13 Jan The KPI False Flag
Hundreds of hours are spent creating and tracking KPI’s (Key Performance Indicators). At the start of each year, leaders hand out KPI’s to their associates with a “Go get it done. You can do it” motivational send off. Often times compensation and bonuses are tied to achieving these designated KPI’s.
Unbeknownst to many, leadership has created a false flag. Associates know what ultimately must be achieved, but they are not given specifics regarding what activities they should do to achieve the goals. They know where the finish line is, but they either don’t know how best to get there, or perhaps don’t know how to get there at all. Armed with KPI’s alone, associates go off to their desks to do what they each think is required, and with all sincerity they continue doing the chores of the day. They are supplied with a new target, but it’s lacking analysis, leadership know-how and the training to deliver results.
It’s time for leaders to do the real work. Before creating KPI’s, spend valuable time determining what key actions need to be taken by each associate to generate the desired results. If leaders miss this first critical step in goal setting, it greatly lowers chances of success for all. Focus first on analyzing what actions and the frequency of these actions that will generate results. Then, keep track of these Key Activity Measurements throughout the year. Provide training to your associates to consistently perform key activities and come next year’s end everyone will reap the rewards.