Performance management systems should be designed starting from the goals and initiatives, and then moving to the levels of organization, processes, and individual positions

There are a lot of questions related to setting up performance management systems. Usually, companies end up with some sort of one-dimensional system of KPIs that are not tested in the holistic manner.

Wise approach would be to start with the goals and initiatives, but then move to the levels of organization, processes, and individual positions. Making all these dimensions aligned, while also trying to balance between leading and lagging KPIs, is what matters the most.