Driving Balanced Key Result Areas
During my early years as Consulting Manager in 1996, I learned about the Balanced Scorecard (BSC) as a strategic performance management methodology. Together with my counterpart from the US, we implemented BSC for a large GLC. I believe what gets measured gets implemented and reinforces accountability for results.
BSC is not just about measuring strategic performance because it also links the performance of individuals to company goals and targets. Many HR organizations have adopted the same methodology to measure the performance of their employees. Most organizations have adopted the BSC methodology more than 20 years ago.
In recent years, especially during the surge of new technology startups, startups and technology organizations have begun to adopt the Objectives & Key Results (OKRs) approach to measure what matters. Driving organizations to scale for exponential growth, the OKR approach is adopted to ensure organizations focus their energy on objectives and key results that matter to them.
The OKRs approach sounds familiar to me when I draw on my experience in BSC. Maybe it is just another terminology. From my perspective, it is not about which approach to adopt, it is really about the company's culture of making people accountable for the company's performance and results. It is also about the company’s structure and processes that enable a smooth deployment of a structured strategic performance management approach.
Given the current organizational fluidity, it is not realistic to expect measurements and targets to be cast in stone at the time of planning. A mechanism needs to be in place to review and assess achievements regularly and to make adjustments appropriately. Of course, the idea is to establish and review leading measurements as frequently as possible so that quick remedial actions be taken to address gaps or shortfalls.
While organizations prioritize revenue growth objectives and key results areas, measurements that impact employee morale and motivation should not be overlooked. People-related measurements are not the sole responsibility of HR organizations. In other words, a balanced approach is required in setting measurements and targets.
Are you implementing the OKRs approach that incorporates BSC philosophy?