{"id":6194,"date":"2020-02-05T11:38:32","date_gmt":"2020-02-05T09:38:32","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=6194"},"modified":"2020-02-05T11:38:35","modified_gmt":"2020-02-05T09:38:35","slug":"create-kpis-to-reflect-strategic-priorities","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/create-kpis-to-reflect-strategic-priorities\/","title":{"rendered":"Create KPIs to Reflect Strategic Priorities"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\";https:\/\/hbr.org\/resources\/images\/article_assets\/2020\/01\/Feb20_04_185229299-768x432.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Create KPIs to Reflect Strategic Priorities\" title=\"Create KPIs to Reflect Strategic Priorities\" \/><\/div>\n<h3 class=\"wp-block-heading\">Create KPIs to Reflect Strategic Priorities <\/h3>\n\n\n\n<p>\u201cWhat do you think of our scorecard?\u201d asked Phil (not his real name), the CEO of the main roads department of a large Australian state. Phil had emailed me his organization\u2019s scorecard of 29 key performance indicators (<a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">KPIs<\/a>) to review ahead of a workshop I was to run for them. Unfortunately, I could see that, aside from being on the long side, the list was skewed and biased, with large holes that would leave the department vulnerable to underperformance in critical areas.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Structure Is Primary<\/strong><\/h3>\n\n\n\n<p>To answer Phil\u2019s query, I started with this fundamental question: Does the scorecard follow a <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">key stakeholder structure<\/a>?<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/brand24.com\/blog\/wp-content\/uploads\/2019\/06\/social_media_KPIs_2-750x300.jpg\" alt=\"Create KPIs to Reflect Strategic Priorities \" \/><\/figure>\n\n\n\n<p>Organizations operate in environments defined by their\u00a0<a href=\"https:\/\/hbr.org\/2014\/03\/five-questions-to-identify-key-stakeholders\">key stakeholders<\/a>. Consider a <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">Hilton hotel<\/a>: its key stakeholders are customers, suppliers, employees, the holding company, and the community in which it operates.\u00a0 The Hilton will only do well if it has strong relationships with all these stakeholders. \u00a0If it has poor relations with its employees, it will struggle to deliver satisfactory service and to prosper. If it has poor relations with its customers, it won\u2019t be long before the business goes belly up. In fact, an organization is only as strong as its weakest link within its group of key stakeholders.\u00a0 That\u2019s why I tell clients that \u201cmeasuring performance is measuring relationships.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Applying the Test<\/strong><\/h3>\n\n\n\n<p>So how did Phil\u2019s department\u2019s scorecard do? Not very well. What the executive team had done was to break the organization into six programs. Here are three examples: road safety program, road efficiency program, road maintenance program. No mention of stakeholders. So, who are the key stakeholders of a main roads department?<\/p>\n\n\n\n<p>I happened to know the answer, since I had worked with an executive team in an identical organization in another state on the very same exercise. Here\u2019s the result: road users, local government, affected community, service providers, central agencies, and employees.<\/p>\n\n\n\n<p>Read more:  <a href=\"https:\/\/hbr.org\/2020\/02\/create-kpis-that-reflect-your-strategic-priorities\">https:\/\/hbr.org\/2020\/02\/create-kpis-that-reflect-your-strategic-priorities<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Create KPIs to Reflect Strategic Priorities \u201cWhat do you think of our scorecard?\u201d asked Phil (not his real name), the CEO of the main roads department of a large Australian state. Phil had emailed me his organization\u2019s scorecard of 29 key performance indicators (KPIs) to review ahead of a workshop I was to run for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":6197,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[45],"tags":[31,208,80,139,46,47],"class_list":["post-6194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business","tag-business-management","tag-hr","tag-kpis","tag-management","tag-strategy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dazzlepop | Create KPIs to Reflect Strategic Priorities<\/title>\n<meta name=\"description\" content=\"Create KPIs to Reflect Strategic Priorities \u201cWhat do you think of our scorecard?\u201d asked 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