set up as a governance requirement are included in the count. If the last two Team Review windows are missed (time frames for a compliant Team Review) at the time of the KPI calculation the KPI is not met: • An individual ‘Team Review Compliance’ KPI is the average of ‘Team Review Effectiveness’ for all the ‘Responsible Person’s strategy elements. • A team or shared ‘Team Review Effectiveness’ KPI is the average of ‘‘Team Review Effectiveness’ scores for all the strategy elements, for all the nominated team members or cohort members. • Set the minimum acceptable percentage for Team Review effectiveness - higher is better. LEADERSHIP AND CULTURAL MESSAGING: This kind of formalised practice builds a disciplined approach to reviewing the strategy and gives confidence to all involved that the right conversations are being had with the right data, with the right people at the right time. Effective ‘Team Reviews’ are a demonstrable, achievement focused leadership practice that builds a performance culture. ‘Team Reviews’ should be purposeful, structured reviews of the strategy and form a key mechanism for maintaining connection, momentum, quality dialogue and decision making. Connecting your people to the plan 13

3. Milestone Distribution* Your organisational label: INTENT: To focus the leaders on comprehensive, well-paced Milestones for execution across the Business Plan period. Milestones are important indicator for whether the Business Plan is translating to action or not. Understanding how Milestones are distributed across the year can highlight logjams or where dates have been arbitrarily assigned. Both issues raise questions about the quality of planning. WHAT IT MEASURES: The KPI counts the number of Milestones Due in any one month for a strategy element and its cascaded items: • A minimum and maximum expectation for ‘Milestone Distribution’ is set and then scaled for the number of Business Plan Objectives and Action Plans. There is a pre-set, best practice maximum threshold of 15%. • The strategy elements this KPI can be set for are: Strategic Goals, Business Plan Objectives, Action Plans. HOW THE KPI RESULT IS CALCUATED: Scores are calculated by looking at the number of Milestones due each month, and calculates this as a percentage of the total due. It only includes Milestones that are in a document stage of Published, Complete or in Completion Query and does not include anything due prior to the most recent 12 months. It then applies the agreed KPI parameter for meeting/not meeting the pre-set threshold, based on only the cascaded AP with the highest % of Milestones due in a month. • An individual ‘Milestone Distribution’ KPI identifies the AP with the highest percentage of Milestones due in any month for that person as the head of the cascade. Where a person owns several items, only the highest % is included in the calculation. • A team or shared ‘Milestone Distribution’ KPI is the average percentage of Milestones per month, for all the nominated team members or cohort members. • *When the Owner is the same for both the parent and a child item, the calculation rule to only use the “highest responsibility” is applied. • Set the maximum concentration of Milestones per month – lower is better. There is a pre-set best practice threshold of 15%. LEADERSHIP AND CULTURAL MESSAGING: Milestone distribution is experienced by the team as commitment to plan effectively and thoroughly. In turn this sends a message that planning is important and the quality and completeness of the plan is visible and important to monitor. 14 Connecting your people to the plan

4. Deployment readiness* Your organisational label: INTENT: To focus the leaders on ensuring their strategy element is fully deployed as an important indicator that the Business Plan is translating to action. This tests to see if a critical mass of the team know what they have to deliver by when and is a strong indicator of the rigour and thoroughness of the planning, including highlighting areas where the team may be struggling to enact the strategy. WHAT IT MEASURES: Counts the number of Published Milestones for a strategy element and its cascaded items: • The score for ‘Deployment Readiness’ is measured against a best practice of between 6 – 8 Milestones per Action Plan. • The strategy elements this KPI can be set for are: Strategic Goals, Business Plan Objectives, Action Plans. HOW THE KPI RESULT IS CALCUATED: Scores are calculated on strategy item and all cascaded content for that element and applies the KPI parameter for meeting/not meeting a KPI: • An individual ‘Deployment Readiness KPI’ is the average of Milestones where that person is the head of the cascade. Where a person own’s several items, the average is calculated for all content where that person is the head of the cascade. • A team or shared ‘Deployment Readiness KPI’ is the average of Milestones for each member of the cohort or team where a member is the head of a cascade. • *When the Owner is the same for both the parent and a child item, the calculation rule to only use the “highest responsibility” is applied. • Set the minimum percentage of Published Milestones required – there is a threshold of no less than 80%, best practice recommendation is 90%. • LEADERSHIP AND CULTURAL MESSAGING: Deployment readiness is experienced by the team as commitment to plan effectively and thoroughly. In turn this sends a message that planning is important and having it ready to go live for the start of the Business Plan period is also a core organisational principal and expectation of those leading the work. Connecting your people to the plan 15

