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IN1kCDUC1ICN .............................................................................................................................. 2
AkL CU 1nL kIGn1 kI ICk ML? .................................................................................................. 3
S1A nUNGk, S1A SMAk1 .......................................................................................................... S
S - SLClllC ........................................................................................................................................... 3
M - MLASu8A8LL .................................................................................................................................. 3
A - ACPlLvA8LL ..................................................................................................................................... 3
8 - 8LLLvAn1 ........................................................................................................................................ 6
1 - 1lMLL? ............................................................................................................................................ 6
IS CUk LGC kUNNING 1nL SnCW? .............................................................................................. 7
DCN'1 8L A CNL-MAN-SnCW ....................................................................................................... 10
DAIL S1kA1LG - IS 1nLkL SUCn A 1nING? ................................................................................. 13
nCW 1C kUN LIILC1IVL MANAGLMLN1 MLL1INGS ..................................................................... 1S
A8CU1 CkAI ............................................................................................................................... 18
A8Cu1 1PL Au1PC8S ............................................................................................................................ 18




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-*+.'/01+2'*
1hls pracLlcal gulde Lo managemenL uslng key erformance lndlcaLors (kls) has been
complled wlLh Lhe knowledge, experlence, and experLlse of many years worklng ln large
enLerprlses as well as SM8s. ln Lhls gulde, we wlll dlscuss:
8esL pracLlce Lo deLermlne approprlaLe organlzaLlon goals LhaL drlve acLlon and
produce resulLs
1he meanlng of SMA81 kls and how Lhey can be pracLlcally lmplemenLed lnLo your
organlzaLlon
Crowd-sourclng knowledge Lo flnd proven managemenL meLhods and meLrlcs
Pow Lo Lake advanLage of onllne plaLforms Lo make you're kls a reallLy
Whlle Lhe above polnLs are lmporLanL, Lhey are noLhlng wlLhouL pracLlcal lmplemenLaLlon.
1haL belng Lhe case, Lhls gulde wlll also explaln how Lo converL sLraLegy lnLo dally Lasks Lo
meeL your goals, Lhe formaL of an effecLlve managemenL meeLlng, and how Lo empower
employees.

kead More: What kIs w||| prope| your bus|ness?






7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G #



3.% 4'0 +5% 6275+ 89- ('. :%;
kl ls one of Lhe besL-known, mosL-used acronyms ln buslness, lL ls up Lhere wlLh Lhe llkes of
CLC and C8M. Mllllons of words have been wrlLLen abouL lL, counLless hours around
conference Lables all around Lhe world have been spenL dlscusslng, dlssecLlng and argulng.
Cne would Lhlnk LhaL by now Lhere ls noLhlng lefL Lo be sald, or wrlLLen, ln regards. 8y now
every organlzaLlon ln Lhe world should know how Lo choose Lhe rlghL kls LhaL wlll besL
measure accompllshmenLs and lndlcaLe faulLs. Well Lhen.
Pave you ever Lrled Lo break down Lhese Lhree leLLers?
LeL's sLarL wlLh Lhe Lhlrd leLLer and work our way backwards.
I. Ind|cators. When we Lrack performance we geL a whole loL of daLa,
numbers, charLs, reporLs. buL whaL Lo do wlLh all LhaL daLa? Some of
lL doesn'L Lell us much, some of lL ls very Lelllng. Pow do we exLracL
from a barrel full of daLa Lhe poLenL lnLelllgence LhaL wlll puL us on
Lhe paLh Lo lmprovemenL? 1he lndlcaLors are our exLracLors and Lhe
flngers LhaL polnL us aL Lhe 'rlghL' daLa, Lhey make sure we don'L [usL Lrack performance buL
raLher glve ourselves hlnLs and polnLers on where we excelled, and where we need Lo
lmprove.

1haL leads us Lo Lhe second leLLer, .erformance. 1haL's whaL lL ls
all abouL. uo we wanL Lo make sure we perform up Lo par? no. We
wanL Lo perform aL our ouLmosL besL, and Lhen some. 1he only way
Lo lmprove performance ls by documenLlng lL, revlewlng lL, and
drawlng concluslons on where we can do more.

And so we geL Lo Lhe mosL cruclal leLLer of Lhls legendary acronym,
k. key. As ls lmplled from Lhe meanlng of Lhe word, Lhls leLLer ls
key Lo unlocklng Lhe secreL of kl. As every organlzaLlon qulckly
learns, you can use lndlcaLors Lo measure any erformance. A
company can easlly flnd hundreds of kls Lo monlLor. CorrecLlon: a
company can easlly flnd hundreds of ls Lo monlLor. 1haL ls Lhe
Achllles' Peel of Lhe enLlre kl phenomenon - folks Lend Lo glve
less welghL Lo Lhe k, and [usL run amok wlLh Lhe and Lhe l. undersLandlng how Lo plnpolnL
Lhe k, how Lo separaLe Lhe key from Lhe chaln, ls whaL we'll Lry Lo explaln here.





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M|nd the 1r|v|a| 1rap
1he opposlLe of key, ln Lhls lnsLance, ls Lrlvlal. Many companles fall lnLo Lhe Lrlvlal Lrap when
chooslng Lhelr kls. LeL's Lake CusLomer SaLlsfacLlon. 8lg kl. huge. Pow saLlsfled are my
cllenLs? Are Lhey 100 happy wlLh Lhe producL and servlce we provlde Lhem, or are Lhey
looklng around for beLLer-sulLed provlders? noL every company can perform rouLlne surveys
slnce Lhey cosL a bundle, and you don'L wanL Lo boLher your cllenLs wlLh on-golng emalls
and phone calls asklng for [usL a few mlnuLes of your Llme".
ln an arLlcle l co-auLhored some years back LlLled CeLLlng A Crlp Cn uaLa Covernance", we
Lracked a LelecommunlcaLlons company ln Lhelr pursulL of Lhe k ln kl. 1he corporaLe
sLraLegy of Lhe company focused on ralslng value for Lhelr currenL cusLomers. lor Lhls Lhey
lmplemenLed, among oLher Lhlngs, Lhe followlng kl: number of Llmes accounL managers
conLacLed cusLomers. Any LhoughLs abouL Lhls kl?
lL ls wrong, for Lhe requlred ob[ecLlve - ralslng value for currenL cusLomers. 1he quanLlLy of
phone calls doesn'L lndlcaLe ln any way Lhe mood on Lhe oLher slde of Lhe llne, probably Lhe
opposlLe was achleved wlLh Lhls kl, encouraglng sales Lo nudge cllenLs.
AcLually, Lhere are many slmple kls Lo help a company measure cusLomer saLlsfacLlon on
Lhe non-Lrlvlal shelf. lor example:
Pow many cusLomers are wllllng Lo provlde LesLlmonlals for your slLe?
Pow many cusLomers buy addlLlonal servlces aL Lhe end of a pro[ecL?
Pow many cusLomers complaln, or abandon you?

