Editor’s Note: Below is an excerpt of Performance Magazine’s (PM) interview with Fadi Al-Jafari, a Senior Management Consultant, Leader of Data Analysis and Visualization Center, and Project Manager at The KPI Institute. 

For Fadi Al-Jafari, one of TKI’s performance management experts, having a clear vision for your organization and being aware of its external environment to prevent threats and capture opportunities is the core of strategic thinking. He expounded on this and more in an interview with Performance Magazine.

PM: What will be the major challenges in managing performance in the future, and how should organizations prepare for them?

Fadi: The major challenges would be how to measure the individual’s performance right and without any biases, use the data to predict future the individual’s performance, and benefit from the data they have to improve the individual’s performance. One solution is to use digital PMS that collects data regularly and measures individual performance based on the tasks they work on and then use data analytics tools to draw conclusions and predictions based on the analysis.

PM: While navigating through these challenging times, what would you consider a best practice in Performance Management?

Fadi: To start with an organizational architecture framework of the PMS, ensure that cascading and alignments are conducted properly. This also enables organizations to develop a governance framework, processes, and procedures to efficiently run the system and avoid internal silos.

PM: What key competencies would make a Strategy and Performance Manager succeed nowadays?

Fadi: An important one is strategic thinking — to be able to analyze different situations that the organization may face and to have a proactive personality that would allow them to capture changes in the market before they arise. It is crucial to identify the opportunities, capture them before the competitors do, and determine any threats to prepare the organization to deal with them.

To read the complete interview with Fadi, stay tuned for the release of Performance Magazine – Print Edition July 2022. Get updates from the LinkedIn page of The KPI Institute.

Editor’s Note: “Innovation Highlights: Advancing Performance with State-of-the-Art Solutions” is an article written by The KPI Institute’s Jr. Management Consultant Andreana Dumitrescu and former Business Research Analyst Agnes Ilyes. This piece was first published in the latest edition of Performance Magazine. 

Embracing innovation is part of upgrading your organization’s performance. It requires building your innovation capability, culture, and management as well as getting inspiration from your environment. Here are some ideas to get you started.

Become a Citizen-Developer

Low-code development platforms have a revolutionary role, increasing the performance of software developers, accelerating application delivery, and simplifying complex tasks. At the same time, low-code and no-code tools for programming allow anyone without experience in the domain to create applications or systems, and these users are called citizen-developers. 

Low-code development platforms can automate time-consuming processes, allow employees to use visual and templated workflows, and make technology products reach the market faster. This leads to efficiency, new levels of growth, and great business value. However, those who need customized solutions may still need to use high-code platforms. While users may no longer need to learn coding, no-code platforms are expensive and may not appeal to small businesses. 

Using Drones in Performance Management

In the construction industry, drones are used to monitor employee productivity, collecting real-time data for organizations and giving them a competitive edge. The system gives them the ability to monitor people and activities and gather information fast. This information can be about whether a project is completed on time and on budget, spotting unauthorized use of or damage to the employer’s property, employee safety, human error, and labor costs. Drones can record photos and videos, and the footage can be easily shared with any device. With real-time access to the progress of a project, managers can determine potential causes of delays and the contribution of employees to the overall business strategy and project success. 

Microlearning as the Future of Workplace Learning

The global microlearning market is expected to reach $3. 8 billion by 2027, according to the report “Global Microlearning Industry” by Reportlinker.com. Microlearning refers to learning delivered in short-form, independent units and typically features personalized videos, tutorials, quizzes, or games. 

The topics of microlearning are the simplified versions of those taught in complex and widely structured learning environments. The shift to remote work and the demand for new skills accelerated the popularity of microlearning. The benefits of microlearning include accessibility, flexibility, and reduced development costs. It attracts workers, especially millennials, who prefer faster and engaging learning sessions, customized, and relaxed to avoid cognitive overload. 

Uber’s T3 B3 Process

When Uber’s employees complained that the company’s traditional performance review was subjective and dwelled too much on employees’ past behavior, the transport company devised a strategy called the T3 B3 Process. T3 B3, which means “top three bottom three,” asks employees to identify their top three qualities and bottom three areas for improvement. Their answers will generate new goals, which are entered into a system accessible to all members of the organization. 

Uber’s new review process highlights development based on job performance. The regular feedback that employees receive are categorized into positive reinforcement or constructive advice. Every week, managers monitor their feedback ratios and balance the two categories.

The Military Adopts the 360-degree Appraisal System to Get Rid of Toxic Leaders

Used by companies like Amazon, IBM, and Netflix, the 360-degree appraisal system will now be integrated into the selection board and assignments processes of the U.S. Marine Corps. It will conduct a pilot program first in 2022 and implement it fully in 2024. This means moving away from solely depending on their fitness reports, which are performance notes from two supervisors. 

