Idea in Brief
The Ambition
Leaders set broad corporate goals and want all functions to collaborate to achieve them.
The Problem
Performance management systems often use scorecards that encourage managers and employees to take an overly narrow, short-term view of performance that undermines collaboration. In scrambling to hit their numbers, people lose sight of larger goals and jockey for resources or credit.
The Solution
Institute a four-part performance scorecard that establishes shared goals on strategic targets while still holding employees accountable for delivering individual results. Each component should be weighted according to its importance in helping the company reach its strategic aims.