OKR, KPI AND A REAL PERFORMANCE CULTURE
Performance Management: OKR & KPI
Performance starts the day goals are written and is run on a weekly cadence. A well-built KPI/OKR architecture, regular 1:1s and calibration deliver results throughout the year — not at year-end.
What is performance management consulting?
Performance management consulting brings goal setting, regular manager–employee dialogue, appraisal and reward together in a single system. IC Consulting builds this system starting from company strategy: strategic goals cascade into KPIs and OKRs, and from there into unit and individual goals. The system runs all year through monthly 1:1s and quarterly check-ins.
What the data says
- According to Gallup, managers account for at least 70% of the variance in employee engagement across business units (State of the American Manager, 2015). That is why regular 1:1s sit at the center of the system. Source
- Deloitte calculated that it was spending close to 2 million hours a year on performance management and moved its system to frequent, short check-ins (Harvard Business Review, "Reinventing Performance Management", April 2015). Source
The common thread: systems built on clear goals and continuous dialogue lift performance throughout the year.
What We Solve
Every system starts with conceptual work. We review the company's strategy, culture and business model and define together what performance means for that organization. The approach and methodology are then developed specifically for it, and the 4 areas below are built on that foundation.
KPI / OKR architecture aligned with strategy
Company strategy cascades step by step into unit and individual goals, each tied to an outcome. KPIs track the ongoing health of the business, while OKRs aim for a step change in a given period. The architecture balances financial, customer, process and learning dimensions using Kaplan and Norton's Balanced Scorecard logic.
Manager–employee 1:1 cadence
A monthly 1:1 rhythm turns coaching conversations into a lasting habit. Managers are supported with a template and a conversation guide for these meetings.
Calibration, distribution and fair evaluation
Calibration sessions create a common standard across managers and make the definition of "good" clear. Calibration ensures different managers rate the same performance the same way, so the rating distribution reflects each employee's real contribution.
Linking performance to reward and growth
Performance outcomes link transparently to bonus, promotion and development plans. Performance and potential are assessed together, and results flow through rules announced in advance.
Our Approach
Diagnose — Take the pulse of current goal-setting, reviews and 1:1 dialogue.
Design — Build KPI/OKR architecture, 1:1 template and calibration protocol.
Deploy — Run a full cycle on a pilot unit.
Measure — Track goal completion, engagement and distribution health.
Who is it for?
- Organizations setting up a performance management system for the first time
- Organizations that want to spread the annual appraisal across the year
- Leadership teams planning a move to OKRs or combining OKRs with their KPI system
- HR leaders who want bonus and promotion decisions based on transparent performance data
- Fast-growing companies with a rising number of managers
Deliverables
KPI / OKR architecture template
1:1 conversation guide
Calibration protocol
Performance → reward/development linkage matrix
Further reading: What is performance management? · Managing performance through rhythm
Frequently asked questions
OKR or KPI?
They work together. A KPI is a continuously tracked health indicator of the business; an OKR is a goal to reach within a set period. In mature systems, the key results of OKRs become the target levels of the related KPIs.
→ What is OKR? · → What is KPI?
What is calibration?
Calibration is a session where managers review the performance ratings they gave their teams together. Its purpose is to make the definition of "good performance" consistent across the organization and keep ratings fair.