Manukau City Council. Measuring Progress: Minimum Requirements. Improving BID performance using Key Performance Indicators.
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1 Manukau City Council Measuring Progress: Minimum Requirements Improving BID performance using Key Performance Indicators June 2005
2 This document provides the minimum requirements for the creation and maintenance of a set of performance measurements (called Key Performance Indicators) for your BID. WHY MEASURE PERFORMANCE? Measurement and monitoring of performance is critical to the success of a Business Improvement District (BID). There are several good reasons for investing your energy into this process: By measuring results, you can tell success from failure. By observing both successes and failures you can learn. By identifying success you can reward and promote it. By recognizing failure you can correct it. By demonstrating results and dealing with failures you can win support. STEP ONE Consult your strategic and business plans and create a prioritized list of (no more than 7) objectives. STEP TWO For each objective, think of at least one (but no more than three) performance measures that would provide you with information about how well you are achieving the objective. SMART measures are S pecific M easureable A chievable R elevant T imed Keep in mind that the simplest and easiest measures are not always the best. STEP THREE For each KPI, provide an evaluation of the extent to which it is likely to be directly affected by the performance of the BID Association. You can achieve this by providing a rating from 1 to 5, where 1 equals a very small impact and 5 indicates a very large impact. For example, a satisfaction survey of visitors at an event you have marketed and organised might score a 5. A simple count of visitors at that event might score a 4 (some visitors may be here for reasons other than the event s marketing, or they may indeed simply be passing through). By contrast, annual sales figures across the entire BID or business occupancy rates might score a 1, since these measures are dependent on many other factors aside from the performance of the BID Association.
3 At least one KPI for each objective should have an impact rating of at least 4. This rating will become important during the analysis of your KPIs. Please refer to Appendix A for a representative list of KPIs for BIDs. STEP FOUR Group the KPIs by method of data collection (e.g., mail survey, street survey, telephone interview, council or other government database, etc.) and provide a costing for each method. STEP FIVE Put into place an action plan for each collection method, nominating time lines (e.g., annual), and responsible personnel and/or contractors. STEP SIX You are now ready to begin the detailed design of each KPI. You may need a little assistance with the design aspects of some of the KPIs (e.g. surveys of opinions, attitudes and perceptions), while others might be readily available (e.g., crime statistics). Please contact Council staff for relevant advice. KEY PERFORMANCE INDICATORS FOR THE BID MANAGER Job specific KPI s (e.g. for the BID Manager) should be developed in consultation with the job holder. Use the job description as well as the outcome of the overall KPI development process to construct SMART KPIs for the manager. The following are examples only. These can and should be modified as required. Monthly reports indicating satisfactory progress to Management Committee BID Association s communications (community, council) appropriately dealt with Appropriate representation at Community Board Strategic plan created and adhered to Annual business plan created and adhered to Annual marketing plan created and adhered to Budget approved and adhered to Administrative needs of the BID Programme met (e.g. minutes kept, action points implemented) Quarterly news letter to members and targeted rate payers Evidence of promotional activities (to members, targeted rate payers and public) Evidence of comprehensive monitoring of member/targeted rate payer concerns Evidence of funds sourced and applied for Events created, promoted and coordinated Record of new business development initiatives Record of successful implementation of initiatives as directed by the Management Committee
4 Appendix A Representative list of BID KPIs General Key Performance Indicators need to be established in consultation with the Management Committee and with the input of members and the manager. The following are examples only, and should be modified and used accordingly: BID ASSOCIATION ACTIVITY e.g. number of events/promotions, incidence of favourable publicity, number of organisations assisting with BID activities, public and member perception of BID activities and outcomes, number/nature of complaints plus record of handling and resolution. Use: This class of KPIs is of most immediate relevance to the BID and BID Manager s performance assessment. This information can be used to attract resources to activities and participation. POPULATION DEMOGRAPHICS e.g. population in BID, in catchment areas, age distribution. Use: shows potential market for BID shops and services. EMPLOYMENT STATISTICS e.g. number of people employed in BID s catchment area, unemployment rate, income distribution Use: Useful information for potential investors. COMMERCIAL STRUCTURE e.g. type/number of businesses. Use: Aids planning, of interest to investors.
5 BUSINESS/OFFICE/FACTORY VACANCIES e.g. number of unused floor units as a proportion of used units, or number of units in particular class (e.g., retail, service, restaurant / bar/café, professional, manufacturing, unused, vacant) Use: Indicator of quality of area. DEMAND FOR BID PROPERTIES e.g. turnover, number of properties on the market, price. Use: Overall indicator of desirability of area. SALES PERFORMANCE e.g. variety, percentage change in sales. Use: Vibrancy of retail economy, trend analysis VISITS TO BID e.g. nature, number, origin. Use: Popular, if somewhat crude indicator of success of BID Programme. CAR PARKING e.g. number of short stay, long stay, and free parking, duration of stay, percentage of occupied places. Use: Convenience of travel, potential investors, overall BID development plan, understanding visitor patterns. PUBLIC TRANSPORT e.g. proportional distribution of mode of transport, quality Use: Planning for public transport, parking, cycling, walkway needs. SAFETY AND SECURITY e.g. statistics on all crime, perceptions of safety/security Use: Affects people s desire to visits and/or invest. PUBLIC FACILITIES e.g. information points, public toilets, bus shelters decorations, open spaces, etc. Use: Affects perception of residents and visitors.
6 FACILITIES FOR SPECIAL NEEDS e.g. crèche facilities, toilet facilities, wheelchair access. Use: Potential barriers to visitors. STREET MAINTENANCE AND CLEANLINESS Some of the local context for many of the individual town centres is provided by Manukau s Town Centre Strategy. Based on this document the overall performance measures for Manukau s Town Centres include: Measures of delivery o Percent of actions completed within the planned timeframes o Actual vs budgeted CAPEX and OPEX expenditure on all actions Measures of effectiveness (combined into a Town Centre Vitality Index) o Retail turnover an occupancy rates o Pedestrian foot traffic counts o Business and user survey responses o Population density o Range of services o Local visitor numbers o Regional visitor numbers o Overseas visitor numbers o Business category turnover Measures of efficiency o Total expenditure measured against the Town Centre Vitality Index
7 Suggested format Example only Prioritised Objective Priority of KPI Impact Rating (from high to low) Performance Measure (KPI) (1-3) of KPI (1-5) Marketing: To increase the Visitor numbers: Pedestrian Count 2 2 profile of the BID with visitors Visitor perceptions: 5 questions 1 4 Business mix 3 2 Security: To increase actual Crime statistics 3 2 and perceived security Member perceptions: 5 questions 1 5 Visitor perceptions: 5 questions 2 3 Visitor Access: To lobby relevant Visitor perceptions of parking availability (3 questions) 1 4 bodies to improve accessibility Actual parking statistics 2 3 Cleanliness & Appearance: Graffiti removal (actual statistics) 3 5 To combat graffiti; to fund & Member/visitor perceptions (3 questions) 1 3 manage physical improvement Level of funding achieved & projects completed 2 4 projects. Develop Business Community Membership numbers 3 3 Member events organized (level of sponsorship achieved) 2 5 Member perceptions (3 questions) 1 4
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