Why KPIs Matter: The Lighthouse That Keeps Your Team on Course

What Are KPIs (and Why Should You Care?) Key Performance Indicators (KPIs) often get a bad rap. To some, they sound like cold, top-down metrics dreamed up by “management” to monitor people. It’s easy to see how KPIs might feel impersonal—like turning real work into numbers. And yes, if misused, they can do more harm than good. But when implemented thoughtfully, KPIs are the lighthouse that keeps our ship—our team—safe and on course. They represent our shared commitment to excellence, to one another, and to the joyful, empowering experiences we create for our customers every day. When taken seriously, KPIs become a source of pride, momentum, and clarity. When ignored, they become a silent threat to our progress. KPIs Are Leading Indicators of Business Health Every business needs to generate revenue to survive. In the best companies, strong performance also creates opportunities for the team—like promotions, raises, and new career paths. KPIs help ensure that performance is moving in the right direction before problems show up in the financials. Think of it like this: If your car starts making a weird noise or the “check engine” light comes on, that’s a sign something’s off. You’ve got time to get it checked out before it turns into a major issue. That’s a leading indicator. Now imagine ignoring those signs and waiting until your car breaks down on the side of the road. At that point, it’s a lagging indicator—the problem has already happened, and now you’re dealing with the consequences. KPIs are your business’s version of that “check engine” light. They give you a heads-up so you can take action before things break down. KPIs Give People Real-Time Feedback In The Truth About Employee Engagement, author Patrick Lencioni highlights a major source of job dissatisfaction: immeasurement. Immeasurement is the inability for a team member to clearly measure their own performance—to know whether they’re doing a good job or falling short. Without that clarity, motivation fades and engagement suffers. The right KPIs give you a clear, objective signal: Am I doing a good job? For the right people, this is incredibly motivating. It removes the guesswork and empowers individuals to take ownership of their performance with confidence. Resistance to KPIs often comes from those who know they aren’t performing well. KPIs—and the accountability that comes with them—shine a light on who’s truly contributing and who’s not. That clarity is energizing for the people who are pulling their weight. It reinforces a culture where effort is recognized and celebrated. KPI Commandments To keep our lighthouse shining, these commandments guide how we define, use, and live our KPIs: 1. KPIs Must Be Taken Seriously Filling in numbers just to check a box does not serve you, your team, or our company. KPIs are not busy work—they are the heartbeat of progress. Everyone must be passionate about the numbers they own. When you fight for your KPI, you’re fighting for your team’s success. Every number tells a story—and you’re the author. 2. Every KPI Must Have a Clear Goal A number without a goal is noise. A number with a goal becomes a compass. It shows us where we stand, and whether we’re winning or falling behind. Without that clarity, we can’t make smart decisions—or celebrate true progress. 3. Less Is More: Focus on the Vital Few Each team should have no more than 15 KPIs. Most individuals should only own 1–3. Too many numbers dilute focus. We track only what truly moves the needle. 4. The Trend is Your Friend We don’t panic over one bad week. Instead, we look at the 13-week trend—because progress is a pattern, not a moment. Weekly performance matters, but sustained improvement is what drives real impact. 5. KPIs Must Be Reviewed Weekly with Full Team Visibility Every KPI should be reviewed weekly, with your team. Visibility creates shared accountability. When your teammates see how you’re doing—and vice versa—it builds mutual respect, motivation, and alignment. It’s not about shame. It’s about truth and teamwork. 6. KPIs Must Be Understood and Agreed Upon A KPI that no one believes in won’t be followed. All team members must be aligned on what is being measured and why it matters. The more connected a KPI is to our vision and budget, the harder it is to argue with—and the easier it is to rally around. Example: If our monthly sales goal is $30,000 and the average transaction is $1,000, it’s clear that we need 7-8 transactions per week. That’s not arbitrary—it’s math. It’s logic tied directly to our shared vision. 7. No Excuses—Only Ownership Challenges will come—weather, staff shortages, unexpected obstacles. But our job is not to explain why we failed. Our job is to figure out how to succeed despite those challenges. When we agree on a goal, we commit to finding a way. Example: If a fence company is supposed to build 5 fences a week but misses the goal repeatedly every week it rains for a day, maybe the plan should be to build 7 fences to allow for weather challenges. Build margin. Solve problems. Own the outcome. 8. KPIs Must Be Assigned to the Person with the Most Control of It The person who owns the KPI should be the one best positioned to drive it. And once it’s assigned, that person is accountable—not just to hit it, but to ask for training, tools, and time if needed. Extreme ownership means owning the result, not just the effort. 9. Managers Should Guide, Not Rescue A manager’s job is not to jump in and do someone else’s work. When that happens, the manager burns out, team development stalls, and no one hits their own numbers. If the right person is in the right seat, they should be able to deliver with minimal intervention. 10. KPI Misses Come Down to Three Things When a KPI is consistently missed, we must ask: 11. Macro-Economic Factors Are Rare—But Real Sometimes external forces impact performance—recessions, pandemics, industry shifts. But before blaming the

