We answer all your questions on continuous feedback in this article. From frequency and best practices to integrating feedback with reward decisions and much more
Most organizations today are in the midst of adopting a continuous feedback approach to improve employee performance and organizational success. If you have joined this bandwagon, you would have several questions in your mind around the same. Questions around the best practices, the common pitfalls, duration and frequency and much more.
To help you leverage the continuous feedback framework, we have compiled a list of all the questions you might have along with answers from industry experts.
When it comes to continuous feedback, the idea is to make the reviews short and regular. Instead of making it a long drawn annual process, try to offer reviews which are frequent and to the point. The reviews can be as frequent as daily or weekly or monthly.
PRO-TIP — Under continuous feedback, instead of focusing on a pre-decided timeline and frequency for reviews, go for an approach where you give your employees review and feedback when the need arises.
For instance, if you have inputs or suggestions on the way a particular task has been completed, share it with your team members in real time instead of waiting for the review cycle to commence.
Also, keep your reviews and suggestions concise and don’t elongate them just for the sake of it. Set the context and share your inputs. Therefore, when continuous feedback is concerned, the best frequency is to offer feedback in real time and keep it crisp and action oriented.
If you are part of a fast growing organization, you need to ensure that you adopt an effective and evidence-based approach to continuous feedback. Providing reviews and feedback to your employees in real time can be a great starting point. However, it is not enough to create a culture where continuous feedback contributes to continuous performance improvement.
Here are the top best practices you can leverage to augment the effectiveness of your continuous feedback focus:
Continuous feedback will only lead to better performance when you have a clear picture of the employee's progress. If you don’t know where your employee stands and in which direction they are moving, you will not have anything concrete to share in your frequent conversations. Therefore, it is important to constantly track the progress of your employees and provide them with appropriate timely feedback.
Your continuous feedback will only be effective if you promote and encourage dialogue. Simply sharing your inputs and feedback on a regular basis with your employees will not suffice. Rather, you need to encourage your employees to share their side of the story as well as voice challenges and provide feedback to you as well. This way, continuous feedback will ensure that a culture of improvement comes to the forefront.
To make continuous feedback effective, you need to have insights and intel on employee perceptions and opinions in real time. This will help you to preempt risks and address challenges in real time by providing appropriate feedback and support. You can do so by conducting employee pulse surveys which can go out on a daily basis. This employee pulse can help you lay the foundation of actions of your managers with empowering feedback.
QUICK READ — Check out these articles to learn how to make the most of your employee pulse surveys —
Finally, one of the key aspects to augment the effectiveness of continuous feedback is to ensure consistency and continuity. As a fast growing organization, you might be swamped with a lot of other priorities and continuous feedback might take a back seat.
Here, leveraging a platform like SuperBeings which can automate capturing employee pulse, sharing key insights and providing next steps for managers and guided templates for conversations can help maintain the momentum. Therefore, you must consider leveraging the right tools and resources to stay on track.
Get a hands on experience on how SuperBeings can drive continuous feedback in your organization, book a free demo today.
As mentioned above also, to make continuous feedback effective, you need to have a consistent approach. One of the best ways to achieve the same is by embedding continuous feedback in the very culture of the organization. The idea is to see it as a part of the flow of work, rather than an added responsibility.
Here are a few ways to embed ongoing feedback into flow of work:
To begin with, you need to focus on conducting constructive conversations regularly. When it comes to continuous feedback, it is not always about sharing with your employees where they can improve. It is equally about sharing some insights with them and learning from them how they feel and how work is going, what are the challenges they face etc.
Therefore, if you focus your efforts towards ensuring regular constructive conversations as a part of your workday, feedback continuity will be taken care of. Here you can also focus on creating a culture where 1:1 conversations are a norm.
Use a tool like SuperBeings to provide your managers with AI driven 1:1 meeting recommendations, conflict free time slots for 1:1 meetings whenever they need and guided templates for all crucial conversations.
It is important that you set a cadence with all your team members. It could be weekly, fortnightly or monthly, depending on the role and responsibilities and the relationship you share with them.