I|nd|ng the 8||nd Spots
Some Lhlngs are really hard Lo measure. 8uL flndlng Lhe rlghL key lndlcaLors can spur your
Leam lnLo Lhe rlghL klnd of erformance. Lnforclng acLlon-drlven kls puLs your
managemenL Leam ln an acLlve sLaLe of mlnd. Looklng aL Lhe prevlously menLloned kl Pow
many of your cusLomers are wllllng Lo provlde LesLlmonlals for your slLe" - can you deducL
an acLlve noLlon from lL?
lf your managers know LhaL Lhls lndlcaLor measures Lhelr performance lL lmmedlaLely puLs
Lhem ln a musL geL a LesLlmonlal from a cllenL aL Lhe end of Lhe pro[ecL" sLaLe of mlnd. 1hls
propels Lhem lnLo hlLLlng all Lhe rlghL marks along Lhe way Lo achleve Lhls goal.
WlLh a kl of Zero ercenL AbandonmenL - no cusLomers should flnlsh Lhelr conLracL wlLh
us. AnyLhlng above zero would be ln Lhe red. Can you Lhlnk of a beLLer faclllLaLor for Lop-
noLch cllenL care?
Chooslng Lhe besL kls for your company, Lhe mosL relevanL and mosL Lelllng, puLs your
enLlre Leam on Lhe rlghL Lrack. As l sald earller, Lhe paLh lsn'L necessarlly Lhe hlghway buL
can be, more ofLen Lhan noL, a narrow slde road, wlLh beauLlful scenery all around.



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<+"= >0*7.=? <+"= <:36!
We've [usL dlssecLed Lhe Lerm kl. We goL up close and personal wlLh each leLLer and whaL
lL sLands for ln order Lo beLLer undersLand whaL ls requlred for a pracLlcal, focused, and
acLlon-drlven kl. lf Lhe chosen kl doesn'L propel us lnLo acLlon, doesn'L geL us closer Lo
achlevlng our goals, Lhen lL's Llme Lo re-examlne how our kls are deflned.
Pow do you know lf a kl ls effecLlve? Apply Lhe SMA81 crlLerla Lo assess Lhe valldlLy of your
kls. 1he word 'smarL' ls seelng an unparalleled renalssance ln recenL years. We all have
SmarLhones, our LableLs have SmarLCovers and Lhe sLreeLs of our clLles are flooded wlLh
SmarLCars drlven by lndlvlduals wearlng SmarLWaLches. Appllance manufacLurers are
promlslng Lo flll our homes wlLh SmarL1vs, SmarLlrldges, SmarLWashlngMachlnes. lL seems
Lhe only aspecL of our llves LhaL hasn'L LranslLloned Lo smarL" ls our peLs, buL we love Lhem
noneLheless.
So ln Lhls ever-changlng smarL world we llve ln, our kls musL keep up, and be SMA81.
LeL's 8reak lL uown
< @ <A%12(21
1he more speclflc a kl ls, Lhe more valuable and Lelllng lL wlll be. Avold generallLles when
deflnlng a kl and be deLalled - use numbers, connecL Lo Lhe person or deparLmenL
responslble, and make sure lL measures one Lhlng, noL Lhree.
: @ :%",0."#$%
1hls almosL goes wlLhouL saylng buL for good measure, a kl should measure acLlons, noL
behavlor. Looklng agaln aL Lhe kl we menLloned ln Lhe prevlous posL, cusLomer
saLlsfacLlon, lL ls deflnlLely noL measurable. Pow can you clearly measure saLlsfacLlon? ?ou
can'L. ?ou can only measure acLlons LhaL wlll lndlcaLe how saLlsfled your cusLomers are, are
Lhey wllllng Lo provlde LesLlmonlal for our webslLe? uld Lhey slgn on for addlLlonal servlces?
uld Lhey LermlnaLe Lhe servlce? - All of Lhese are measurable acLlons.
3 @ 3152%B"#$%
lL ls common pracLlce Lo asplre Lo more Lhan we can achleve. We've been Lold numerous
Llmes Lo seL our goals hlgher Lhan we can ever lmaglne ls posslble, LhaL way we always sLay
hungry and wanLlng more. 1hls ls Lrue and valld and works wonders, buL noL when deflnlng
a kl. An unachlevable kl wlll puL you ln Lhe red lndeflnlLely and [usL Lamper wlLh Lhe
Leam's feellngs of self-worLh. ln shorL, lL ls counLer-producLlve Lo Lhe ob[ecLlve of a
kl. ?our kl should alm for an achlevable LargeL and only once lL ls reallzed, should you
ad[usL Lhe goal.



