Sound familiar to anyone?
The only problem is that over time you end up adding more and more new books to the already ‘in progress’ collection. As more and more books are added to your bedside collection eventually as Robert Plant from Led Zeppelin sings, “when the levee breaks” you sheepishly put one unfinished book after the other back on the bookshelf because you can’t possibly ready all 20 or 30 books at once!!! At this point you’ve safely returned to your 3-books-at-a-time maximum only to repeat the overload cycle again in no time.
A funny and clearly harmless situation that happens to a lot of us. This is what can happen when someone is left to their own devices unchecked without any accountability. What if there were larger consequences for not completing these books? Maybe there were some higher priority books that needed finishing over others? Maybe one of the books was a library book or a borrowed book with a timeline associated with it? Maybe some books were started because they were more fun to read than the less interesting ones with a time sensitivity attached to them? Maybe one was for a book club where there was a shared interest in its completion so they reader could add value to the reading group? If any of these situations applied we are probably more likely to become extremely serious about one book over the other so we’re essentially prioritizing our reading. Again, a harmless example but I think it’s illustrative of the competing priorities we might have in our jobs too.
Well, why should it be any different when we’re talking about our job-related actions? We are constantly having to prioritize our most important tasks or objectives, both long and short term. If the organization places critical importance on certain goals and objectives whereas everything else is considered less critical wouldn’t the organization want to ensure the workers and the entire workforce is being measured against those goals and objectives on an ongoing basis so ‘every chapter is read’?
A common way to measure and monitor this performance is through the use of key performance indicators, or KPIs. A Key Performance Indicator is an industry word for a set of financial and non-financial measurements used by an organization to assess its success or the success of a specific activity in which it is engaged. A KPI is a business metric used to evaluate crucial factors to the achievements of a business objective for an individual employee of the company, a group of employees, or the entire organization. KPIs aren’t a one size fits all thing. They differ for every organization. For example, KPIs may be something like net revenue or some customer loyalty metric. In the case of the government, a KPI might be the unemployment rate.
A KPI allows an organization to monitor whether it is on track or not. KPIs serve to decrease the intricate nature of organizational performance to a small number of key indicators so as to make it more digestible for us. KPIs are used in our personal lives too. Think of a doctor measuring things like blood pressure, cholesterol levels, heart rate and our body mass index as important indicators of our overall health. KPIs we are trying to accomplish the same in the organizations.
Assigning the right KPI’s is less art and more science. A little tip for you…Be careful because what you’re measuring yourself and other individuals in the organization by is ultimately going to reflect how you all behave. For example, if a purchasing manager is being measured only by cost, they’re likely to start ordering in bulk and paying suppliers late. Good for the purchasing manager, bad for business. This is because the purchasing manager may have been ordering a lesser quality material, the inventory resulting from bulk ordering may outstrip any benefits from ordering in bulk, while the supplier relationships may suffer. Bad for business all the way around. The metrics by which people are measured drive their behavior so be careful what KPIs you select.
Selecting the Right KPIs
First, define the success criteria and then choose the best 5 KPIs which the employee will be measured. Involve the employee in question in the process of determining their KPIs. This is critical and will ensure there’s a feedback loop in place which is important as you might have missed a nuance that the employee can shed light on and, besides, you want the buy-in from the employee as the eventual KPI owner and a good way to get it is by collaborating with them about what the KPIs should be. From there the employee will look at ways they can influence those KPIs. If you do this correctly, KPIs can drive the behavior. As Peter Drucker said, “you can’t manage, what you can’t measure.” That said, establishing KPIs will provide that accountability necessary to empower your employees to do the right things and take ownership of them.
First, define your success measures. These might be, how well are we satisfying our customers? How well are we managing risk? …or innovating? …or managing our costs? Then, you will want to define the KPIs that make up that success measure. The KPI might be willingness to recommend, customer retention or loyalty. Those measures can be converted into metrics which can have goals attached and history for comparisons. Once assigned through a collaborative exercise between the individual, their management team, and perhaps an outside consultant they can drive behaviors that foster the team effort companies relish. The employee is most likely going look at the drivers that can effect their measurements and see where the other influencers are in these measurements. It can force greater collaboration among these groups with a sense of “team” that never existed before. Suddenly, programs will spring up to ensure those measures go in the right direction. This is what accountability and ongoing measurement of what’s important will ensure these individuals will focus on the right things and evaluate their priorities as they go about their jobs.
Take a deeper look at the impact of measuring and monitoring performance through KPIs. It can make a difference in getting everyone acting with purpose-driven intent not roving around rudderless.
Organizational discipline around doing the right things (read purposeful action) is critical to outperforming the competition. As Van Morrison sang on his excellent album The Philosopher’s Stone, it’s “not supposed to break down” but a lot of times achieving your goals, personal or professional, do break down because people inevitably get distracted by other non-essential projects because a lot of times they get distracted by doing the things they ‘like’ doing over others just to keep busy. Then, before you know it they’re putting that ‘must be completed book’ back on the shelf with still unread chapters.
Get started with this in your enterprise through small successes. Promote those successes and expand from there. Slow and methodical. If possible, address the most needy area of the business first.Tim O’Bryan/IBMEmail: email@example.com://provenpractices.wordpress.com