[MUSIC] Hello, in this segment we're going to be talking about Key performance indicators, or KPIs, which are used to measure how well an organization and an individual role within the organization is performing. We'll discuss how these are built out of organizational goals and introduce how they influence individual commitments, which we'll expand upon further in the next video. We've talked about mission and purpose, right? We know what an organization is here to do. We've talked about that from a departmental level or team level. What is that your team is here to do. We've talked about expectations. What is that the team expects of one another and you expect of individuals on the team to make sure that their performance is aligned and that we're moving forward. And now we're going to talk about Key Performance Indicators. Here's a thing about key performance indicators. There's a lot of language out there that describes these, but essentially a key performance indicator is that thing, those measurements that tell you how well the organization is performing, okay. Here's an analogy that I've heard used over and over again that I think is very relevant. If you were in the hospital and the doctors and nurses wanted to know how you were doing, they would have you hooked up to machines that would be reading certain key body measurements to help them know how well your body was doing. They would be measuring your blood pressure, your heart rate, your oxygen intake, your brain activity. These would be key factors that your doctors and nurses would want to keep tabs on to make sure that your body is thriving, right? And if any one of those indicators gets low or too high, then that's an indication that there's something going on in the body that we need to resolve, right? The same thing is true for an organization. Every organization, at the macro level and every organization at the micro level, so every department should have key performance indicators. These are indicators that help us know how well the business is thriving. Okay, so when you think about what it is that your team does, I want you to really start thinking about what are those key measurements that your team uses to know how well the team is performing. So I often say to managers, if you can't measure what someone is doing in a position, then you really have to question why have the position in the first place. A lot of people gets frustrated with me because not every position is easy to measure as others, but I really do argue, and I really will stand firm in this position, that every thing people do can be measured somehow. And if you can't measure the effectiveness of a role in the organization, not a person but a role, a position, then I'm going to challenge you to wonder why do you have the position. If you can't actually determine how well it's contributing to the success of the organization. So key performance indicators are those meaningful essential elements that help you know how well the position, the role, is functioning within the organization. Okay, and so these are outputs. So what we have to have in order to be able to have clean KPI, or key performance indicators, is we have to have a clear job description for every role in the organization. And then we have to look at what is the primary responsibility of this position, and how do we measure its effectiveness, okay? And I really want to make sure that we're clear here. I'm not talking about individual people. I'm talking about roles, right? Director of Customer Service, Customer Service Rep, Technology Analyst, Project Manager, right? These are roles that we create within an organization. How well can you measure the effectiveness of the position? So when we think about key performance indicators and what I'm going to invite you to do is to really look at one role in your organization, and it could be yours. If you're not managing anyone, let's do this for you. How do you know that, that position is thriving in a organization? How well can we measure that position's effectiveness? What are the key performance indicators for that position? It could relate to simple things that are easy to track, like revenue generation, number of new clients. It could be number of outbound phone calls, inbound phone calls. It could be completion of projects, it could be benchmarking, timelines for projects. The work could be about external communication and connection. The work could be measured by errors or lack thereof. So I'm going to ask you to kind of really think about this role differently. If I needed to substantiate how well this role was performing, what would I look at to do that? You have to have key performance indicators for every position. And here's the thing, a lot of companies don't. So I wouldn't be surprised if a lot of you listening to this would be like, wait a minute, I don't have key performance indicators. [LAUGH] But then, just naturally, just think about how difficult it becomes to have individual performance goals if you don't have key performance indicators. And when we get into the long term of this specialization and we get into capstone, key performance indicators are going to be very important Tt that coaching framework that you're going to be designing. Because at the heart of my connection and coaching, I have to have these key performance indicators clearly defined. Again, if I have a role in my organization and I cannot define how that role is contributing to the success of the organization, I have to wonder, why do I have the role? All right, that's a big question for a lot of people. So in summary, key performance indicators are those key elements, those key measurements, that help us know how well a role is performing and contributing to the success of the organization. So we're going to do some work around creating those for either your role or role that reports to you as a part of this exercise.
