Implementing a Key Performance Indicator (KPI) System is a vital step in strengthening an organization’s performance management and strategic alignment. However, to ensure the KPI system brings meaningful value rather than becoming a bureaucratic burden, it must be introduced with care.
Two of the most critical factors in this process are the speed of implementation and the timing of deployment.
The speed of implementation is a delicate balance between urgency and patience. While it may be tempting to fast-track the process to show quick wins or satisfy leadership expectations, introducing a KPI system too quickly can backfire. People are naturally resistant to change, especially when it brings new procedures or measurements into their daily routines. If the implementation is rushed, employees may view the KPI system as an imposed burden rather than a valuable tool. This resistance can erode trust, reduce participation, and ultimately lead to the failure of the performance management system (PMS).
Instead, leaders should consider a phased and inclusive approach. Gradually introducing the system allows time for employees to understand its purpose, see the connection to their work, and feel part of the process. This builds a sense of ownership and alignment with organizational goals. A KPI system should foster focus and clarity—not just create more forms and dashboards. Without this human connection, it risks becoming a layer of paperwork that adds complexity without driving results.
Equally important is the timing of deployment. Organizations operate in cycles, and there are always periods of high intensity—year-end closings, peak sales seasons, or major product launches. During these high-stress periods, teams are focused on immediate deliverables and managing volumes, not learning new processes or reflecting on long-term measures. Introducing a KPI system during these busy times can overwhelm staff and lead to poor adoption.
To maximize impact, the implementation should be scheduled during a quieter period when people have the bandwidth to engage with the system thoughtfully. This allows better participation in workshops, training, and feedback sessions. It also ensures the system is not seen as an added stressor, but as a support structure that enhances performance and decision-making.
Ultimately, a KPI system must be more than a technical exercise. It requires cultural adoption, leadership commitment, and careful planning. The right speed ensures people can adapt and connect with the system, while the right timing ensures they have the energy and attention to engage meaningfully.
In conclusion, the implementation of a KPI system should not be rushed or poorly timed. Success lies in managing change with empathy and strategic foresight. By respecting the pace of human adaptation and the rhythms of the business, organizations can build a KPI system that is not only effective but also embraced by those it is meant to empower.
A performance management system enables an organization to monitor and, if needed, improve its performance. Without one, the organization is essentially missing a foundational pillar, one that is crucial to its success and longevity.
Find out how to implement a performance management system by watching The KPI Institute’s Andrea Minelli as he goes over each step in detail.
Nawaf Al Omari boasts over a decade of experience in optimizing teams and driving project management success. He excels at forecasting staffing needs, resource management, and fostering collaborations, with a 40% increase in stakeholder satisfaction. Prioritizing data-driven decision-making, he is adept at mitigating risks, tracking KPIs, and achieving cost reductions. Nawaf is strongly committed to delivering results and operational excellence.
In this interview with Performance Magazine, he explores how establishing strategy and performance management systems can improve the resilience of organizations to future crises. He also shares his perspectives on cultivating best practices in employee engagement that highlight professional development, well-being and flexibility.
Trends
In your opinion, what are the key trends in organizational performance management in 2024?
Employee alignment with corporate objectives is essential to the success of a corporation. By ensuring that everyone is working toward the same goals, productivity and efficiency are maximized.Some crucial techniques involved in this approach are clear communication, goal setting, performance management, rewards and recognition, and training and development.
Which of the existing trends, topics, or aspects within performance management have lost their relevance and/or importance in your opinion?
While performance management is continuously evolving, it’s important to understand that a few aspects have lost their relevance, such as limited employee involvement. Traditional performance management systems frequently did not involve employees in setting goals or providing feedback. The current trend emphasizes collaborative goal-setting, self-assessment, and two-way communication to create a more engaged and ownership-driven approach.
What does the corporate performance management system of the future look like?
Gamificationis a cutting-edge strategy that may successfully bring employees on board with company objectives. This technique can improve employee engagement, motivation, and performance in the workplace by introducing game-like features, including competition, incentives, and feedback.
What will be the major challenges in managing performance in the future, and how should organizations prepare for them?
Leading a globally distributed workforce has distinct difficulties, particularly considering the growing popularity of remote and hybrid work arrangements. The reason is because it might be difficult to manage and assess performance in many places effectively due to the issues that come with collaboration, communication, performance evaluation, and engagement, as well as the new approaches required in these areas.
How is technology impacting the way organizations conduct strategic planning and manage performance? Any specific tools you would like to mention?