5. Integration and collaboration* Your organisational label: INTENT: To focus the leaders on ensuring their strategy element includes contributors from across the organisation. It is a strong indicator of the rigour and thoroughness of the planning, and highlights areas where the team may not have thought comprehensively about the people and roles needed to be involved. WHAT IT MEASURES: Looks at the organisational locators of AP owners and determines whether its Milestones reach out from AP owner’s vertical team to other vertical teams in the organisation - from ‘silo’ to ‘silo’: • The score for ‘Integration and collaboration KPI’ is measured against a best practice of 25% of Milestones per Action Plan (Published or Completion Query) being assigned to someone outside of their vertical/silo. A milestone assigned to someone outside the vertical is referred for this purpose as an ‘integration Milestone’. HOW THE KPI RESULT IS CALCUATED: Scores are calculated on the number of integration Milestones for all cascaded AP’s from the head of the cascade and applies the KPI parameter for meeting/not meeting a KPI: • An individual ‘Integration and collaboration KPI’ is the average of ‘integrated’ Milestones (Published or Completion Query) where that person is the head of the cascade, on a rolling 3 month basis. Where a person own’s several items, the average is calculated for all content where that person is the head of the cascade. • A team or shared ‘Integration and collaboration KPI’ is the average of qualifying Milestones for each member of the cohort or team where a member is the head of a cascade. • *When the Owner is the same for both the parent and a child item, the calculation rule to only use the “highest responsibility” is applied. • Set the minimum percentage of Milestones to be assigned outside of structural lines – higher is better. There is a pre-set best practice minimum of 25%. LEADERSHIP AND CULTURAL MESSAGING: Working ‘silos’ is one of the most common reasons given for faulty execution – the lack of consideration and inclusion of all critical contributors to the plan in the planning phase. Gaps or oversights often emerge well into execution and often after flaws have emerged, full success is compromised and relationships strained. Measuring integration is a proactive way of ensuring the plan designed around high value integrated outcomes as working in silo’s is not conducive to either success or building a high performing team.. 16 Connecting your people to the plan

6. Delivery, correction and recovery Your organisational label: INTENT: To focus the leaders of the strategy on problem solving, overcoming challenges and achieving outcomes. It is based on the last three consecutive progress assessments of specific item that indicate progress is not where it needs to be and reversing that trend. WHAT IT MEASURES: The ‘Delivery, correction and recovery KPI’ averages your last 2 Progress Assessments, on a specific strategy element where a Progress Assessments is required. HOW THE KPI RESULT IS CALCUATED: Each of the last two months of Progress Assessments are averaged for each month. If the average score does not improve (based on score generated for ‘Not going well’, ‘Going OK’, ‘At risk’, and ‘Behind schedule’) then the KPI is not met. If the average score improves then the KPI is met: • An individual ‘Delivery, correction and recovery KPI’ is based on a single strategy element and its Progress Assessment trend from month to month. • A team or shared ‘Delivery, correction and recovery KPI’ is the average of the cohort or team members Progress Assessment trend. • Set the maximum acceptable percentage for a progress assessment to remain for 2 consecutive periods in a negative assessment without recovering to an improved status: • Not going well or at Risk status (Master Plan/ Strategic Goal/Business Plan Objective) OR or Behind or At Risk (AP’s M&M’s) • Higher is better LEADERSHIP AND CULTURAL MESSAGING: Encouraging resilience and determination to overcome setbacks and support others to achieve is a key tenant of a high performing team. It promotes elevated, creative thinking. It also promotes teamwork by highlighting where progress is slipping and encouraging to others to offer help and support to correct the trend. Connecting your people to the plan 17

