Performance Measurement is a process for assessing progress toward achieving predetermined goals that includes the following:
- Settings strategies and goals.
- Defining key metrics.
- Measuring and monitoring performance against key metrics (KPIs).
Metrics answer three important questions:
- How are we doing?
- Why?
- What should we be doing differently?
Any of you who have spent time in a hospital will remember how important it was for you to know when you would be released. I recently spent several days hospitalized recovering from open-heart surgery and the same thoughts went through my mind.
After a few days I questioned the doctor regarding my release, and much to my surprise he proceeded to shift the responsibility to me by citing several KPI's that I would have to achieve physically before I could be released, thus eliminating much of the subjectivity on his part. When I met these defined metrics I knew when I would be released.
I began thinking that wouldn't it be great if we had KPI's as part of the "Employee Appraisal Process," where a staff member could assess their own performance against these key indicators throughout the year.
Unfortunately today many appraisals focus on the individual and not on their performance. At the annual review session there can be many surprises not previously communicated, with a common theme being "Why did you wait until the end of the year to tell me I was not performing to your expectations?"
I would suggest as a first step, you review the job description for each staff member and develop KPI's that relate to the specific duties and responsibilities of each job assignment. Your major objective should be to provide your staff members the ability to self assess their performance throughout the year and minimize the degree of subjectivity in the appraisal process that currently takes place at the annual review.
Tom Nichols, president of Process Management Improvement, Inc., provides research, AP process improvement consulting, training and seminars to large companies and financial associations. Email Tom Nichols
