FOCUSED

Performance Management

Good practice performance management involves a regular ritual of reviewing a relatively small number of key performance indicators against goals. Great businesses also use performance management effectively to recognise the efforts of the sales and marketing team.

Why this is important

  • Good performance management, with consistent ‘rituals’ and clear indicators helps turn strategy into operational reality
  • It sharpens focus, clarifying what really matters through the use of a ‘shared language’
  • Issues can be surfaced early (if the focus is just on outcomes’ it’s often too late to address an unexpected downturn)
  • Accountability is strengthened and trust built if all know what good looks like and their expected involvement

How to Grow Better and Faster

Introduce a Management Cycle

  • Introduce a regular cadence or ritual of (daily), weekly, monthly, quarterly and annual discussions informed by the right metrics
  • Be fully transparent and make progress visible to all
  • Ensure everyone understands the impact of their (lack of) contribution and put incentives and consequences in place

Select key indicators

  • Settle on a relatively small number of indicators and measure them regularly and accurately against goals (and compared to history)
  • Strike a balance between leading and lagging KPIs. Leading indicators include prospect and customer interactions, associated proposals. Lagging indicators include revenue and margin
  • Include indicators to cover the end-end sales process like account growth and retention, churn and win-back rates

Recognition

  • Compensation is a key driver, but isn’t sufficient alone to underpin sustained, excellent performance
  • Other important ways to recognise include substantive public praise: “if it weren’t for you…”, spotlight moments, professional development opportunities
  • Be consistent, specific and timely with recognition. Reward results and behaviours. Tie great exhibited behaviours back to the company’s values

Case Studies

Measuring what really matters

A manufacturing sector client measured revenue and profitability in multiple ways. There was, however, no focus on leading indicators. By rebalancing the emphasis on both leading and lagging indicators, the firm was able to anticipate growth and take actions to course correct when the pipeline was less healthy. 

Better Faster Growth also introduced a manaement cycle – a cadence of regular review discussions informed by the right metrics.