7. Cascaded elements correction and recovery Your organisational label: INTENT: To focus the leaders of SG’s, BPOs and AP owners on how those working on the downstream elements of the strategy are going and where correction of a negative trend is required and intervene as appropriate. It provides a point of comparison with the Progress status KPI highlighting where a top down versus bottom-up perspective may differ. Identifying requirements for problem solving, overcoming challenges. It is based on the last three consecutive progress assessments of cascaded items that indicate progress is not where it needs to be i.e. ‘Not going well’, ‘Going OK’, ‘At risk’, or ‘Behind schedule’ and reversing that trend. WHAT IT MEASURES: From SG’s, BPOs and APs it looks at the Progress Assessments of the next level of cascaded items, from the parent item, for the last 2 progress assessments, where a Progress Assessments is required. HOW THE KPI RESULT IS CALCUATED: Each of the last two months of Progress Assessments are averaged for each month for all qualifying cascaded items. If the average score does not improve (based on score generated for ‘Not going well’, ‘Going OK’, ‘At risk’, and ‘Behind schedule’) then the KPI is not met. If the average score improves then the KPI is met: • An individual ‘Delivery, correction and recovery KPI’ is based on the cascade of single strategy element and its Progress Assessment trend. • A team or shared ‘Delivery, correction and recovery KPI’ is the average cohort or team members Progress Assessment trend for their respective cascaded items. • Set the maximum acceptable percentage for progress assessments of the cascaded items (one level) to remain for 2 progress assessments, in a negative assessment without recovering to a positive status: • Not going well or at Risk status (Master Plan/ Strategic Goal/Business Plan Objective) OR or Behind or At Risk (AP’s M&M’s) • Higher is better LEADERSHIP AND CULTURAL MESSAGING: Resilience and determination to overcome setbacks and support others to achieve are key attributes of a leader and of high performing teams. Operating in this way promotes elevated, creative thinking and problem solving. It encourages people to move beyond individual performance to team performance and teamwork by supporting those where progress is slipping and encouraging to others to offer help to correct the trend. 18 Connecting your people to the plan

1. Progress reporting compliance Your organisational label: INTENT: To focus the leaders of the strategy on staying visible and active in their role. This means helping people work as an integrated team across the organisation, holding the team accountable for delivery, problem solving and providing support and encouragement. WHAT IT MEASURES: The percentage of ‘Compliant’ Team Reviews as a percentage of ‘Non-Compliant’ Team Reviews: • Compliant being the Team Review occurs and is recorded in the compliant date range. • Measures how consistently the team adhere to the requirement to hold ‘Team Reviews’ in accordance with the governance framework. • A minimum expectation for adherence is set by element (as required) in accordance with the governance framework. • The strategy elements this KPI can be set for are: Strategic Goals, Business Plan Objectives, Action Plans. HOW THE KPI RESULT IS CALCUATED: Scores are calculated on all content the Responsible Person has a requirement to hold a Team Review for, as per the governance framework and applies the KPI parameter for meeting/not meeting a KPI. Only strategy elements that have Team Reviews set up as a governance requirement are included in the count: • An individual Team Review Compliance KPI is the average of ‘Compliant’ Team Reviews over ‘Non Compliant’, for all the ‘Responsible Person’s strategy elements. • A team or shared Team Review Compliance KPI is the average of ‘Compliant’ Team Reviews over ‘Non Compliant’, for all the strategy elements, for all the nominated team members or cohort members. • Set the minimum acceptable percentage for Progress Reporting compliance - higher is better. LEADERSHIP AND CULTURAL MESSAGING: ‘Team Reviews’ that become a regular rhythm and pattern across an organisation are pivotal to giving confidence to all that progress is being reviewed, corrective actions are being taken and communication channels are flowing up, down and across the team.instinctively ask ‘Is the plan still right? If not, what needs to change?’ Connecting your people to the plan 19

