Tying Employee Performance to the Strategic Plan (Part 7)

May 21, 2014 Selling Comments Off on Tying Employee Performance to the Strategic Plan (Part 7)

By Bill Phillips, Strategen, Inc.

The Strategic Plan is a tool that should be used to improve the operation of the business. The newsletters from the past several months have discussed three steps involved in tying employee performance to the Strategic Plan.  Each is a key component to successful implementation of the strategic plan and all are equally important to the success of the Plan and the Company.

STEP 1: Establish Performance Metrics

The first step is establishing performance metrics that define the Key Performance Indicators (KPI’s) that are drivers for the business.  Management needs to establish realistic, simple and attainable metrics tied to goals and objectives to guide the overall company and individual departments.

Management is responsible for the overall company goals, objectives and metrics and it is critical that all people that manage key company functions have a say in establishing their departmental goals, objectives and metrics, negotiating with management to determine the final set of goals, objectives and metrics.  This negotiation establishes a “buy in” and therefore “ownership” of the goals, objectives and metrics by the department managers.

STEP 2: Coaching

The second step, proactively following up to determine progress, is the coaching function.  It is the “tape” that is viewed after practice and the games.  It is the “Feed Back” that is required for managers and functions to improve.  True “Management” is coaching and follow up is a tool to be used to improve people and processes by leveraging realistic, simple and attainable metrics that are tied to the Strategic Plan, the organization and the individual.  It is critical that senior management understands their role in the implementation of these functions and remains committed to do the work necessary to support their team.

STEP 3: Implement Visual Management Tools
The third step, implementing visual management tools to show continuous progress and status, is where progress is communicated.  Typically companies collect performance data but may not share it in a meaningful manner.  Communicating data in a meaningful manner requires defining what should be reported and then doing the work to keep that information in front of all key employees and in many cases all employees and doing the work to keep the data up to date.

Regardless of the type of visual management tools used, the key to success is that the performance metrics defined in step one and followed up on in step two are communicated visually in step three.  The KPI’s used to drive the business need to be communicated to the performing teams and tied into the performance of the teams and departments.

Utilizing these three steps, management can leverage the Strategic Plan and tie employee performance to the Strategic Plan.  In return, everybody can win including the customer.

Coaching these skills is a critical part of what we do.  We are here to help you develop and implement your Strategic Plan and coach and develop the skills to implement the plan successfully.

We are having great success coaching and implementing these methods and skills and our clients love it!