Saturday, December 14, 2019

The Monthly “Performance Master’ Book Tuning: Performance Measurement Pitfalls Dec. 2019

Without measurements, it can be hard to tell whether attempted improvements make the situation better or worse.

Corporate Performance Management is a management control from strategy to the shop floor. "If you can't measure, you can't manage," legendary management guru Peter Drucker once asserted. Managing performance means understanding results, setting metrics, fixing plans, and making decisions to ensure it happens. It takes multifaceted approaches from multidimensional perspectives to unlock digital performance and catalyze change.

        Performance Measurement Pitfalls

The Pitfalls of Performance Measurement The purpose of managing performance is about setting performance metrics to evaluate the status of strategy management, making objective assessments of business results, and understanding performance measurement contextually. However, measuring business performance is both art and science. In well-established organization across the vertical sectors, there are complex business rules, policies, processes, and performance systems that govern how people operate. The more meaningful and important thing you want to assess, the harder it can be measured. Here are “seven sins of performance measurement.”

Digital Performance Measurement Pitfalls Digital transformation is a journey, from digital strategy crafting to organizational structure tuning, it has to permeate into the business vision, strategy, mindset, culture, communication, action, process & capability, and last, but not least, performance measurement and management. There are a lot of additional parameters, correlations, and context that should be taken into account as digital transformation is dynamic, complex and holistic. How to avoid performance measurement pitfalls and make the objective assessment of digital organizational maturity?

IT Performance Measurement Pitfalls Today’s IT organization intends to become the business’s growth engine, rather than just a maintenance back-office, the problem is that the IT folks tend to see IT value in things that aren't as important to the business. Performance Indicators for IT need to be defined in keeping the view of the corporate objectives and put into a mix of other performance measures. Poor defined IT performance measurement will mislead strategy management. More specifically, what are IT performance measurement pitfalls, and how to avoid them?

CIOs as “Chief Improvement Officer”: How to Avoid Three Measurement Pitfalls A performance measurement system is a necessary foundation for continuous improvement. It defines how you will measure success in meeting the business purpose and vision. Metrics help stakeholders understand what is going on. Without measurements, it can be hard to tell whether attempted improvements make the situation better or worse. There are both promises and perils about metrics. Metrics provide feedback and metrics are part of transparent visual management allowing pulling. But there are also pitfalls need to be avoided in order to improve business performance and make continuous improvement.

The New Book “100 Digital Pitfalls” Introduction Chapter Four: Performance Pitfalls Building an evolving digital organization is to advocate the concept of “business as a whole is superior to the sum of pieces.” From a performance management perspective, if the majority of organizations in the industrial age are manipulated by silo thinking and hierarchical style, organizations lost their collaborative advantage as they are being over managed and under led, remain disconnected have change inertia and do not have the competence to collaborate in the long term.

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