Key Performance Areas

In an increasingly competitive global economy where competitive differences continue to be eroded, and where companies are now finding it increasingly difficult to create their competitive differentiation, people are now the sole remaining source of sustainable competitive advantage.

Following is a brief look at six key performance areas common to all businesses that determine their competitive differentiation. All six areas can be measured and analysed.

The Aspirational Index is a measure of a company or team's belief in its people as the differentiating force of its business, and serves as an aspirational benchmark of people's potential engagement in the business and therefore an indication of the potential financial improvement of the business when all other Key Performance Areas are applied.

A company's fortunes lie entirely in the hands of its leaders at every level, and their capacity to influence organisational engagement in the business. The Leadership Index is a measure of the nature of this influence, and whether this influence is enhancing or impeding financial results. Leadership is where everything starts, and is a measure of how well a company's Vision is being 'lived' and the Strategy translated to the people who must execute it. Leadership is also the key to creating the environment in which people are inspired not only to deliver consistently sound performance, but also dream with their customers and stretch themselves in pursuit of innovative solutions to customer and business needs.

The 'H' Factor Index measures the deep-seated values and emotional intelligence of people and how well they express themselves creatively and purposefully in solving problems and building relationships as a means to delivering Customer Impact. It also measures the 'Mindset' and 'Behavioural' deficits that impede elite performance in a team or organisation.

The Risk/Reward Index measures the extent to which people in an organisation share in the Risk and Reward of the enterprise in which they are engaged, revealing extent to which people in an organisation are individually and collectively, anchored to the course and consequences of the company's future. It is only by directly connecting individual and team performance to financial consequence, that sustainable engagement and alignment to corporate goals is ensured.

The Innovation Index measures Innovative Intensity, this being a combination of the degree and frequency of innovative activity. This is the extent to which new ideas are created and applied at every level in the business.

The Customer Impact Index reflects the extent to which people are passionate and protective about the value and impact they have created, and the extent to which your brand has become their brand. It defines and prioritises where lack of customer impact is impeding business results, and points to the corrective entrepreneurial disciplines that need to be addressed.