KBI: Management based on Key Behavior Indicators (KBIs) rather than performance
- Michael Korreborg
- Nov 17, 2024
- 7 min read
Updated: Dec 6, 2024
Are traditional KPIs becoming outdated? After decades of measuring and assessing based on sales and productivity goals, have we reached a point where we are looking for something else, or perhaps something more?
It seems that way – since the 2010s, the concept of KBIs has started to spread. KBIs, or Key Behavioural Indicators, refer to measurable factors used to assess employee behavior and actions – specifically, the behaviors and actions deemed crucial for achieving organizational goals and results.
We had the pleasure of interviewing Michael Korreborg for a conversation about leadership using KBIs. With many years of experience in both sales and leadership, Michael has witnessed firsthand the difference it can make when focusing on behavior over performance. Today, he advises on KBIs through his company, Peaky. Here is his story:
KBIs in practice: A story from the real world
“I started focusing on KBIs back in 2016-2017 when I worked as a leader in a call center,” says Michael. “It’s an industry with a strong tradition of working hard with KPIs – often 20-30 at a time. Employees typically received daily emails showing where they performed well and where they lagged behind. But there’s something about the times, and the new generation of employees is setting different demands. If they’re not interested in the number race, they leave.
I remember thinking that I wouldn’t want to start my day like that either if I were an employee. It’s not particularly motivating, and I didn’t want to lead in that way.”
“What if you focus on the individual first...”
“So I decided to think differently. I wanted to focus on each individual – in my case, that was 20 employees – and their behavior, while only I, as the leader, would focus on the hard performance numbers.
This naturally required something of me as a leader – you have to be genuinely interested in all your employees, and in the fact that they have a life outside of work – but I was happy to embrace those demands.”
“I took my team aside and said, ‘I’m diving into this, and you’re coming with me.’”
“I started by bringing the team together and conducting a ‘What do we want to be known for?’ exercise that applied to both them as employees and me as a leader. Of course, there was an overarching framework to ensure we discussed both productivity and performance, but I was also interested in understanding their purpose for being there, what they wanted from the job, and what dreams they wanted to achieve.
Ideas quickly emerged – they wanted to be the most competent call center employees, have the fastest response times, provide the best advice, make the most sales, etc. I then used these points to ask what behaviors would be required to achieve those goals. In this way, the employees themselves mapped out the behavior that they, and we together, believed would lead to the desired results. It could be big things like ‘We make sure to be in a good mood when we arrive and help each other on bad days,’ or small things like ‘We’ll improve response times if we check how the rest of the team is doing before going to the bathroom.’
For me as a leader, it was important that they defined the content. I fundamentally believe you can’t demand something from people that they haven’t agreed to. When the employees themselves set the framework, it’s also easier for them to hold each other accountable later on.”
From theory to practice
To avoid ending up with new numbers and goals to chase in a demotivating way, Michael chose to flip the traditional mindset upside down.
“From now on,” he told the team, “you’re all Index 100 employees. At the start of every month, you’ve already earned 100% of what’s expected of you, and you never have to start from zero and work your way up. The only things you have to meet are the following:
Don’t skip work – it’s okay to have ‘down’ days, and we’ll talk about those.
Participate actively in this behavioral journey we’re embarking on together.
Every Monday, submit a handwritten letter to me as your leader explaining why you are an Index 100 employee.
In return, you can expect to receive a handwritten letter from me every Friday.”
Handwritten letters
“There was an initial period where people were a bit lost. They lacked direction, and it took them some time to get into the habit of writing the letters. Writing a letter by hand is very intimate, and it’s a different form of communication than most of us are used to – ‘Dear boss, let me tell you why I’m a good employee’ – but it’s also super interesting!
In the first two weeks, I might as well have thrown the letters away. They were filled with things like, ‘I’m an Index 100 employee because I answered the phone every time.’ That wasn’t quite the point of the exercise, but it gave me the opportunity to take the lead in my responses. I could start by noting that I had noticed their constant presence on the phone, but also point out other things I had observed.
This often led to truly great stories between us. Stories that weren’t about numbers, but about the person. I find that incredibly fascinating. It’s about helping people succeed – that’s why we’re here.”
Going beyond traditional one-on-ones and development meetings
“Slowly but surely, I began to see an interesting development. Employees became much more aware of themselves and often highlighted where they saw their own progress. As a leader, I could then either agree or provide some feedback if I had noticed something different. And through that dialogue, we suddenly found ourselves engaged in something truly great.
There were also instances where people shared deeper personal issues with me – family problems, relationship issues, or other challenges in life. As a leader, I want to be there for people and help them lift something that can become more than it was before. What I discovered was that we started talking about things I never would have come close to in a statistical one-on-one performance or development meeting.
It was as if something clicked in the department because they also started talking more with each other. For me, it was just as important that they took responsibility for each other, supported each other, and got the best out of one another, and they did.”
Staggering results
“The numbers I continued to receive told a clear story. Our team won countless internal awards (monthly accolades). We won awards for the highest customer satisfaction – and also for the lowest absenteeism, which went from 10-15% to 0.5%. Employee churn dropped from 70% to 5%, and we exceeded our weighted sales targets.
When new tasks arose that required us to pivot, my team could adapt day-to-day, while other teams took months. Creating that intimate, safe space where people were there for each other helped eliminate the fear of making mistakes.
The employees even took the initiative to ask for a board where they could indicate their mood in the morning using magnets, so they could better support each other. Of course, I said yes and added the offer of a walk-and-talk if anyone needed it on tough days.
It was truly a transformation of the team, benefiting us on all fronts.”
Remove the numbers and get to know each individual well
“Some might think it doesn’t have to be as complicated as I made it – this was just what I chose to do.
Even though KBIs are about measuring behavior, I chose to remove the numbers in practice. This made it important to maintain agreements along the way, but we had something to hold each other accountable for with the letters. You need to be strong in setting expectations, as well as giving praise and feedback – but as a leader, I’m happy to do that.
I refuse to believe that constantly being measured and weighed on everything you do leads to anything positive. In my world, that’s passé. I don’t show employees any numbers – I know they are exhibiting the behavior I want, which is also what customers want, and that delivers the results we need.
I was only able to succeed fully with the KBI approach because I knew the types and competencies I had on my team. I used Praice to map out the natural behaviors of each employee. It also showed me how to bring each individual on board and who would naturally excel in which behaviors.
When recruiting, I was aware of the soft skills I needed to complete the synergy. Different challenges and circumstances require different types, and if you find the right people with the right behavior, they can teach the rest of us how to improve and take ownership of the process.
With Praice, I had the overview that allowed me to say, ‘You three, you’re experts in this and that,’ and then I could stage different people according to their strengths.
I had a colleague who had perfected the formula for finding a specific type of person who could perform well under his leadership and in his team. I was a bit envious, but with a formula, you get a fairly homogeneous team. It was the same types of people delivering in the same way. But it worked great for him and his team.
I, on the other hand, sought people who could complement and support each other – this took some responsibility off my plate and freed up the necessary time for my core focus – each individual’s behavior and personal development.
I have never regretted the path I took and remain a strong advocate for putting the individual at the center instead of the numbers.”