Performance measurement is considered a management exercise, so it is natural to think that managers and owners determine what to measure. In other words, they determine what KPIs to put in place.
Though this might be a common practice, it is not the best approach.
At the corporate level, the overall business goals determine what the high level KPIs are. Once these KPIs are established, teams need to be involved to determine what the operational KPIs are.
Since workers are closest to the daily activities, they have firsthand knowledge on what is meaningful to monitor. The collaboration helps the business focus on areas that are important to delivering the business goals.
In addition, workers are familiar with the tools deployed, which helps to sort out whether data is available for the KPIs.
There is also the benefit of building buy-in by engaging orkers in the process.
When you shift the KPIs selection exercise to a collaboration approach, you have KPIs that are meaningful to the workers and build commitment at the same time, which is critical to results delivery.
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