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6 @ 6%$%B"*+
A kl should noL only be relevanL Lo Lhe lnformaLlon you are seeklng (how saLlsfled are your
cusLomers?) buL also Lo Lhe person or deparLmenL LhaL ls belng measured. 1he number of
Llmes accounL managers conLacL Lhelr cusLomers lsn'L relevanL Lo Lhe cusLomer's overall
saLlsfacLlon, a Lechnlcal problem can lead Lo numerous phone calls beLween an accounL
manager and a cllenL. As Lhls number lncreases, lL acLually has Lhe opposlLe effecL on
saLlsfacLlon.
! @ !2C%$=
SeLLlng a Llme frame for accompllshmenLs goes wlLhouL saylng, and so lL goes for deflnlng
kls. lL can be Lhe Llme frame wlLhln Lhe LargeL LhaL musL be meL, or Lhe polnL ln Llme ln
whlch performance needs Lo be measured. ConLlnulng wlLh Lheme of cusLomer saLlsfacLlon,
Lhls can obvlously noL be Lackled aL Lhe beglnnlng of a pro[ecL. 1he 1lmely aspecL of a kl
goes hand ln hand wlLh lLs level of AchlevablllLy - make sure Lo seL reasonable and reallsLlc
Llme frames.
?ou found Lhls gulde onllne.
1he lnLerneL ls a dream world for kl (or maybe hell?). Lvery company wlLh a webslLe can
measure a mllllon Lhlngs - how many unlque vlslLors, how many reglsLered Lo Lhe
newsleLLer, how many lefL Lhelr emall, converslon raLe, quallLy of leads, correlaLlon beLween
slze of banners and Lhelr effecLlveness. Lhe llsL goes on and on. 8uL how do we flnd Lhe
rlghL sLaLlsLlcs Lo measure? WhaL's lmporLanL Lo keep ln mlnd ls noL only Lo measure Lhe
lndlcaLors LhaL provlde you wlLh a vlew of Lhe pasL, buL ones LhaL help you Lo forecasL Lhe
fuLure.
1he mosL baslc Lhlng Lo measure ls number of vlslLors Lo your slLe. ?ou deflne your kl,
collecL Lhe daLa, and Lhen seL Lhe markeLlng guys Lo creaLlng a campalgn LhaL wlll lncrease
Lhls number. Many more cllcks are reglsLered, your converslon raLe ls cllmblng, buL Lhen you
reallze LhaL behlnd Lhose 'cllcks' are Lhe wrong klnds of vlslLors, vlslLors LhaL aren'L poLenLlal
cusLomers.
8aslcally everyLhlng wenL as lL should. ?ou dld your kl work, you measured Lrafflc, saw LhaL
you wanLed more, you even measured Lhe number of leads Lhe markeLlng campalgn
generaLed, you wlLnessed wlLh exclLemenL Lhe Lrafflc Lo your webslLe splkes and Lhen -
noLhlng. no new cusLomers, no lncrease ln revenue, no goal was achleved. Why? 8ecause
you weren'L SMA81 enough.

kead More: Improve erformance w|th SMAk1 kIs?





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-, 4'0. D7' 60**2*7 +5% <5'E;
!usL before my flrsL year ln unlverslLy, l LhoughL abouL whaL l wanLed Lo accompllsh ln llfe -
or aL leasL promoLe. lL was durlng my mlllLary servlce, as a squad commander of Lhe 8aful
glrls", glrls who had come from a low soclo-economlc background or dropped ouL of school
aL one polnL or Lhe oLher, propelled me lnLo soclal awareness & acLlvlsm. 1hese glrls flnally
goL a shoL aL a decenL llfe Lhrough Lhls speclal mlllLary program. Seelng lL wlLh my own eyes,
belng a parL of lL made me a bellever. ?ou can help, you can change, and mosL lmporLanLly,
Lhere's hope (as cllche as lL sounds, lL sLlll holds!)
l declded Lo become a MenLal PealLh Cfflcer, llke Lhe one who gulded my frlends and l
durlng our fasclnaLlng servlce. ln unlverslLy, l meL people wlLh goals and asplraLlons very
slmllar Lo mlne. We all came from more-or-less slmllar background: we grew up around
each oLher, we volunLeered for Lhe same causes, we drank aL Lhe same bars, same slang,
same aLLlLude. we reallzed, very qulckly, LhaL lf we [olned forces and esLabllshed a 'cell',
our lnfluence would grow and wlLh lL Lhe chance Lo push for real change. So we seL up a
meeLlng Lo come up wlLh a work plan, Lo sLarL someLhlng LhaL was blgger Lhan us! All of us
we were Lruly exclLed - Lhls was an opporLunlLy LhaL musLn'L be wasLed!
We were ldeallsLs.
1he meeLlng was a form of organlzed chaos and noLhlng came ouL of lL. noL because of
dlfferences ln our worldvlews, or because we couldn'L reach an agreemenL laylng ouL our
goals and acLlons. We dldn'L even geL Lo all LhaL. 1he reason Lhe meeLlng wenL balllsLlc was
ego.
AL Lhe beglnnlng of Lhe meeLlng l LhoughL lL was my frlend 1zlpy's ego LhaL was rulnlng our
uLopla. She arrlved Lo Lhe meeLlng wlLh a clear agenda: we musL flrsL elecL a leader,
oLherwlse Lhe whole Lhlng wlll crumble and we wlll achleve noLhlng. More so, 1zlpy
promoLed herself as Lhe naLural (and acLually Lhe only) candldaLe for Lhe role, due Lo her
experlence, whlch was greaLer Lhan whaL Lhe resL of us could clalm. Per speech was
arroganL, her lnLonaLlon sharp and brlsk.
Who sald anyLhlng abouL leadershlp? We came LogeLher Lo form a group, drlven Lo operaLe
LogeLher Lo promoLe an ldeal we all belleved ln. Why wreck lL all wlLh power grabs and
hlerarchy? 8uL more Lhan anyLhlng, lL was 1zlpy's arrogance LhaL made my blood boll.
1oday, when l ask myself lf l should have acLed any dlfferenLly durlng LhaL meeLlng, Lhe
pronounced answer ls yes. When Lhe mood escalaLed and Lhe meeLlng wenL off-course, our
goals became mlxed up wlLh egos. 1he Lwo became confused, and ulLlmaLely, ego won,
Laklng Lhe lead and leavlng our goals behlnd. When ego Lakes Lhe lead, lL can be relenLless,
and malnly useless.
1oday, when l'm worklng Loward a goal l know l musL make sure Lhe goal lLself ls my marker.
Achlevlng a goal paLs Lhe ego on Lhe shoulder, as does Lhe process lLself! 1lcklng off
mllesLones along Lhe way boosLs Lhe ego, glvlng lL a greaL deal of sLrengLh, confldence and
ease. When we doze off and Lhe ego [umps ahead and Lakes Lhe lead, we saboLage cruclal


