Agreeing on performance so far
A key requirement in setting the right priorities for $Company is to know how well we have been doing, and where we need to course correct. This is why we are as open as possible with an objective assessment of our results, from the executive level down.
Performance against plan
Assuming we have set the right metrics for our OKRs and KPIs correctly, we can easily see how we are performing against plan and what the end result was after we finish a week, a month, a quarter or a year.
Whenever someone mentions “performance against plan”, people can instinctive fear of being labeled an underperformer. This can lead to people proposing no metrics at all, vague metrics or a goal they can easily beat. This can quickly lead to a mediocre organization.
In stead, think of “performance against plan” as an athlete who wants to get better. The plan is driven by their regular performance and their goal. The performance sometimes overshoots and sometimes undershoot, but they keep trying. Now imagine the same athlete practicing every day without any plan, any metrics, any timing. How quickly would they improve now?
Performance againt benchmark
To make sure we set ourselves realistic targets, we also try to gather benchmarks to compare against, especially from other fast-growing startups with a similar business model as ours. $Company investors, our coaches and the MidStage Institute are often good sources for benchmarks.
We use benchmarks primarily to evaluate “goal ambition” when setting a target. For ongoing goals, we should track performance against plan–after all, the plan represents the yardstick we all agreed would be good for that metric.
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