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In today’s dynamic business landscape, enhancing employee performance is crucial for sustained success. To build high-performing teams, it’s important to establish the right framework and processes for performance measurement, including the selection and deployment of tools like key performance indicators (KPIs). But how can organizations successfully unlock employee potential through performance measurement?
Here is how renowned company Adobe transformed its employee performance strategies to obtain outstanding outcomes.
Case study: Adobe
Adobe’s transformation journey is a testament to the potential of strategic performance measurement and KPIs. Adobe has faced issues with its yearly performance evaluation process. These were:
- Employees were frustrated with annual performance reviews as they found the process cumbersome and bureaucratic.
- The process created barriers to teamwork since the experience of being rated and stack-ranked for compensation left many employees feeling undervalued.
- Adobe estimated that a total of 80,000 hours of its managers’ time was required each year to conduct all of the reviews, the equivalent of nearly 40 full-time employees working year-round.
Adobe realized that it should not wait until the end of year to share feedback. So, the company made a surprising change that improved employee engagement and transformed the company culture.
Employee-centric approach: Adobe’s departure from traditional performance reviews towards a more frequent and less formal “check-in” process demonstrates its commitment to an employee-centric approach. These regular discussions—done at least once a quarter—provide a platform for managers and employees to engage in meaningful conversations about expectations, growth, and development. This shift reflects Adobe’s recognition that empowering employees with continuous feedback and opportunities for improvement is more effective in driving performance excellence than the conventional annual review model.
Setting clear, measurable goals: The new strategy adopted by Adobe focused on providing its staff with specific, measurable goals. Employees could clearly understand what was expected of them and how their performance would be assessed because these goals were cascaded down from the organizational and departmental goals and aligned with each other. Companies that have aligned goals tend to outperform organizations that lack a direct connection between top company priorities and employees’ individual aims.
Real-time performance insights: Adobe enabled its managers to give employees real-time insight into their performance by integrating technology. Adobe launched a digitally-enabled check-in, providing all employees and managers with a web-based destination to document their goals, development, and growth. Individual goals are documented in a centralized place, reviewed regularly, and can be updated in real-time by managers and employees alike. All of this made it possible for timely feedback and course correction, ensuring employees stayed on track with their objectives and KPIs year-round.
The results of the transformation were spectacular and resonated with employees—employee attrition dropped by 30% while involuntary departures rose by 50%. This change allowed managers to give more timely and useful feedback while empowering employees to take responsibility for their own advancement. The employees thus felt engaged, valued, and aligned with the company’s goals.
What are the key takeaways from Adobe’s case? Performance measurement best practices should always include the following:
- Alignment with organizational goals: A strong performance measurement approach starts by matching team objectives and individual objectives with the organization’s overarching mission. Employee performance becomes a key factor in the organization’s success when they are aware of how their work supports corporate objectives.
- Keeping qualitative and quantitative metrics in balance: Effective performance measurement goes beyond simply counting numbers, as it needs a comprehensive understanding of an employee’s contributions and their influence on the expansion of the business. This is made possible by incorporating qualitative elements like engagement, collaboration, and innovation.
- Continuous feedback and growth: Many businesses are using continuous feedback loops instead of the traditional annual reviews. Periodic performance reviews and regular check-ins encourage ongoing conversations between managers and employees, facilitate growth discussions, and identify areas that need improvement.
In conclusion, the modern business landscape demands a strategic approach to unlocking employee potential. Performance measurement and KPIs are not just tools but pathways to aligning individual aspirations with organizational goals, combining qualitative and quantitative insights for a thorough understanding of employee contributions, and motivating continual improvement through timely feedback. By adopting best practices and an employee-centric approach, businesses may begin on a journey that empowers their staff, inspires innovation, and drives them to sustainable success in the dynamic global marketplace.
This article is written by Muhammad Ali Moustafa is a Business Management Consultant at The KPI Institute. He is a Certified KPI Professional (C-KPI) and Certified Performance Management Systems Audit Professional (C-PA). He has diverse professional experience in which he had the opportunity to work on advisory projects with different organizations, ranging from startups to multinationals.
The future of work requires transformation not just at the organizational level but also at the individual level. Changes in the job market induced by technological innovation contribute to the global skills revolution.
Klaus Schwab, founder and executive chairman of the World Economic Forum (WEF), believes that technical positions, such as data analysts/scientists, artificial intelligence specialists, big data specialists, and digital marketing and strategy specialists, will generate demand in the future.
According to WEF, about 50% of companies expected their full-time workforce to decline by 2020 due to automation. Meanwhile, more than half of all employees may be compelled to reskill and upskill.
