How do you REALLY measure Organizational Performance? (The intangibles)
Welcome to 2025. The beginning of the year spurs strategic planning efforts … or the completion of same.
THEN the tough work starts … implementation.
But, even before that, organizations should know how they will follow the plan and measure progress against it. Employee performance is a critical component of that. Leaders too … but they usually escape this level of accountability.
There are leaders that believe certain aspects of organizational and employee performance are not measurable. I disagree … particularly for the intangibles. Let’s start with:
REPUTATION:
- What are 5 adjectives that others (customers, residents, employees, media, etc.) would use to describe your organization?
- What are 5 adjectives that you would want to hear that group say?
TRUST:
- What is the degree of “truth telling” in meetings?
- How do employees respond to 360 degree surveys?
- How do employees listen to performance feedback from their manager?
PRIDE:
- To what degree do employees (at all levels) provide their “discretionary effort”?
- What percentage of employees actually participate in organization-sponsored events?
COMMITMENT:
- What is the level of volunteerism – without being requested? After being requested?
- What do people really say as/after they walk out of a meeting?
- What level of effort is provided compared to if it was their own company?
In their measurement work, organizations/leaders should:
- Commit to measuring the Important things, not just the Easy ones
- Make appropriate decisions and take action on the measurement results
- Communicate the results of surveys/measurement work and their plans to address them
- Provide timely, specific, and relevant feedback to employees. Then, discuss future performance expectations.
(Later this month I will introduce the STICS model for planning and delivering feedback)
We have seen outstanding, good, fair, and poor organizations.
I believe the measurement culture significantly contributes to that reputation.
What other measures have you seen used for the intangibles? What were the results?
Let’s learn from each other
