How to Measure Team Performance

by | Oct 5, 2021

how to measure team performance

People in a team function best when they engage with each other and work cohesively. A team can only be effective when the individuals are productive, driven, and can listen to each other. But how exactly can that effectiveness be measured? Is it even possible?

The answer is yes, and it’s not as difficult as some may think! Here are some ways to measure team performance and effectiveness.

1. Client satisfaction

All teams should be aiming to please clients, so a great way to measure how well a team is doing is to see how satisfied clients are. 

Some ways to do this are:

  • Surveys – questions can be qualitative (“what are your thoughts on this product or service?”) or quantitative (“please rate our service out of 10”).
  • Customer loyalty – will/does the customer continue to use the brand? Would they recommend it to others?
  • Customer effort score – the customer states how much effort did it took to have their issue resolved (if they had an issue).

2. Employee satisfaction

Satisfied employees will not only produce higher quality work and work better within and with their teams, but they’ll also have lower turnover rates. 

Some ways to measure employee satisfaction are:

  • Surveys – these could be on promotion likelihood (“how likely would you be to promote doing business with our company to friends and family?”), employee satisfaction, or employee engagement. 
  • Informal chats – leaders should ask their teams often how they’re doing as an individual, in their team, what they feel they can improve on, and how the leader can help give them what they need to succeed. 

3. Productivity

Here, productivity means that the team is meeting goals, making profits, and working well together. 

Measuring productivity requires setting goals and parameters, and then it can be done by:

  • Revenue per employee – team revenue divided by number of employees. 
  • Total workforce cost – a sum of all of the benefits and compensation that teams (and contractors) receive. 
  • The ratio of effectiveness – the profit per dollar spent on the team. 

4. Key Performance Indicators (KPIs)

As their name suggests, KPIs are key indicators of performance. Some examples are:

  • Email replies in a given period of time
  • Presence as well as absence of employees
  • Quality of work (depending on the individual’s specific role, this could look like: typos, aesthetic quality, customer satisfaction, etc.)

5. Work quality

This way of measuring performance is a lot more hands on and involved. Leaders should be familiar with whatever work their teams are doing as well as knowing how to gauge the quality of it. 

Leaders should take the time to review their teams’ work and give constructive feedback as well as praise. When doing this, they should take into account how much of a teams’ work is individual and subjective. 

Measuring a team’s performance is about more than just meeting goals and being productive. It’s also about the team’s growth, satisfaction, and understanding of the tasks they need to accomplish, so it’s definitely a worthwhile undertaking. 

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