Upskilling is defined by the Cambridge lexicon as ‘the process of gaining new skills or teaching workers new skills,” while reskilling is ‘the process of acquiring new abilities in order to perform a different job or of training others to perform a different one.”
How can employees prepare themselves for the revolution? Should they reskill or upskill?
If the last several years have taught us anything, work flexibility and an openness to change are essential for a successful career. Both reskilling and upskilling can help you future-proof your career and increase your employability. It’s critical to make the right decision, and here are some ways to help you determine your next career path.
Decide on your future career goal: Whether you want to stay in your current industry or move on to something new, it’s critical to be explicit. Decide where you want to go with your career and divide it into manageable chunks of information. With a clear plan, you can easily determine the steps aligned with your end goal.
Recognize your existing skillset: Before you try to better yourself, it’s important to understand your strengths, skills, and potential first. After you’ve written down your qualifications, ask bosses and friends to assist you to grasp your personal and transferable abilities as well as your role-specific ones.
Determine what you need to learn: A little research can go a long way here. Job postings, online career guides, attending industry events, and speaking with companies can all assist you in obtaining the information you need.
Choose a learning approach that works best for you: Online training is one of the finest solutions for reskilling and upskilling. Online courses are extremely adaptable, accommodating a wide range of learning methods and fitting seamlessly into even the busiest schedules. It is perfect if you want to maintain strong job standards while also preparing for the next big move.
The technological improvements of the last five years alone have caused enormous shifts in the types of skills needed today. Furthermore, an unprecedented pandemic has compelled sectors to rethink their approach to skill development.
On the other hand, the pandemic’s isolation protocols have resulted in a major push for remote workers. It appears that the shift is here to stay. Upskilling choices that are simple and accessible must be developed. Learning paths can make a difference in this area because of accessibility, flexibility, and effectiveness.
Businesses must invest in upskilling and reskilling in order to prosper. One approach to ensure this achievement is to use learning pathways. Upskilling has become a cornerstone of today’s business strategy that benefits both the individual and the company. However, it is also an investment to make. As more companies recognize the importance of upskilling and reskilling, now is an excellent moment to look for high-quality training programmes and certifications.
Both upskilling and upskilling are excellent options if you’re considering a career change but don’t want to work for a different organization.
In the context of the pandemic, the face of customer service was drastically changed by accelerated digitalization. One recent study developed by McKinsey discovered that customer interaction is now accelerated within 3 to 4 years. What count the most nowadays are customer needs or expectations, influenced by remote working.
Gartner developed a survey on customer service and 64% of respondents stated that the focus for 2022 is related to the growth of the business and client retention by using two main approaches: firstly, to prioritize people and processes, together with the best use of tech solutions, and secondly, improving the self-service-channel, by SEO optimization and organizational websites.
If the customer service and customer experience have changed, this means that customer service specialists should develop new skills or refine their skills so they can achieve greater results. In 2022, customer service representatives (CSR) should blend technological skills with data and more specialized talent, which means it is essentials for the companies to invest in training and development. There are five skills that any CSR should focus on mastering and what skills talent management specialists should look for when they are trying to hire new customer service specialists.
CSR agents are not IT specialists. However, they can influence and offer feedback on the tools they are using because they listen to the customer and know their issues best when they navigate on the company’s websites or chat boxes.
- Tip #1: Use WhatsApp like a Pro
WhatsApp has become one of the most efficient channels to use in customer interaction. Having 2 billion users, following Facebook and YouTube, it has become the third most popular social media channel and the most popular global mobile messenger app.
The most recent tool, integrated by WhatsApp is Click to chat, which works for both its mobile app and the web browser which allows you to chat with someone without having their phone number saved in your phone’s address book. You only need the phone number of the person you want to chat with and the country code using this link in HTML format: https://wa.me/<number>. Going to that link will open a chat function with the person.
If having tech skills is a need that is making strides, having emotional intelligence is just right behind it. Service agents can hear and feel a customer’s irritation over the phone and can solve issues as quickly as possible. Another great way of using emotional intelligence is social listening.
- Tip #2: The Five-Minute Golden Window and Instant gratification
Dr. James Oldroyd discovered in 2007 in his Lead Response Management Study, that agents who can answer to the client in less than 5 minutes from the inquiry submission can be 100 times more able to contact the client and 21 minutes to win a sale, than the agents with a later 30 minutes reply rate.
A KPI which can be measured and can help improve the speed of answer is # Speed of Answer (SA). It measures the average speed of answering a customer’s call by an available agent after the call is being placed in a queue. Other variations are:
# Average speed to answer a phone call (ASA)
# Time of answer
# Average time to answer (ATA)
#SA is used to indicate the call center operators’ accessibility and rapidness. It can impact the caller’s satisfaction and long-term loyalty.