7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G (



sLeps ln Lhe process Lo achleve our goal, we someLlmes change goals along Lhe way or even
abandon Lhem compleLely, all for Lhe sake of Lhe ego. We go Lo wars on behalf of Lhe ego,
buL whaL we acLually do ls glve up on our own paLh.
lL ls lmporLanL Lo recognlze when our ego Lakes over and slap lL back Lo a place where lL
doesn'L work agalnsL us and our ablllLy Lo achleve our seL goals. lL's noL always easy Lo reacL
maLLer-of-facLly Lo hardshlps LhaL come along and noL fall lnLo Lhe ego Lrap LhaL lnevlLably
resulLs ln lnsulLs and flnger polnLlng. A greaL example of Lhls ls our chlldren Lurned
Leenagers. Cne lmporLanL goal LhaL many parenLs seL ls healLhy and flowlng
communlcaLlon wlLh Lhe Leenager". 8uL Lhen comes Lhe all-Loo-famlllar scenarlo when a
door ls belng slammed ln anger and Lhe flow of complalnLs erupLs: l'm belng
mlsundersLood, my prlvacy lsn'L respecLed, llmlLaLlons are forced on me, my llfe ls belng
mlcro-managed.". 1he ego ls qulLe conLenLlous, and exacLly aL lnsLances llke Lhls one lL
lmmedlaLely [umps: l don'L undersLand hlm? Pow dare he! l do everyLhlng for hlm, granL
mosL of hls wlshes and he ls Lhe unappreclaLlve one!" lL's Lhe ego LhaL speaks, and noL us. ls
such a reacLlon relevanL Lo Lhe problem LhaL was seL forLh? no. uoes such a reacLlon solve
Lhe problem? no. ls such a reacLlon a mere flnger-polnLlng from an lnsulLed place, Lhe 'safe
place' of Lhe ego? ?es.
Slnce we all have egos (we are human afLer all), ln lnsLances when Lhe goals we are pursulng
aren'L plvoLal Lo us, when Lhe maLLer aL hand ls such LhaL compromlslng won'L [eopardlze
our lnLegrlLy, lL's Ck Lo allow Lhe ego Lo sLep ln and cause some conLrolled damage. Lven lf,
ln reLrospecL, we losL someLhlng because of our ego, our need Lo 'save face' ls naLural.
8uL mosL of Lhe Llme our goals don'L serve our ego - ln facL Lhe opposlLe ls Lrue. An ego LhaL
serves our goals ls a wlnnlng formula for self-growLh - when we pursue blg, complex goals,
Lhe ego should be small and hldden, a humble servanL Lo our goals. Lvery acLlon we Lake,
every answer we glve, should be aware and conLaln our seL goals.
LeL's conclude wlLh one anecdoLe and flve quesLlons. Andrew Carnegle was one of Lhe mosL
powerful, successful and wealLhy buslness Lycoons of Lhe 19Lh cenLury. A poor ScoLLlsh
lmmlgranL ln Amerlca, he goL hls sLarL as a Lelegrapher wlLh a salary of $2.30 a week, and
ended lL as Lhe founder of uS SLeel, Lhe flrsL company ln hlsLory Lo cross Lhe $1bllllon
valuaLlon. Carnegle was famous for hls modesLy, or ln oLher words, for hls lack of ego. CulLe
ofLen he aLLrlbuLed hls success Lo Lhe LalenLs of oLhers. And he wenL wlLh lL all Lhe way. 1he
lnscrlpLlon on hls LombsLone reads, Pere lles a man who knew how Lo enllsL Lhe servlce of
beLLer men Lhan hlmself.



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1here ls much Lo learn from Carnegle, no quesLlon abouL LhaL. Pe was a rare man who
succeeded ln prevenLlng hls ego from Lrampllng hls managerlal paLh. WhaL abouL you? uoes
your ego play an acLlve role ln your managemenL sLyle? 1he followlng flve quesLlons wlll
help you undersLand lf Lhe answer Lo LhaL quesLlon ls yes or no:
1. ls lL hard for you Lo delegaLe responslblllLy?
2. uo you lmplemenL your Leam's suggesLlons?
3. When an employee has a greaL ldea, do you glve hlm credlL for LhaL?
4. uo you mlcro-manage pro[ecLs?
3. uo you faclllLaLe every meeLlng?

kead More: 8ecome an Lffect|ve Manager?