2. Integration Delivery* Your organisational label: INTENT: To focus the leaders and their structural team on delivering on their commitments to other structural teams i.e. organisational structural teams. It highlights areas where teams may not be delivering on their accountabilities to other teams or parts of the strategy, surfacing challenges that need to be worked through. WHAT IT MEASURES: The degree to which structural teams are meeting their deadlines for the completion of Milestones for other structural teams.. HOW THE KPI RESULT IS CALCUATED: Accountabilities for the delivery of Milestones across the whole Master plan are grouped by team. The number of Milestones overdue for completion from one team to another is calculated as a percentage of the total number of Milestones between the teams. • An individual ‘Integration delivery KPI’ counts the qualifying cascaded Milestones (Published or Completion Query) for the person as the head of a cascade. It then checks the status and the date to ascertain if they have been completed in line with the due by date or are overdue for completion and then calculates a percentage overdue, on a rolling 3 month basis. • A team or shared ‘Integration delivery KPI’ is the total number of Milestones that are included in each member of the cohort’s cascade that have been completed in line with the due by date or are overdue for completion. • *When the Owner is the same for both the parent and a child item, the calculation rule to only use the “highest responsibility” is applied. • Set the minimum acceptable percentage for (inter-team) Milestones o be Overdue for Completion - lower is better. LEADERSHIP AND CULTURAL MESSAGING: Working ‘silos’ is one of the most common reasons given for faulty execution and points to what is referred to as Strategy/Structure clash. This means where people get caught between delivering the structural accountabilities and their accountabilities to the strategy which often fall outside of normal business delivery. Measuring integration delivery is a proactive way of getting ahead of these clashes and clear the way for the team to operate as one team, working on the right things at the right time and meeting their commitments to each other. 20 Connecting your people to the plan

3. Progress status Your organisational label: INTENT: To focus the leaders one what they need to achieve either as a holder of an integrated outcome (Master Plan, Strategic Goal or BPO owner) or a deliverer of an input to and end game (Action Plan and Milestone owners). It is based on the last progress assessment. WHAT IT MEASURES: The ‘Progress status KPI’ looks at the most recent assessment on a specific strategy element where a Progress Assessment is required. HOW THE KPI RESULT IS CALCUATED: If the last Progress Assessments is Going Well’, ‘On or Ahead of schedule’ then the KPI is met: • An individual ‘Progress status KPI’ is based on a single strategy element and its Progress Assessment status. • A team or shared ‘Progress status KPI’ is the average of the cohort or team members Progress Assessment of the same element type. • Set the minimum acceptable percentage for a progress assessment on a specific item to be ‘negative’. • Not going well or at Risk if a Master Plan, Strategic Goal or Business Plan Objective or Behind or At Risk for an AP. • Higher is better. LEADERSHIP AND CULTURAL MESSAGING: Keeping the team focused on their end game keeps energy and engagement levels up. It is easy over the course of time and immersion in the doing that the end game can be lost or taken as a given if we execute the plan. Neither are helpful mindsets as both have a perspective that is down in the doing, not evaluating if we are going forward in the direction and at the pace we need to achieve the outcome. An honest evaluation of progress and a determination to deliver outcomes means people will instinctively ask ‘Is the plan still right? If not, what needs to change?’ Connecting your people to the plan 21

4. Final result - completion assessment) Your organisational label: INTENT: To capture the close out assessment of the item to provide a final position across the team of where they finished the year. This is an important calibration and point of reflection. It is based on the ‘Completion assessment’ which is either completed with a ‘Successful result’ or an ‘Unsuccessful result’. WHAT IT MEASURES: Looks at the Completion Assessment performed as part of the content close out procedure for the year which records a ‘Successful result’ or an ‘Unsuccessful result’. HOW THE KPI RESULT IS CALCUATED: If the Completion assessment is a ‘Successful result’ then the KPI is met, if it is ‘Unsuccessful result’ the KPI is not met: • An individual Final result KPI’ is based on a single strategy element and ‘Completion Assessment’ status, during the past 12 months. • A team or shared Final result KPI’ is the average of the cohort or team members Progress Assessment of the same element type. • Set the minimum acceptable percentage for successful completion by the nominated final date of the assessment or the end date: • Best practice suggests all commitments should be met, remembering that content and end dates can be edited as appropriate and agreed • Higher is better • LEADERSHIP AND CULTURAL MESSAGING: Knowing where you finished relative to your goal as an individual and as a collective is important to building a sense of personal satisfaction (or reflection) and an achievement culture who can celebrate successes, acknowledge and own failures, regroup and go again!  22 Connecting your people to the plan