- Tip #3: Improve Live Chat Speed of reply
Millennials use to chat more on Live Chat than baby boomers. They value personal and instant interaction; they want to speak to a real person and are not happy if they wait long to receive a reply. This means CSR should master Live Chat communication skills and improve their #SA.
A recent study developed by Super Office showed that the average reply to a chat is estimated to be 2 minutes and 40 seconds, with the fastest reply time being 7 seconds while the longest took around 9 minutes. The live chat should include pre-written templates, a personal welcome template, and some FAQs prepared, rather than having manually type out replies. The reply time can vary from each field of interest; as such, each business should benchmark its results with its competitors.
Customer service means customer interactions, and the clients always seek a human touch when they need help with a product or service purchase.
- Tip # 4: The mirror technique
When interacting with a customer, the real success lies in the ability to adapt to the customer’s communication style and expectations, then to mirror and respond adequately. For instance, if the communication is performed on the phone, what matters the most is to promptly answer and solve the issue. It is also important to talk as some customers need this kind of interaction.
Let’s see other useful tips:
– Always introduce yourself
– Feel the customer
– Personalize the interaction
– Avoid negative phrases
– Avoid customer interruption
– Communicate clearly and concisely when offering solutions.
Personalization and micro-moments
The customer is bombarded with content, and the most important fact is to use the right time or moment and to provide a quick solution. Micro-moments basically happen when people reflexively use their devices and search, watch, or discover something. If you can reach them at that time, the chances that they will buy from you are high.
- Tip #5: Send Live Chat transcript as a follow-up email
CSR agents should use their imagination in various aspects of their jobs. They can make customers feel special by having a better understanding and response to their individual needs.
CSR agents can send personalized email headers and subject lines, but finding the right time to send a personalized offer that will help the customer to reach his goals is essential. Live Chat transcripts can be also another smart way to reach the customer when following up.
Working remotely with skill and passion
The COVID-19 pandemic has changed the way people work forever, and there is no sign of going back to normal soon.
Working from home is quite more challenging than working from an office. It can require having a dedicated home office, a dedicated phone line or a phone software solution, an updated PC, or a good phone headset, and that’s besides having a good internet connection.
Apart from that, social isolation, issues with teamwork and collaboration, sedentarism, and finding a balance between life and work are also other challenging aspects.
- Tip #6: Level up your motivation while working remotely
Think positively and focus on telecommuting advantages such as working from the comfort of your own home, being closer to your family, and others.
For some people, dressing for work at home can be a good tip. Others may find that eliminating checking social media channels during work or turning off notifications on their phone might work. Sometimes, a short break outside or taking in some fresh air can be the best remedy.
Another useful activity to keep you motivated would be to invest in continuous learning and training. This will keep you focused and help you become more productive.
Customer service is now in an era of innovation, being anchored on customer experience. There are also other important skills a CSR agent should have and improve, such as product and industry knowledge, consistency, patience, perseverance, accountability, empathy, critical thinking, problem-solving, and many others.
A great way to keep pace with 2022 trends is achieving The Certified Customer Service Performance Professional recognition, through which you will be able to manage, monitor, and evaluate your overall Customer Service Performance, and have a direct positive impact on customer loyalty.
Is the age of a founder an important determinant to start-up success? This is a question that a lot of people have sought to answer in recent years. The proliferation of start-ups has brought about a new age of successful billion-dollar companies that 5-10 years prior were not in existence. However, with every new entry into the unicorn league, there are other start-ups that are unable to achieve lift-off, and as a result, fail. Success in the start-up universe is not a given.
Numerous attempts have been made to unravel the science behind start-up success. These led to various studies that sought to link founders/entrepreneurs’ personalities or traits to start-up success. In recent years, there has been growing interest to examine whether a relationship exists between the age of founders when they first got started and the success of their start-up.
Studies between age and start-up success
There is a commonly held view that most start-ups are created by founders that are as young as age 35 and below when they first established their start-ups. According to existing research, reasons for this can range from the high risk-taking behavior of many young people to the numerous famous stories about young successful founders such as Mark Zuckerberg, Bill Gates, and Peter Thiel are just amongst the examples of those who were quite young when they founded their start-ups.
These reasons notwithstanding, a review of empirical studies has shown that there is no consensus on the connection between a founder’s age and the success of a start-up. Rather, existing research on the relationship between the age of founders and start-up success revealed findings that pose more questions than provide answers. An early study by Frick (2014), which sampled 35 Venture Capital-backed firms from Wall Street Journal’s Billion Dollar start-up cluster list, found out that the mean age of founders of successful start-ups was 31 years.
