There was no such thing as a sure thing, until we entered the data dimension. Until business became obsessed with big data and self-assured by the fact that virtually anything could have a return attributed to it. Business leaders began to lean on data intensely and kill off instinctual decisions. The boundaries of KPIs could be pushed. This has led to a dangerous period for business innovation and a sad state of affairs for many employees.
There’s no question that data and KPIs are good things, and more granular data to create more accurate and realistic KPIs is a significant benefit of big data. But it has also created a complacency in business that fails to realise what truly drives KPIs: human performance.
Boost human performance with culture & engagement
It’s not insignificant that during a period of substantial growth on the reliance of data, a parallel push to bring business culture and engagement into the mainstream has also occurred. And it has worked. Forget about the starts-ups with a room full of hoodie-wearing, ping-pong playing, bean-bag-sitting millennials. That’s not culture; that’s a PR gimmick.
The real benefit to culture and engagement is the realisation that it will positively affect human performance, which makes KPIs more achievable and innovation realistic. The acceptance of the principle and execution of a plan to make it happen are different things. This is difficult in businesses bound by history, tradition or politics. It’s these organisations that need to focus on engagement the most.
Too many business leaders are hampered by numbers. At some point, you have to trust your gut.
Engagement should be at the heart of any business. Engage with your employees and the results will soon show in the KPIs. Realise that certain aspects of engagement can’t be led by numbers and that risk still creates reward, and business opportunity will suddenly expand. Big business has become risk averse and it is hard to come across proof that a cultural reshape is required even when it is in desperate need.
Engagement shapes KPIs
Ironically, let’s prove this with data. According to Gallup, business units where employees feel engaged with what they do show a 21% increase in profitability. They also achieve up to 59% less turnover compared to business units that are not engaged. It may seem like I’ve stepped on my point by using data to prove the value, but it’s the chicken and the egg. Business that can quantify the success of investing in meaningful engagement had to engage first and take a leap of faith.
The cycle is simple. Engagement shapes KPIs, KPIs lead to innovation, innovation keeps employees engaged. It also brings in new business and keeps current clients happy. On the most basic level, if your employees are hitting their KPIs, they are gaining confidence. They are also looking to push themselves further. The 2 combined will deliver a stronger focus on innovation, which can be the difference between your business being in the pack or ahead of it.
Innovation flows from engagement
If your employees are too focused on hitting unrealistic KPIs, or the culture drills into them that the numbers are the only things that matter, they will never shift away from that very specific target. The repetition will deplete their energy levels and innovation will be killed off.
Innovation flows from engagement. Engage first, see the effects on KPIs, then watch as employees push to innovate due to open communication, a happy workplace and the sense that management understands their value. If KPIs are not being met, it is generally either that the employee/s are not suitable for the job; or the KPIs are too hard. If it is the latter, healthy engagement will empower them to bring this issue up with you for new KPIs to be set. Innovation will not be crushed.
Too many business leaders are hampered by numbers. At some point, you have to trust your gut. Invest in creating a more engaged workforce, whether the numbers match up or not. Then you can lay the groundwork for innovation.