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F'*G+ H% " I*%J:"*J<5'E
We all know Lhe Lype, Lhe guy LhaL wanLs Lo do everyLhlng on hls own. We know hls Lype so
well, and Lhere are so many ouL Lhere LhaL Lhey've earned a nlckname - ConLrol lreaks. 1hls
guy has Lo know whaL everyone ls dolng aL any polnL ln Llme. Pe has Lo be lnvolved ln every
maLLer. Pe wanLs Lo know abouL sLuff as soon as lL happens and lf you updaLe hlm afLer Lhe
deed ls done, oh my. Who does he LrusL? reLLy much only hlmself.
uon'L leL Lhe 'he' mlsgulde you - women can be conLrol freaks Loo.
Cbnoxlous Lhough he may be, he ls a glfLed enLrepreneur, an experL ln hls fleld, and Lhe
number one sales person of Lhe producL or servlce he creaLed. And lL's noL a colncldence
LhaL he's sLlcklng hls nose ln everyone's affalrs. 1he cllenLs always ask for hlm, wanL hlm Lo
be personally lnvolved ln Lhelr pro[ecL and Lhe lnvesLors also demand hlm aL Lhe helm, as
CLC, as CCC and as Pead of Sales. lL's noL easy belng a one-man-show.
1he hubrls someLlmes ralses lLs head and Lhe LalenLed man who decldes and does
everyLhlng on hls own wlshes he could clone hlmself, slnce lL ls only he who could brlng ln
Lhe Lhunder (Lhese are Lhe LhoughLs LhaL go Lhrough hls head.) And Lhere are Llmes LhaL Lhls
feellng of 'only l can prevall' geLs relnforcemenL, an employee makes a mlsLake LhaL cosLs
Lhe company a greaL deal, a cllenL calls Lo complaln abouL Lhe accounL manager, a poLenLlal
lnvesLor flnds mlsLakes ln a flnanclal sLaLemenL made by Lhe accounLanL. see? Pe exclalms
ln sllence, ls lL any wonder l lnslsL everyLhlng wlll go Lhrough me?
ush, ush, ush!
AfLer Lhe chlps have been cashed, and Lhe reallzaLlon of Lhe heavy Loll LhaL Lhls scenarlo ls
Laklng on Lhe company slnks ln, Lhe way Lo leL go of Lhe conLrol and Lo sLarL LrusLlng more ls
by underLaklng a dramaLlc change ln Lhe flow of daLa ln Lhe company. 1he daLa should reach
Lhe CLC aL Lhe rlghL momenL, meanlng, before Lhe flre erupLs. 1o glve hlm Lhe chance Lo
qulckly sllde down a poll and race forward ln a red Lruck Lo Lhe rescue, noL summon hlm
afLer everyLhlng ls scorched and Lhe only Lhlng lefL Lo do ls llsL Lhe damages. 1he CLC musL
know where each asslgnmenL sLands, whaL ls Lhe sLaLus of each and every pro[ecL, how
Sales are performlng, how saLlsfled Lhe cllenLs are, whaL's shaklng wlLh 8&u - all Lhls daLa
musL be pushed Lo Lhe CLC.
uaLa LhaL ls belng pushed Lo Lhe CLC, aL Lhe rlghL momenL and ln Lhe speclflcaLlons LhaL he
deflned, provlde Lhe CLC wlLh much needed peace of mlnd. Pe knows LhaL Lhe asslgnmenLs
he marked as lmporLanL for achlevlng Lhe sLraLeglc goals are movlng forward as expecLed or
LhaL hls help ls requlred. LlLher way, he's goL hls flnger on Lhe pulse and Lhere ls noLhlng
CLC's llke beLLer Lhan hearlng Lhe hearLbeaL of a company forglng forward.
8a|ance 1hat Scoreboard
ln 1997, 1he Parvard 8uslness 8evlew declared Lhe 8alanced Scoreboard sLraLegy
performance managemenL Lool as Lhe mosL lmporLanL developmenL ln buslness ln Lhe lasL
73 years. noLhlng LhaL happened ln Lhe 13 years LhaL have passed slnce poses any LhreaL Lo


7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !!



Lhe valldlLy of Lhls clalm. So we can updaLe Lhe clalm and say: Lhe 8alanced Scoreboard ls
Lhe mosL lmporLanL developmenL ln buslness ln Lhe lasL 90 years.
1he meLhodology was flrsL presenLed by 8oberL kaplan and uavld norLhon ln 1992 - an
lconlc plece of buslness Lrlvla. 1he Scoreboard provldes Lremendous added value Lo Lhe CLC
and Lhe organlzaLlon as a whole by provldlng preclse, conclse and relevanL daLa. Cne of Lhe
greaL achlevemenLs of Lhe meLhodology ls Lhe ablllLy Lo secure a balance of budgeLary
allocaLlons for shorL-Lerm goals on Lhe one hand, and resources for long Lerm goals on Lhe
oLher. A focused and ln-conLrol managemenL of Lhe Scoreboard allows Lhe CLC Lo beLLer
communlcaLe hls vlslon Lhrough LranslaLlng Lhe sLraLegy Lo measurable goals, and follow-up
on performance by deflnlng clear performance expecLaLlons from all ranks.
AfLer everyone ls clear on deflnlLlons of roles and performance, lL's Llme Lo lmplemenL a
sysLem LhaL holds Lhe company's goals and seLs kl's for every managemenL Leam member
(Ckapl anyone?). lrom now on, Lhe CLC can log ln Lo Lhe sysLem and lmmedlaLely see Lhe
successes and fallures, Lhe sLaLus of every goal. 1he conLrol ls sLlll ln place, sans conLrol
freak.
ko|| Up our S|eeves
ln order Lo be ln conLrol wlLhouL conLrolllng, Lhe CLC should perform managerlal rouLlnes:
ersonal work meeLlngs - face Lo face, over Lhe phone, vldeo chaL, or any oLher
forms of communlcaLlons pracLlced ln Lhe company
llxed and effecLlve managemenL meeLlngs
A performance managemenL sysLem LhaL allows Lhe push of daLa
AddlLlonally, Lhe CLC should communlcaLe clearly aL Lhe beglnnlng of every quarLer / half /
year Lhe company's goals for Lhe upcomlng perlod ln four spheres:
1. llnance- ln order Lo succeed flnanclally, how should we presenL ourselves Lo our
share holders?"
2. MarkeLlng & Sales- ln order Lo achleve our goals, how should we presenL ourselves
Lo our cllenLs?"
3. ln-Company rocedures - ln order Lo saLlsfy our cllenLs, ln whlch procedures should
we excel?"
4. CrowLh and Learnlng - ln order Lo acLuallze our vlslon, how would we keep Lhe
ablllLy Lo change and lmprove?"



7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !"



And so, Lhe 8alanced Scoreboard LranslaLes sLraLegy lnLo measurable goals. All employees
and operaLlonal arms geL clear kl's. 1he CLC's vlslon Lrlckled down and reached all Lhe
Lroops.
A sysLem LhaL holds Lhe company's goals and personal kl's allows Lhe CLC Lhe be up-Lo-
daLe on every Lask and goal, wlLhouL drlvlng Lhe Leam nuLs by mlcro-managlng Lhe hell ouL
of Lhem.
uaLa LhaL ls pushed Lo Lhe CLC, aL Lhe rlghL Llme and ln Lhe speclflcaLlons LhaL he deflned, ls
glvlng hlm Lhe power Lo manage and Lhe confldence LhaL everyLhlng ls ln conLrol - baslcally,
wlLh Lhe flnger on Lhe pulse.

kead More: Dr|ve kesu|ts w|th erformance-8ased kIs?




