“I am still not ready to let go my KPIs,” Brendon stated flatly.
“I don’t want you to let them go, I am just saying that results-based-performance may not tell the whole story and is unreliable in judging effectiveness,” I replied. “Looking at a salesperson’s effectiveness, have you ever had someone go over quota (sales KPI) and, yet, you knew, as their manager, they did little more than answer the phone and respond to incoming RFQs?”
“Often,” I continued, “an increase in revenue might have more to do with the company’s reputation in the marketplace, a warranty program or a price break rather than the effectiveness of a salesperson.”
Brendon was still silent.
“Have you also seen a salesperson miss quota, not through their own lack of effort, but because of a market condition. Indeed, their effectiveness might be quite high in the midst of overwhelming obstacles. Relying on results-based-performance to judge effectiveness can be tricky.”