Let’s start with three of the most common and critical lagging financial measures:
■ Gross margin
■ Cash flow
I’d like you to imagine a scenario for a minute. Say you became enamored with the idea of focusing your employees on KPIs. And, say you have come to the conclusion that the most important KPI to focus on and improve in your organization is gross margin. So, with this in mind, you gather all of your employees together and say the following:
OK team, I’ve decided that I am going to engage all of you in driving the financial performance of this company and that you will all benefit by virtue of an incentive plan that I’m going to put in place. I’ve given it a lot of thought, and it’s clear ...