“I am frustrated at work,” Jarrod said to me.
“What is the issue?” I asked.
“My manager sets targets—he calls them key performance indicators (KPI’s)—for me to achieve. He says I need to sell $2.5 worth of services per year and he sets specific metrics for new prospects, selling attempts, repeat business, and revenue collected.”
Jared was convinced that the targets were deliberately high. He also believed the manager would keep increasing the targets no matter what. “I spend a lot of time documenting my efforts in case I miss a target, and I do not invest time in long-term projects even though they may have potential value.” Jared also refused to help individuals in other departments. He did not think his efforts would directly impact his personal KPI’s.
Six months later, Jarrod told me he had a new boss that he really liked.
“What is different?” I asked.
Jarrod said she regularly talked with him about KPI’s but did not set specific performance targets. Her typical communication was, “What do you need from me?”
Jarrod became more energized; and after two months, his performance regularly exceeded his previous boss’s expectations.
Without proper support, performance metrics may lower commitment, hamper teamwork and increase turnover.