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 Bodys 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
Queens 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

Student recruitment
Staff recruitment
Staff and student experience
Enterprise
Reputation
Funding
Business processes
Research activity

Overview

Part 2 - Dame Valerie Strachan

Governing bodys requirements

Observations on the two approaches

KPIs based on strategic themes
KPIs based on critical success factors

Governing bodys
requirements
Monitor the Universitys 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.

Recognised as a well managed, autonomous

institution demonstrating excellence across our
activities.

Conducts world-class research and is recognised as

an innovative, intellectual leader of international
standing.

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
Councils requirements
Commend adoption of KPIs by other higher
education institutions

Questions & Discussion