7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !#



F"2$= <+."+%7= @ -, !5%.% <015 " !52*7;
1here's noLhlng llke Lhe flrsL company meeLlng of a new year. LxclLemenL ls ln Lhe alr, Lop-
shelf snacks are on Lhe Lable, and Lhe CLC presenLs Lhe Leam wlLh Lhe goals and sLraLegy for
Lhe upcomlng flscal year. 8uL lf ln a monLhs Llme you ask Lhe Leam abouL Lhose goals, Lhe
sLraLegy LhaL Lhe CLC ouLllned, ln mosL cases few, lf any, wlll remember. Lveryone ls already
deep lnLo Lhe day-Lo-day, Lhe rouLlne Lasks - who has Lhe Llme Lo llfL Lhelr head from Lhe
compuLer screen Lo look forward?
Strategy Dr|fts Away
1he CLC ls glvlng hls all Lo drafL a grand sLraLegy for Lhe company, goals, check polnLs,
developmenL scope, markeLlng plan, new producLs/servlces, cosLs vs. pro[ecLed proflL,
SWC1. he sLands ln fronL of Lhe board, or Lhe lnvesLors, a presenLaLlon behlnd hls back,
answerlng quesLlons, promlslng growLh and lf he does Lhls well, he galns Lhe LrusL and
confldence he seeks. 1hen lL ls back Lo Lhe Leam, Lo make lL all happen.
1he Leam ls swamped ln Lhe dally grlnd. 1he CLC feels, more ofLen Lhan noL, aL a loss wlLh
Lhe vasL gap beLween whaL goes on ln hls head - sLraLegy, goals, growLh - and Lhe dally
acLlons LhaL Lhe Leam performs. And lf LhaL's noL enough, many CLCs flnd Lhemselves belng
sucked, unwllllngly, lnLo Lhe day-Lo-day, due Lo Lhe expecLed 'leanlng' of Lhe Leam agalnsL lLs
leader. 1hey ask quesLlons, seek guldance, look for soluLlons. so whaL's a CLC Lo do? Pow
can he change Lhe day-Lo-day LhaL requlres hlm Lo consLanLly dlve deep and floaL back Lo
Lhe Lop? More lmporLanLly, how do we llnk Lhe Leam's acLlons Lo Lhe CLC's ldeas? Pow do
we make sure LhaL every Lask asslgned Lo any Leam member sLems dlrecLly from concreLe
goals and drlves forward Lhe sLraLeglc plan?
Lvery S|ope |s 8oth Uph||| & Downh|||
1he argumenL on 1op-uown vs. 8oLLom-up has been golng on for years, and lL seems LhaL
Lhe 8oLLom-up approach ls geLLlng all Lhe applause Lhese days. lL ls very now, very
pollLlcally correcL, flLs nlcely wlLh Lhe Soclal culLure. 8uL we llve ln Lhe 21sL cenLury LhaL
symbollzes abundance more Lhan anyLhlng else. 1here ls so much of everyLhlng and we no
longer need Lo choose, we can slmply Lake Lhls and LhaL as well (never repeaL Lhls sLaLemenL
Lo a 14-year-old ln a supermarkeL.)
1he CLC needs Lo manage ln a balanced way, boLh ways. Cn Lhe one hand, 8oLLom up -
dally operaLlon managemenL. lL ls cruclal LhaL Lhe CLC won'L spend all of hls Llme above Lhe
happenlng, buL wlll allocaLe Llme for rouLlne 'dlves' Lo check Lhe pulse of Lhe company, glve
Lools, gulde and dlrecL, Lo besLow hls experlence and hls all-encompasslng polnL of vlew.
Lverybody wlns here, sLlll, balance ls cruclal, as ls Lhe CLC's ablllLy Lo make cholces, only he
should declde when Lo dlve and for how long. Pe shouldn'L be walklng around wlLh an
anchor Lled Lo hls ankle so every Leam member can pull hlm down whenever Lhey feel lL ls
really urgenL".
Cn Lhe oLher hand, lL ls of value LhaL Lop managemenL, Lhose wlLh dlrecL access Lo Lhe CLC's
ear, also adopL Lhls meLhodology and noL leave lL solely Lo Lhe man aL Lhe helm.


7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !$



Da||y Strategy
?ou can and should look aL 1op uown managemenL as Lhe mosL efflclenL way Lo make Lhe
necessary llnk beLween Lhe Leam members' acLlon plans, and Lhe goals seL by Lhe CLC as a
way Lo lmplemenL Lhe sLraLegy ln Lhe dally:
1asks are derlved from goals
1he Leam ls aware of and undersLands Lhe llnk beLween lLs own Lasks and Lhe
company's goals for Lhe upcomlng quarLer/year
8ouLlne meeLlngs wlLh Lhe CLC and Lop managemenL Lo reporL, ad[usL, and push
ahead
Cnce every Lwo weeks or monLhly, every manager checks hls/her own lan vs.
AcLual, and ad[usLs accordlngly
MeeLlng once every Lwo weeks or monLhly goals Lo dlscuss 'where we're aL' - every
Leam member presenLs hls/her own lan vs. AcLual so Lhe CLC ensures
lmplemenLaLlon, undersLandlng, cooperaLlon, commlLmenL and Lransparency
lL ls noL Lhe easlesL of Lhlngs Lo keep our new ?ear's 8esoluLlons. 1he flrsL weeks of Lhe new
?ear we are drlven and enLhuslasLlc, full of moLlvaLlon and self-bellef buL Lhen Lhe days roll
by and our dally llves geL Lhe besL of us. LxperLs encourage us noL Lo keep our 8esoluLlons Lo
ourselves, buL share Lhem wlLh our famlly and peers, clear Llme ln our calendars, seL goals
and self-award for accompllshmenLs. baslcally lmplemenL Lhe sLraLegy lnLo Lhe dally grlnd.
And so?
1he Lwo managemenL approaches, 1op uown & 8oLLom up are complemenLary
Lools, lL ls noL necessary Lo choose buL raLher Lo flnd Lhe balance
uLlllzlng Lhe 8oLLom up approach you are consLanLly feellng Lhe pulse and provldlng
your Leam wlLh professlonal guldance and confldence
uLlllzlng Lhe 1op uown approach you are maklng sure Lhe sLraLeglc & performance
goals you seL are presenL ln every acLlon plan of every Leam member
lan vs. AcLual measure musL be Laken rouLlnely
SLraLegy lsn'L a presenLaLlon, lL's a meLhod

kead More: A||gn our Da||y 1asks w|th the Long 1erm 8us|ness Strategy?





