KPI Setting and Cascading

In this organization, every single move is driven by key performance indicator or popularly known by its acronym, KPI. KPI is so sacred, that new entrants could be forgiven for thinking that KPI is next to the Holy Koran. Everything you do here should draw you closer to your work or personal goals, which make up your KPIs. CEO keeps reminding all executives at every opportunity to avoid 'rocking-chair' syndrome. He says we might be embroiled in day-to-day activities that we cannot see the forest for the trees. But never lose sight of where are you going. The importance of KPI is very obvious and known to all. During year-end performance apprisal, superior will review the agreed KPI of their and asign the performance rating. The magnitude of rewards will solely be determined by the rating. Very obvious indeed.
KPI must be set and later cascaded. These are done in a series of workshops at Company level followed by Department or Section levels. CEO will cascade down his KPIs to his direct report.for instance, CEO holds the Net Profit KPI. Upon cascading down, one of his direct reports Operation Manager holds the Production Volume KPI. Another direct Engineering Manager carries Plant Reliability KPI. You see KPI cascading is very crucial in realizing the top-most business objectives.
In the workshops, KPIs are cascaded and owned. Targets are agreed. Duplication and ambiguity are removed. Priority is set. The agreed KPIs are then documented in a so-called Individual Performance Contract or IPC. Eventually all CEO direct reports will have one IPC each. IPC, as the name implies, is a contract or a promise to your superior that you'll deliver what have been agreed. These contract is then signed off between CEO and his direct ports in a ceremony attended by all staff. We called it a KPI Signing Off ceremony, celebrated with lavish food and drink, to mark that responsibilities and accountabilities have been accepted and promises are to be delivered.
I'll more about this later, God willing.