Tuesday, August 31, 2021

Performance Management

A robust performance management system needs to be designed with end-users in mind, future-oriented, information based and output-driven.

Performance keeps the business running in various related contexts. 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.

 Performance is well done of current assignments and demonstrates the capacity of doing great work to achieve measurable results.

Performance is not about numbers, but telling stories: Performances are not numbers with metrics, they are numbers in context, results related to your business goals both at the strategic and operational level. Performance Management is a holistic management discipline that needs to connect many relevant dots such as dynamic strategic planning or organizational structure tuning to involve business development, enablement, and enhancement. Highly effective business managers tell an information-based performance story to make persuasive communication, clarify strategy goals, dig into the root cause of many complex problems and empower staff members to make accomplishments in a tangible way.

When performance is below their expectations, the management needs to make reasonable inquiries and connect all critical dots for telling an information-based story to drive changes: Is it caused by a lagging mindset, immature capabilities or soft factors such as poor communication or inertia culture? Is it caused by a disconnected or distant layer of leadership or disengaged employees? Is it caused by a sea of unclear priorities, administrative bureaucracy, misaligned processes, or lack of clarity or direction, trust, or teamwork? Etc. Those measurement-based communication and stories increase staff's conscious level to understand problems, increase morality, improves business transparency, and help to improve the overall organizational accomplishment.

Future-driven: Traditional performance management in the Industrial Age is often based on more static processes or linear steps to only focus on assessing past performance, and measure defined goals and objectives. There is a danger of not having a dynamic process to "develop and nurture" future performance. With the increasing pace of changes, the future of the organization is fluid, flexible, informative and autonomous. Performance Management in a positive manner to focus on optimizing future performance, move the purpose of performance reviews and management away from evaluating the past, and focus on improving success in the future.

Reimagining the future of business is exciting, but investigating the different paths for unlocking business performance and potential needs to take a holistic, dynamic and systematic approach and develop it into a more solid form. The performance of the total “system” is independent of the performance of any one of the functions and depends more on how the functions relate to each other. The very goal of holistic performance management is to ensure the business as a whole is superior to the sum of pieces. Performance management needs to be transparent and objective, understood by the entire organization. It should be future driven, promote teamwork, rather than micro-management, focus on creating synergy and unlocking business potential.

Performance management is both art and science:
Performance management is not an isolated management discipline, but a holistic approach with a well set of philosophies, methodologies and practices via connecting multidisciplinary management dots to make progressive changes. The science of performance is to optimize processes, to make sure the individual performance is assessed objectively and the corporate performance is evaluated holistically, focusing on where targets are not being met that support planned revenue and profit levels, make measurable improvement to ensure the business as a whole to achieve stellar performance with repetitive results.

In many companies, a pervasive obsession for purely quantitative measurement or numerical success indicators sweeps aside much of the softer and more qualitative information that is crucial in performance management. The art of performance management is to leverage both tangible and intangible factors, develop a high performance culture and unlock business potential - the future performance. The art of performance management is to shape a progressive mindset and develop the digital-ready workforce.

A robust performance management system needs to be designed with end-users in mind, future-oriented, information based and output-driven. Good performance data enables the management to scrutinize mindset and behavior. High mature Performance Management is not a bunch of paperwork, but a combination of management approaches leading to constantly improving business results.


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