R&D Performance Measurement and KPI Systems Workshop

This course provides a comprehensive overview of proven methods for measuring and improving R&D performance considering the broad range of factors (Key Performance Indicators or KPI’s) that affect the R&D function. Details related to the most relevant performance indicators and metrics are explored in depth. The primary objective of this course is to help participants apply the “right” measurement systems and take appropriate actions to improve results.

Day one focuses on traditional methods and addresses how to determine the right metrics for your organization and how to implement them effectively. Day two explores the specific challenges in today’s R&D environment and the relationships between R&D measurements and human factors that are essential to improving productivity.

Case studies, team exercises, and facilitated real-world problem solving are used extensively to guide participants to solutions that can be rapidly applied when returning to work.

This program enables participants to:

  • Prioritize R&D measurement and improvement goals
  • Balance Research and Development activities
  • Balance short- and long-term development objectives
  • Improve resource utilization
  • Assess the need for additional R&D management tools
  • Increase R&D workforce engagement
  • Align roles and responsibilities to achieve implementation goals

We understand that every organization has its own culture and business objectives. Thus, we can customize R&D Performance Measurement and KPI Systems to achieve your goals. For example:

  • We can provide minimum to comprehensive training with a wide variety of modules
  • We can work with your team on a specific project
  • We can tailor the syllabus with the topics of special relevance to your teams
  • We can offer the class in a single session, or break it up into several smaller meetings
  • We can train your trainers and facilitators

The workshop is intended for R&D Center General Managers, R&D Directors, Senior Managers in R&D, Chief Technical Officers, R&D Program Managers, and other key leaders who support the R&D function. The workshop fee includes a comprehensive workbook and email/phone follow-up with the instructor after the workshop to assist with implementation. This leadership training for engineers and technical professionals may be customized to meet your needs, and can be delivered at most locations internationally. The workshop covers the following topics.

Day 1 – Traditional and Fundamental Measurements and Indicators

1. R&D Goals and Objectives

  • Aggregate Objectives
  • Project Objectives
  • Technology Objectives
  • Linking Measurements to Strategic Goals and Objectives
  • Impact on Competitiveness

2. Common R&D Measurements

  • History of Key Performance Indicators (KPI’s) and Common Metrics
  • Balanced Scorecard Systems
  • Case Study: Balanced Scorecard System Improves Time to Market
  • KPI Dimensions
  • Integration with Other Functions

3. The Key Performance Indicator (KPI) Perspective Dimension

  • Financial Measurements
  • Customer Oriented Measurements
  • Internal Business Processes
  • Learning and Growth

4. The KPI Family Dimension

  • Internal Business Benchmarks
  • External Industry Benchmarks
  • Productivity and Efficiency Measurements
  • Quality Measurements
  • Profitability Effectiveness
  • Timeliness and Effective Resource Utilization
  • Innovation and Technology

5. The KPI Category Dimension

  • Direct Measurements
  • Percentage Measurements
  • Simple Ratios
  • Indices
  • Composite Averages
  • Statistics

6. KPI Focus Dimensions

  • Time Horizon
  • Planning Focus
  • Lead vs. Lag Indicators
  • Qualitative vs. Quantitative
  • Internal vs. External View
  • Level and Purpose of Focus

Day 2 – Performance Indicators and Improvements for Today’s Environment

7. Key Indicators and Methods for Development Projects

  • Project Return Maps
  • Case Study: HP’s Development Project Return Map
  • Aggregate Project Plans
  • Portfolio Management Systems
  • Pipeline Management and Resource Utilization Indicators
  • Project Prioritization
  • Project Management and PM Accountability

8. Balanced Portfolio

  • Four Types of Product and Process Projects
  • Balancing Legacy Support and New Product Development
  • Breakthrough and Radical Innovations
  • Research and Development Balance
  • Platform Projects
  • Derivative Projects
  • Defining Balance for Your Organization
  • Simple Measures for Achieving Balance
  • Case Study: Time Allocation Metrics Improve R&D Performance

9. Company Support Systems for R&D

  • R&D Management’s Role
  • Executive Management’s Role
  • The Role of Human Resources
  • Budget Allocation
  • Enterprise Resource Management Systems
  • Global Resource Management

10. Best Indicators of Future Potential

  • Employee Skill and Talent
  • Business Leadership
  • Teamwork
  • Measuring Intangibles
  • Case Study: Teamwork Metrics in R&D Improve the Bottom Line

11. The Human Factor in R&D

  • Metrics for an Engaged Workforce
  • Employee Engagement and Productivity
  • Real-World Improvements Using KPIs
  • Distributing R&D Management Responsibilities
  • Getting Cooperation and Buy-In to KPI Objectives