Comparison with literature

This section compares the individual opinions of the interviewees with the findings from literature. There are three parts where such a comparison is helpful: the characteristics of a good KPI, the characteristics of a good PMS and the categories to base a KPI on.

Characteristics of a good KPI

In Section 2.3, the characteristics of a good KPI are summarized. During the interviews, the question for each characteristic of a KPI that was asked is: “Do you think this characteristic is not important (-), important (+) or very important (++)?”. The answers are shown in Table 3. A score is added depending on the answers given, for every (+) one point, for every (++) two points, no points for a (-). Using this method it is clear which of these characteristics deserve most attention according to representatives of Odin Groep. Table 3 is sorted such that the highest scores are on top of the table.

Characteristics A1 A2 A3 A4 A5 A6 A7 A8 A9 SCORE Relevant ++ ++ ++ ++ ++ ++ ++ ++ ++ 18 Measurable ++ ++ ++ ++ ++ ++ ++ ++ ++ 18 Simple ++ ++ ++ ++ ++ ++ ++ + ++ 17 Trustworthy ++ ++ ++ ++ ++ ++ ++ + ++ 17 Has an objective ++ ++ ++ ++ ++ + ++ + ++ 16 Has impact ++ ++ + ++ + + ++ + + 13 Comparable + + + ++ + + ++ + ++ 12 Validated ++ + + ++ ++ - ++ + + 12 Has a target ++ + ++ ++ + - ++ ++ - 12 Independent + + - ++ + - - - ++ 7

26 From Table 3, it follows that a KPI has to be simple, relevant, measurable and trustworthy, and it should have an objective. Other aspects are either less important, or not important to everyone. Some remarks on simple are that it should also be easy to read (A6) and understandable (A8). Comparability is one of those characteristics that everyone thinks is important, but not critical. In the first place you want to measure the supplier itself, and compare with for example earlier years (A9), however, later you may also want to compare suppliers to each other (A7). The same case for impact, it also depends on the meaning: if the supplier needs to take action on its own, then it is not an important characteristic, however, If you work with the supplier to set up improvement actions, then it is (A8). There are also characteristics where opinions vary. Looking at “independent” some say it is crucial, and others do not mind at all, this difference might be caused by the type of PIs a department already uses (e.g. financial PIs are usually not independent). Validity is seen as important by everyone except the Finance Department, although it was earlier mentioned by that same person that the data should be pure and correct (A6). The last factor where there is disagreement between the interviewees is that a KPI has a target. First you need to acquire data, then you can determine the targets (A1; A2; A5). Targets are thus seen as the next step to take (A5). Targets should match with SLAs (A8) and be visible in the dashboard (A7). In certain cultures targets would not change anything, according to A9. Characteristics of a good PMS

Next to the characteristics of a good KPI, the characteristics of a good PMS are summarized in Section 2.3. These scores are deducted from the answers on more open questions. In Table 4, it is shown if there was agreement with the suggested characteristic (+) or not (-). In case it is not agreement, nor disagreement (0). The score here is the number of (+) showing agreement.

Characteristics A1 A2 A3 A4 A5 A6 A7 A8 A9 SCORE

Few KPIs + + + + + + + + + 9

Distributes responsibility + + + + + - + + + 8

Zoom in on underlying PIs + + - + - - + + + 6

Measured frequently + 0 0 + 0 0 + 0 0 3

Table 4: characteristics of a good PMS

From Table 4, it follows that having few KPIs and a distributed responsibility are the most important characteristics. The measurement frequency has not been addressed much, but in the interviews it was, there is agreement on the fact to measure more frequently (currently it is measured once a year). Zooming in on underlying PIs is important for most departments, but for some it does not matter. This might have to do with the use of the PMS, as the departments Marketing, Finance and Management will mostly use it to watch reports and are not in the position to take action when performance drops. Categories

In Section 2.4.1, the categories to base a KPI on were summarized. During the interviews, the question asked for each category is: “Do you think this category is not important (-), important (+) or very important (++)?”. The answers are shown in Table 5. A score is added depending on the answers given, for every (+) one point, for every (++) two points, no points for a (-). Using this method it is clear which of these categories deserve most attention according to representatives of Odin Groep.

Category A1 A2 A3 A4 A5 A6 A7 A8 A9 SCORE Financial ++ ++ ++ ++ ++ ++ ++ ++ - 16 Quality ++ ++ + ++ ++ - ++ ++ ++ 15 Delivery ++ + + ++ + - ++ + ++ 12 Flexibility ++ + + ++ ++ - ++ + + 12 Customer service ++ ++ ++ ++ + - ++ + - 12

27 Safety 3 _{+ ++ ++ + + - - ++ ++ 11} Time ++ + ++ + ++ - - + + 10 Product development + ++ ++ ++ - - - + ++ 10 Innovation + ++ ++ ++ - - - - ++ 9 Environment ++ + - + + - + ++ + 9

Table 5: categories used to classify KPIs

From Table 5, it follows that the financial and quality categories deserve most attention when developing KPIs. It should be noted that some interviewees based the importance of a category on their own function alone (A6; A9) whereas others took other departments into consideration as well. The environmental (sustainability) and safety categories are already discussed in Section 3.2. Other comments on the categories are: quality is hard to measure (A1; A3; A8) and needs to be communicated clearly. It is important to share the norm (A8). When looking at innovation, Odin Groep is a follower, and if there is a need to have additional information, it will be found by someone in house (A5). On the other hand, it would be nice to have a supplier that is innovative but not necessary (A8). Product development is very important in IT products, mostly concerning (safety) updates (A8). Also the development of products for Odin Groep (e.g. Predia) (A1; A9) is taken into account. Not all departments need customer service from a supplier. However, some are dependent on it to solve customer problems (A7), need their complaints to be heard (A8) or value the quality of communication (A1). This should be a selection category for suppliers (A8).