Monday, March 15, 2021

Information based Performance Management

A performance information empowered story is more persuasive to articulate the digital journey from current state to the future state of digital enablement and strategy management.

Information is the lifeblood of the digital businesses; more and more organizations are declaring they are in an information management business. Information does not live alone but permeates to everywhere in the businesses nowadays. 

Thus, the value of information is not isolated. In reality, there is a danger of not having quality information to make effective decisions or a dynamic process to "develop and nurture" performance. Information quality directly impacts the performance of the business. And information potential directly impacts the business's potential of the organization.

The right information-based metrics and key performance indicators can be helpful to track progress in business improvement initiatives: Digital organizations break down silos, take a holistic approach to manage an ever-evolving business. Performance management is integrated into strategy management, culture management and talent management, etc. So information flow lubricates cross functional processes and improves decision effectiveness. Corporate performance management is not just about managing numbers with metrics, At its core, it is about creating a work environment that helps the company meet its business goals and implement strategy. Information-led performance measures help the management do value justification in a language the organization understands for making wise investment and track progress in business improvement initiatives. The companies often need a set of deliverables so that they can justify the investment accordingly.

All company’s performance is directly related to the decisions people make every day, from executives to the frontline, across functional areas and geographical locations. The good metrics can help you get some objective perspectives on what you are trying to manage, and concentrate on measuring things really matter. So the performance metrics information can be tracked and shared accordingly; and the appropriate corrective actions can be taken upon those initiatives, when needed, in order to keep strategy execution on track. An effective balanced scorecard is necessary to practice holistic performance management in a structural way, allowing the most effective initiatives to be planned for achieving the corporate goals.

The management needs to do an objective data based analysis of poor performance results: Performance management is both art and science. Performance is not just numbers, but telling stories. The good measures motivate teams to achieve more but the bad measurement perhaps encources silo thinking and distracts the business management from achieving the ultimate goals. When the performance system is connected with the motivation system on an operational level, but disconnected from the strategy management, performance measurement enlarges gaps and decelerates long term business results.

When performance does not reach the expected results, the management needs to check: Is it caused by hard capabilities or soft factors such as communication or culture? Is it caused by a disconnected or distant layer of management or leadership or disengaged employees? Is it caused by a sea of administrative bureaucracy, unclear priorities, or lack of clarity or direction, trust, or teamwork? Etc. The purpose of managing performance is about setting performance metrics to evaluate the status of strategy management, making objective assessments, and understanding performance measurement results objectively in order to make continuous improvement.

It's critical for the company to share that performance information among its primary stakeholders for improving holistic management discipline: The very goal of holistic performance management is to ensure the business as a whole is superior to the sum of pieces. Good performance data enable the management to scrutinize behavior and dig into the root cause of problems, even at the mindset level of people (leaders at the top, managers at the middle, and employees at the front line). Those measure-based communication improves business transparency and helps digital leaders clarify strategy goals, business improvements, staff empowerment, and overall organizational accomplishment.

All stakeholders may not be in a position to talk to team members, so the right metrics information can be helpful is to track progress in an improvement initiative. Digital leaders today need to be truthful experts who understand a lot about the performance dynamic and are perceived as value-added participants in making information-based business conversation regarding the business performance and potential, sharing that performance information among its primary stakeholders. The goal is to increase in business capacity, market penetration, the increasing velocity/performance in every dollar spent, as well as risk management.

More and more organizations have “digital ambition” to become information enriched, high intelligent and people-centric businesses. Without measurements, it can be hard to tell whether attempted improvements make the situation better or worse. Your deliverables are actually phases of activity, which act to keep your attention on the right places and drive progressive changes. A performance information empowered story is more persuasive to articulate the digital journey from current state to the future state of digital enablement and strategy management.


Post a Comment