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Are Your Performance Measures Current?
The rate of change in organizations is staggering.
The dynamic landscape of external and internal forces continually shapes and reshapes everything about an organization. Staying abreast of such fast-paced change requires leaders to remain nimble. They learn to evaluate and reevaluate whatever is in play and to pivot quickly as new situations and demands unfold.
In order to assess the health of the organization and to measure progress against expectations, leaders rely on a set of primary metrics or performance indicators that shed light on the trends they can’t easily see day-to-day. Every enterprise is different, so each has its own set of performance measurements to gauge the effectiveness of the organization.
A question every organization and leader should ask is how current their metrics really are. Given the rapid change experienced within the last few years, have the performance measurements kept pace with these developments?
What was once a strong indicator of performance may no longer be critical to the enterprise. More to the point is the question of whether the organization is truly measuring the current predictors of its effectiveness.
Too many organizations and leaders don’t update the metrics they use to keep pace with the changes they experience. In fact, it is common to look back and see that the metrics in place a decade ago are still the primary indicators today.
This doesn’t seem reasonable or smart given the changes that took place over that time. If the performance measurements don’t evolve with the enterprise, leaders are making decisions without an accurate idea of what is really going on.
The purpose of performance metrics is to focus the energy of the organization on the critical issues generating its success. If those metrics haven’t been realigned with new priorities, processes, and challenges, they will obscure the picture of how well the enterprise is performing.
The ongoing task for leaders is to assess whether the current performance measures match the environment and have kept pace with change.
If the KPIs (Key Performance Indicators) and OKRs (Objectives and Key Results) in your organization haven’t changed in quite a while, it is likely you aren’t seeing the full picture. Take the time to keep your metrics fresh and current. Knowing how well your organization is doing is always the first strategic mandate.