Are KPIs: Keeping People Inspired or Killing Performance?
That's what I'm talking about in this episode of Culture and Coffee. Let's explore the potential downsides of focusing solely on individual KPIs, and why I advocate for a balance between individual and team goals.
Episode insights include:
🎯 The KPI Conundrum: In my career, I've seen KPIs dictate pay raises and bonuses, and I've watched them drive success in sports, finance, and sales. But I've also seen the dark side: the silos, the communication breakdowns, and the toxic cultures that can emerge when we focus too narrowly on individual goals.
💡 The Power of Intrinsic Motivation
I believe in the fire that intrinsic motivation and personal values ignite within us. Yes, extrinsic motivators like financial incentives have their place, but it's the balance between individual ambition and team collaboration that creates a responsible and thriving work culture.
🤝 Embracing Team-Based Goals
That's why I'm a proponent of team-based goals, like OKRs (Objectives and Key Results). They encourage teams to take the reins, fostering a sense of ownership and shared success that individual KPIs often overlook.
🌟 Aligning Values with Achievements
A values-led approach to collaboration and goal attainment isn't just a nice-to-have; it's a must-have. By aligning organisational values with team achievements, we pave the way for a harmonious and productive work environment.
🔍 The Research-Backed Sweet Spot
I wrap up the episode by diving into the research that supports the benefits of integrating individual and team performance measures. It's all about finding that "sweet spot" that satisfies both personal growth and collective success.
Useful links 🔗
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🎙️ Check out Inside Out Culture Podcast where myself and Cath Bishop get behind the headlines of cultures making the news to extract the learnings and insights, good and bad.
TIMESTAMPS
Introduction (00:00:01)
Colin's experiences with coffee abroad and his fondness for New Zealand and Australian coffee.
Issue with KPIs (00:00:58)
Colin's issues with KPIs, their effect on individual performance, and the emphasis on personal objectives.
Impact on Culture (00:02:53)
The effect of KPIs on organisational culture, compartmentalisation, breakdowns in communication, and toxic environments.
Ambition and Intrinsic Motivation (00:06:07)
A discussion on ambition, intrinsic motivation, and personal values in the context of individual and team objectives.
Team Goals and OKRs (00:10:14)
The significance of team-oriented objectives, the principle of OKRs, and their influence on value delivery and autonomy.
Values-led Organisation (00:14:33)
The congruence of personal and organisational values, and the advantages of a values-driven approach to collaboration and achievement.
Balancing Individual and Team Goals (00:15:27)
The necessity for complementary metrics to optimise individual and team performance, and the effect on engagement and productivity.