What we measure grows.
Or, as Peter F. Drucker, well-known management theory consultant and author stated: “If you can’t measure it, you can’t improve it.”
Without the right metrics, you are essentially shooting in the dark. As such, it becomes difficult to know what to actually focus on, where to tweak or pivot, and it’s nearly impossible to know how to hold others accountable.
But, I wonder are we really measuring the right things?
Most businesses establish KPIs (key performance indicators) to gauge the overall health and growth of their organization. While KPIs are typically quantitative in nature, they also can be qualitative with the right metrics.
Managing with the use of KPIs includes setting targets against strategic goals and objectives (the desired level of performance) and tracking progress against those targets.
KPIs use both leading and lagging indicators to understand operations and whether the company is profitable and productive.
I work with a lot of leaders and entrepreneurs to help them establish the right metrics, aka KPIs, that are meaningful to them.
One of the first conversations we have is regarding ROI (return on investment). For many companies, their view of ROI is rather short-sided. Many define the term, if they even have an established ROI target, as merely a money in versus money out equation.
Meaning, they are leaving a LOT on the table.
When I talk with them about ROI, I offer them a different definition, and one that extends beyond how much revenue and/or how profitable the company is. As those are simply outcomes of a bigger ROI.
I define ROI as such: It is a function of time, money, energy, people, resources, culture, and lifestyle.
So, the questions then becomes: Do you have an real, comprehensive ROI that encompasses ALL of those factors? And, if so, do you have the right KPI markers to measure progress towards that ROI?
Because, honestly, al this point in the game of business, don’t we have an opportunity to redefine what success really is?
I think one of the biggest gifts we were given during the pandemic was proof that how we thought we had to go to business, and what constituted success pretty much went out the window. We disrupted that entire narrative because we were forced to, as there wasn’t another option.
It led us to change cultures that insisted their work could never been done at home, to where those same organizations are only working from home now. We learned how to do more business virtually and with the assistance of AI. We broke down beliefs, processes, and even systems.
The point being everything as we knew it before changed. And, that was a function of what had to do … imagine, then, what would be possible if we were actually proactive in looking at our current business models, and the expectations we drive around what success looks like in those containers.
Now, imagine if we had a blank sheet of paper or a blank canvas. What would truly be possible if we stopped holding ourselves back by some outdated, arbitrary definition of success. Whatif we just threw some paint up on the canvas to see what might even be possible. Or, if started a new playbook from a completely neutral perspective.
I mean, the whole “sell your soul to the company you work for, be loyal no matter what, live, breathe, and die by your work, all while climbing the corporate ladder rung by rung, while paying your dues” is a bit overrated, isn’t it. I know, firsthand, as that narrative put my in the hospital at 35.
Yet, too many companies still live by the “wind and grind, burn and churn, and hustle for the muscle” mentality. They taut these sound bites as if they are badges of honor and a rallying cry. I mean you got to have a “win at all costs, take no prisoners” mentality. Even if it means sacrificing core essential pieces of your being, your wellness, and your soul.
Imagine if we operated from the philosophy of leaders like Sir Richard Branson, where he embodies the message around “people first.”
Now, imagine if we setup our KPIs from that lens.
How would the energy of business and the cultures we create change? Imagine if instead of just quantitative metrics about profit and productivity, we also included the third (I would argue, the most important) P: people.
Now, imagine if we created space for a new set of KPIs. Ones that are connected to our sense of peace, wellness, and fulfillment. Imagine if we had KPIs that measure the amount of joy we tapped into on a daily basis, or even in the work we do. Imagine if we had KPIs that represented how our teams connected, collaborated, and built high-trust and engagement.
Imagine if we measure kindness, compassion, empathy, and our humanness, along with how profitable and productive we are. Imagine if we use our KPIs to tell stories about our cultures and our people, and let those metrics represent the life and pulse of our organizations.
Unfortunately, many companies are moving in the opposite direction. Instead of KPIs, they are moving to even more black-and-white, cutthroat metrics, now referred to as OKRs (objective and key results).
Don’t get me wrong, we need hardcore quantitative metrics to show whether we have viable products, services, offerings, and businesses. However, when these are the ONLY metrics, we are missing far too much. And, we wonder why people are not engaged, or we are experiencing so much quiet resignation, and what may be perceived as entitlement.
Maybe, just maybe, if we were willing to look closer and explore deeper under the hood, we would see that leaders are talking out of both sides their mouths. On one hand, they expect employees to be loyal, committed, engaged, and present in their work. They act as if they are the ones entitled. And, many of those sames leaders and companies will cut said employees out the minute the OKR fails and they miss a quarterly number.
I’ve seen it all too often. In fact, I have experienced the effects both as an employee in Fortune 100 companies, as well as being a consultant to them. It’s often a hypocritical play, and one that doesn’t keep the scales balanced.
For too many companies talk a good game and claim they are people first, when in fact, that’s a far cry from how they truly operate. They focus on the bottom line, on achievement and performance, not on people and culture.
In my opinion, that is the actual sense of entitlement.
Imagine if, however, we flipped that equation where people really were put first AND as a result leaders walked their talk. I’m pretty sure we would see massive growth to the bottom line, as well. In fact, if you do case studies on those companies that get this notion, that is exactly what you see as a result. Not only are their people highly committed and engaged in their work, they also are high-performing and extremely profitable.
So, as we play imagine if …
Imagine if you redefine success for you, your teams, and your organization, what would be the result? The potential? The possibilities? The upside? The opportunity? What would be different in your life and work, as a result?