Exceeders Blog

Who Said You Need to be a Consultant to Define the Employee's Most Important 3 KPIs - [Part One]

Written by Ahmad Chayati | Dec 12, 2018 7:33:41 AM

How do you think and not what you think.

Let us visualize the work environment as a flag marathon; a team consisting of runners and their supporting team. Although the support teams play an integral role in the long run, it is equally important to think of the runners first so that the support team can be customized for the optimum results.

During a flag marathon, each runner completes the given stage successfully before handing off the flag to their teammate to continue the race. Sounds easy enough, right? 

This is how one should think about their organization. Identifying the path and runners first, and then using that as a foundation, building the support functions around the foundation to gain the optimum results.  In this game of flag marathon, you define the rules of the game, which is your organization KPIs and measures.

Managers' Common Dilemma

How to balance the need to massively increase workforce performance with his passion for employee retention is the dilemma of a friend, a managing partner of a private company.

After addressing his concerns, I promised to come up with a solution that will improve his company's performance and will bring joy back to the work environment.

Expensive Consulting Jobs

I set a meeting with the company’s general manager, financial manager, and human resources. When I arrived at the conference, I was handed a “think folder” prepared by a self-proclaimed experienced consultant. The various managers were ready to discuss the contents of this file.

I asked the team how long it took them to prepare the data in the file. The answer I got was not one I was expecting, putting me in shocked silence. The head members of the company did not prepare it. The consultant had developed the file after interviewing a few company's staff. It had taken the consultant two months to make the data in my hand. I then proceeded to ask if they had read the data. My question was followed by uncomfortable silence and awkward glances around the room. Finally, Human Resources spoke up, admitting that they had skimmed through the file. It seems like a right approach. However, it contains many practices and pieces of advice that are unable to suit our organization, were their concluding words.

I skimmed through the file, and as human resources predicted, it was a document that was built on a “best practices” format, focusing primarily on attributes and assumptions. The report provided an explanation, rather than plotting a clear race path that was in line with KPI’s rules. The document wasn’t ready to be used. Furthermore, it would confuse the team even more as it was constructed under the circumstances the team members cannot relate to. The document was built as a comparison of the attributes in various companies in the industry, as observed by the consultant. That's the issue that most of the consultant did, and customers pay for.

It takes years for external parties to understand a company inside and out, assuming that they understand it at all. A mere two months to formulate a suggested plan was not enough, as evidenced by the lofty expectations I had read in the file.

Building the KPIs Ourselves

Company's members know more about the organization than any consultant. My solution with them was evident. I needed to coach them on how to create their performance KPIs. After politely suggesting this tactic, the team was on board and agreed that they need to create the KPI’s. Despite their ready attitude and willingness to help, I can sense their hesitancy in it being done so quickly.

If you do the math, it will take a lot less time to learn how to create the KPIs rather than teaching the consultant about the business and circumstances. In building it internally, the benefits would include:

  • Creating a more effective KPI that would suit the current events
  • Understanding why they have been created
  • Knowing how to amend them
  • Developing a mechanism that can recreate them year after year
  • Embedded in the organization culture
  • Saves the cost of a highly expensive consultant who might not be much help

Setting the race path

To help them out, I started to jot down on paper, the questions one must ask when starting a business, given that their employees are hired and resources are ready. What makes a company stay? In this race, where is your starting line? The following were the suggestions I was given:

  • Find the customer who needs our service 
  • Communicate with them and know what they require, establish their trust
  • Estimate and send back for offering 
  • Convince them to work with us, address any concerns either party may have
  • Sign the contract 
  • Mobilize the team 
  • Start the service 
  • Execute successfully 
  • Sign off our services 
  • Profit
  • Repeat the cycle 

Assigning the Runners

This seems to be a great start, mainly since all the heading can be divided into subsections. For the sake of efficiency and argument, I decided to take them as one and move to the next question. Determining the runners of this race; will there be one team who will be responsible for handling all the of the tasks mentioned above?

The answer was a resounding no. With a large organization, we can have multiple teams that can focus on the different aspects of the main task. In this case, we would have,

  • Customer relationship team 
  • Project estimation team 
  • Business development team 
  • Projects management team 
  • Technical resources team 
  • Quality Assurance team 
  • Finance and Collection team 

As expected, I was asked about other groups, including; human resources, talent acquisition, accounting, and the different departments. In response to those questions, I have one of my own. Are these items a part of the journey? If the above teams are ready, do we need the supporting teams to get the service executed? Although supporting teams are essential, we will discuss them at a later stage as they are not currently on our race path and production line.