While you must offer feedback in real time, this cadence will become a part of your schedule to ensure that even when there is no apparent review to offer, you do connect with your employees on a regular basis, without it becoming an added burden.
When it is there in your calendar, it will be a part of your tasks for the day, and will not require any extra effort. SuperBeings integrates with your favorite calendar based on your feedback needs and helps you find conflict-free meeting slots with any one or more of your team members.
Next, you must focus on making feedback a core value for your organization. You would agree that for most organizations, there are certain values which are very important and can be seen being practiced by almost every employee. You need to make feedback one of the values.
If you are able to do so, continuous feedback will come as second nature to everyone in the team and will become part of the day to day expectations, rather than an added one.
If you are moving towards a continuous feedback approach, you might gradually realize that your regular ongoing reviews are replacing your performance reviews. There is often this challenge that most organizations face.
However, it is extremely important to keep the two as distinct because while the former focuses on real time challenges and concerns, it does not offer a holistic picture of the employee’s performance and will not be enough to assign appraisals, long term rewards and career planning.
Fortunately, there are a few ways in which the distinction between the two can be maintained and you can prevent continuous reviews from engulfing performance reviews:
The first step to avoid this is by not doing away with annual or bi-annual performance reviews and communicating the dates or the timeline for the same in advance. This will give out the message that while ongoing reviews are important, you are equally committed to performance reviews in the long run.
Second, it is important to emphasize the difference between the two and highlight the importance of each. You need to make your team members understand that while ongoing reviews seek to address challenges in real time and preempt any major risk, performance reviews seek to focus on long term performance improvement and gauge the impact of employee performance on organizational success and vice versa.
Ongoing reviews have a more short term and immediate focus and seek to ensure everyday work efficiency. Performance reviews set the tone for long term performance improvement and have a more pronounced focus. It is extremely critical to communicate this to your managers and executives, who are then responsible for ensuring that the same reaches their team members.
If you wish to prevent ongoing reviews from taking place of performance reviews, you need to have distinct parameters for evaluation of both. If you have similar parameters, your managers will have a hard time differentiating between the two and the whole purpose will be defeated.
Therefore, your ongoing reviews must focus on metrics of task and project completion, while the performance reviews should include parameters like organizational impact, personal and professional growth, etc.
Another way to prevent continuous feedback from taking place of performance reviews is to expand the scope of what continuous feedback entails. The idea is to broaden the idea beyond performance and goal setting to include different factors that influence employee experience.
Your continuous feedback could focus on augmenting engagement and talking about creating an empowering culture.
While your performance review will solely focus on the employee and how his/her contribution has been to organizational success, continuous feedback can take care of several other factors which enable employee growth and development.
There are several ways in which continuous feedback can ensure that rewards and recognition happen in the most effective and meaningful manner. Following are a few aspects that you need to keep in mind —
In the first instance, if you look at annual performance feedback, you might see that it is vulnerable to various forms of biases which come along when feedback is delivered after long intervals. Two of the most common biases include halo or horns effect and recency effect.
In halo or horns effect, your judgment of an individual’s performance might be clouded by a singular positive or negative event. Here you will end up seeing their entire performance with a tinted lens.
However, when you leverage continuous feedback, you are able to leverage real time performance insights which prevent you from making rigid assumptions about a person’s performance on the basis of a single event.
This will enable you to make fair rewards and recognition. It will help you recognize the efforts and performance the way it is and prevent you from anchoring your reward decisions only on one or two instances of employee performance.
In the recency effect, you might be vulnerable to gauging the performance of your employees based on the most recent events.
In an annual feedback approach, you might end up taking into account only the most recent aspects of the performance, which will only give you a myopic view. However, with continuous feedback, you can eliminate the recency effect and offer feedback in real time to ensure that every aspect of employee performance is given due credit and their rewards and recognition give a holistic picture of their performance.
Quick Read — Read Employee Recognition 101 to learn everything about implementing employee recognition programs the right way.