7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !%



>'E !' 60* D((%1+2B% :"*"7%C%*+ :%%+2*7,
We've all been ln Lhls slLuaLlon: lL's 10pm, we look aL our schedule Lo see whaL Lomorrow
holds and our hearLs slnk as we see Lhose Lwo dreaded words 'managemenL meeLlng'. 1he
meeLlng lLself was compleLely forgoLLen amldsL Lhe unconLrollable workload and now LhaL lL
has resurfaced we have no ldea whaL Lo Lalk abouL, how Lo pass Lhe Lwo hours allocaLed for
Lhe meeLlng. 1he flrsL Lhlng LhaL comes Lo mlnd ls Lo cancel, buL we already canceled lasL
Llme. managemenL meeLlngs are lmporLanL, lndeed, LhaL's whaL everybody says, buL we
sLruggle Lo plnpolnL lLs lmporLance, and deflnlLely don'L undersLand how Lo manage one ln
such a way LhaL wlll Lruly Lransform lL lnLo a valuable managemenL Lool.
1here Must 8e A 8etter Way
lL happens ln every aspecL of our llfe. We geL a polnLed recommendaLlon, or read a well-
reasoned arLlcle LhaL explalns how Lhls or LhaL Lool wlll alLer our llfe. We hear from frlends
who Lrled lL Lhemselves and yes, lL works! ?ou're noL golng Lo belleve whaL change lL
brlngs, you have Lo Lry lL as well!" We approach lL wlLh skepLlclsm - Lhls lsn'L Lhe flrsL Llme
we llsLen, Lry and geL dlsappolnLed - and lndeed, we are dlsappolnLed agaln. Why does lL
work for oLhers buL noL for us? 1he answer mlghL be ln our wllllngness Lo puL ln Lhe Llme
and learn Lhe Lool before uslng lL. We can cuL ourselves some slack and blame Lhe lack of
Llme, buL lL ls acLually us who don'L do Lhe work properly.
And so lL goes wlLh managemenL meeLlngs. Llke any oLher managerlal Lool, Lhere ls a
meLhod Lo runnlng an effecLlve managemenL meeLlng, and Lhere's Lhe oLher 'meLhod' -
dolng Lhlngs [usL for Lhe sake of dolng wlLhouL Lruly grasplng Lhe lmpllcaLlons and ablllLles of
Lhe Lool.
reparat|ons
Whoever has Lrled baklng a cake wlLhouL a reclpe ls famlllar wlLh Lhe resulL. lL comes ouL
somewhaL cake-llke buL hasn'L qulLe earned Lhe LlLle of cake". 1he LexLure lsn'L rlghL, Lhe
LasLe lacks balance and ofLen Lhe appearance ls somewhaL sloppy. lor baklng, preclslon and
plannlng ls needed - you can'L [usL wlng lL. lor a managemenL meeLlng Lo come ouL '[usL
rlghL' and promoLe Lhe company's goals, an agenda musL be seL and followed.
1he flrsL Lhlng Lo seL ls a goal. WhaL ls Lhe goal of Lhe meeLlng? lndeed Lhe meeLlngs are
weekly, aL a flxed day and Llme (we'll geL Lo LhaL ln a mlnuLe) buL sLlll, rouLlne does noL
relleve from Lhe need Lo seL goals. 1he opposlLe ls Lrue. 1he way Lo flghL rouLlne ls by seLLlng
goals and rouLlnely checklng goals vs. accompllshmenLs.
Ingred|ents
lor every meeLlng, a leader musL be appolnLed from wlLhln Lhe managemenL Leam. 1hls
person ls ln charge of Lhe meeLlng's professlonal agenda. Pe/She needs Lo prepare all Lhe
documenLaLlon, collecL and facL-check Lhe daLa, and lf needed have a pre-meeLlng wlLh Lhe
CLC Lo geL approval of Lhe daLa LhaL ls Lo be presenLed ln Lhe meeLlng.
An effecLlve meeLlng should run wlLh a plan. A 1lmekeeper makes sure LhaL Len mlnuLes are
lndeed Len mlnuLes. A wooden hammer can be provlded, or a whlsLle, a blcycle horn or