The U.S. Marine Corps believes that a 360-degree performance review will help them avoid promoting senior leaders who may not be fit for the positions. By getting the feedback of Marine’s senior officials and subordinates, the organization can detect traits of toxic leadership as well as potential strengths and unidentified weaknesses. 

The 360-degree feedback offers employees regular confidential feedback from multiple viewpoints. This feedback system involves personalized questions and workflows, qualitative feedback, and agile pulse surveys. Moreover, the 360-degree review process emphasizes social reinforcement, encouraging workers to be more open to feedback and adjust their behavior. 

According to Harvard Business Review, initiatives to innovate usually fail and even successful innovators struggle to maintain their performance due to “the lack of an innovation strategy.”

For more than 10 years, The KPI Institute has established a standard in every facet of performance management through tailored KPI-based solutions. Join the Certified Innovation Performance Professional Live Online course on 18-22 July 2022 to learn how to link innovation to your organization’s strategy and goals in achieving excellence in performance, or get certified in IP Professional. For further details, visit our website. 

Editor’s Note: Below is an excerpt from the article “Sustainability Standards and KPIs As Game Changers,” written by Silvana Badita and published in the latest edition of Performance Magazine. It presents trends, solutions, and best practices for strategy and performance management through in-depth articles, first-hand how-to’s, concept presentations, case studies, and expert insights.

Companies can no longer afford to ignore sustainability. It is not just a trend but a major factor that drives where most businesses are headed. According to Globescan’s The State of Sustainable Business 2019, reputational risks, consumer demand, investor interest, operational risk, and employee engagement are some of the catalysts behind the sustainability efforts of most organizations. 

Manufacturing is one of the industries that are pressured to realign their activities with the mounting call for sustainability practices. Sustainable manufacturing refers to developing products with minimal negative environmental impacts and maximum contribution to the conservation of natural resources. These products are expected to be economically sound and safe for employees, communities, and consumers. 

Sustainable manufacturing aims to reduce the intensity of materials use, energy consumption, emissions, and unwanted byproducts while maintaining or improving the value provided for society and organizations. 

Some relevant key performance indicators that are often considered when evaluating the sustainability of manufacturing companies are:

• Environmental performance KPIs, such as: # Air emissions, % Energy utilization, % Hazardous waste etc.
• Economic performance KPIs: % Product reliability, % Conformance to specifications, $ Material cost, % Labor cost etc.
• Social performance KPIs: % Occupational health and safety, % Turnover rate, % Supplier commitment etc.

Sustainability standards are observed to ensure quality, transparency, compliance, and results in terms of making organizations accountable for their economic, environmental, and social performance.

The GRI Standards

Among the internationally renowned frameworks is the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards. The GRI Standards consist of Universal Standards, which apply to all organizations and report on human rights and environmental due diligence, the new Sector Standards for sector-specific impacts, and the Topic Standards that come with the revised Universal Standards and relate to a particular topic.

Their vision is to create a sustainable future enabled by transparency and open dialogue about impacts. In this regard, they are a provider of the world’s most widely used sustainability disclosure standards.

With GRI Standards, companies can publicly present the outcomes of their activities in a structured way. This allows their stakeholders and interested parties to better see their status of how they are responding to calls for sustainability. GRI Standards can be used by any type of organization, whether large or small, public or private, or from any location or industry.

Editor’s Note: Below is an excerpt from the article “The Challenge to the C-Suite: How to Build Execution Into Strategy,” written by Adia Manea and published in the latest edition of Performance Magazine. It presents trends, solutions, and best practices for strategy and performance management through in-depth articles, first-hand how-to’s, concept presentations, case studies, and expert insights.

Strategies remain strategies until they are executed. Why is it hard for some organizations to translate what transpires in the boardroom into action?

Only 3% of the 1,526 business professionals who responded to a global survey commissioned by the American Management Association in 2019 said that their organizations were “very successful” at executing strategies.

In today’s business climate, it is critical to adopt a performance management system that makes the parts of an organization operating asynchronously to stick together like puzzle pieces. This leads to real initiatives for change and supports decision makers as they forge ahead or change course as necessary. 

A Roadmap for Results

How can leaders build execution into strategy and generate results from strategy analysis and planning? First, let’s assess the existing challenges. Although there are hundreds of failed strategies, they do not serve as a lesson. Nevertheless, researchers noticed a list of issues that stamped the misalignment of activities to corporate strategy over the years. According to Forbes, unclear communication and priorities, the lack of coordination across units, the silo behavior (unwillingness of a group to share information with another group), resistance to change, and the lack of performance culture are persistent factors that shift away the efficiency of execution from the strategy plan. 

The silo behavior prevents organizations from becoming agile, and this aspect still dominates the corporate culture. Only 9% of managers say that they can rely on colleagues in the company all the time, according to a research conducted by Harvard Business Review (HBR). Unfortunately, when confronted with this perspective, the need to compensate appears, but the result undermines the strategy as without help, they duplicate efforts, overdue the deadline or cannot meet promises made to customers. 

