Performance Framework - Outcomes and Drivers

The Performance Framework is the part of the Operating Model that shows how our metrics drive our strategic goals. It helps us connect each metric from the bottom (daily activities and steps) to the top (strategic goals). Its a powerful way to demonstrate how the outcome of our daily actions contributes to our overall success as an organization. This clarity helps us set targets for each role and position that are aligned and in harmony with the rest of the business.

Key Points

• Outcome KPIs: AKA lagging indicators. Results that are not directly attributed to a single process (e.g., Revenue Growth, Opportunity Win Rate, etc.)

• Driver KPIs: AKA leading indicators, have a direct impact on outcome KPIs and are the direct result of an actiity or process – (# new customers, Logistics Cost / unit)

• Metrics vs KPIs: Metrics are used to communicate how success is measured for a particular node in the operating model. KPIs are metrics that have been determined to be critical to the success of the business, and are therefore monitored and tracked. Goals or targets will also accompany KPIs.

• M1: Business Process Level Metrics that describe organization wide business outcomes in line with the corporate strategic goals

• M2: Key Process Metrics that describe end of process outcomes that influence and drive M1 metrics

• M3: Subprocess Metrics that describes subprocess performance outcomes that influence and drive M2 metrics

• M4: Activity Metrics that describes the outcomes of critical activities, tasks or steps within the subprocesses that influence and drive M3 value metrics

  One person’s driver can be another person’s outcome. High performing teams focus on the quality of handshakes and interactions between team members

  By selecting the correct targets and metrics to monitor a process we can influence intermediate outcomes and eventually the overall corporate level strategic goals