Do your strategic objectives tell you what the numbers should look like - or why you should get there?
Too often, strategic objectives are formulated in terms of numbers:
"we will increase turnover by 15%", "we will take 10% market share" or "we will reduce staff turnover by 5%".
The numbers are important, but they don't tell us why we need to get there, and without a why, it's hard to create engagement, creativity and accountability.
Knowing what the numbers will look like rarely motivates people to go the extra mile.
People are motivated by meaning, participation and the feeling of contributing to something bigger.
Numbers and KPIs should therefore be seen as measuring points on the way - not as the goal itself.
When performance management gets stuck on the road
We see it time and time again:
Management gets together, sets a new five-year plan and works out measurable goals, KPIs and action plans. At best, an inspiring kickoff is held where everything is presented with energy.
But after a few months, something happens.
The commitment wanes. The measurements roll on, the reports are produced - but in everyday life, the organization continues as usual. "Business as usual."
What is the reason for this?
- Because the objectives have not been brought to life in the business.
- Because communication is often about what and how, but not why.
- And because we forget the crucial part of performance management: the follow-up and reflection.
Two common reasons why performance management fails
- The objectives are not relatable.
Employees do not see their role in the big picture. A goal like "increase EBITDA by 10%" says nothing about how I as a customer service agent, salesperson or developer can contribute. - There is a lack of communication.
Communication is not a one-way broadcast from management - it is a dialog. When management 'informs' but does not listen, distance sets in. Employees feel disempowered, and initiative dies.
Harnessing the skills - and the will
In most organizations, there is a huge amount of expertise, creativity and commitment.
People want to contribute. They want to influence, improve and create value.
But if they don't understand why the organization is going in a certain direction, or don't feel their ideas are taken seriously, that drive is silenced.
To unleash that power, we need to create a vibrant performance management culture - where dialog, follow-up and feedback are as important as the goals themselves.
Six keys to meaningful and sustainable performance management
- Start with the purpose.
Before you talk KPIs, talk about why the targets exist. What is it that you want to achieve - for customers, society or the future? When the purpose is clear, the targets become meaningful. - Translate the objectives into everyday life.
Help each team to articulate how they can contribute to the whole. Make the objectives concrete, relevant and understandable at their level. - Create concrete activities that take you towards the goals, who does what? What behavior do we need to get in order to move towards the goal?
- Communicate - for real.
Create dialog, not monologue. Ask questions, listen, invite discussion. Communication that engages is as much about taking in as sending out. - Follow up - together.
Monitoring should not just be a report at the end of the quarter. It should be a living process of reflection and learning. What is going well? What do we need to adjust? What have we learned so far?
When monitoring is done in dialog, it becomes a tool for development, not control. - Create a culture of feedback and learning.
Feedback is the oxygen of performance management. Giving and receiving feedback helps us learn faster, increases accountability and builds trust. When feedback becomes natural, more people dare to take initiative - and goals become something we own together.
From business as usual to business with purpose
When organizations do this, something powerful is created.
People go from 'doing their job' to 'contributing to something important'.
When employees feel meaningful, get feedback and feel that their voice counts - that's when a real movement forward is created.
And then the results almost always follow - both in numbers and in culture.
Communication, relatable goals and vivid follow-up are not only key to success - they are the foundation of true leadership.