Is your existing performance measures aligned or linked to your company’s strategic objectives at ALL levels?
Here is one way to find out;
- Ask any employee if he or she can tell you what is the company’s vision and strategic objectives.
- Then ask what he or she does in her everyday in their jobs contributes to achieving the company strategic objectives or to the departmental goals (depending on what level the employee is)?
- In other words, ask how his or her key performance indicator (targets and measure) contribute to company’s objectives or to the departmental objectives one level up from where the employee works.
Performance measure at ALL levels must be linked to the strategic objectives of the next highest level. In other words, the top level organizational strategic objectives are cascaded down, level by level to all employees. Performance measurement drives agreement on what matters, and what matters is achieving the company strategic objectives in a measured way. People know what they individually need to do to help the team and organization achieve the high level strategic goals. Performance measure also provides a critical feedback loop to track how well strategy execution is progressing.
As mentioned in “The Strategy Focused Organization” (Kaplan & Norton), “Unless the link to strategy has been clearly thought through, however, the KPI scorecard can be a dangerous illusion.”
We have developed a proven 3 stage process (see Figure below) to ensure that your KPIs drives the corporate strategy. We will show you how to link and cascade measures throughout your organization.
Please give us a call and we will be happy to review with you your KPI process in relation to what we do with our KPI process.
THE SCIENCE OF DEVELOPING KPIs
We conduct a one day workshop with hands-on training called “The Science of Developing KPIs” regularly in Auckland on a regular basis.
“What gets measured – gets done.”
Strategic success lies in the ability to translate corporate objectives into measurable activities at the department and individual stages. KPIs help in achieving this measurability. Only when we know, in tangible terms, how to measure a person’s activity, will we know how to link (or align) it to the overall corporate strategy and how best to monitor, learn, navigate and improve on it.
KPIs also help managers to focus on what matters most. Implemented correctly, KPIs will give clear indications of what activities and actions will best contribute towards a desired result. Collectively KPIs are a powerful tool that keeps and organization on track. Now is the opportune time to learn the “Science of Developing KPIs” and to get it right.
- Understand the Performance Management Methodology and the Basic KPI Framework
- Know how KPIs drive Strategic Direction of the Organization and Unit
- Be able to use the KPI Tools to Align & Translate Organizational Strategic Objectives into Measurable Metrics.
- Understand the link between Performance & Reward and how best to improve individual performance using the system
- Know how to develop individual KPIs & Action Plans
- Be aware of Pitfalls to avoid in implementing KPIs
(Note – Program content may be modified slightly to suit the group of participants)
For registration form or inquiries on our “Science of Developing KPIs” workshop and hand-on training, please click here.