Step 1: Align with Strategy
Break down company-level goals into department, team, and individual objectives. Ensure vertical alignment at every level.
Step 2: Define Role Responsibilities and Output Expectations
Don’t just list job duties—clarify what success looks like in the role (e.g., outcomes, influence, decision ownership).
Step 3: Set SMART Metrics
Make sure every objective is:
Specific – Measurable – Achievable – Relevant – Time-bound.
❌ Poor: “Increase customer engagement.”
✅ Better: “Achieve 20% increase in monthly active users by Q3.”
Step 4: Assign Proper Weightings
Create a scorecard that reflects:
- Outcome metrics (e.g. revenue) – 60%
- Process metrics (e.g. timeliness, quality) – 30%
- Behavioral/cultural indicators – 10%
Step 5: Implement Ongoing Check-Ins
Replace annual reviews with monthly or quarterly 1-on-1s. Emphasize developmental feedback, not just scores.
Step 6: Link Performance to Rewards and Growth
Tie performance to career development, bonuses, training, and equity incentives—not just disciplinary outcomes.