Continuous feedback is also a great tool to create a culture of continuous recognition. This has the potential to improve organizational score on factors like engagement, motivation, retention and an overall positive employee experience.
Continuous feedback can be aligned with rewards by creating a continuous recognition program to appreciate and reward performance in real time.
More often than not, when you delay recognition due to lack of real time and continuous feedback, its impact reduces considerably and it fails to act as a motivation tool for the employees.
One of the final questions that you might be struggling with would revolve around giving your managers constructive feedback in a continuous and regular manner. Here are a few ways in which you can achieve the same:
To offer constructive and continuous feedback, managers need to be armed with employee data. This refers to not only having relevant data points about employee performance and achievements, but also insights on what they feel and their opinion about the work and workplace. Constructive and continuous feedback stems from hard evidence based on which you can have a rational conversation for improvement.
Pro-tip — SuperBeings’ intelligent Sentiment Analysis can take your employee understanding to the next level. Book a free demo today to see it in action in your organization.
For feedback to be constructive, as a manager, you can’t simply share your point of view and expect the employee to absorb and execute the same. You need to give them a chance as well to explain why certain things panned out the way they did.
Furthermore, you need to understand from them what their plans are and how they seek to grow professionally and personally. For continuous feedback to actually be effective, you need to engage in dialogue because just listening to your monologue will end up frustrating your team members, because chances are that without their perspectives, you will end up repeating yourself every time.
Quick Read — Check out this list of 50 questions to ask in your next 1:1 meeting to ensure you are talking about what really matters.
One of the key aspects of constructive feedback is to ensure that some action points or next steps or solutions are discussed. Simply sharing with your employees what is working and what is not will not suffice.
This becomes even more important when the feedback is continuous because you are talking about challenges in real time and simply stating the problem without brainstorming on a possible solution is self defeating.
This does not mean that you have to force ready made solutions for your employees. Rather, it is important to have a good conversation to collectively identify potential solutions.
When you implement the continuous feedback framework in your organization, you will realize that there are certain risks and challenges that are likely to come your way. It is best to anticipate them beforehand and be prepared with appropriate solutions to ensure that they don’t retard your growth and hinder performance improvement.
Some of the common pitfalls that managers all around the world have come across include:
The first common pitfall that stands in the way of continuous feedback success is the lack of consistency. A continuous approach to feedback requires dedicated and consistent efforts towards tracking employee performance and creating feedback on the same. However, due to various priorities, fast growing organizations tend to lack consistency when it comes to feedback.
This is why it is crucial to use a continuous feedback tool that will automate the process and supply managers with timely action recommendations.
Second, continuous feedback requires a lot of effort on the part of managers and leadership to provide the right inputs and also engage in dialogue with their employees. As opposed to annual feedback, they need to spend more time and effort on continuous feedback and that too on a regular basis. This generally leads to a resistance from the managers and an unwillingness to change the status quo.
The next common pitfall to continuous feedback comes in the form of limited resources, both human and capital. Most fast growing organizations are constrained by the availability of resources.
Therefore, even if there is a motivation to focus on continuous feedback, activities which have a direct impact on the bottom line (such as goals and OKR check-ins) take precedence. Often, organizations lack dedicated resources to manage the entire continuous feedback spectrum, which adds to its ineffectiveness and limited success.
Finally, for continuous feedback to bear results, it is important that feedback and reviews are followed up with action items that indicate change. However, for many organizations, feedback is seldom backed by action and next steps.
Invariably, when there is no action following the feedback, due to either lack of expertise or limited managerial competencies or lack of insights and industry best practices, level of performance improvement is negligible.
We hope that we were able to answer most of your questions on continuous feedback. In case you have any more queries, you can reach out to us directly. In our experience of working with fast growing organizations, we have realized that most of them benefitted highly from partnering with platforms like SuperBeings.
Leveraging such a platform can help you ensure that on one hand, there is a consistency and continuity to your feedback approach and on the other, there are concrete next steps and way forward after the feedback which is regularly tracked to ensure effective results.
Book a demo today to get a flavor of how continuous feedback can automate your performance and 360 reviews with a highly flexible system built for reducing admin work and rater bias.
