People Management in SMEs: Performance Measurement & Feedback

Mar 2, 2018
Blog - People Management in SMEs: Performance Measurement & Feedback


It is characteristic of high performance teams, whether in business or other areas such as for example sport, to monitor their performance through a cockpit of performance indicators. Reasons for this are:


  • Measuring (the right) performance indicators supports methodical performance improvement and refining the organization’s business model
  • The definition of clear, measurable objectives facilitates bonding over shared objectives as well as accountability on all levels (team, individual)

Thanks to their nimble ‘racing boat’ nature SMEs have a number of advantages in this area. Here are some recommendations that my team and I take from our work with such organizations:

  • Hearts & minds: the compact size of an SME organization makes it easier for team members to bond over shared objectives on a personal level; the most important element supporting this is a feedback process that is both supportive and challenges team members to improve further
  • Model & process: compact size and lesser complexity relative to large organizations also makes it easier to select a limited, focused set of key indicators; processes must be lean, adapted to the lesser resources of SMEs and customized to reflect the organization’s business model (getting this customization right is a competitive advantage)
  • Technology: new technologies, for example providing near real time measurement and interactive multi-directional feedback profit SMEs even more than large organizations because they help utilize resources efficiently, and because SMEs are better equipped to react fast to information gained from measurement.

Finally, for SMEs as well as in general, performance measurement and feedback depend on good leadership. Good leadership is what transforms the numbers into excitement, motivation and commitment!

And indeed, the next installment in this series will be about leadership, performance and feedback.