INDIVIDUAL KPIs VS TEAM KPIs: WHICH MATTERS MORE IN AN AGILE WORKING ENVIRONMENT?
KPI is one of the most searched words in the Business World with 163,000 searches per month according to Google Ads.
A Key Performance Indicator (KPI) is a quantifiable measurement that shows how well an organization, team, or individual is performing against a predetermined goal or objective.
They are metrics that are used to quantify progress towards important business objectives. High-level KPIs measure the overall performance of a company, while low-level KPIs focus on measuring the impact of tasks and projects led by individuals teams like marketing, sales, customer service, or IT.
WHAT ARE KPIs USED FOR?
KPIs are used for two primary objectives:
To make sure every team and employee at your company has an actionable plan for helping you reach overall goals
To measure individual team and employee contributions to overall company goals.
Individual KPIs are KPIs set up for measuring the performance of an internal goal. Internal KPIs are set at an individual level and focuses on measuring the overall performance of an individual.
Team KPIs are KPIs set up for measuring the performance of core business or external goals. They are usually set at the departmental or team level and focuses on measuring the overall performance of a department or team.
HOW TO SET INDIVIDUAL KPIs.
"What gets measured gets done" is a common management saying. If you set a goal around the desired outcome, the chances of that outcome occurring are much higher, simply because you have committed to managing and measuring your progress toward it.
When you set goals and KPIs with individual team members, make sure that they align with your team's overall strategy – which, in turn, aligns with the overall strategy of your organization.
Defining an employee's goal with an organizational KPI ensures that their daily activities are well aligned with the goals of the organization. This is the critical link between employee performance and organizational success.
HOW TO DETERMINE THE KPI OF A TEAM.
Determining the KPIs of effective team management will not only allow you to figure out how close you are to achieving desired objectives, but it will also help you clearly define the steps you need to take to increase your employees’ satisfaction and engagement.
Even though your team may not be producing desired results at the moment, investing in them will give you a strong foundation for future successes.
Just keep in mind that humans are ever-changing and ever-evolving, and you may need to make some adaptations. Be patient and persistent, and your team will repay your trust tenfold.
WHICH KPI MATTERS MORE IN AN AGILE WORKING ENVIRONMENT?
As of business, you have a number of key performance indicators in which the business is responsible for hitting, and that makes sense when you view your business as a separate entity or individual.
Now, business is made up of two main components – people and processes. From a high-level, sales are one of your processes. Fulfillment is another. And, we have people in each of those areas responsible for making the processes work.
But, if we keep drilling down within those areas we’ll find that we need each individual to hit certain levels of performance in order for the overall business to perform according to expectations.
Naturally, we want to hold each individual accountable to the level of performance that they need to achieve for the business to be successful as a whole. And, if we think about sales it’s not hard to think about the key performance indicators that each salesperson needs to reach. However, when we think about an area like fulfillment, it often takes a little more time to determine what metrics need to be hit by the individuals working in that area of the business.
So while it may be easy to hold salespeople accountable, you may find that employees working in different areas are facing a lot more ambiguity around whether or not they are being successful. In fact, in these areas, we often have group goals or department goals.
However, the real accountability is only possible when there is one person who is accountable for the results. This creates the need for individual key performance indicators.
When every person in your company has a target metric that they’re responsible for achieving, it becomes easier to manage them because to a large degree they are self-managing themselves against their individual target metrics.
In some cases, the key performance indicator may be the completion of a certain project during the upcoming quarter. If the work employees doing does not project-based, an indicator may be how many issues are resolved per day, how many units are processed per day, etc.
In an agile environment, managers have to understand that the KPIs should reflect reality, should be careful not to restrict freedom, and should avoid rigidity and static behaviors. Finding the best KPI for your environment requires a high level of understanding of the situation, empathy, and patience. The Golden Rule should find your teams'/employees' weaknesses and set up KPIs that will promote agile principles. Using KPIs at multiple levels is a good option too.
An article by Dinma'blog.
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