A well-designed performance management system is a necessary foundation for continuous improvement.
Corporate Performance Management is about managing and monitoring the corporate performance via the well-defined set of performance indicators. Corporate performance management is not just about managing numbers with metrics, but the number with context. The various activities are needed to manage performance— strategic and operational plans, metrics, day-to-day decisions. So, Enterprise Performance Management is critical, because new competitive challenges and active market changes underscore the strategic imperative of managing performance more than ever. But what’s exactly corporate performance management regarding for, and what’s it related to other key components of corporate management such as strategic management, risk management, information management, decision management, or talent management? Enterprise Performance Management methods include strategy maps, scorecards, customer profitability analysis using activity-based costing principles, customer intelligence, driver-based budgeting / rolling financial forecasts, process management, and quality management. Enterprise Performance Management integrates them as a large umbrella.
The purpose of the book “Performance Master: Take a Holistic Approach to Unlock Digital Performance “is to provide an in-depth understanding and share unique insight about how to take a holistic approach to measuring and managing enterprise digital performance. Without measurements, it can be hard to tell whether attempted improvements achieve the expected results or not. It's fair to say that any organization didn't have a systematic approach to performance assessment and measurement at both strategic and operational level has a giant blind spot that is impairing their performance. A well-designed performance management system is a necessary foundation for continuous improvement. So, the logical scenario to manage performance includes the following steps:
- Make a fair assessment and get objective perspectives on what you are trying to manage. Understanding what’s blocking achievements, targets and performance is paramount.
- Select the right set of indicators of organizational improvement, innovation, and investment, really focus on key metrics that correlate to better business outcomes and measure them effectively.
- Connect the multidisciplinary management dots to tell the full story with the business context, as performance management is not an isolated management discipline.
- Design management scoreboards to assess the business performance progress to strategic goals whereas build dashboards to assess the organizational performance to operational goals.
- Act on what the performance indicators are telling you is vital to sustaining business results and improving the overall organizational maturity. \
- Metaphorically, Enterprise Performance Management (EPM) is the tree, Strategic/ Operations/Risk Management are the main branches: Strategic Management, Operations Management, Risk Management are all part of good EPM, in essence. A company benefits most when it executes Enterprise Performance Management (EPM) and Enterprise Risk Management (ERM) in a complementary fashion, as two elements are both critical for achieving the vision and mission of the company. Under EPM the management looks at what one wants to take place. The management team translates the company vision and mission into a strategy with objectives; then translates the strategy into operational plans to achieve the strategic objectives; then executes these plans and monitors actual performance, with the classic PDCA cycle (plan-do-check-act). Under Enterprise Risk Management (ERM), the management then looks at the things one essentially does not want to happen. The things that would prevent the execution of the strategy or operational plans from achieving the stated aims or that would even make the strategy and operational plans completely obsolete.
- Metaphorically, if the enterprise is a vehicle, Enterprise Performance Management is like the gas pedal with speed scoreboard: Enterprise Risk Management is like brake, and governance is like a steering wheel, to keep the business in the right direction; while ‘EPM's "strategy map" component could be the GPS for direction setting. The motor might be the organization's assets and capacity (including its workforce). Predictive analytics might be what is seen through the windshield. The purpose of all such management disciplines and practices is to ensure the enterprise vehicle running at an optimal speed in the right direction.
Enterprise Performance Management is a multidisciplinary management discipline to run numbers in context, leverage data to tell stories, and get results related to business goals, and keep the business digital fit for the long term.
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The "Performance Master" Book Introduction Slideshare
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The "Performance Master" Book Introduction
The "Performance Master" Book Chapter 1 Introduction
The "Performance Master" Book Chapter 2 Introduction
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
The "Performance Master" Quote Collection I
The "Performance Master" Quote Collection II
The "Performance Master" Quote Collection III
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