The right compensation management practices and policies can make or break your employee experience. Of course, there is merit in linking compensation and performance to drive organizational success, it can lead to several questions and implementation problems as well.
Read on to get all your compensation management related questions answered.
Let’s start with the very basic question of why fair compensation is important and the merits it brings along. It is no surprise that if you are paid more and are compensated according to your efforts, you are likely to give in your 100% and stay with an organization longer. However, there are other factors that support fair compensation:
Thus, fair compensation as a part of compensation linked performance management has the potential to facilitate better employee outcomes such as engagement, experience and performance.
To make compensation fair and inclusive in all aspects, it needs to have a clear foundation. Most organizations have relied on performance reviews as a way of reflecting on performance as a means of compensation decisions. However, there are several competing views both for and against tying compensation to performance reviews.
Clearly, there are both sides to the story.
The most favorable outcome will be to keep performance as one of the parameters for compensation, but not the sole foundation.
Additionally, as one of the best practices, performance reviews can be conducted on a regular basis, where some are only developmental in nature and others can be tied to compensation management.
As discussed, focusing only on performance reviews for compensation management needs a relook. Working with growing organizations, we have curated a list of the top five performance and compensation management practices you can leverage:
Ensure that your compensation structure aligns with the market trends so your employees don’t feel underpaid and leave.
Provide complete transparency and clarity to your employees on what constitutes high levels of performance and what it will take to earn a raise or appraisal.
Have specific, well defined and measurable criteria for the compensation strategy to ensure that there is complete transparency.
Salary in hand or the pay check your employees receive is accompanied by a range of benefits that are a part of the compensation structure and cost to the company, but are often overlooked by employees. Make sure they are widely communicated.
Ensure that there is a base pay range for every role and profile with variable additions based on candidate competencies.
The idea of fair compensation and linking compensation and performance management, leads to a very interesting concept of distributive justice. On a broad level, distributive justice essentially focuses on ensuring that the compensation received by employees is fair and equitable and is based on objective and rational grounds which are uniform for all. Here are a few ways to ensure distributive justice:
Measure potential and market value of the employee in addition to experience and expertise to ensure distributive justice for high potential employees
Another interesting component of compensation and performance management that you must acquaint yourself with is pay transparency. Essentially pay transparency refers to how openly or freely employees within an organization can discuss their compensation with others.
This is not only limited to the check they take home but other perks and benefits they are entitled to. Invariably, many platforms today also enable individuals to anonymously share their salaries online and get insights from others doing the same. However, there are diverse views on when it comes to pay transparency for an organization.
Those who advocate for pay transparency believe that it can enable large scale impact for the organization across performance management.
However, there is a flip side to pay transparency too with some common pitfalls that need to be addressed proactively.
In the last section of this article, we will focus on how managers play an integral role in compensation and performance management and the best practices to guide managers to have effective compensation conversations with their team members.
Almost 58% organizations do not train managers on pay communications
This startling statistic clearly highlights how despite the apparent importance of compensation management, the focus on ensuring a seamless process is rather limited. However, organizations today can play a leading role in enabling their managers to have better pay communication and conversations by following these tips:
It is quite evident that compensation and performance management are intrinsically interlinked and if leveraged well, compensation has great potential to not only drive performance, but also facilitate engagement, retention and much more.
However, to ensure the same, you need to have a very structured, transparent and fair compensation strategy and policy. Furthermore, you must, don’t forget to invest in training your managers to bridge any gaps and constantly gauge and address employee pulse — to ensure fair compensation for all.
Talent development is critical for growing organizations which see the workforce as their biggest asset. Focus on developing their talent stack not only leads to a pleasant employee experience, it also augments the overall performance and productivity for an organization.
While you may come across many ways to facilitate talent development, leveraging the competency framework can help you move the needle very quickly.
Let's see how.
Before moving directly to how you can implement the competency framework, let’s quickly understand the 5 stages of talent development.
The first stage involves planning for your talent needs based on your organizational priorities and creating the position profile based on the skills, attitudes and other competencies.
