The New Book “Performance Master” Chapter V Introduction: Digital Performance Management Maturity

We can only manage what we measure. Define how you will measure success in meeting the business purpose and vision.

The effects of an increasingly digitized world are now reaching into every corner of the business and every aspect of the organization. Digital transformation is not a stand-alone initiative, it is a continuous journey to adapt to the new normal of the dynamic business world. Metrics are part of transparent visual management allowing pulling. So, how to measure up the performance and improve the digital performance management maturity.

Define “S.M.A.R.T” business goals: A performance measurement system is a necessary foundation for continuous improvement. Without measurement, it can be hard to tell whether attempted improvements make the situation better or worse. Businesses need to avoid vanity metrics and really focus on key metrics that correlate to better business outcomes. S.M.A.R.T goals are more as a guide based on meeting the five criteria - specific, measurable, attainable, relevant, and timely. Managing performance and improving business achievement means setting metrics, fixing plans, understanding results, and making decisions to ensure the strategic goals are on the right track to get implemented, and communicated effectively at the different level of the business. The “SMART” framework is helpful, but be cautious of setting goals which are really valid, first, measure right things, and then measure them in an effective way.

The multiple aspects to measure organizational maturity: Organizations today are over-complex and hyper-competitive, management continues to keep the business running, but often with the lack of insight on how well their organization is doing for the long term. The overall organizational health needs to be measured via employee engagement, culture readiness, business agility, and customer-centricity. The problem with measurement is that more often, the metric is very subjective. Each organization is different, but this will not stop an organization from measuring components of things that are measurable, just keep the measuring process not too rigid, focus on measuring things really matter, with the ultimate goals to improve the organizational performance, health, agility, and maturity.

The continuous performance management: Due to the digital nature of hyper-connectivity and interdependence, organizational management practices are shifting from silo-based, reductionistic traditional management style to the holistic digital management discipline. The corporate performance management also needs to do a similar adjustment, from static, unidirectional and time-bound avatar to a more dynamic, continuous, and interactive state. Digital is the age of continuous delivery, how about real-time appraisals that take place consistently and can be tracked accordingly. The idea is to get away from the annual event based on stale data and poor record keeping. The continuous performance management has the focus from evaluating the individual to partnering with the employee, with the goal to map every individual’s performance and potential with the dynamic business strategy execution more closely and seamlessly. Many forward-looking organizations also leverage self-performance management to provide employees opportunities for self-management, encourage autonomy, discovery, and continuous improvement.

We can only manage what we measure. Define how you will measure success in meeting the business purpose and vision. Ensure that these measures are quantitative and qualitative, and implement whatever mechanisms you need to be able to gather information. Every measure selected should be part of a link of cause-and-effect relationships, and ultimately affect the growth and long-term perspectives for the organization's success.

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The "Performance Master" Book Introduction 

The "Performance Master" Book Chapter 1 Introduction

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The "Performance Master" Book Chapter 3 Introduction 

The "Performance Master" Book Chapter 4 Introduction 

The "Performance Master" Book Chapter 5 Introduction 

The "Performance Master" Book Conclusion

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The "Performance Master" Quote Collection II


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