Key Performance Indicators (KPI) provide actionable information towards desirable outcomes and behaviors rather than activities to prevent gamification and ensure genuine value creation for clients and team members.
A great KPI is not measured by activity but rather by operations and financial excellence. Ownership Thinking.
Well-designed KPIs help ensure alignment and access progress for role expectations, objectives, key results, and other declared goals. Useful KPIs relate to team members' strategic objectives and domain outcomes through collaborative creation and collective buy-in.
Therefore, things like the number of sales calls made or lines of code written don’t suffice—instead, select behavioral indicators of people getting along more fully. Or accounting for customers being actively satisfied as demonstrated by timely acceptance of our deliveries and payment thereof.
E.g., Instead of OfficeVibe’s engagement overall score, the Relationship with Peers score matters more.
Conceptually, just as there are 5 whys for better understanding something, we consider the 5 whats of desires and behaviors towards selecting a solid KPI.
KPI Selection Guidance
Of a desired outcome or behavior than activity
A few are good; more is not
At least 20% weightage
KPI data must be practicably accessible
A KPI is typically a priority above other important things
To prevent KPI outlier scoring, they do not go below zero nor above 200%. Typically, KPI data percentages range from 0% as a failure, 60% as minimally acceptable, 80% as reasonable, 100% as expectations met, and 200% as maximum scoring.
Why do I see a rating of 6.4 out of 8 in the KPI snapshot?
Will the assumed 80% KPI achievement negatively impact my salary appraisal?
The KPI aggregate score impacts the salary appraisal percentages. At this time, an aggregate score of 80% has a KPI modifier of 100%. Therefore the appraisal percentage is not negatively impacted. However, the 80% KPI modifier value will tentatively decrease on April 1, 2022, from 100% to 80%.
Ask the @automation-team to investigate when a KPI doesn’t have data for more than a few months.
Data is captured in near real-time for satisfaction and about weekly for the rest based on feedback from clients, leaders, and peers. Often though, you’ve been at Axelerant less than 100-days, there’s a missing relationship between you and your projects, or a leader hasn’t submitted satisfaction responses. When no entries are found relating to you, ask the @automation-team to investigate.