Alice and the Mirror of Accountability

Alice and the Mirror of Accountability nick.leja |November 9, 2023 |Personal GrowthStories 1 Alice entered the inn, her eyes locking onto Thera at one of the wooden tables. Her heart racing, she walked towards her. This was her moment, years in the making—the chance to run the Bountiful Berries store in the city. A full-fledged shop, not just a market stand. This interview served as her final challenge. “Hello,” Thera said. “Please, have a seat.” Alice settled into her seat, and the interview began. The initial questions were straightforward, but a surge of anxiety rippled through her when Thera began searching through several parchments, likely in search of her recent sales records. “Ah, yes,” she said, her gaze sharpening as she found them. “Your sales have been rather low lately.” “Yes,” Alice said quickly. “That’s because my teammate, Lily, hasn’t been reliable with running the stand, so I haven’t been able to gather more valuable berries.” “Hmm,” Thera said, scanning Alice’s sales breakdown. “It also looks like you haven’t sold any elderberries. Those are one of the most sought-after berries in our region.” “Yes,” Alice said, shifting in her wooden chair, “because I haven’t been trained on how to collect them.” “And what about your pricing? You’re selling berries for much less than the other vendors.” “That’s because our stand is at the back of the market. The only way to attract customers is having low prices.” “It sounds like you think our stand’s location is a problem?” “A huge problem.” “Then why haven’t you moved the stand?” “No one told me I had that authority. I didn’t want to move it and get in trouble.” “I see…” Thera said, finalizing her review of Alice’s sales and setting the parchment down. Not Alice’s favorite line of questioning, but she had a swift response to every concern Thera raised. Sure, her sales were down, but, as she explained, it wasn’t her fault. Thera asked a few more questions, wrapped up the interview, and departed for the next village to interview their Bountiful Berries stand operator. Alice anticipated a decision within a month. The weeks rolled by, and then a messenger delivered a parchment from Thera—Alice didn’t get the promotion. Her heart lodged in her throat as she read the message repeatedly, desperately seeking an explanation. Obviously, her sales were the culprit. But didn’t Thera listen to her? Every obstacle she faced was justified: Lily’s unreliability, her lack of elderberry training, and the unfavorable location of her stand. How did Thera expect her to succeed? If it weren’t for those obstacles—which weren’t her fault—her sales would be better than everyone’s. 2 Needing some distraction, she left her thatched-roof cottage and visited the village’s only pub. Amid the crowded bar area, she took a seat and awaited service. “Hello,” the bulky man next to her greeted as she sat down. “Hi,” she said, not recognizing him. “Where are you from?” He introduced himself as Mason, a blacksmith passing through the village on his way to the city. Not much time passed before Alice poured out her frustration at missing the promotion. Mason listened attentively, asking questions to grasp the full extent of her the situation. After a moment, he shared, “You know, I went through a similar experience when I first became a blacksmith. Then, one day, I stumbled across an artifact that completely shifted my perspective. Since that day, I’ve achieved every goal I’ve set for myself.” “Really?” Alice asked wide-eyed, leaning in to absorb every word. “What was it? What did you find?” Mason paused and regarded her for a moment as if peering into her soul. After a few seconds, he broke into a warm smile and reached into the rucksack leaning against his chair. From it, he pulled out a handheld mirror and handed it to her. “Here,” he said. “This is the artifact.” She cautiously wrapped her fingers around the handle and raised the mirror to her face, her reflection staring back at her. “A mirror?” Mason nodded. “Yes, but not just any mirror. This is the Mirror of Accountability.” As she examined it, she noticed inscriptions encircling the glass at the top and bottom of the mirror. The top read: ‘Look in the mirror when things go wrong,’ and the bottom: ‘Look out the window when things go right.’ “I don’t understand.” “When things go wrong, look inward, taking accountability. When things go right, look outward, attributing credit to those who supported you. “By blaming other people or situations, you shift power from yourself to them. You put your success in their hands instead of your own. When you take accountability, you empower yourself.” Alice continued examining the mirror, mentally processing everything he said. “When you get home tonight,” Mason continued, “look into the mirror and state a reason for not receiving the promotion. Watch what happens.” 3 They chatted for a while longer as Alice asked several questions to better understand the mirror and how Mason had used it in his own journey. After sunset, they bid each other farewell, and Alice made her way back to her cottage. After settling in for the night, she raised the mirror, peered into it, and said, “My sales are down because Lily isn’t reliable.” Alice gasped as blue strands swirled together in the mirror, masking her reflection. When the strands faded, an image of her full body appeared on the left, and an image of Lilly manifested on the right. A radiant, white orb materialized in front of her chest and rushed over to Lily. Alice’s image darkened, while Lily’s brightened as the orb dissolved into her. After a few moments, the images vanished, and Alice’s reflection reappeared. Her power had transferred to Lily, just like Mason said. Okay, time to try taking accountability. Alice gazed into the mirror and said, “My sales are down because I have not put together a reliable team.” This time, a mystical white aura emanated from the outer rim of the

