What is Performance Management?
Performance Management is the perfect tool for revealing the manner in which a strategy is being executed as well as for helping you determine whether it is being implemented correctly.
What are the pitfalls and solutions with Performance Management?
On the whole, we can say that Performance Management is too limited to strategy and tactics. However, as a tool, it does more than merely provide financial and non-financial information. Performance Management has an impact on all layers of an organization, from the top management to the people working on the factory floor. On a strategic level, we often work with so-called strategy maps and balanced score cards (BSC) and on an individual level, with personal score cards.
Performance Management requires
- a clear strategy, supported by the organization
- a management vision that is in line with this strategy
- an organizational structure that is based on these two elements
- data that will help judge progress and performance
- a solid infrastructure and a process cycle to obtain this information in a timely fashion
- the skills to be able to analyze the information obtained and to push improvements through.
Many companies put Performance Management on their agenda, but the question is whether this effectively leads to improved performance. In many cases, it remains too abstract. It is only when all of the above-mentioned elements are in place that we can truly speak of a functioning Performance Management system.