1. The Shipping KPI project
Status and conclusions from the Lloyd’s List Conference
Limassol, Cyprus
Egil Rensvik, Torkel Fyrvik
MARINTEK
(Norwegian Marine Research Institute)
and
Svein Sorlie, Wilh.Wilhelmsen, ASA

2. Content Status of the Shipping KPI project
Presentations at the Lloyds List Conference 12th October
Workshop – discussions

3. The main project activities
Project Management and Interaction with participants
Establish project
Develop KPI Depository
Dissemination and Communication
Implementation by industry (convergence)
Develop SPI & Report Card
June 2006
October 2006
2007
2008
2009
Project period: June 2006 – December 2008
Implementation will be performed by the individual companies (Performance Indicators system revision)

4. Step 1: Develop KPI Depository
Find the balance between the political, rational and emotional process
Create industry wide “ownership” to the concept vs. deliver tangible progress (KPI’s) for the project participants (find a solution to the “not-invented-here-syndrome”)
“Bottom-up” approach. KPI depository (and KPI hierarchy) developed based on current use of KPIs
Activities & Deliverables:
Depository structure
Mapping of KPIs used in ship management today
Alignment and refinement of KPIs
Discussion of parameter characteristics
Recommended KPI’s with definitions
Guidelines for data reporting/capturing

5. Activities next 6 months
Individual discussions with stakeholders and interest organizations
TMSA / OCIMF
Intertanko
BIMCO
etc
Regional workshops Nov 2006 – April 2007
Singapore
Hamburg
London
US East coast
Tokyo
Dubai
Hong Kong
Establishment of the Steering Committee
Dissemination
Interactive communication with participants/ stakeholder
Participation at conferences
Articles in professional magazines and publications
WEB site / Depository

6. More information? www.shipping-kpi.com Egil.Rensvik@marintek.sintef.no
Visit us at:

7. The Shipping KPI project
Conclusions from the Lloyds List Conference
Limassol, Cyprus

8. Key Performance Indicators By Captain Bill Lunn
KPIs: What they are and what they are not!
Do we need KPIs?
What constitutes a good KPI?
Sharing KPI information outside our own companies: possible problems
Common methods of measuring KPIs
Intermanager’s KPI project: looking at reasons why the industry needs to set common KPIs

9. The Shipping KPI Project … a joint industry initiative for excellence in ship management …
Svein Sorlie, Wilh. Wilhelmsen ASA
Egil Rensvik, MARINTEK
Lloyds Ship Management Conference 2006
Limassol, Cyprus

10. Contents Background and project establishment Project idea
Challenges and opportunities
Objectives
Participants – Sponsor group
Commitment
Next steps

11. Workshop purpose KPI in your organization Depository discussion
focus,
use and
need for development
Depository discussion
How should the depository look?
What is the content?
How will/should it be used?
Identify important KPIs
AS-IS mapping of KPI’s
contacts
Separate meeting
Arrange regional workshop

12. The Shipping Performance Indexes (SPI) are supported by an indicator structure
Ship Management Report Card …
SPI 1
SPI 2
SPI n
KPI 1
KPI 2
KPI n
KPI a
KPI b
KPI 3
KPI 4
KPI 5
KPI c
KPI d

13. The Shipping KPI project
Summary of Limassol workshop

14. Workshop purpose KPI in your organization Depository discussion
focus,
use and
need for development
Depository discussion
How should the depository look?
What is the content?
How will/should it be used?
Identify important KPIs
AS-IS mapping of KPI’s
contacts
Separate meeting
Arrange regional workshop

15. Conclusions
The audience expressed enthusiasm about the project and the objectives. Both conference delegates and workshop participants
The project need to be more clear on scope
We are creating a system/tool for performance measurement and reporting
We are not creating a database for recording of performance
The project creates a basis for such a database and possible benchmarking
Common performance databases and benchmarking services will/may be post project activities/objectives.

16. Conclusions How will we relate to TMSA?
We are looking at the process output while TMSA looks more at the process management. There should be no conflict between the two.
Performance Indicators exist on all levels.
A Key Performance Indicator is an indicator you have chosen because it means more for YOU.
The project is a lot about communication.
We create a common language for the industry exchange information on performance
The main challenge is to gain support from all stakeholders
Without a industry wide acceptance the project will not succeed.

17. The KPIs will have different objectives on different arenas
Improved reputation (towards public opinion)
Awareness of performance measurement importance and documentation of active involvement in developing standard KPIs
Enhanced transparency about ship operation issues
Improved performance (within shipping companies)
Enhanced alignment between strategic objectives and performance measured
Increased ability to align own objectives and stakeholders requirements
Documentation of performance
Standardized Shipping Performance Indexes (shipping community)
Unambiguous definitions of performance measures
Internationally accepted standards between stakeholders
Proactive development of shipping quality standard
Capture best practices
Enable the leaders to excel and the followers to improve
Self regulation is a defense against over-regulation