Managing to Core Values

Managing to Core Values nick.leja |October 13, 2023 |Business Managing to Core Values has had a profound impact on my ability to place the right individuals in the right roles within my companies (getting the right people in the right seats). This wasn’t just a minor adjustment; it was a seismic shift in how we construct and nurture our teams, which has led to significant improvements. Before embracing Core Values as a guiding principle, I found myself in a challenging situation. I had team members who clearly didn’t align with our values but were not technically violating any of our handbook policies. It turned into a waiting game with me waiting for them to violate some policy so I could initiate the disciplinary process. This approach resulted in toxic or unproductive team members remaining in the workplace for extended periods, causing harm to the overall team morale. Once I transitioned to managing based on Core Values, the transformation was immediate. Most problematic team members voluntarily left within three months, and high-performing individuals became notably more motivated. Here’s how to do it: Create Core Values The initial step is to work together with your team to craft your Core Values, and it’s advisable to keep them to no more than seven. Ours have evolved over time and currently stand as follows: Honest Reliable Passaionte Open Minded Good Listener Great Work Ethic Positive & Upbeat When I first did this, it felt like a waste of time. Core Values appeared to be mere feel-good words, abstract concepts lacking any tangible benefits. I was wrong. Implement Quarterly People Analyzers On a quarterly basis, we conduct a People Analyzer on everyone in the company (including the leaders… including me). During this analysis, managers should assess each team member against our Core Values using the following ratings: “+” = the team member exhibits this Core Value most of the time “+/-” = the team member exhibits this Core Value some of the time “-” = the team member generally does not exhibit this Core Value It’s important to note that a “+” doesn’t imply they always exhibit the Core Value, and a “-” doesn’t mean they never do. We all have good and bad days. Additionally, the People Analyzer assesses each team member’s suitability for their specific role within the company. This evaluation focuses on three key factors: Get It: Does the team member understand their role? Want It: Is the team member genuinely motivated and committed to their role? Capacity: Does the team member possess the capacity and capability to effectively perform their role? For each of these, the team member is given either a “Yes” or “No.” Here’s a sample People Analyzer for reference: Define “The Bar” No more than three “+/-” ratings for the Core Values. No “-” ratings for the Core Values. All “Yes” ratings for Get It, Want It, and Capacity (GWC). If a team member meets or exceeds The Bar criteria, they are considered a good fit for our company’s culture. Handling Team Members Below “The Bar” When team members fall below The Bar, it signifies that they are either the wrong person, in the wrong seat, or both. If team members are above The Bar concerning Core Values but receive a “No” for GWC (Get It, Want It, Capacity), it suggests that they are indeed the right person for the company but are currently placed in the wrong seat. The ideal approach is to seek a different role or position where they can excel and contribute effectively. However, if they’re below The Bar with respect to Core Values, they are the wrong person for the company. When a team member falls below The Bar, here’s a structured approach to address the situation: 1. One-on-One Meeting: Schedule a one-on-one meeting with the team member to discuss their People Analyzer results. Explain the ratings and provide them with clear feedback. 2. Identify Obstacles: Explore whether there are any factors within the company that might be hindering their performance. Discuss their understanding of their role, expectations, training, tools, and resource needs. If they’re identified as the right person but in the wrong seat, discuss other potential positions they might be interested in. 3. Mutual Game Plan: Collaboratively create a plan to help the team member rise above The Bar. This plan may include actions both the manager and the team member should take to improve the situation. 4. Schedule Follow-Up: Set a follow-up meeting to conduct another People Analyzer in 2-4 weeks. Ensure that this follow-up meeting is scheduled and added to both calendars before ending the meeting. 5. Follow-Up Assessment: In the follow-up meeting, reevaluate the team member’s status against The Bar. If they are now above The Bar, the problem is resolved. If they remain below The Bar, begin the Disciplinary Process and schedule another follow-up meeting in 2-4 weeks. 6. Repeat as Necessary: Keep repeating steps 1-5 until: The team member is above The Bar (the desired goal) The team member voluntarily resigns or is terminated Our Process For our company, our Disciplinary Process involves two written warnings, and if the issues aren’t resolved, termination of employment. If the team member does not improve, the longest the process would take is 3 months: A great benefit of this process is that most team members will quit before getting fired. If someone isn’t a good cultural fit, deep down, they’ll know it. If they’re only at risk of being fired for making mistakes, many will try to hang on, hoping to avoid any further errors (or at least to avoid getting caught). But when the issue is a poor cultural fit, it’s much harder to conceal. This process also focuses on what’s most important: recognizing team members who align well with our Core Values rather than those who make the fewest mistakes. I’d rather have a team member who strongly embodies our Core Values, even if they make occasional mistakes, over a toxic team member who simply plays