Let’s face it. Many of us have been there, staring at a chart full of KPIs, feeling overwhelmed.
What do these numbers even mean? Are they really helping drive our business objectives? For those of
you working in shared services, it’s like trying to pick the right dance partner in a crowded room.
You want to align your Key Performance Indicators (KPIs) with your business objectives, but sometimes
it feels like you’re stepping on toes instead of moving in sync.
I’ve been in this game for over 20 years. I’ve seen good KPIs, terrible KPIs, and everything in
between. I’ve led multiple large-scale shared service centers for global organizations, and let’s
just say, I’ve learned a thing or two about the importance of aligning KPIs with broader
business goals. If you’ve ever asked yourself how to make KPIs work for you rather than against
you, you’re in the right place.
Why You Should Care About KPI Alignment
Picture this: You’re running a marathon, but instead of training on the right track, you keep
wandering into the woods. You might be fast, but you won’t finish anywhere near the finish line.
This is exactly what happens when your KPIs don’t align with business objectives. Here’s a quick
rundown of why it matters:
- Clarity: Clear alignment provides a roadmap. Everyone knows where they’re headed.
- Focus: It helps teams concentrate their efforts on what truly counts.
- Accountability: When KPIs match objectives, it’s easier to hold teams accountable.
- Improved Performance: Aligning KPIs with wider goals increases efficiency and performance.
- Better Decision-Making: You’ll have a clearer picture of what’s working and what’s not.
The Anatomy of a Shared Services Blueprint
When I first started in shared services, I often found myself lost in the details. It wasn’t until I
adopted a strategic blueprint approach that everything started clicking into place. Here’s how to
build your shared services blueprint:
- Understand the Business Objectives: What does the business want to achieve? Revenue growth?
Customer satisfaction? Risk mitigation? Get clear on this first. - Identify Key Stakeholders: Who needs to be in the loop? Bring them into the conversation early.
- Map Your KPIs: Lay out your KPIs directly alongside the business objectives they support.
- Check for Alignment: Get feedback and validate your assumptions with your stakeholders.
- Review and Adjust: The focus is not just on setting KPIs but also on continuously refining them.
- Communicate Effectively: Ensure everyone understands these KPIs and their significance.
Bringing Stories into Numbers
A few years back, I was working with a team that was frustrated. They were meeting their KPIs,
but somehow departmental goals felt more like wishful thinking. They were laser-focused on their
numbers but completely missed the ultimate mission of supporting customer experience.
We decided to revamp our strategy. Instead of just “number crunchers,” we became “customer advocates.”
We shifted our KPIs to reflect things like customer feedback scores and response times rather than just
transaction volumes. The result? A reinvigorated team that felt a deeper connection to the company’s mission.
Communicating Performance to Your Team
Let’s be real—nobody likes being shoved into a meeting where someone drones on about KPIs without
context. Communicating performance shouldn’t feel like a chore. Here’s how to keep it engaging:
- Storytelling: Share wins and losses. How do KPIs tell the story of your team’s journey?
- Data Visualization: Use graphs and charts. A picture is worth a thousand numbers.
- Team Involvement: Get input from team members on KPI redesign. People engage more when involved.
- Celebrate Successes: Recognize when KPIs lead to achieving business objectives.
Realignment: When the World Changes
Things don’t always go as planned. Markets change, new regulations pop up, and who knows what
the next big shift will be? When it happens, don’t hesitate to go back to the drawing board.
I remember the early days of the pandemic—the chaos was palpable. KPIs that made sense one day felt
completely out of sync the next. We took a step back, assessed the landscape, and realigned our goals.
That reflex allowed us to pivot our KPIs to reflect new priorities, like remote customer support.
Putting It All Together
At the end of the day, aligning KPIs with business objectives is about creating a clear path for your
shared services team. It’s about making KPIs a powerful tool rather than cumbersome numbers.
Are your KPIs aligned? Are they driving the right behaviors? When your team knows they’re on the right
track, they move with purpose. They become more than just a department; they turn into a united front,
steering the organization toward success.
If you want to dive deeper into the ongoing transformation in the shared services industry,
check out THEGBSEDGE blog. You’ll find thought-provoking insights on shared services transformation, innovation, and leadership.
Watch Out for Common Pitfalls
As with anything golden, there are pitfalls. Here’s what to watch out for in your KPI alignment journey:
- Measuring Everything: Keep it simple. Too many KPIs can be confusing.
- Ignoring the Human Element: KPIs are about behaviors and impacts, not just numbers.
- Top-Down Imposition: Get ground-level input; it’s invaluable.
- Lack of Agility: Don’t lock your KPIs in stone. Be ready to adapt.
Final Thoughts
Remember, aligning KPIs with your business objectives isn’t just another box to check off. It’s about weaving
them into the fabric of your shared services team. It’s about clarity, focus, and ultimately, success.
If you’re looking for more about the shared services landscape, routines, and strategies, I highly recommend
diving into the THEGBSEDGE blog. It’s a treasure chest of
knowledge aimed at leaders like you.
