The fundamental requirement for an organization looking to execute on its purpose is the establishment of clear goals. Goals serve as guardrails, outlining what must be accomplished in the long term and providing a sense of direction toward achieving the organization’s core purpose. If, as a leader, you find yourself contemplating the next steps for your organization, it’s possible that your organization might benefit from the practice of purpose-driven goal-setting.

With the exception of one-person businesses, attaining alignment among employees, teams, and departments can prove to be a challenging endeavor. Organizations that are highly aligned experience 58% faster revenue growth and are 72% more profitable, significantly surpassing their less-aligned counterparts. With organizational alignment, everyone’s effort is channeled toward achieving business goals and ultimately, the organization’s purpose.

In a world where agility and growth are equally critical, traditional performance management approaches fall short. That’s where agile performance management steps in — a dynamic process that empowers employees and propels organizations forward. Here are the 5 ways in which agile performance management can transform your workplace.

Studies reveal that employees are more engaged and productive when they possess a clear understanding of their organization’s goals, as well as the meaningful impact of their day-to-day tasks. However, current management processes often struggle to achieve alignment, accountability, and prioritize critical things that matter the most. This is where Objectives and Key Results (OKRs) come into play — a simple but powerful goal-setting method that fosters clarity, aligns everyone with shared organizational goals, and ultimately drives improved performance and results.

Performance management is one of the most critical aspects of people management. Modern organizations worldwide have recognized the inherent shortcomings of traditional, annual appraisal-based performance management. Given the considerable investment of time and resources involved, this approach is no longer sustainable. As a result, organizations are embracing agile or continuous performance management as an alternative. This shift aims to enhance employee engagement and cultivate a culture of high performance.

In today’s ever-changing business landscape, traditional performance management practices are no longer delivering the expected results. In spite of significant investments of thousands of hours and millions of dollars, traditional approaches not only fail to improve performance but also lead to the departure of top performers. The staggering cost of wasteful time spent on traditional performance evaluations ranges from $2 million to $35 million per year, making it imperative for organizations to seek a more effective and purpose-driven approach.