7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !&



download Lhe app LhaL makes your favorlLe nolse - whaL's cruclal here ls Llme managemenL
Lo allow Lhe meeLlng Lo move forward wlLh vlLallLy raLher Lhan swallow a full half-day wlLh
dlscusslon LhaL can (and should) be Laken offllne.
1he CLC opens Lhe meeLlng wlLh 10 Lo 13 mlnuLes Lo seL Lhe goals of Lhe meeLlng as well as
Lo updaLe, glve polnLers and re-focus on Lhe blg plcLure.
nexL, go around Lhe Lable allocaLlng each Leam member 3-7 mlnuLes for updaLes from Lhe
dlfferenL dlvlslons. 1he updaLes should be llmlLed Lo anyLhlng LhaL ls llnked Lo oLher
dlvlslons and Lhus all musL be aware of Lhem. lnner-deparLmenLal lssues LhaL bare no
consequences on Lhe sLraLeglc goals and general work plan should be saved for waLer cooler
chlLchaL. ManagemenL meeLlngs Llme belongs Lo everybody.
AfLer everyone ls clear on Lhe day-Lo-day, lL's Llme for Lhe maln aLLracLlon.
Lxpand the Sum of know|edge Around the 1ab|e
1he maln dlscusslon shouldn'L deal wlLh Lhe day-Lo-day whlch has already been dlscussed
durlng Lhe roundLable updaLes. 1he maln dlscusslon of every meeLlng should be used as a
Lool ln Lhe hands of Lhe CLC Lo make Lhe necessary connecLlon beLween goals and work
plan, Lhus pushlng Lhe company forward.
1he recommendaLlon here ls Lo have an open dlscusslon ln Lhe flrsL meeLlng of every
quarLer ln order Lo plnpolnL Loplcs Lhe Leam belleves have value and promoLe success, and
ls lnLeresLed ln learnlng Lhem LogeLher and acqulrlng Lhe Lools Lo Lackle Lhem heads on. 1he
Loplcs need Lo be exLracLed from Lhe goals LhaL are mosL challenglng for Lhe Leam. A llsL of
Loplcs ls prepared, a schedule of dlscusslons seL, and a leader asslgned Lo each meeLlng.
1he leader should prepare Lhe dlscusslon beforehand. 1he ldea ls Lo creaLe a Lrue and
meanlngful dlscusslon, a bralnsLormlng sesslon. ln order Lo do Lhls, a caLalysL musL be
ldenLlfled and knowledge musL be shared. lf Lhere are experLs ln Lhelr flelds from wlLhln Lhe
company who wlll ln[ecL knowledge and depLh lnLo Lhe dlscusslon, summon Lhem. lf noL, an
exLernal experL should be lnvlLed. 1he leader can co-lead Lhe dlscusslon wlLh Lhe experL lf
Lhe need arlses.
1here ls no polnL ln rolllng Lhe same ldeas based on Lhe same sum of knowledge around Lhe
Lable. lL ls cruclal LhaL Lhe dlscusslon wlll open wlLh new knowledge, a fresh angle, and on
occaslon wlLh a fresh volce from ouLslde Lhe company who wlll provlde a dlfferenL polnL of
vlew. CLherwlse Lhe dlscusslon wlll dle qulckly and conclude same as lasL week, or lasL year.
ln an effecLlve managemenL meeLlng Lhe CLC:
romoLes Lhe Loplcs mosL lmporLanL for Lhe company's growLh
CreaLes a dynamlc agenda
Lmpowers Leam members ln preparaLlon and managemenL of Lhe dlscusslons, and
Lhelr own personal growLh
Allows hlmself/herself Lo llsLen Lo oLher oplnlons, be generous ln glvlng Lools and
delegaLlng lnslghLs


7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !'



ln cases Lhere are urgenL maLLers on Lop of Lhe day-Lo-day, lL ls advlsable Lo schedule a
speclal meeLlng Lo deal wlLh Lhe maLLer excluslvely. 1here's also Lhe opLlon of exLendlng a
scheduled managemenL meeLlng buL lL should be kepL ln mlnd LhaL ln order Lo be focused
and drlven, we all need our rouLlne, Lhe anchors LhaL prevenL us from belng carrled away
from Lhe Lasks LhaL really maLLer, pushlng Lhe company Loward growLh. 'urgenL' and 'crlsls'
aren'L a managemenL phllosophy.
And so,
A flxed day and Llme for managemenL meeLlngs (referably Mondays)
1he flxed day & Llme should noL lnLerfere wlLh cllenL relaLlons
no laLeness, no no-shows, everybody clears Lhelr schedules
llrsL week of every monLh - flrsL flxed Loplc (for example: developmenL sLaLus,
pro[ecLs, producLlon)
Leader ls v 8&u / pro[ecL manager / producLlon chlef
Second week of every monLh - second flxed Loplc (for example: budgeL vs.
execuLlon)
Leader ls ClC / head accounLanL / chlef economlsL
1hlrd week of every monLh - monLhly goals meeLlng, 1op uown meeLlng
lourLh week of every monLh - monLhly sales meeLlng
Leader ls markeLlng chlef / sales chlef / accounL manager

kead More: Manage Lffect|ve|y w|th erformance-8ased kIs?








7C4D$)$/$7%?.7E $%07F7C4D$)$/$7%?.7E = 4 3 " G !(



3#'0+ IK"A2
Ckapl ls a SaaS based plaLform for ClCs and CCCs LhaL leverages crowdsourced kls,
buslness know-how, and auLomaLlon Lo dellver Lhe nexL generaLlon ln buslness performance
managemenL.
1he Ckapl plaLform enables compleLe command over Lhe dlrecLlon of your company
by LranslaLlng your LacLlcal ob[ecLlves lnLo cusLom-deslgned, purpose-drlven key
erformance lndlcaLors (kls). lnsLead of relylng on lnLulLlon and guL-feellng, Lhe Ckapl
sLraLeglc managemenL plaLform glves you Lhe Lools needed Lo make lnformed, daLa-based
leadershlp declslons. lL Lhen propels your sLaff forward by focuslng Lhe enLlre company on
your sLraLeglc goals.
WanL Lo learn more? leel free Lo conLacL us for your performance-based kl consulLaLlon.

3#'0+ +5% 30+5'.,
lrls 1sldon and Maya Cal are Lhe auLhors of Lhls pracLlcal gulde Lo lmprovlng performance as
well as Lhe co-founders of CkAl.

lrls (lrls[okaplvlslon.com) ls a seasoned execuLlve, leader and sLraLeglsL.
8eglnnlng her career as an P8 professlonal and movlng up Lhe ranks Lo Lop
leadershlp poslLlons, she knows whaL an organlzaLlon needs Lo succeed. She
has held v and C-Level poslLlons for Lop lnLernaLlonal companles lncludlng
Cllon 8l and ness 1echnologles.


Pavlng spenL a ma[orlLy of Lhe pasL 13 years ln execuLlve poslLlons for Lop
lnLernaLlonal organlzaLlons (Amdocs, Cllon 8l, ness 1echnologles), Maya
(maya[okaplvlslon.com) has culLlvaLed a deep undersLandlng of
performance managemenL and how managers lnLeracL wlLh daLa. She has a
passlon for Lechnology and sharlng her experlences and successes wlLh
managers looklng for Lhe mosL effecLlve way Lo grow Lhelr buslnesses.