Have you heard of KBIs, a set of indicators that sound remarkably similar to KPIs? KBIs, or Key Behavioral Indicators, are particularly valued by managers. What are they, how do they compare to other indicators and skills, and how can they be better integrated into your company culture? Let’s explore.
What are KBIs?
KBI stands for Key Behavioral Indicator, which can be translated as "key behavioral reference indicator." Unlike the better-known KPIs (Key Performance Indicators), KBIs fall within the broad spectrum of soft skills, which are gaining increasing attention in businesses. These behavioral competencies are especially important for individuals in leadership roles, primarily managers.
KBIs can be grouped into several categories:
- Managerial skills: Understanding one's role, effectiveness, and quality in team management.
- Leadership skills: The ability to set and guide teams toward goals.
- Organizational skills: Managing and overseeing team workflows.
- Mindset-related skills: The psychological ability to lead and support a team effectively.
In addition to these categories, companies may define other behavioral competencies as KBIs based on their specific needs. These indicators enhance and complement other metrics and skills that employees bring to the table.
Distinguishing KBIs from KPIs and other indicators
Unlike KBIs, KPIs focus on productivity and measurable outcomes. Employers select KPIs based on the expected results for each role and department, ensuring alignment with the company’s strategy to drive growth and performance. Choosing the right KPIs is critical for setting objectives and designing an incentive compensation system that is coherent and effective.
Power skills, though less widely known, are closely related to KBIs and often essential for achieving KPIs. Sitting between hard and soft skills, power skills encompass interpersonal abilities that make employees effective in working with others. When identified and prioritized during the recruitment process, these skills can make a company more innovative and dynamic.
The effectiveness of a company depends on how well these different indicators and skills are combined. Together, they determine employee engagement, sense of belonging, and the drive to surpass individual and collective objectives—whether qualitative or quantitative. However, for this synergy to succeed, these skills and indicators must be genuinely acknowledged and integrated.
Toward Formal Recognition of KBIs
Like power skills, KBIs are not yet formally included in annual employee evaluations. Recruiters and managers intuitively recognize their importance, but there is no standardized approach to measuring them. Formal integration requires adapting compensation structures to include KBIs as part of a precise evaluation framework. Implementing management by objectives (MBO) is particularly recommended to incorporate KBIs alongside other interpersonal and behavioral indicators.
KBIs are far more than just another acronym in corporate jargon. They represent a suite of competencies that should be identified and valued to strengthen a company’s overall strategy. Incorporating KBIs into compensation systems—on par with other indicators and skills—can be a game-changer for organizational success.
