Why is Performance Management Important?
Performance Measurement and Management Systems provide:
- A measurement system/framework for understanding.
- Tracking.
- Motivating individual and organizational efforts and ensuring they are directed toward achieving organizational strategic objectives.
The Challenge
For nearly 20 years, accumulating empirical and anecdotal evidence suggests that the overwhelming majority of organizational strategies fail not because the plan is flawed but because employees do not understand and implement the strategy. The fundamental root cause is that most organizations lack an effective process to involve front-line workers when these are the very people who execute the said strategy and day-to-day decision-making.
Ultimately, their daily actions will either drive or fail the strategy determined by the senior leadership. Furthermore, the traditional approach to selecting performance measures tends to choose bars that are too focused on past performance and are often identified in isolation from strategic objectives. The company must identify leading measures to create incentives for future improvements in organizational strategic goals (tracked by long-term or lagging measures). The strategic plan must easily monitor these leading measures in the short term. Collectively, these measures then create a framework driving success and improvement.
6 Signs you need a Performance Management System
- The organization is not achieving its identified strategic objectives.
- You need a system of performance that addresses the non-financial as well as the financial goals of the organization.
- You will implement some organizational improvement tool or already have a tool but desire to consider the overall organizational context for what should be improved.
- Wish to create a benchmark that can measure improving performance.
- You want to align with higher-level organizational objectives or systems
- You are stuck looking for the “next level” of organizational performance.
Our Approach to Performance Management Systems
We make it easy for you with a comprehensive final report or presentation that can address any of the following depending on your needs.
- Recommendations regarding any lack of clarity or need to identify organizational vision, mission, and values.
- Recommendations relating to any lack of understanding or need to better identify customer desires and expectations and deliver customer service levels.
- A recommended high-level Balanced Scorecard framework and a straw-man template of objectives for the organization.
- More detailed performance measures support the goals and sources of that data within the organization.
- Development of cascading dashboards down the individual level.
- Identifying areas in which information systems and the use of management dashboards may improve the effectiveness or efficiency of the organization.
- Identification of a path forward for the resolution and improvement of all identified issues above.
- Development of a dashboard.
