by Jonathan Jones
Leaders create visons for people to be part of and achieve. To complement a compelling vision, we need to have the right performance measurements that are aligned with the vision and help employees understand what success looks like.
The right measurements help employees visualize success as well as define the current reality of the organization’s affairs. They need to understand what is being measured and how their jobs can make the company better. Not sharing measurements with employees is like bowling without being able to see the pins fall. If only the boss knows the score, the employees will be disconnected and make up their own goals.
Having clear aligned measurements helps you determine whether you have the right people in your organization. The right people should be self-motivated. Measurements give them something to focus on, and when they also look to improve the organization through better processes and tracking, it demonstrates that they are actively engaged.
Revenue, margin and profits are measurements of every business and are important. However, they do not connect the uniqueness or the soul of the organization.
For instance, successful convenience stores and gas stations recognize that they can charge a higher price for items if they are actually convenient. The stores are designed for getting as many customers through the checkout as possible. Employees will immediately start another cashier line if the queue is greater than three customers. Employees know the right number to act on. Customers can feel the difference and more than likely will return as happy customers willing to pay a little more to save their time.
Does your current performance management system ensure you are engaging all employees and helping achieve your desired results?
Jonathan Jones (Jonathan.jones@vistagechair.com or 314-608-0783) is a CEO peer group chair/coach for Vistage International.
Submitted 5 years 220 days ago