With the use of big data and analytics technologies, companies today can collect and examine enormous volumes of internal and external data to gain a greater understanding of consumer behavior, market trends, and rival performance.In addition, businesses can use sophisticated software to simulate several strategy alternatives and assess possible outcomes while reducing risks.
In terms of performance management,technologies can help organizations facilitate regular feedback and provide data-driven performance evaluation. This approach can help assess outcomes objectively, track progress, and define SMART targets.
How is sustainability impacting the way organizations conduct strategic planning and manage performance? Any specific aspects you would like to mention?
Sustainability is essential, not simply a trend. Enterprises that adopt and incorporate sustainability into their fundamental approach will be in a favorable position for long-term success. Organizations can create long-term value, enhance their reputation, and contribute to a more sustainable future. It’s a win-win for the environment, society, and the organization’s bottom line.
What should be improved in using strategy and performance management tools to make an organization even more resilient to future crises?
Organizations must take into consideration enhanced risk management, data-driven decision-making, and employee development and well-being to enhance performance management and strategy tools for greater organizational resilience to upcoming crises.
While navigating these challenging times, what would you consider a best practice in performance management?
Organizations must develop a performance management system that, even in times of difficulty, encourages engagement, resilience, and a workforce prepared for the future by using these best practices. During these difficult times, there can be a shift from passively assessing performance to actively assisting and growing staff members. Emphasizing employee development, well-being, open communication, flexibility, and adaptation during challenging circumstances can help businesses overcome obstacles and build a resilient and engaged workforce that is ready for the future.
How does benchmarking support the improvement of performance management and target-setting systems?
Enhancing performance management and target-setting systems may be achieved by benchmarking, i.e. the method of evaluating an organization’s performance against competitors in the same industry or against industry best practices. Organizations may discover areas for development, obtain important insights, and eventually create and execute a more flexible and effective performance management and target-setting system by utilizing benchmarking successfully.
Research
Which organizations would you recommend being observed due to their approach to managing performance and its subsequent results? Why?
Several firms are noteworthy for the way they handle performance management and the outcomes they produce. Here are a few companies known for their innovative performance management approaches:
Adobe removed annual reviews for frequent check-ins to foster continuous development.
Netflix applies 360-degree feedback for a more well-rounded perspective on employee performance.
Microsoft moved away from annual reviews to focus on goals and development through regular feedback.
Given their importance in practice, what aspects of performance management should be further explored through research?
Several performance management aspects require more investigation because of their increasing significance and dynamic character in the workplace. Some of these are the relationships between the well-being of employees and performance management as well as the analytics and data used in performance management.
What are the key competencies of a successful business leader (C-level executive)?
They should possess fundamental abilities in the areas of strategic vision and thinking, innovation, and adaptability to handle difficult issues and guide their enterprises toward prosperity.
What are the key competencies of a strategy and performance manager that are necessary to succeed nowadays?
In today’s fast-paced corporate world, a strategy and performance manager’s ability to succeed depends on a special combination of hard and soft skills. They should have strategic thinking and planning abilities and knowledge of performance management and change management.
What processes and tools do you look at when differentiating a successful performance management system from a superficial one?
It takes more than simply looking at processes and resources to recognize the effectiveness of a performance management system. The effect on employees and the broader culture of the company are important factors to consider. Businesses might develop systems for performance management that go beyond employee evaluations. They may promote a culture of ongoing education, growth, and involvement, making the workplace better for everybody.
What are the recent achievements in generating value from performance management in your organization?
Several noteworthy successes in deriving value from performance management can be attributed to recent technological advancements and changing work environments, such as continuous performance management, personalized development, and employee engagement.
For more in-depth interviews with world-class professionals, visit Performance Magazine’s Interview section here.
The real estate industry pulsates with the rhythm of performance. From agents closing deals to property managers ensuring optimal occupancy, individual and team success directly translates to organizational growth. In this high-stakes environment, a well-implemented Performance Management System (PMS) emerges as the conductor, harmonizing individual efforts and driving the symphony toward desired outcomes.
A PMS is more than just a goal-setting exercise. It is a comprehensive framework designed to establish clear, measurable objectives, track progress against those objectives, and evaluate individual and team performance throughout the journey. It fosters a culture of accountability and continuous improvement, ensuring that all efforts are aligned with the organization’s broader strategic vision.
The symphony of benefits in real estate
The implementation of a PMS in real estate unlocks a multitude of benefits, allowing organizations to:
Empower individuals and teams: By setting SMART goals(specific, measurable, achievable, relevant, and time-bound) and providing regular feedback, the PMS empowers individuals and teams to strive for excellence.
