Is it time to call bull@$% on Productivity KPIs?

KPIs

When we consult on strategy and OKRs, productivity will eventually arise. As an enabler of goal achievement, the aim is to ensure as much time as possible is dedicated to goal progress.

Written by Matt Roberts | Co-Founder of ZOKRI

A focus on productivity is not new. Organizations have always strived to achieve more in less time. The traditional approach to productivity has always been to do more, work harder, and work longer hours. A more recent enabler has been the use of generative AI and automation.

Lately, however, there’s been a growing backlash against this approach, with some experts suggesting that our obsession with productivity may be doing more harm than good. I wanted to examine the arguments for and against traditional productivity measures and propose a new framework for measuring productivity that focuses on value creation rather than busy work.

Traditional Productivity KPIs

Measuring productivity KPIs have been used to ensure a business runs efficiently and effectively. These Key Performance Indicators (KPIs) include a variety of metrics to determine how employee activities contribute to overall performance. The belief is that monitoring productivity metrics regularly across teams and individuals helps identify areas for improvement and enables employers to support their employees in achieving success.

Examples of Productivity KPIs

The Problem with Traditional Productivity Metrics

The traditional approach to productivity has always been to measure output in terms of quantity. The more work we do, the more productive we are. This approach worked well in the industrial age, when most work was manual and repetitive. However, in today’s knowledge and creative economy, work has evolved. It’s more complex and nuanced and less about repetitive tasks. It’s about creativity and solving complex problems.

Yet, we still cling to outdated productivity measures: more hours, meetings, and projects. But does that mean more output or better outcomes? The answer is no. Studies have shown that longer hours and more meetings do not necessarily lead to increased productivity. In many cases, they can have the opposite effect, leading to burnout, stress, and lower-quality work.

The Solution: Use guiding principles that can be easily followed

So what’s the solution? We must re-think productivity and focus on value creation rather than busy work. Here are some guiding principles that should guide this new approach:

Focus on measurable outcomes, not activity

Let’s do fewer things but do them well. We must stop measuring productivity based on the number of tasks we complete and start calculating how much measurable value we create. This means focusing on the most important outcomes and working towards them to the best of our ability. OKRs, alongside a strong KPI measurement capability, are a good way to enable this.

Fully embracing outcomes as the new productivity metrics, means measuring lagging and leading indicators that enable us to take corrective action before it’s too late. Leading KPIs are the drivers of lagging KPIs. Our actions ultimately lead to the results we want to achieve. We can improve our results by focusing on leading KPIs and taking corrective action when necessary.

Technology is critical in enabling us to track and measure lagging and leading KPIs. With the right tools and systems in place, we can monitor the OKRs’ and KPIs’ performance in real-time, identify areas for improvement, and take corrective action quickly.

Work smarter, not longer

It’s important that we recognize and honour our natural rhythms when it comes to working. We all have different energy levels and work styles, and it’s essential to align our work with these rhythms to maximize our productivity and avoid burnout. For instance, morning people tend to be most productive during the early hours of the day, while night owls may find that they do their best work in the evenings.

It’s also worth questioning the assumption that working longer hours leads to better results. While many believe that putting in more hours at work is a sign of commitment and dedication, this “who can stay latest” mentality can be counterproductive. I’ve observed that those who stay late at the office often do not produce the best results and that the quality of work is not necessarily linked to the number of hours worked. So rather than focusing on the quantity of hours worked, it’s more important to prioritize quality and productivity and to align our work with our natural rhythms to achieve the best possible outcomes.

Be in sync with the needs of colleagues

Collaboration is an essential aspect of teamwork. Most people work in teams and must collaborate effectively to achieve their goals. Collaboration involves sharing ideas, knowledge, and expertise to achieve a common objective. When team members collaborate, they can leverage their strengths and work together to overcome challenges.

Moreover, being part of a team comes with responsibilities. Each team member has a unique role that contributes to the team’s success. As a team member, it’s essential to understand your role and responsibilities and fulfil them to the best of your abilities. This involves being accountable, reliable, and dependable.

Additionally, junior employees can learn much from indirect learning, such as observing and listening to more experienced people. They can learn from their colleagues’ experiences and expertise, which can help them develop new skills and knowledge. As a result, it’s essential to create an environment that encourages indirect learning, where experienced team members can mentor and guide their juniors to help them learn and grow.

Quality over quantity

We must commit to excellence in everything and prioritize quality over quantity. This means taking the time to do things right rather than rushing to get them done. It also means setting high standards and striving to do our best work.

To succeed we need to raise the bar on everything and reject the notion that “good enough” is ‘good enough’. Customers demand the best; if you don’t provide it, someone else will. Companies must strive for excellence in every aspect of their business to stand out from the competition, from product quality to marketing and customer service.

However, raising the bar benefits more than customers and marketing. Employees also want to work for companies that strive for excellence. When a company sets high standards and encourages its employees to achieve them, it creates a culture of excellence that attracts and retains top talent. This, in turn, leads to better products and services, happier customers, and, ultimately, more success.

Smarter individual talent management

Organizations increasingly recognise the importance of rethinking their talent strategy through the lens of the individual worker’s full potential. By doing so, companies can create a more desirable workplace, tap into their employees’ discretionary energy, and unlock hidden talent pools. This approach involves identifying and nurturing each employee’s unique talents and strengths and providing opportunities to develop and grow.

Focusing on individual potential can create a more engaged and motivated workforce, leading to increased productivity, innovation, and overall success. Additionally, tapping into hidden talent pools can improve diversity and inclusion, leading to more creative and effective problem-solving.

Ultimately, rethinking talent strategy through the lens of the individual worker’s full potential can help companies create a more fulfilling and rewarding work environment for their employees, driving business success.

A More Balanced Approach

The traditional approach to productivity KPIs has limitations, and we need to find a new way of measuring productivity that considers the complex nature of modern work.

No one approach can apply to every industry or every type of work. In some sectors, long hours and hard work are necessary. So I think it is true that our obsession with productivity may do more harm than good.

The traditional approach to productivity is outdated and no longer applicable to the complex nature of modern work. We need a new way of measuring productivity that focuses on value and outcomes rather than busy work and the needs of teams, individual employees, customers, and shareholders.