Personal vs. Team Measurement
How KPIs Undermine Culture - listen to the podcast
There are four elements that contribute to successful organisational outcomes.
Personal values - what an individual believes, how they behave, the expectations they have
Personal achievement - how an individual is recognised for the contribution that they make
Organisation values - what an organisation holds to be true and expects of its employees
Team achievement - how individuals work together to achieve goals
When measurement is weighted towards the individual only (e.g. via a KPI or Key Performance Indicator), it greatly enhances the likelihood that they will be motivated only by personal outcomes. Yet, these intrinsic motivational factors are important as they drive connection to personal values and motivation to deliver. However, if all the individual seeks are the conditions and the goals that drive only their self-fulfilment, then it will be to the detriment of the team and what the organisation - regardless of what it does - seeks to achieve.
When measurement is weighted towards the team only (e.g. via an OKR or Objective Key Result), it greatly enhances the likelihood that the individual will feel that the opportunity for personal recognition and growth will be compromised. Yet, these extrinsic factors are important as they drive collaboration and contribution to organisation values. However, if all the organisation seeks are the conditions and goals that drive only collective success, then it could be to the detriment of the individual who also seeks personal growth.
In order to increase both intrinsic and extrinsic motivation - both of which are required for organisation success - individuals need to be measured on both personal and team goals. Where individuals can see the connection to their personal values and opportunities for them to grow and be recognised and the team understands that they need to work together in line with organisation values in order to achieve their goals, the conditions exist for success. These vibrant cultures value collaboration, creativity and a commitment to continual improvement.
The prevailing culture has a critical role to play in both intrinsic and extrinsic motivation. A well defined culture that people feel that they ‘belong’ to, will enhance the opportunity for personal and organisation goals to be cooperatively achieved. Whilst an assumed culture (i.e. one lacking meaningful definition and involvement from employees) will reduce the opportunity for personal and organisation goals to be achieved.
The latter will often lead to selfish behaviour or else an organisation that values the individual above the culture. This has an adverse effect on how people work together and will ultimately generate the conditions where a toxic culture can arise.
Whereas the former will lift engagement, productivity and lead to positive results and enhanced reputation. This will increase retention and attract further high calibre people to the organisation such that the growth cycle can continue.