5. Performance measures Your organisational label: INTENT: To focus the owner on calibrating and course correcting how the Performance Measure actual results are tracking to target. This is an important interpretation and calibration point for the leader to assess if the plan needs to change. WHAT IT MEASURES: Looks at the last status of all ‘Performance Measures by element. HOW THE KPI RESULT IS CALCUATED: The ‘Performance Measures KPI’ first checks if the last Performance Measure assessment is not overdue. If so the last Trend Tracking entry is applied. If that status in on track the KPI is met. If it is no on track the KPI is not met: • An individual ‘Performance Measures KPI’ is the average of all Performance Measure results for the single strategy element. • A team or shared ‘Performance Measures KPI’ is the average of the cohort or team members Performance Measure results (Is that right?. • Set the minimum acceptable percentage for Performance Measures to be ‘on’ or ‘ahead’ of target – higher is better. LEADERSHIP AND CULTURAL MESSAGING: When the team have KPI’s applied to their Performance Measures it places value on objective measurement and data informed conversations. These are important to both achieving results for the organisation but also to the mindsets of the team around what performance is and is not and that targets matter. Connecting your people to the plan 23

6. Milestone Delivery* Your organisational label: INTENT: To focus the leaders on ensuring their strategy element is translating to action. This is measured by Milestones being executed by their ‘Due by Dates’ which means the team are delivering on their accountabilities to produce inputs to the ultimate delivery of their parent AP. WHAT IT MEASURES: Looks at whether the ‘Due by date’ of a Milestone has passed and whether it has been ‘Completed’. It then tallies this on a cumulative basis. HOW THE KPI RESULT IS CALCUATED: The score is calculated on the cumulative number of Milestones that are Published and Overdue for Completion for all Milestones (up to and including the current month) in the downstream cascade of an item. The KPI parameter which sets a degree of tolerance for missing due by dates is applied. The minimum percentage for cumulative Milestones is 80% being completed by the due by date in the count. Once an overdue for Completion Milestone is ‘Completed’ it is then taken out of the count of ‘Overdue’ milestones. This means that a backlog of overdue Milestones can be cleared and a KPI can go from ‘unmet’ to ‘met': • An individual ‘Milestone Execution KPI’ is the count of the Milestones overdue for a cumulative period as a percentage of those due for completion. This applies to all Milestones where the person is the head of a cascade e.g. All Milestones that are part of a downstream cascade of an SG, BPO or AP (or multiple). • A team or shared ‘Milestone Execution KPI’ is the aggregated score of all the Individual scores for each member of the cohort or team. • *When the Owner is the same for both the parent and a child item, the calculation rule to only use the “highest responsibility” is applied. • Set the minimum percentage of Milestones to be delivered (not overdue) - there is a pre-set best practice minimum of 80% completed on time. Higher is better. LEADERSHIP AND CULTURAL MESSAGING: Keeping on top of how deadlines are being met is key to both a team feeling a sense of accomplishment and momentum but also a key indicator of a loss of traction, engagement and possibly overwhelm. Staying alert to progress to plan is a key requirement of a strategy leader. If the overdue work builds up it puts the whole plan in jeopardy and can cause the team to lose faith and commitment to see it through. Conversely if the team are on top of the work it can equally send a message of confidence which can accelerate pace, lift expectations for what’s possible and build commitment. 24 Connecting your people to the plan



Bringing the ‘big picture’ to the personal dimension. Etvia Corporation Pty Ltd www.etvia.com [email protected]