“Setting key performance indicators that are specific, measurable, attainable, and relevant, helps to clearly define roles and responsibilities, which in turn drives productivity”
So we talked about “Rewards” as an incentive for Good Culture in the last blog, now let’s talk about KPI’s (Key Performance Indicators). What is a KPI? What does it measure? and How does this lead to Good Culture?
KPI’s or Key performance Indicators are standards or metrics that the employer and employee ideally sit together and determine for a specific role. An employer will have a list of expectations of an employee for that role, and the employee conversely should have some input in determining if those expectations are achievable. The end goal for the employer is a measure of performance to determine ROI (Return on Investment) and for the employee it’s a clear definition of roles and responsibilities as well as a sense of achievement and belonging.
Setting clear expectations of your employee will help them to focus and drive them to achieve, but with any KPI’s that are set, you need to follow up with a review on a regular basis to ensure that the expectations of yourself and your employee are aligned and are being met. Regular reviews and feedback are a key to ensuring that KPI’s are understood and met, but more importantly it helps to solidify the relationship between employer and employee and foster an environment of inclusion, belonging, and respect, leading to good if not great culture within an organisation.
Defining the KPI’s is the easy bit, setting out to achieve them is the real challenge, this is where working together for a common goal comes into play. The onus is not just on the employee, but also the employer to achieve set KPI’s, so assisting your employee through training, support, reviews and remuneration will certainly help, the rest is up to the individual. A good driver to achieve KPI’s, especially in a sales environment, is remuneration or reward, and again getting input from your employee on a fair and equitable reward is the ideal approach, another driver in attaining KPI’s is to remind and re-enforce with the employee the importance of the end result.
From an employer’s perspective, it helps the separate the good from the bad, allowing you to weed out the non-contributors and to elevate the higher achievers, while as an employee, it gives you direction, focus, encourages team work, and helps you to aim for bigger and better things. KPI’s should not be limited to individual employees, you should have KPI’s for the team and the organisation as a whole, so that every employee feels a sense of accountability, and that their performance as an individual, and collectively as a team contributes to the overall performance of the organisation.
Dare I say it again …Good Culture = Happy Employees = Successful Business
“Values determines Culture… Culture determines Behaviour… Behaviour determines Outcomes” – Rohan Dredge