Are Your People Engaged in Your KPIs?

KPIsExecution is everything. You may have the best strategy in the world, but without execution, it dies where it lies. One of the problems that companies of all sizes have is communicating that strategy throughout the organization in a way that makes sense and captivates employees.

If people don’t share a single, sharply focused vision of the desired outcome, any effort to measure that result will be a waste of time.

Many times employees feel disengaged from corporate strategy, or do not have a clear line of sight into how their function or, more specifically, their daily tasks play a role in achieving these overarching goals.

The Individual Aha Moment

The solution lies in cascading Key Performance Indicators (KPIs). This is a method of taking high-level strategic organizational objectives and then translating those into down to indicators at the department level and finally down to the individual level. You need to first cascade business goals, and only then find relevant indicators for each level.

Why is this so important? It helps bring the whole organization into alignment through better communication of the end game and the role that every department plays. When F&A understands their role in moving the needle, as does HR and Sales & Marketing, there is a deeper synergy between these functions.

But it can’t stop at the departmental level. In business journals everywhere you hear about the importance of engaged employees. One of the causes of disengagement is when people don’t see their role as important and don’t understand how they play a bigger role in company objectives.

Our Process

At Sutherland, we use to cascading KPIs to drive discipline, efficiency and quality. We identify high-level strategy and goals, like cost-per-transaction goals. These tend to be very top-line KPIs; many times desk-level personnel don’t have a firm understanding how these indicators apply to their area of activity and daily routine.

To correct that, we cascade these goals down to every level of management. If a desk-level person knows exactly many errors made on a daily basis have a direct impact on the cost-per-transaction goal, the KPIs become tangible.

An interesting side effect is that even if processes are best practices and don’t have to change, there can be substantial efficiency gains simply through performance management. At Sutherland, we post the specific desk-level KPIs that drive process improvement. All staff members can instantly see the desk-level KPIs that are driving larger, more abstract KPI goal.

As a result, it’s one highly engaged team rowing in the same direction toward a common goal.

If you’re interested in learning more about how we approach business transformation and can help deliver outcomes on strategic objectives, schedule an appointment today.

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Sutherland Editorial Team (386 Posts)

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