Crafting Your Map

How point the way, learn the landscape and track your progress

Start-ups are known for their dynamic, fast-paced and agile working environment. To thrive in this environment, it is crucial to set meaningful key performance indicators (KPIs) and targets for employees at different levels of seniority. However, many start-ups make common mistakes when setting these targets, which can have serious consequences for the success of the company.

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The key difficulty with this task is that organisations are complex adaptive systems — meaning that they consist of individual humans responding to a messy combination of social, cultural, and economic system incentives.

Here is one approach to running high performance teams from Frank Slootman. This is an undoubtedly successful approach that has worked across 3 different global companies. 

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1. Maintain High Standards: To get things done and off their plate, people lower their standards. Don't let this happen.

2. Maintain Alignment: Alignment is about making sure everyone is driving in the same direction and knows what they’re aiming for.

3. Maintain focus: Most leaders spread their people’s focus across too many unclear priorities. People work on lots of stuff, but nothing gets done. Prioritization is hard. That’s why most people don’t do it. “Priority” should only be used as a singular word. When you have many priorities, you actually have none.

4. Maintain Pace: Great leaders compress cycle times. When someone suggests they will get back to you in a week, ask them, “why not tomorrow?” This is not a one-time effort. It's using every interaction as an opportunity to maximize pace.

5. Transform strategy: Strategy requires connecting things that seem unrelated. Once you get everyone else focused on execution, it’s the leader's job to confront the needs and opportunities for strategic transformation.

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One key problem with generalised rules that are not backed by a hands on coaching session is that there is often not a good of amount of guidance as to when they are likely to be needed. 

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The issue with the set of rules above is that they will often put the poor employee under duress from conflicting goals. Delivering high quality work at pace is difficult for people that are not experienced or are testing new ideas.

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These rules work better for larger organisations that do not have the need to grow, pivot or optimise regularly. They can afford to offer attractive packages to a large number of people who are drawn to the marquee brand name. 

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Focusing on one priority at a time sounds like advice but it can lead to stagnation or missing better opportunities. How is this to be linked to strategic change in the direction? 

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I have worked in many companies that have diffuse priorities that are not clearly held to as people coast along in the fog. Or where the priorities are fervently held and adhered to until they are changed the next week leaving no time for anything to actually get done. 

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That is not to say these aren't laudable goals. However, it seems most likely they would need to be stacked on top of each other. and broken down with some nuance to be more helpful. 

Mistake #1: Not aligning KPIs with company goals

One of the biggest mistakes start-ups make is not aligning KPIs with the overall goals and objectives of the company. KPIs should be designed to help employees understand how their work contributes to the success of the company and drive progress towards company goals.

When KPIs are not aligned with company goals, employees can become disengaged, demotivated, and may not be fully productive.

Mistake #2: Setting unrealistic targets

Another common mistake is setting unrealistic targets for employees. Setting targets that are too high can lead to stress, burnout, and decreased motivation.

On the other hand, setting targets that are too low can result in complacency and a lack of drive. It is important to find a balance between challenging and achievable targets that encourage employees to strive for excellence.

Mistake #3: Not considering individual differences

Start-ups often make the mistake of treating all employees the same when it comes to setting KPIs and targets.

However, employees have different skills, experience, and goals, and what may be a realistic target for one person may not be for another. It is important to consider individual differences when setting KPIs and targets to ensure that they are fair and achievable for each employee.

Mistake #4: Failing to review and adjust targets

Finally, start-ups often make the mistake of setting targets and KPIs and not revisiting them. The business environment is constantly changing, and KPIs and targets may need to be adjusted to reflect these changes.

It is important to review and adjust targets regularly to ensure they are still relevant and meaningful for employees.

Final Thoughts

In conclusion, setting effective KPIs and targets is crucial for the success of start-ups. By avoiding these common mistakes, start-ups can ensure that employees are motivated, engaged, and working towards company goals.

A well-designed KPI and target-setting process can help to drive success and foster a positive working environment for all employees.

I hope you enjoyed this post is you have anything to add or query let me know.