Aligning and Cascading KPIs
Aligning and Cascading KPIs
How to align KPIs to strategy and cascade throughout the organisation.
Aligning KPIs means that all KPIs or performance measures within an organisation correctly relate to one another, and to the things that matter most for the organisation, like its strategy and purpose.
These relationships between KPIs make it possible for everyone to see how they contribute to the organisation in the best possible way to excel at what it exists to do.
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 cascade it and align KPIs to it:
- Are You Cascading Your Strategy, Or Fragmenting It?
- 2 Ways to Cascade a Measurable Strategy That Creates Alignment
- How to Align Everyone to Organisational Outcomes
- Are You Measuring Something Meaningful?
- Why You Can’t Measure Your Performance Outcomes
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.
2 Ways to Cascade a Measurable Strategy That Creates Alignment
We want everyone in the organisation or company to focus on the right results to move the organisation closer to its mission and vision. How do you get that alignment? Well one way is by cascading strategy through the functional structure of the organisation. That means through its departments, business units and teams. But there is another way to cascade strategy, based on end-to-end business processes.
Read about both ways to cascade strategy: by function or process.
How to Align Everyone to Organisational Outcomes
It can be a struggle to align everyone to organisational outcomes, or the corporate strategy. But the solution is not to make up dubious linkages. The solution is to remember that an organisation’s strategy is not the same as its business model.
Realising that not everyone has to align to strategy frees us up to find the kind of alignment that is meaningful for everyone.
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.
Why You Can’t Measure Your Performance Outcomes
One of the worst problems with cascading strategy is when it’s too fluffy and vague to cascade operationally. The culprit is the excessive use of ‘weasely’ language. And you’ll know what I mean if your strategy is full of words like efficiency, productivity, sustainability, or even performance outcomes.
You need to fix this before you’ll find good measures.
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