One of the aspects that make a company successful is its sense of purpose. Without a clear objective motivating its efforts, the organization will fail to advance, and rather remain stagnant.
Measuring business performance is a smart strategy, worthy of strong leadership. Proactivity is key to optimize a company’s results. That is why there are numerous performance indicators that will help you identify both the strengths and areas of opportunity of your organization, specifically, through one of its most important elements: its employees.
Throughout this entry, we will show you how to measure business performance.
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How to measure business performance: 9-Box-Grid:
The Instituto Panamericano de Alta Dirección de Empresa (IPADE) argues that performance indicators ‘’promote [employee] alignment’’ and ‘’provide clarity going forward to [a company’s] personnel at every level,’’ strengthening its values and increasing their productivity.
That is why it is key to evaluate the solidity and productivity of employees. Not just in terms of the company’s financial health or the harmony of its team, but from the perspective of a specific methodology that shows transparent and objective results. A 9-Box-Grid is the best tool to achieve this.
A 9-Box-Grid is, as its name suggests, a 9-box matrix. The x, or horizontal, axis measures employee performance, and the y, or vertical, axis, their leadership potential.
The matrix will be divided into three big groups with particular levels or categories. Each employee will be placed where it corresponds, based on their performance.
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High performers:
This is the type of employees who show high performance. It is a small group of individuals that are almost perfectly aligned with the culture and values of the company. They are considered natural leaders.
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No performers:
These are antithetical to high performers. They fail to meet their responsibilities and are opposite to the company’s goals and values. No performers have almost no leadership potential, and their attitudes eventually become unsustainable for the rest of the employees and the company itself.
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The ones in the middle:
These are complex cases, given that they do not lie in either extreme. While they meet their goals and objectives, they are a risk to the company culture. Coaching sessions and mentoring become necessary to fix this discrepancy.
Watch our video: Tips to keep your staff motivated
At QuAdrans law and finance, our goal is to optimize all aspects of your company by designing strategies that strengthen its structure, culture and values; increase employee productivity, and translate into solid finances. Contact us.
