How to align KPIs to strategy and cascade throughout the organisation…
How to align KPIs to strategy and cascade throughout the organisation come back to The Most Common KPI Questions…
One of the most important keys to successfully aligning KPIs and performance measures to strategy is make sure your strategy is measurable in the first place! In particular, look out for:
- weasel words (like efficient or effective or quality or outcome) – they don’t have clear enough meaning
- action-oriented goals that fail to articulate the intended performance results
- what exactly you are trying to measure (people versus process)
These resources will help you take a more critical look at your strategy, and make it measurable before you go on the search for meaningful measures and KPIs:
Are you cascading your strategy, or fragmenting it?
The typical approach executive teams use to cascade, or roll out, their strategic direction is to produce a clear set of goals, objectives, critical success factors or a scorecard and then get each departmental or functional manager to take this on board and customize it for their part of the organisation. The trouble then begins… Read this article to get tips for what cascading strategy actually means.
Are you measuring something meaningful?
If people don’t share a single, sharply focused, easily imaginable vision of a result they want to create, any effort to measure that result will waste time. And if you do successfully get some measures established, it’s likely they just won’t stimulate the excitement and motivation needed to make the result happen. Read this article and get tips for making your results easier to measure.
Should you measure individual people’s performance?
Performance Appraisal, Individual Performance Review, Personal Performance Development Plan. There are numerous names for this artifact of the post-1990’s organisation, but they are names for basically the same concept: the measurement, review, evaluation and management of the performance of an employee. And it is one of the most contentious management processes of them all! Read some thoughts about two schools of thought about measuring people.
Is your language too weasely?
The power of language when you write your strategy (that is, your goals or objectives) cannot be stressed enough. If you don’t describe the outcomes you want to create in sensory rich, motivating language, you will likely measure the wrong things. I learned this, and the damaging power of ‘weasel words’ from author Don Watson. Listen to what Don, author of “Death Sentence: The Decay of Public Language” has to say about the impact language has on how we manage, in this 612 ABC Brisbane radio interview.
If you’d like more information about designing meaningful measures, contact me.
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