Business Performance Management

Our Business Performance Management consists of 3 building blocks

Strategic goals

• Yearly aligned

• Giving the directions

• Explains where we want to be in a years time

KPI

• Biannual aligned

• Shows where we are in our “whirlwind” to reach the strategic goals

• Unrated evaluation where we are - Decision baseline to decide where to focus

• Owned by department

• This will prevent us to FAIL!!!

OKRs

• Quarterly set

• Derived from our strategy and the KPI

• Number of OKRs should be based on what is achievable

• The individual OKR should be designed to be motivational for the  “players” to outperform the game

• Owned by “assigned” owner - not necessarily department

• These goals enable us to WIN!!!

KPI (Key Performance Indicator)

We can distinguish between two types of KPI:

Leading Indicator:

• Predictive: measure something that leads to the goal

• Influenceable: something we can influence

Lagging Indicator:

The measurement of a result you are trying to achieve.

OKR (Objective - Key Results)

• The question we should ask:

If every other area of our business remained at its current level of performance, what is the one area where change would have the greatest impact?

• OKRs should help us to focus on the most important goals in the next period

• OKRs focus on change

• Objectives set directions and inspire actions

  • Should be defined as 

    • We will (VERB) this (OUTCOME) ….

      • ….to realize this (BENEFIT)

      • ….for these (CUSTOMERS)

      • ….by this (DATE)

• Key Results delegate responsibilities and empower people to decide which actions are best

  • Should be defined as:

From OKR to KPI

It will happen often that the achievement of an OKR is the prerequisite to track a KPI. As soon as the process/measurement is successfully implemented and the process is established the achievement of the continuous goal is no longer an OKR but rather a KPI.

Q2 OKR: 

Objective:

• We will create a career framework for all employees by end of Q2

Key Results:

• Define skills and levels per department by end of May

• Map MOSTLIES to the appropriate level by end of June

Only if we are able to achieve this OKR we will be able to:

• Impact the Engagement score KPI → existing KPI

• Impact the retention KPI → existing KPI

• Measure internal promotion rate → new KPI

• ensure that 100% of MOSTLIES operate in career framework→ new KPI

Cadence