Avoid KPA assessments on metrics that the individual or team is not in control of
Don’t:
- Put the same metric on everyone’s KPA assessment
- Measure an individual or team on a metric which they are not in direct control of
This does not drive accountability and leads to a blame game when it is not achieved.
Do:
- Break down the overall company objectives into discreet metrics which individuals or teams can own independently.
This drives accountability and improves motivation.
To put this into practice, lets look at a use case where a retail company has an overall profit target of 100m which it would like to achieve.
Rather than put a KPA measure of 100m profit into each KPA, it could break down how each team or individual can contribute to this overall objective.
E.G.
- lowering customer acquisition costs &
- improving availability of sales processing systems such as the ecommerce website or physical till-points
are seen as key drives towards improving company performance, which will help it achieve the end goal of a 100m in profit when combined with other similar specific metrics.