The same study shows that 30% of managers recognize that the failure of coordination across departments increases the chances for the performance commitments to not be reached. It also intervenes in the poor quality of performance culture as it may not promote support among units. The resistance to adapt to market circumstances is a major obstacle for an effective execution. But companies do not always fail to adapt at all. 

The problem is that most organizations react slowly to the change so there is a risk of not being able to embrace fleeting opportunities. Being reluctant to change activates the incapacity of mitigating emerging threats or even losing sight of the strategic direction.

Designing a performance management architecture leads to a bird’s view of the actual context and progress of projects or processes conducted internally. By approaching a set of performance management practices, a better structure, alignment, integration, and use of what is already in place will dominate the organizational context. In other words, the organizational strategy is digested through an integrated performance management system.

Companies must develop a strategy execution framework that aligns projects with initiatives to achieve their desired results. The project-based work is composed of activities that bring the organizational state closer to specific goals. By looking into project portfolios, one can assess the strategies in which the company chose to invest. The aim of the strategy execution framework is to align the project portfolios with the strategy. Once implemented, the framework adds a filter to the way management leads and executes in the sense that the steps taken are towards executing the strategy and not just walking around it.

Now, what is the connection between the performance management system and the strategy execution framework? Imagine the process of strategy execution as an octopus. The head is the performance management system in which the strategy is fragmented through the vision, mission, values, objectives and initiatives, while the arms are the projects conducted in portfolios that convey the alignment of resources and align with the overall strategy.

Discover how organizations can overcome strategy execution challenges by reading the rest of the article in the latest edition of Performance Magazine. Download your FREE COPY now!

Dear partners and beloved community,

On behalf of The KPI Institute, I would like to wish you all a wonderful spring and success in all your projects!

The first part of the year, as well as the beginning of a new season, brings a plus of energy in our lives, and hopefully, we can use this positive vibe to improve the organizations we are part of and to contribute to making the world a better place.

As we look forward to the challenges and opportunities 2022 has for us, I invite you to reflect on the latest practice in strategy and performance management by exploring the first printed edition of PERFORMANCE Magazine this year.  

You will find valuable insights related to adapting strategy to highly volatile business environments and structuring better performance management-related processes and tools. You will discover how employee performance is managed by modern organizations, trends in business analytics, and success stories from the public sector around the world.

For the Cover Story, I presented the highlights of The KPI Institute’s 2021 global practices report related to strategic planning, performance measurement, and strategy execution. The full version of the report will be released in April. Follow The KPI Institute’s LinkedIn page and stay tuned for the announcement!

Equipping you with the latest research and industry know-how to achieve performance excellence has always been the core of The KPI Institute’s existence. The latest issue of PERFORMANCE Magazine is just one of the many exciting things we have planned for you this year.

Enjoy reading and thank you for making us a part of your learning journey!

Cristina Mihăiloaie

Business Unit Manager – Research Division

The KPI Institute

There is no one standard performance measurement system that would perfectly fit all organizations. Just ask Fabian Stigler, who graces the cover of the July 2021 issue of the PERFORMANCE Magazine – Printed Edition.

Stigler, a project engineer at IQ Intelligentes Ingenieur Management GmbH, specializes in project management, business intelligence, and business analytics.

One of his accomplishments as a performance analyst is developing a KPI system (KPI Performance Measurement System) that simplified multiple KPIs into an overall statement. 

He has also designed a data visualization guideline that makes reporting easier to understand and presentations clearly structured. “This system is methodical and universally applicable and can therefore be used in many departments and companies/industries,” he explains. 

With over six years of experience in the international automotive industry, Stigler tells PERFORMANCE Magazine that performance measurement systems play a significant role in decision-making nowadays. He attributes this change to “the advent of digitization in the automotive industry and the ever-increasing influence of data.”

According to Stigler, technology is important in building a robust performance measurement system. To achieve that, he emphasizes the need for powerful IT instruments, such as data lakes, powerful servers, and software.

Read Stigler’s complete interview in the July 2021 issue of the PERFORMANCE Magazine – Printed Edition. He shares his insights on the usage of KPIs, his advice to professionals in his field, and his views on work-life balance. 

The latest issue discusses the employee performance management cycle and the role of departmental values in achieving a corporate vision. Readers will learn more about the OKR system being implemented in brands like Google, Accenture, Twitter, and LinkedIn and the magazine’s recommended reading list for 2021.

Sharing your views, experiences, and strategies in managing performance is a great way to make connections and strengthen your professional brand as a business leader. 

If you would like to be considered as a contributor or an interviewee to be featured in PERFORMANCE Magazine or to send advertising inquiries, contact the editor at len.cristobal@kpiinstitute.com.