What are the values of your organisation? This, along with the mission statement, are often proudly displayed at the entrance of companies. They tell the visitor about the culture of the organisation and where the focus is.
However, in many cases these are “cookie cut”, generic, statements about teamwork, integrity, customer focus, learning, diversity, etc. Whilst these are great values to aspire to, the truth of the company beliefs and culture lies in the actions of the employees and especially the leaders.
It is more important for the values to reflect what is really at the core of the purpose and intent of the business.
It is also essential that the purpose is measured and communicated to ensure everyone concerned is aware of the degree of success being achieved and can relate their input to that outcome. This is the importance of the OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators). The OKRs relate to the longer-term targets of the business and the KPIs are the shorter-term measures to ensure that the OKRs are still in sight and the organisation is moving in the right direction.
OKRs tend to be ambitious, stretch targets and relate the business outcome and purpose.
KPIs are the indicator of progress and more focused on the outputs of the teams.
As an analogy, the OKRs are the map (or GPS system) on how to get to your destination, and the KPIs are your gauges on your dashboard (speed, fuel and oil levels, etc).
The true focus of an organisation is shown in what is measured and reported. Look at the KPIs and monthly reports. Do they demonstrate what is important and relevant to the success of the business.
- What does success look like?
- Is it reflected in the values and objectives?
- Do the reports connect with the purpose?
- Can the workforce relate to these KPIs?
- Are they regularly reviewed?
For example, in terms of health and safety, many organisations set a goal for zero incidents. On a higher level, one may ask, what is wrong with wanting nobody being hurt? However, if this becomes widely communicated across a business with a poor psychosocially safe culture, it results in employees being afraid to report incidents or near misses. The KPI may be achieved, but only because incidents aren’t reported. If they are not reported, then the learning from and fixing of the issues that caused the incident are not achieved and other employees may suffer the same accident with potentially more serious consequences.
Getting these measurements right can make such a difference to the success of your team and organisation.
Comments