Targets are not the point

Not so long ago, I did a consulting session with an executive team from a tech company.

They were upset because they did not meet their yearly targets and wanted help figuring out how to share the news with their broader team.

I showed them (1) how their performance review was missing a key point, (2) how they could align it better with what actually happened, and (3) how to phrase it to strengthen their storytelling.

They improved their review and told a data-supported story.

A story about how their collective effort propelled results

Yes, they’ve missed their arbitrary targets, but here are three examples of what they’ve gained instead:

• They increased their revenue from innovative solutions by 34%
• They moved from 5th position to 1st on a well respected industry ranking (while their benchmark stalled and/or lost positions).
• They uncovered +100 hidden talents, now with a bespoke career growth path.

Measure relative progress instead

You can use actual progress (from starting to ending point) to measure performance.

Then, to get it closer to reality, compare your actual progress with a relevant benchmark (i.e. similar companies, industry reports, etc.). Isolated measures are myopic measures.

It is not the same achieving 80 points on a good year than achieving 80 points on a bad year.

Here’s another example

Context matters. Make it central for your next performance review

(Write me back if you need advice on how to apply this into your specific business).

Also, be cautious with “crystal balls,” lest they whisper you a sneaky tale of defeat... when, in fact, you’ve been moving mountains. Mountains!

Alberto