Strategic alignment: Strategy management and performance management go hand in hand. Strategic alignment can catalyze the flow of the right information to the right people at the right time to coordinate and execute strategy, tactics, and risks, accelerate performance and spark innovation. Alignment is fundamental and multidimensional, and it’s a continuous process that demands continuous attention, deliberately close gaps (resource, capital, talent, etc) among the company’s strategic direction, its products and services in order to implement the strategy and accelerate business performance.
In practice, often the strategic misalignment is caused by the failure to translate high-level strategic goals to tactical goals and objectives, or misinterpretation from top-down. Thus, to unlock organizational performance, it’s important to streamline communication, take an effective capital and resource allocation and talent development scenario, set priority, and optimize cost, etc, to ensure the success of the business strategy. The alignment should be a smooth and harmonized process, approach a flow zone in which people are ready for moving to a fluid working environment and business executives are eager to set stages for implementing strategies and driving continuous performance management.
Capability orchestration: The very characteristics of digital business are dynamic, volatile, uncertain, interdependent, and hyper-competitive. To close performance gaps and improve organizational maturity, it’s important to make an ongoing and seamless process alignment and develop a set of necessary competencies and unique capabilities. The dynamic capability will further build the organization’s strengths in core areas and unleash business performance.
With enlarged digital gaps caused by high velocity and interdependence, it is a persistent and pervasive problem that many times strategy-capability mapping fails to have enough detail to really serve the purpose. The business capability composites should be broken down to its constituent elements and each element mapped to associated strategy. The capability-based strategy management has a significantly high percentage of success rate and achieves a high-performance outcome.
Cultural cohesiveness and collaboration: People are the center of performance management. Cultures - the collective mindsets and attitudes are crucial to enforcing communication, interaction, and collaboration, shape a high-performance organization in which the responsibilities of jobs within the company shouldn’t be evaluated only based on the impact of the individual or a department's goals, but on the overall impact of the enterprise.
To glue up and drive the performance management continuum, more organizations are embedding the performance measures into the role/position descriptions, empower employees to self assess and self manage their own performance via quantitative measures and qualitative evaluation. More specifically, building and sustaining dynamics in a workforce is about collaboration with people at different levels. It’s also critical to build trust, foster collaboration, nurture a culture of cohesiveness and ensure the business as a whole is superior to the sum of pieces.
A well-designed performance management system is a necessary foundation for continuous improvement and it should take a multidisciplinary approach to connect relevant dots, make necessary adjustments, glue up all crucial components to integrate the business as a whole and manage corporate performance as a continuum.
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