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Three Steps to Realign IT Employee Rewards Systems with New KPIs

Three Steps to Realign IT Employee Rewards Systems with New KPIs

This IDC Perspective provides a framework for translating new KPIs into meaningful performance metrics and rewards systems that ensure that employees meet new IT priorities. This document provides IT executives with a step-by-step process to ensure that employee performance metrics effectively direct and motivate employees toward achieving the new KPIs while not creating undesirable outcomes. The document also enables executives to create metrics that maximize alignment across units and ensure that employees are working together to achieve the same goals. "Creating new KPIs to foster integration between IT and business units is just the start," says Amy Young, adjunct research analyst with IDC's IT Executive Programs (IEP). "To achieve the new measure of DX success, IT leaders need to translate the KPIs to employee performance metrics so that employees understand what they need to do personally to enable the organization to achieve DX success."

Executive Snapshot
Situation Overview
Redefining Employee Performance Metrics
The Larger Organizational Context of Employee Reward Systems
The Steps to Updating Employee Reward Systems to Align with New KPIs
Step 1: Consider How the KPIs Translate into Responsibilities for IT Units and How These Responsibilities Cascade Down the Hierarchy of the IT Organization
Step 2: Identify the Drivers That Are Key for Completing the Responsibilities at Each Step of the Hierarchy
Step 3: Evaluate Each Performance Metric to Ensure It Is Feasible, Will Achieve the Desired Outcome, and Will Not Produce Unintended Outcomes
Redefining Employee Reward Systems
Advice for the Technology Leader
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