How To Choose a Performance Framework That Fits Your Company

Written by Contributor on August 10, 2023. Posted in Objectives and Key Results, Operational Performance, Organizational Performance

Image Source: rollelflex_graphy726 | Unsplash

All performance frameworks—whether it is the Balanced Scorecard (BSC), Objectives and Key Results (OKRs), Management by Objectives (MBO) or the Performance Prism—have a shared DNA and purpose: to create synergy in the organization to optimize key results. However, two important questions need to be asked: which performance framework should a company implement and what should one consider when selecting a performance framework?

A well-defined performance framework enables the organization to achieve its desired goals, and having various performance frameworks in hand can make it a bit tricky to choose the right one. Thus, one might be tempted to try implementing what big companies such as Google have implemented and attempt to do the same within their own organization without contextualizing the company culture, size, and business nature.

This article will illustrate the four things to consider when selecting a performance framework for the organization.

Understand your company’s goals and objectives.

It would be silly to start furnishing an empty room without first understanding its intended purpose. Is it going to be for dining or a personal workspace? The same thing can be said when selecting a performance framework. Understanding the company’s goals and objectives is crucial as it will give you a sense of direction. For example, if the company’s goal is to have a disruptive, innovative product or achieve fast growth, then you might consider the OKRs framework as it will enable you to set challenging objectives and provide flexibility to support innovation. On the other hand, if the company’s objectives gravitate toward stability and sustaining the current market share with modest growth, then the BSC is more suitable for this type of environment as it will assist in cascading the objectives from the top down and preserve company status quo while supporting growth at the same time.

Consider the company size and structure.

When we talk about company size, we are not only talking about its capital and asset value, but we are also talking about its workforce size and how they are structured into various functions. If the company has a huge hierarchical structure where each employee is expected to perform a very specific and specialized task that is repetitive and operational, then selecting a framework that exhibits this nature of work will enable the company to create clarity and focus for the employees. A framework to consider for this purpose is MBO, which is defined by The KPI Institute as “clearly setting and defining objectives agreed by both management and their employees.”

Involve internal stakeholders in the selection process.

Highly engaged employees produce substantially better outcomes, are more likely to stay at their organization, and experience less burnout, according to analytics and advisory firm Gallup, Unfortunately, employees can’t reach that level unless they feel that their day-to-day tasks are linked to the company’s purpose and that they have an impact on the results. A good performance framework should be able to convey this to the employees. Asking employees what they value the most and involving them in the decision-making process will result in a highly engaged organization and limit the silo work environment. A performance framework should not be imposed but rather tailored to serve the company’s goals and its human capabilities.

Review and assess the performance framework.

Just like a strategy review, a performance framework needs to be reviewed regularly and not ossified and treated as set in stone within the organization. As the company’s strategy, size, and market grow and change, the performance framework needs to be updated and changed as well.

In conclusion, selecting a performance framework is only the first step. It is a tool for enablement, not a purpose. All performance frameworks can be customized to fit the company’s needs—these are not off-the-shelf products that must be implemented as-is. Nevertheless, other factors play a huge role in executing performance frameworks, such as employee engagement, company structure, and business processes. All these factors influence and impact which framework to select.

Click here for more articles on Corporate Performance.

********

This article was written and submitted by Ms. Wedad Alsubaie, who works at the Strategy Management Office of the National Unified Procurement Company in Saudi Arabia.

How To Plan, Develop, and Live a Goal-driven Life

Written by Sarah Abuarab on December 21, 2021. Posted in Articles, Personal performance

Image Source: Towfiqu barbhuiya | Pexels

‘The trouble with not having a goal is that you can spend your life running up and down the field and never score.” –Bill Copeland

Setting goals is the first step you can take if you want to live a life with a direction and a sense of purpose. Goals refer to the desired results you or a group of people plan to achieve.

According to Locke and Latham, who have incorporated nearly 400 studies about the concept of a well-developed goal-setting theory (1990), goals motivate people to build strategies that will enable them to perform at the level required by the goals. Accomplishing goals leads to a higher level of satisfaction and further motivation. However, unaccomplished goals could lead to frustration and lower motivational levels.

The goal-setting theory shows that goals are more effective for most people when they include a deadline for completion. Deadlines serve as a time-control mechanism and increase the motivational impact of goals.

Consequently, being aware that a goal has a timeframe would encourage a person to invest more effort in achieving it. In contrast, if plenty of time remains for attaining a goal, a person is likely to slow down when it comes to filling the available time.

Designing The Life You Want

It is not easy to design your life without setting goals, and the first step is to establish a personal vision statement. Ask yourself: “In five years from today, where do I want to be?”

To answer the question, you have to identify your strengths, list your skills, and make a positive declaration of your abilities.

Although strengths reflect your value and make working towards a long-term goal easier, identifying your weaknesses is equally important. Weaknesses help you evaluate your abilities and limitations. You can use it not to shrink your goals but to help you make improvements.

Break your goals into smaller goals you can accomplish daily. For example, to finish 10 books a year, you need to break this goal into small habits, like reading a number of pages each day at a specific time or finishing one book per month.

You can also categorize your goals:

Academic goals: What knowledge and qualifications do you want to achieve?
Career goals: What do you plan for your career, and where do you want your career to take you?
Financial goals: What do you aim to gain at a given point in your life?
Creative goals: What progress do you want to achieve creatively?
Physical goals: What activities do you want to develop your skills in?

SMART personal goals

An effective way to make goals more powerful is to make them SMART goals. A SMART goal is easier to achieve because it is Specific, Measurable, Attainable, Relevant, and Time-bound.

For example, instead of saying that your goal is “to travel around the world,” which is a long-term goal and seems hard to achieve in a small period of time, you can say that you want “to travel to 10 countries around the world by September 2025.”

Don’t forget to enjoy the journey toward reaching the goal and take your time to savor having the goal done. If the goal is significant, reward yourself for achieving it, and it can encourage you to set more goals in the future, stay motivated, and build your self-confidence.

Setting personal goals can be quite challenging. If you are interested to know more about what you should consider when establishing personal goals, read this article about setting personal goals.

Posts Tagged ‘goals’