Based on the position profile, you need to start attracting talent for the position. You can do so by spreading the word in the right networks, through job portal platforms, etc. The objective is to ensure that you are reaching out to the right network. You can also explore the right candidate for the position internally to considerably save hiring and training costs.
Once you have identified the right person, the next stage of talent development is extending the offer to the person after a thorough background check as well as a competency and expectation match. It also requires creating personalized onboarding plans for the first 30-60-90 days of the candidate’s journey within the organization. Read our guide to employee onboarding to learn more about onboarding do’s and don’ts.
The main focus of talent development starts with providing the right development and learning opportunities to your workforce. This can involve upskilling for both technical and soft skills, leadership building or any development intervention based on the need of the role and position.
Finally, talent development involves undertaking initiatives to retain your talent. While learning opportunities are important, facilitating engagement, wellness, motivation, etc. all contribute to employee retention.
If you are wondering how the competency framework aligns with talent development, you need to start by decoding what the framework actually stands for.
Put simply, a competency framework is a set of behaviors, skills, abilities and attributes that an organization considers imperative for creating a high performance culture.
The competency framework can be implemented at all stages of the talent development or the employee lifecycle within an organization. The idea is to ensure that certain core competencies are kept at the heart of the decision making that in any way impact the workforce.
Competency framework based talent development is very important for employee retention. Talent development practices when undertaken effectively have the potential to encourage team members to stay with the organization for long and at the same time become ambassadors to help attract high quality peers.
Here are the top reasons why competency framework based talent development matters:
Now that we have covered the basics of talent development and competency framework, let’s understand how leveraging the latter to advance the former can create a far reaching impact for organizations.
The first step is to create a competency framework which involves identifying the key competencies which will be instrumental in guiding all decisions around talent development. Depending on the nature of your organization, there can be categories within the competency framework that you seek to focus on. Your competency framework should focus on behaviors, skills and attributes which are critical for performance and overall success. The following steps can help you create a competency framework for talent development:
The responsibility of creating the competency framework is collective. It starts with involving the executive leadership to ensure alignment with the vision, people managers to ensure they are ideal for the culture you are trying to build and functional managers to ensure inclusion of right competencies for each role and position. Furthermore, involving those on the ground can be fruitful as they have the best idea of what competencies are critical and others which are good to have.
Once the competency framework for talent development is ready, the next step is to align it with your recruitment process to ensure precise and effective hiring. There are a few steps along the way:
The onus of implementing the competency framework during selection lies primarily with the HR team and recruiters who assess the candidates with different tests and assessments. Team managers and leaders also play a role in assessing functional competencies and fit.
Irrespective of whether an employee is onboarded before or after you have implemented the competency framework for recruitment, you need to ensure competency based performance management and development opportunities.
From a talent development perspective, the focus of the competency framework should equally be on developing employees for their next or subsequent role based on the specific competencies for the same.
The onus of aligning performance and development with the competency framework lies with team managers as they are best able to determine the performance gaps. Furthermore, employees with their managers can identify competency gaps for better performance and focus on the right learning and development interventions to bridge the same.
Finally, the competency framework must also impact the subsequent rungs of talent development where an employee moves up the ladder from one position to the next. Based on the organizational matrix and competencies for each level, you need to identify key attributes that differentiate one level from another and ensure the same is communicated to your employees.
In a nutshell, it is quite evident that the competency framework can inform and advance every stage of talent development for fast growing organizations. If you implement such a framework across the employee lifecycle, you will significantly reduce your chances of a wrong hire and will be able to nurture a workforce that aligns on the vision, goals and overall organizational culture.
A clear competency based talent development approach can help you achieve high levels of performance which is observable and measurable.
While most people managers are able to create a business case for setting OKRs as well as for the adoption of an OKR software by leveraging industry benchmarks and best practices, there is a need to explicitly decode the return on investment of using an OKR tool as well.
Unless they are able to clearly illustrate how the return achieved using a goal management software is greater than the investment, it becomes difficult to sustain the adoption and get long-term leadership buy-in.