Make data-driven decisions: The PMS serves as a reliable source of objective data on performance, allowing for informed decisions regarding resource allocation, marketing strategies, and talent development.
Drive client satisfaction: A PMS aligns individual performance with customer satisfaction metrics to deliver exceptional service and exceed client expectations.
Cultivate strong talent management: Identifying strengths and weaknesses through performance evaluations allows for targeted training and development opportunities, leading to a more skilled and motivated workforce.
Adapting PMS for diverse roles
While the core principles of a PMS remain consistent regardless of the industry, it is crucial to tailor the system to address the specific needs of diverse real estate roles.
Real Estate Agents:Some important indicators are # Listings closed, $ Average selling price, # Customer satisfaction score.
Property Managers:Crucial areas for evaluation include % Occupancy rate, $ Maintenance costs, % Tenant retention rate, and % Adherence to regulations.
Brokers: For overall portfolio performance, organizations can use % Return on Investment (ROI) and % Growth Rate. For team productivity, they can consider # Time spent per task completion, # Average time to close a transaction, % Tasks completed without errors, and % Lead conversion rate.
Appraisers:The key metrics to consider are % Accuracy of valuations, % Timely report delivery, % Client satisfaction.
Mortgage Loan Officers: Organizations can look into # Loan origination volume, % Loan approval rate, and % Customer satisfaction.
Leasing Agents:A few important evaluation points to consider are # Leases signed, % Lease renewal rate, and % Tenant satisfaction.
Facility Managers:The major points for measurement are # Maintenance response time, % Budget adherence, and % Tenant comfort level.
Building a sustainable performance culture
Implementing a successful PMS requires commitment and careful planning. Here are some key steps:
Define roles and responsibilities: Clearly outline expectations for each position within the organization, such as property managers focusing on tenant relations and leasing agents prioritizing property marketing strategies.
Develop clear and measurable goals: Ensure that goals are SMART and aligned with the organization’s strategic objectives, such as setting targets for property occupancy rates and rental income growth over specific time frames.
Choose the right tools and technology: Consider implementing dedicated software solutions to streamline the process, such as CRM systems tailored for real estate to manage client interactions and property databases efficiently.
Foster open communication: Provide regular feedback and encourage open communication to facilitate continuous improvement, such as conducting monthly team meetings to discuss performance metrics and address any challenges or successes in property management.
Adapt and evolve: Regularly review and update the PMS to ensure its relevance to evolving business needs and industry trends, such as incorporating new regulations or market demands into performance evaluation criteria and adjusting goal-setting accordingly. Moreover, companies can utilize real-time data analytics tools to monitor market trends and adjust strategies accordingly.
In conclusion, a PMS is not just a tool; it is the foundation for a thriving performance culture in the real estate industry. By aligning performance with desired outcomes, real estate companies can unlock their full potential and ensure long-term success in this dynamic and competitive landscape.
*****************************
About the Author
This article is written by Rami Al Tawil, the General Manager of Organizational Excellence at Al Saedan Real Estate Company. He holds a master’s degree in industrial engineering from Jordan University of Science and Technology. With 19 years of expertise spanning strategy planning, performance management, business improvement, and more, he excels in aligning employees with strategic visions for consistent performance improvement.
Any successful and developed performance management system must include the following main stages: planning, implementation, evaluation, and improvement.
Institutional performance management begins with the planning stage, which ends with the preparation of the strategic plan—a plan developed for several years that aims to bridge the gap between the current situation and the desired future vision. Determining the plan’s link with financial planning and the rest of the material, human, and technical resources and property, as well as at the planning stage there is a link with the general framework of risk management as it is necessary to determine the type of risk that could impede the implementation of the strategic objectives and how to deal with the risk during its occurrence, which requires the existence of institutional agility in leadership while dealing with it.
At this stage, the policy development guide is adopted, which is considered one of the basic capabilities to ensure the implementation of strategic objectives and government directions. Indicators and targets must also be set because of their importance in planning, monitoring and evaluation to see what has been achieved of the strategic objectives.
The execution phase involves ensuring the plan’s successful implementation of the strategy. This is where operational action plans are developed and implemented, which include strategic initiatives and projects that ultimately lead to achieving the results of the strategic objectives and bridging the performance gap in the strategic objectives that were measured through performance indicators. This phase also involves the application of a general framework for change management, which is designed to bring about a positive shift that moves the organizational unit and organization from one state to another in order to achieve the strategic objectives in an efficient and effective manner, which may deal with changing the organizational structure, policies, programs, procedures or processes in accordance with the application of the ADKAR model criteria for change management.
