Transcript Case Study - the use of Board Level KPIs

Key Performance Indicators in
Measuring Institutional Performance
Case Study
Use of Board Level KPIs
John Lauwerys
Secretary & Registrar
Overview
Part 1 - John Lauwerys
• University of Southampton – facts & figures
• Corporate Strategy, Strategic Planning & Budgeting
• Early assessments of University performance
• Approach to Developing KPIs
• Development of KPIs at Southampton
Overview
Part 2 - Dame Valerie Strachan
• Governing Body’s requirements
• Observation on the two approaches
- KPIs based on strategic themes
-
KPIs based on critical success factors
Part 3 - Questions & Discussion
University of Southampton
• Over 20,000 students (5000 postgraduates)
• Over 2,000 international students
• 5200 staff including 2100 academics
• £300 million turnover (40% from research)
• 6 campuses
• Research links across the world
University of Southampton
• Top-10 in UK for research income
• Top-10 in National Student Survey 2006
• Top- 5 for enterprise activity
• Queen’s Anniversary prize for Higher
Education awarded to Institute of Sound &
Vibration Research
• But further ambition to be top-10 across the
board by 2010
Strategic Planning & Budgeting
• Corporate Strategy developed ahead of restructuring
in August 2003
• 7 faculties, 50+ departments  3 faculties, 23 Schools
& Research Institutes
• Annual strategic planning and budgeting round
designed to meet changing requirements
• Planning horizon – “5 years” for University but
“current year +2” for Schools & Professional Services
• Role of Council
Early assessments of University performance
Abstract of statistics (to 2002)
• Student numbers (mode and level)
• Domicile of students (UK/EU, overseas)
• Residence (catered, self-catered, home,
private sector)
• Degrees awarded
• Academic staff (numbers and categories)
• Income & Expenditure
Early assessments of University performance
Abstract of statistics (to 2002)
• Presented core information and trends
for student numbers and income
• Useful indicator of the scale of
operations and as a reference tool but no
link to corporate aims
Approach to Developing KPIs

Aug 2003 - University restructuring implemented

Dec 2003 - Corporate Strategy published. Council
asks for KPIs to be developed

Dec 2004 - KPIs based on strategic aims presented
to Council

Sep 2006 - Revised KPIs based on critical success
factors presented to Council

Nov 2006 - Development of KPIs continues
Development of KPIs
KPIs based on Strategic Aims (2004)
• Strategic aims from Corporate Strategy
• Objectives derived from strategic aims
• Performance indicators flow from
objectives
• Status and progress indicators
• Year-on-year change indicators
Example of KPI based on Strategic Aims
Development of KPIs – new approach
Revised KPIs based on Critical Success Factors
(2006)
• Critical success factors – key issues requiring
management attention
• Represent real issues faced “here and now”
• Performance indicators relate to critical success
factors not strategic aims – offers greater
flexibility
• Critical success factors can be mapped to
strategic aims
Development of KPIs - CSFs
Revised KPIs based on Critical Success Factors
(2006)
11 Critical success factors identified covering
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Student recruitment
Staff recruitment
Staff and student experience
Enterprise
Reputation
Funding
Business processes
Research activity
Overview
Part 2 - Dame Valerie Strachan
• Governing body’s requirements
•
Observations on the two approaches
• KPIs based on strategic themes
• KPIs based on critical success factors
Governing body’s requirements
• Monitor the University’s progress in achieving
its strategic aims
• Identify areas of activity that require greater
attention
• Performance indicators that are grounded in
data
• Striking a balance between a comprehensive
set of KPIs and information overload
Examples of Strategic Aims
Strategic Aim
1
Positioned amongst the top 10 universities in the UK.
2
Recognised as a well managed, autonomous
institution demonstrating excellence across our
activities.
3
Conducts world-class research and is recognised as
an innovative, intellectual leader of international
standing.
4
Provides research-led teaching and learning that is
informed by leading edge concepts
KPIs based on Strategic Themes
• Do the KPIs provide Council with a clear
indication of progress to date and areas
requiring greater attention?
• Strategic aims do not always lend
themselves to measurement and require
associated objectives
• No difficulty with objectives extracted from
the Corporate Strategy but derived
objectives may have no real ownership
KPIs based on Strategic Themes
• Metrics may not always provide good
evidence of progress and need to be
chosen carefully
• Tendency to use metrics that are readily
available rather than collecting data that
reflect what needs to be measured
KPIs based on Strategic Themes
• Strategic Aims do not all easily lend
themselves to proof, for example number 4
above ”Provides research-led teaching and
learning that is informed by leading edge
concepts”
• Reports against this aim might look fine while
the University may not actually be succeeding
Mapping of CSFs to Strategic Aims
Example of Critical Success Factor
Example of metrics used in CSF
CSF3
Maintain our
premier position
as a research
intensive
University
KPIs based on CSFs
• CSFs are more tangible and down-to-earth;
success or otherwise is more easily seen, and if
we are doing well on all of them we can be
confident that the University really is in good
shape
• Provide flexibility to adopt or retire new CSFs as
circumstances change e.g. Mountbatten fire
• Can be cascaded to operational levels of
management more easily and usefully than
strategic aims
In Summary
• Introduction of KPIs represents a major step
forwards
• Enables governing body to understand where
progress is being made towards achieving
strategic aims and those areas which need to
be addressed
• Development of KPIs continues in response to
Council’s requirements
• Commend adoption of KPIs by other higher
education institutions
Questions & Discussion