Cascading KPIs to the Individual Level
Teodora Gorski
Ph.D.(c) in Performance Management & Sustainability | Managing Director MENA | Head of Consulting Services | Trainer, Consultant, Auditor, Academic Researcher
Performance Management as a practice facilitates the long-term success of an organization, as it brings focus and clearly defines the organization’s identity and strategy, while ensuring resources are allocated towards what matters.
A structured Performance Management System enables alignment from the organization’s strategic direction towards its departmental key functions and individual priorities.
It ensures that strategic objectives are executed across all units and functions, while establishing relevant KPIs at each level of the entity. The cascading technique addresses the challenge of working in silos and drives cross-functionality and uniformity.
How do we cascade operational strategy to individual level?
Let`s take a look at an example of an HR Department
1. Firstly, the same objective can be cascaded to multiple functions, each of them measuring it through different KPIs.
2. Secondly, department level objectives and KPIs can be cascaded and aligned at individual level either as they are, with the same or different KPIs:
- Same objectives – same KPIs;
- Same objective – specific KPIs.
3. Lastly, some departmental objectives may not be applicable to cascade to lower levels, however we can add specific objectives and KPIs based on the targeted employee’s Job Description.
Principal Consultant, Skil Global Business Solutions Pvt. Ltd, Author
5 个月Excellent visualization. Thank you for sharing.
We used to call this having "Hoshins" or Hoshin Planning in 1990s Hewlett-Packard. Pretty much the same thing. Without leadership, no one will follow; instead with merely authority of position, there is only fear and abstract respect only for title, but not the "leader" him/herself, which never creates followers, only "obedient subjects, all with knives in their hands, ready to strike at the first sign of management weakness or opportunity". The Great Resignation is a trivial recent example of this dynamic in action. Even at HP, Hoshins didn't always work cleanly though when it did work it was very effective. You have to have common context and skin-in-the-game at every level of the organization for Hoshins to mean anything. That is very rare. Different levels and functions have different needs defining these so you can never blindly replicate high level Hoshins down or out to all levels in the same form. And the managers down the hierarchy are most often at their "Peter Principle" limits and thus unable to customize the Hoshin to those below. This is an org limitation that is a tough nut to crack without being small enough.
Performance and Report Analysis Manager/Strategic Planning / Training Design & Facilitator/ Result oriented Leader/ Coach/ Passionate about leadership,influence & Strategic Thinking ,Execution &Team motivation.
3 年Thank you very much for sharing us this professional performance management system especially that crearly indicate way KpIs cascaded to individual level with correct alignment!
Le doy dirección al mundo.
3 年Javier Cortez It might help you!
Director Human Resources Development
4 年Thanks Teodora . Informative and helpful to demonstrate.