The Secret Ingredient

Last week I considered poor communication being a reason for poor performance management systems. This week I will look at another reason for such: the lack of strategic focus.

It is expected that the Key Performance Indicators (KPIs) outlined on the employee’s work plan be aligned with the strategic objectives of the organization. Every task an employee does should contribute to department objectives, operational objectives and ultimately, strategic objectives. KPIs that are not well thought out by the responsible manager are recipes for failure.

KPIs indicate to the employee the focus of the organization. They also assist the employee in understanding the importance of his/her job within the organization. If a KPI cannot be aligned to the strategic objectives, then perhaps it should not be on the employee’s work plan.

For example, the organization may have a strategic objective of improving its image. Therefore, an employee in the Customer Service Department may be judged by how fast and pleasant his/her interaction with the customer might be. However, improvement of organization image may be represented as paying vendors on or before the due date for an employee in the Accounts Department.

Do have a blessed week!