Last updated: March 7, 2025
When it comes to evaluating performance, we often focus on what gets done. But great companies know that how it gets done matters just as much. That’s where the 70/30 split is a viable solution. This approach isn’t just popular, with 70% weight on OKRs (Objectives and Key Results) and 30% on competencies. It’s smart. It gives performance management a sharper focus without losing sight of team culture, leadership, or collaboration.
“People work better when they know what the goal is and why.”
So why does it work? And should your team adopt it too? Let’s break it down.
Why the 70/30 Model Is Effective
The 70/30 model represents a balanced approach, emphasizing outcomes, what individuals accomplish, and acknowledging the significance of behavior, and how those outcomes are achieved.
In rapidly growing organizations, there is often a tendency to focus predominantly on quantitative results. However, these numerical achievements are unlikely to be sustainable without strong leadership, effective teamwork, and adaptability. This model ensures that both performance and behavioral factors are given appropriate attention and measurement.
OKRs (70%): Emphasizing Results That Drive Business Performance
This component addresses the objectives and quantifiable outcomes that can be monitored, measured, and aligned with organizational goals.
Examples of a 70% OKR-based evaluation include:
- Product Manager: Successfully implements multi-store inventory synchronization across three regions.
- Marketing Lead: Achieves a 20% increase in conversion rates on newly integrated sales channels.
- Operations Manager: Reduces order fulfillment delays through automation initiatives.
OKRs provide clarity of purpose, facilitate prioritization, and ensure cohesive efforts across the organization.
Competencies (30%): Emphasizing the Importance of Behavioral Factors
This portion focuses on how individuals conduct themselves within the organization.
It encompasses teamwork, collaboration, mentorship, and the subtle behaviors that contribute to organizational culture, elements that are frequently overlooked in traditional evaluations.
Examples of competency-based behaviors include:
- A Support Lead who fosters cross-team collaboration to reduce ticket escalations.
- A Sales Manager who mentors junior representatives and cultivates trust.
- A Developer who identifies misalignments early to prevent rework.
Allocating 30% of the evaluation to competencies conveys that while results are important, the processes and behaviors leading to those results are equally critical.
Ready to implement a balanced performance model?
Alternative Models to Consider
While 70/30 works well for most teams, the right mix might depend on your goals, team maturity, or cultural focus. Here are two variations to think about:
- 60/40: Better for moments of cultural shift or when behavior-building is your top priority
- 80/20: Great for output-driven roles like sales or fast-paced product delivery teams
What matters most? Transparency. People should know what they’re being measured on and why.
What About Role-Based Weighting?
Different positions may require varying evaluation weightings. For instance, senior leaders might emphasize competencies such as coaching, alignment, and strategic thinking. Conversely, junior roles may prioritize OKRs, focusing more heavily on establishing a consistent track record of delivery. There is no universal standard; the optimal approach depends on alignment with your team’s objectives, values, and developmental stage.
Final Thought: Achieving Balance to Build Stronger Teams
The 70/30 evaluation structure is more than a best practice; it is a clear message to your team:
- We prioritize outcomes.
- We recognize the importance of behavior.
- We value both, understanding that each contributes to success.
As your organization evolves, it is important to periodically reassess this balance. Maintain consistency while remaining open to refinement. Effective performance management systems adapt in tandem with organizational growth.
Ultimately, success is not solely defined by what is delivered, but also by how it is achieved.