Continue reading to strengthen your business case on the same.
Let’s quickly understand how the OKR framework is integral for an organization, especially high growth companies. Most fast growing organizations have competing priorities they need to focus on with limited resources at hand.
Therefore, simply setting goals by adopting a top-down approach without supporting parameters can lead to confusion and incompetence. OKRs help drive away this ambiguity by linking measurable key results for each objective and facilitating a collaborative approach to achieving goals.
Here are the top three benefits of implementing OKRs in an effective manner:
OKRs enable employees and leadership to have a very clear focus on what needs to be accomplished and what work is out of scope. The idea is to have complete clarity on —
The last part is extremely important as it helps create a sharp focus and set priorities straight.
93% of employees don’t really understand what their organization is trying to accomplish in order to align with their own work.
This illustrates that there is a big absence of clarity and focus amongst employees when it comes to what needs to be accomplished, which stands in the way of creating a high performance culture. Therefore, OKRs can help reduce such uncertainty and ambiguity, making it easy for the workforce to concentrate on what matters.
Taking cue from the first point, the second benefit or purpose of implementing OKRs foris a need for clarity of expectations and overall team and organizational alignment. In case of fast growing organizations, there is an overlapping of roles and responsibilities and a lack of clarity on expectations from each employee. This leads to lower than average outcomes, productivity and revenue growth and data backs the same.
97% of employees and executives believe lack of alignment within a team impacts the outcome of a task or project. Whereas, companies that regularly exceeded revenue goals were 2.3X more likely to report high levels of alignment.
By ensuring organization-wide goal visibility, OKRs help teams to decode what is expected out of each team member and their respective contribution towards achievement of the shared goals. Thus, increasing alignment and collaboration.
Finally, setting and implementing OKRs is often a collaborative process. Employees get involved in and participate during the entire OKR process and feel engaged in the same. This greater involvement and participation leads to deeper levels of engagement and ownership of key results which drive impact.
OKRs also enable employees to also gauge their performance and measure their progress in an effective manner. This motivates them to get more involved in achieving the common weekly, quarterly and annual goals. This higher level of engagement directly impacts key organizational parameters such as retention, productivity, profitability, etc.
The business case for OKRs is very clear. However, for companies that are scaling up, with limited bandwidth and competing priorities, often setting OKRs itself gets left behind due to other business priorities.
If an organization focuses on a manual approach to the OKR system, there are several steps which require a lot of time and effort including setting and writing, implementing, tracking, grading, evaluating and modifying OKRs.
Fortunately, today there are OKR tools in the market, which can help automate all of these aspects to help simplify the OKR journey. The right goal management software can help you maximize the realization of the return on investment for your OKRs. Following are the top five ways in which an OKR software makes a measurable difference on the bottomline —
First, an OKR tool can help organizations document or record the OKRs in a way that is visible and accessible to all. There is supporting evidence to show that what gets documented has a higher chance of being achieved, as what is out of sight is often out of mind.
Individuals are 42% more likely to achieve goals when they are physically recorded.
Therefore, the OKR tool can enable organizations to clearly define the business and team OKRs in a written manner which can be reflected on, seen again and again to create instant recall for employees.
OKR tools are great for creating alignment and accountability. On the alignment front, the OKR software can help achieve high levels of strategic alignment on what is the responsibility of each team member across organizations towards the key business goal achievement.
Highly aligned companies grow revenue 58% faster and are 72% more profitable than their misaligned counterparts.
The dashboard of a good OKR software can help you constantly gauge the level of goal achievement, ensure that team members are aligned on different phases as well as keep a track of when their responsibility is due. It creates high levels of transparency.
Moreover, greater alignment leads to high levels of accountability. Generally, since there is a lack of alignment on responsibilities, there is an accompanying lack of ownership and accountability, and most employees shirk away from taking accountability.
84% of the workforce describes itself as “trying but failing” or “avoiding” accountability, even when employees know what to fix.
A goal management software like SuperBeings allows you to integrate OKRs with regular meetings and check-ins to keep track of progress. Thus, driving a culture of accountability.
