While leaders insist on results, they also should provide tools and incentives to help employees achieve the desired outcomes. At Intertech, we use the Dale Carnegie concept of Key Result Areas (KRAs) to create alignment between an individual employee's goals and the company's goals. Like company goals, each individual should have three to five KRAs for the year and they should be ranked in order of importance. We link key goals to clearly defined bonus amounts. We also ask:
- What is the performance standard for this area? This allows us to know if a person is on track for meeting the objective.
- What do they need to accomplish the goal? From training to tools, at the start of the year when KRAs are set, we identify the activities or resources that will be required to help employees meet their goals.
- What are the necessary steps to meet this goal? Here, as a leader, we're helping break down a larger goal into smaller tasks. As the saying goes, "By the yard it's hard; by the inch it's a cinch."
After defining the KRAs, the next step involves follow-up meetings to create accountability for each employee. The frequency depends on the role. The beauty of this approach is that there are no surprises at performance review time. If someone has been missing the mark, KRAs allow for coaching and correction in real time.
Tom's Takeaway: Everyone should have a clear understanding of their top three to five goals for the year, which should be aligned with the company's goals. Goals should be measurable and reinforced with tools and training. They also should be broken down into manageable steps and reviewed on a frequent basis throughout the year.
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