This finding is in contrast with the widely cited study by Azoulay, Jones, Kim, and Miranda (2020) which studied 1,700 fastest-growing start-ups in the USA that were in the top 0.1% in terms of employment growth and found that the average age of founders was higher at 45 years. The authors cited the prior working experience of the founders as being a key reason for why they were successful. A more recent study by Tamaseb (2021) revealed findings that further highlighted the ambiguity in this argument by concluding that, although the average age of founders of successful start-ups was around 34 years, most of them had a minimum of about 10 years of work experience which may have played a role.
Ultimately, the arguments made in these studies do not point to any consistency towards the existence of a direct relationship between the age of founders and the success of their start-ups. There are other factors to be considered too, such as the work experience of founders, the location of the start-ups, the type of industries targeted by most start-ups in an environment. These factors come into play when these arguments are being made but are not the key determinants of start-up success.
The process towards success
So, the question remains. What determines the success of start-ups? The answers to this question may lie in the concept of entrepreneurial actions. Looking at start-up success through this lens allows us to ask the question “What are successful start-up founders doing so well that others have not been able to emulate?”
A point to be made is the realization that the start-up activity is steeped in uncertainty; like any scientist will tell you, the process of scientific discovery happens after numerous rounds of experimentation, testing, and learning. Start-ups that have been able to achieve success have maintained this ethos of continuous experimentation, testing, and learning. This process ensures that they can properly identify problems that customers deem to be important, provide a solution that addresses such problems, study a market size that makes the solution economically viable, and create a culture that allows them to pivot in the event of poor problem-solution or solution-market fit.
We just may have been looking at the whole thing all wrong from the beginning, and not asking the right question. When looked at broadly, the age or other personality traits of founders when they establish their start-ups is irrelevant and does not determine start-up success. Rather, the focus should shift to finding how to create a blueprint of actions that founders can implement towards improving their chances of success.
Do some managers avoid giving employee feedback because of employees’ reactions or are there any other reasons?
In a 2009 Gallup survey, more than 1,000 US-based employees were sought to qualify the impact of feedback on employees. The results show that managers who focus on the strengths of employees when giving feedback create a solid level of employee engagement.
Accordingly, a manager who gives little or no feedback is not able to engage 98% of the employees. Therefore, to make employees engaged in your future vision, they need to know that their contribution is valued and that they are helping the organization to reach its goals. On the other hand, when managers avoid giving feedback, they make employees feel ignored and unimportant.
Reactions to feedback
Sometimes managers feel uncomfortable providing feedback, especially when it is negative. They often worry that the employee receiving the feedback may react defensively, ignore the message behind the feedback, or blame the manager. Some managers are not skilled to constructively provide feedback, lack confidence, or fear confrontation. They may not have enough experience to give feedback or were never trained to do so.
An employee’s reaction depends on how feedback is presented, one’s readiness, and the ability to adapt to changes. Some employees are not always sure why they are receiving a particular feedback and what the managers want them to do.
An employee may become defensive when feedback sounds like criticism, fault-finding or disciplinary, especially when it is the first time the employee is hearing the information. When employees are confronted about their poor performance, the discussion may trigger feelings of self-doubt, mistrust, and insecurity. A more effective approach is to focus on the desired positive performance rather than highlighting shortcomings.
Feedback is stressful
When managers give feedback, employees are often confused about the manager’s purpose. Sometimes, feedback receivers don’t know how to react because they are not ready to change their behavior. In fact, managers don’t always understand the inability of the subordinate to change so they avoid giving feedback rather than understanding the change process.
In general, managers believe that giving feedback is stressful or difficult because they either don’t have the time to give feedback or they have too many subordinates to be evaluated. On the other hand, managers avoid demotivating employees or want to prevent conflicts. Additionally, managers sometimes believe that employees are responsible for their own development.
Remember that performance and evaluation data are not completely helpful when they are not communicated and interpreted properly between managers and employees. What managers can do to overcome the discomfort of giving feedback is to schedule a feedback routine so that employees will be prepared. Managers can also break the ice with detailed constructive feedback.
Feedback is a gift
Whether you are receiving it or giving it, feedback can be considered as a gift. Feedback should be presented properly and should have something unique and meaningful inside that beautiful package. Here are some things to keep in mind for managers when providing feedback for their employees.
First, employees need feedback to grow and develop. Have short, frequent, and regular one-on-one meetings to find out what is important to your subordinates. Discuss progress and barriers and build trusting relationships.
Second, there are a variety of courses that can help managers improve their skills on performance management. You can sign up for The KPI Institute’s Certified Employee Performance Management professional online training course.
Finally, consider your employee’s success as your own success. Employees who receive feedback are more likely to be successful. It is true that employees are responsible for their own development, but managers can help their subordinates focus on meaningful opportunities based on their needs.