7 STEPS FOR (KPIs) METRICS THAT IMPROVE PERFORMANCE SUSTAINABLY

The 3 solid steps and 4 “soft” skills you need to use metrics to improve performance in a profitable high-performance company

By our #CompanyCulture team

The main 3 perils of KPIs. And 7 “simple” steps around them.

Let’s just get this out of the way: Measuring performance comes with a built-in paradox. On the one hand, you need to use metrics/KPIs to measure progress, for planning, and maybe the board’s sanity.

But on the other hand, nothing kills your people’s motivation faster than overmeasuring, which tanks performance in the long run.

Now, in a high-performance culture, a big goal is to completely and sweetly side-step all the bad stuff about measurement and only use the good stuff, so your metrics improve performance overall.

And there’s, of course, a trick to it. So we’re going to show you…

The 3 biggest problems with “unwieldy” performance measurement. The value of the OKR approach. And the 7 key steps to actually use your (KPIs) metrics to improve performance (and do so sustainably).

3 BIG PROBLEMS WITH MISSUSED KPIS

What you don’t want to do with performance measurement is start prescribing to people what to do and how to do it. Because that’s when you start taking away their adulthood and humanity. And that negative trend usually plays out like this:

Overmeasurement

Do we even need to talk about this? Too many numbers equal confused people. Plus, it gives people too many places to hide – they will just find the one or two metrics that “seem” OK-ish and focus on pushing those, hiding the truth of whether they’re on track or not.

Control

If, say, a salesperson is not hitting their targets, you might be tempted to start bringing out lists and lists of KPIs and measurements. How many phone calls they made, per day, per hour, per week? How long each call was? How many meetings they’ve set up etc. etc.

The problem with that is that you’re essentially forcing them into “fight or flight” mode. You’re attempting to assume complete control over them as a person. And they will either break and give in (and now you’ll have to tell them what to do every second of every day, forever) or they’ll leave.

Manipulation

Now, because our example guy is not hitting his target, you want to get even stricter with them. Use the metrics to try and force a certain behaviour out of them. That’s manipulation. And it will never get the best out of a person, because it’s taking away their best self and replacing it with something else. It kills motivation.

So, how do you do the exact opposite?

HOW TO USE METRICS TO IMPROVE PERFORMANCE

There are 7 key steps here, but we’ve split them up into Steps and Skills, like so…

3 STEPS FOR HIGH-PERFORMANCE METRICS

1 Don’t Overmeasure – Pick 3–5 Key Metrics, that’s all

Literally pick the 3–5 best metrics that tie obviously and directly into your overall objective, and stick to those. Trust us: It makes things clearer and doesn’t give anyone tricky numbers to hide behind.

And, if you discover along the way that there’s a new or better metric you should be using, bring it in, by all means. But drop one of your existing ones when you do so. So you always stick to your magic 3–5.

2 Avoid Myopia – Reinforce the Overall Goal/Objective Daily

One of the biggest problems with measurement is that discussions around it are repeated often. So you run the risk of the whole exercise becoming about the measurement, detached from the goal (the reason for the measurement).

So, it’s best to pick metrics that directly and overtly tie in with your overall objective. And then remember to communicate that main goal or objective as much (daily) and as clearly as possible. So people understand it’s not about doing X, we’re measuring X so that it leads to Y. (With Y being the important one here.)

3 Don’t Prescribe Behaviours – Let People Be Their Best Selves

There are millions of ways of reaching a goal. We promise. And we’ll prove it to you: Yes, the hard-working (workhouse-y) type employee might love just grinding away daily and visibly to achieve their goal, but…

But a more strategic thinker type might sit and contemplate more, which looks like loafing – but given time and space, they might actually be the one to come up with a new or innovative way for everyone to do this task better/faster in the future, completely changing the game.

While a more relational-orientated person might spend most of their day chatting away with others, which looks like socialising – but, actually, what they’re doing is building a stronger team that can collaborate better and achieve your goals faster in the future.

The trick is to allow each type to find their way to reach the goal, to be their best self at work. And to find a way for your metrics to support their unique strengths/skills.

THE 4 KEY SKILLS LEADERS & MANAGERS NEED FOR METRICS

4 Know how to ENCOURAGE people when not doing well

A manager that can look at the metrics and inspire the person, even if they’re down, is worth more than gold.

5 Know how to MOTIVATE them when not on track

A manager that can relate to the person and use their past performance to help motivate them for the future.

6 Really CELEBRATE big wins/progress

It’s always best to build various celebrations of excellence into the DNA of your company because that’s the ultimate motivator.

7 Know how to COACH people along the way

We all have ups and downs, and it’s a manager’s job to help the employee understand, gain insights, learn and improve.

Discover the strategic link between recognition and productivity.

Need some more advice on KPIs and performance? Ask us here.

PLUS:

• Boost performance with the strategic link between recognition and productivity and how recognition helps reduce absenteeism.
• Learn to build a team with a mix of complementary skills.
• Discover how recognition boosts safety performance.
• Discover the 7 keys to creating open communication in your company.
• See how you can help your leadership improve performance.
• For managers that empower and engage, see our guide: how to develop leaders.
• And discover 5 simple ways to build more trust in teams.

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