Tactical Performance or Adaptive Performance? Which one?


Simply both! Before explaining why, let us define both of the terms.

Tactical performance is measured by KPIs that are defined based on daily, monthly or yearly plan. Basically many of them are helping us to check the routine. They are needed to know more about daily operation. For example: Number of produced parts.

Adaptive performance is not about routine jobs. It is talking about innovation to improve a process. Basically, adaptive KPIs improve the plan and change the routine. 

For example: merging stations in assembly lines to reduce production cycle or any change in business model for reducing cost. Rolls Royce changed his business model and instead of selling engines to airlines they charge them based on operation hours of the engines. With this kind of innovation the routine job and routine KPIs will be changed and the focus will be more on quality of engines, less number of changing parts and etc.

The balance of these two performance systems seems very important. We cannot forget any of them when we are setting up KPIs in our performance measurement system.

Tactical performance system assures monitoring the minimum expectation while the adaptive one supports employees not to forget values of companies and processes. There are many employees focusing on tactical performance. They are trying hard to hit the target and during their journey they forget the values such as quality, collaboration or improvement. A good leader can make the atmosphere calm and balanced so that all team members can focus on both sides for creating happy stories.