It is very common for companies to set OKRs and then evaluate them only at the end of the quarter/year. There is a lack of mid-term tracking which makes it difficult to gauge whether the progress is aligned with the key results or not.
40% of people that write down goals don’t check whether they’ve achieved them. Moreover, only 5.9% of companies communicate goals daily.
An OKR software can help you address this concern by facilitating day-to-day OKR progress tracking. A daily dashboard and history of 1:1 and team check-ins on OKRs, can help organizations track developments over time.
It can also help identify and resolve any performance issues that stand in the way of goal achievement preemptively. At the same time, even if organizations are tracking and monitoring OKR progress, doing so with a manual process is inefficient. An OKR tool can automate most of these processes to enable HR and people managers to spend more time on driving results.
Another major concern that organizations face when it comes to OKRs is being prepared and ready for the same. Many line managers and others struggle with writing effective OKRs. Many organizations believe setting OKRs once is enough. However, that is far from the truth.
Research says, companies that set performance goals quarterly can generate 31% more returns than those reassessing annually.
Using an OKR software can help eliminate all these challenges.
Finally, an OKR software can promote high levels of collaboration for goal achievement. For many organizations, the inability to collaborate leads to low levels of results, diminishing the ROI for OKRs.
86% of employees and executives cite lack of collaboration or ineffective communication for workplace failures.
Using a good OKR software makes collaboration seamless by aligning cross-functional projects and tracking cumulative progress. Invariably, an increase in degree of collaboration is a direct ROI of an OKR tool which can create far reaching impact.
In this final section of the article, we will talk about the key parameters that can help you gauge the ROI of an OKR software. While the above mentioned are primary impact areas, most of them have a qualitative aspect to them.
Gauging the ROI requires backing of data points from employee experience and business results, which the following parameters can help explain.
Organizations should start by gauging whether or not transparency and alignment on goals has increased. This can be measured using employee pulse surveys to understand their opinion on how well they have visibility of goals and clarity on what they need to work towards. Therefore, the first ROI parameter for an OKR software is to identify the increase in level of transparency to ensure everyone is working in the same direction and there are no gaps or overlap in efforts.
The main purpose of an OKR tool is to facilitate the effective and efficient achievement of the goals set by an organization. Thus, the next parameter to measure ROI should revolve around the degree and time period of goal achievement.
You can start by comparing the degree of goal achievement by leveraging OKR grading to see if there is a significant improvement in percentage terms as compared to pre-OKR tool period. Second, it is important to gauge whether or not the goals/key results have been achieved in a shorter period of time or not. Since the OKR platform facilitates better alignment, collaboration, tracking, etc., it can help organizations achieve or realize the goals faster.
Third, there are several administrative overheads that accompany the setting and implementation of goals/OKRs. These include tracking, grading, etc. for managers and providing inputs on the part of employees. The ROI of an OKR software can be gauged by mapping whether or not these overheads come down.
The next parameter for ROI calculation is to measure the change or increase in revenue after the adoption of an OKR software. Since an OKR tool seeks to enable organizations to achieve their goals faster, cost effectively and to a greater extent, there should be an increase in the revenue realized.
According to Larry Page, co-founder, Google claims that “OKRs have helped lead us to 10X growth, many times over.”
Finally, gauging the value of employee parameters like retention/turnover, productivity, engagement, etc, can cumulatively be leveraged to capture the ROI of an OKR tool. There are several ways to gauge these workforce parameters, along with factors like eNPS, etc. which have a direct business impact. Calculating them can help measure the ROI of the OKR tool for an organization.
It is evident that adoption of an intelligent OKR software is not only good to have, but integral for organizational success. Using the right tool has a direct business impact which can be measured in numbers using the ROI parameters mentioned in this article.
There are both qualitative and quantitative aspects to measuring the ROI and a balanced approach to both can empower organizations to align individual performance with business goals.
If you are considering implementing the right OKR software in your business, try out SuperBeings free 21 day trial. Book today. (No credit card or commitment required)