It is also possible to choose initiatives and projects (especially the strategy) from the reality of the organizational unit’s work plan, to which the concepts of change can be applied. At this stage, performance indicators are measured, the main purpose of which is to know the level of achieving the strategic goals. Therefore, on all indicators, whether strategic or operational, there are “Lead” indicators that measure efforts to achieve the goals or “Lag” indicators that measure the long-term results of the strategic goals, on all of them to contribute to achieving the strategic objectives of the organization. Any indicator that is far from achieving this should be excluded from the measurement.
Measuring performance indicators contributes to the enhancement of institutional learning, motivates employees to achieve higher levels of strategic performance, and enhances accountability and transparency in the institution. At this stage, implementation begins through the general framework of risk management in terms of identifying risk treatment options, the method of treatment, preparing a risk treatment plan, and following up on the extent of implementation of said plan.
Policies that support the realization of the strategy are applied through the preparation and development of an implementation plan that includes various resources, timetables, risk management, communication, monitoring, and evaluation. Monitoring is necessary to assess the effects of the policy so that there is a possibility to adjust the plan and methods of implementation (if required).
A policy follow-up mechanism must also be set up and this can be done by developing and measuring policy effectiveness performance indicators. Finally, at this stage, strategy governance was addressed, which is the framework for action that ensures the implementation of the strategy and the achievement of its objectives in terms of forming work teams, follow-up, review, accountability, reporting, and evaluation.
The third stage is the evaluation stage, and it includes auditing processes, which aims to provide accurate data on how to implement the main stages of the general framework for operations management by defining, designing, documenting, applying, measuring, and following up on the performance, improvement, and development of processes. Institutions can also measure the maturity of processes through several criteria, namely: strategic alignment, culture and leadership, personnel, governance, methodologies and methods, and information technology.
They can also evaluate services through several criteria, including: linking services to strategic directions and goals, focusing on customers, defining performance standards and indicators for services to reach customer happiness, evaluating service delivery channels, measuring and evaluating customer happiness and adding value to them, and evaluating the human resources that provide services. This stage also includes evaluating indicators and targets, as well as evaluating policies and measuring their effectiveness.
The fourth and final stage is the improvement stage, and it includes reviewing and updating the strategic plan. There are two types of review and update of the plan: periodic annual review and comprehensive update of the plan after the end of the plan period of 3 years or 5 years. This stage also includes updating and improving operations, and there are 7 main steps to do so. The processes are: selecting the work team, analyzing the current process, developing indicators of the results of the process, determining the extent of process stability, determining process viability, and determining the feasibility of an improvement.
This stage also includes the improvement of services as the mechanism for improving them depends on various improvement sources, such as suggestions, complaints, satisfaction studies, studies and analyses, the results of measuring service performance indicators, and others. As for the steps and stages of improvement, they are: describing and analyzing improvement opportunities, identifying improvement action, evaluating the priority of applying improvement action, and evaluating the possibility of applying improvement action.
And here comes the role of benchmarking, which is the process of searching for and implementing best practices that increase the rate of improvement by providing the finest models and achieving improvement goals that lead to creating outstanding performance for the organization. It is a systematic and continuous process of comparison, measurement, learning, and continuous improvement by studying different models inside or outside the entity to reach the same level or excellence by applying the developed methods based on the results of the study. Comparisons are also one of the most important drivers of change in organizations, particularly when the outputs of comparison are employed in offering initiatives and innovations that improve previous work methods or lead to unprecedented successful methods which achieve pioneering in various fields.
Finally, analysis and improvement tools must be used to analyze all the problems facing the organization, including those related to the results of performance indicators. And in addressing the cases in which analysis and improvement tools are used, some important tools in analysis were explained, such as: Pareto analysis, mind map, brainstorming, the Five Why tool, and others.
About the author: Dr. Hisham Ahmad Kayali is a Strategic & Performance Management Specialist who has worked with the Dubai municipality. He participated in the full cycle of updating Dubai Municipality’s strategic plan based on balanced scorecard (BSC) perspectives. That included linking the strategic objectives to critical success factors, key performance indicators, and initiatives for the cycles of 2010-2014, 2013-2015, and 2016-2021. He has a Phd in Economic Science at Plekhanov Russian University of Economics.
