The Power of KBI’s
The recent current banking royal commission in Australia and other recent corporate failures have really highlighted how inadequate the current approach to KPI’s typically is – many simply drive unethical, criminal, greedy, self-centered behavior, all of which are unsustainable in the longer term
If we really want a better outcome perhaps we need to include KBIs (Key Behaviour Indicators) amongst our key indicators.
Whilst there are lots of articles around at present suggesting we abolish KPIs, I think we just need to rethink them and include indicators for:
ethical behaviour - behaviour that delivers shared value and reduces greed
supporting & motivating staff using empowerment and enablement and reducing the often-misguided reliance on financial incentives & bonuses. I could write a whole series of articles on misguided incentive schemes!!!
focusing on customers' interests (because without customers we don't exist) instead of shareholder/executive short term or selfish interests
Making this change can have profound effects on your results.
So let me share a story about a very large enterprise (over 600 FTE, over $2.5 Billion in revenue) who added a range of KBI's to the Performance Plans for their leadership team and included them in their Business Plan. It is fair to say there were a number of naysayers around when they did. People who clearly had no understanding of "people power" or simply did not realise why we makes such a point of the "E" element of our SPEC business improvement model. The KBI's they adopted and were prepared to be accountable for were:
Promote a Culture of Empowered Decision Making
Lead Customer Experience Programme
Contribute to Culture & Values Programmes
Investment in our People and their Careers
Support Improved Customer Feedback Initiatives
So, what did have they achieve with this change in focus??
Since adopting these measures they have seen a remarkable turnaround across most indicators including:
Over 70% reduction in OH&S incidents
A halving of unplanned leave
Reduced employee turnover
Massive increases in productivity leading to a halving of customer wait times
Significant improvements in financial performance – over $3 million in cost savings
Widespread process improvement and innovation
Significant red tape reduction outcomes
Over 90% of customers providing feedback ranking their experience as "Highly Satisfied" or "Very Satisfied"
Sector leading engagement scores
Setting, monitoring & delivering on such KBI's has simply help transform the enterprise. If you would like to know more the Sucsess Quadrants team can show you how applying a similar model to your business can deliver outcomes that will positively transform your business results.
Perhaps if enough of us do it, we can change the corporate landscape overall. For more information please contact us
