Performances are not numbers with metrics, they are numbers in context to make continuous improvement and leapfrog movement.
There is performance at strategic and tactical level; there’s individual performance and team performance.
Senior managers focus on long-term outcome, innovation, culture; middle management emphasizes on tactical tasks to meet short-term delivery timeline, and individual contributors perhaps have their own focus based on their working responsibilities. Making an objective performance assessment is both art and science. It’s important to balance a diverse viewpoint of performance management by selecting the right measures and measuring them right.
Change management assessment: Change is inevitable with increasing paces; change management is an integral piece of strategy management. But measuring change is difficult because the things you try to measure keep changing. The dynamics of the business environment in which change situations overlap can also make change measurement extremely difficult. It is important to establish a future state and understand the intended outcome of the change. Change Managers should assess: How do you design metrics to measure what changes and how are these changes measured? What are the relevant metrics and how can they be quantified and validated?
Change is a process with known/controllable and unpredictable/unknowable variables. Change impact measurement is multifaceted because the associated change benefits can be achieved via financial, market share, productivity, speed or innovation perspective. It is quite a challenge to implement and measure the business progress to the future state. Metric of change management is part of transparent visual management, allowing pulling, and well-define the right “outcome”; ensuring people can see what the outcome will look like throughout the transition, and then, there should be a consideration for a balanced scorecard that measures the progress of the goals you want to achieve during the change transition, this keeps people focused, make proper adjustment and improve change management performance.
Innovation performance assessment: All innovation initiatives should achieve some business result directly or indirectly. The purpose of innovation measurement is to track innovation management effectiveness. In practice, Performance Management assessment is always subjective, controversial and contentious, this is especially true for innovation management. Sometimes the quantitative results mislead the management with a short-term perspective only. But innovation efforts take time to mature; soft innovations bring multifaceted value which cannot be measured easily.
Normally organizations look for performance indicators measuring business results generated by innovation efforts. You choose the right measurement by deciding which are seen as critical to making progress in order to deliver more innovation benefits. Some factors that could be used to measure innovation score include such as % of revenue from new products/services introduced, resources invested (human and financial), employee motivation, number of innovation initiatives being launched, process measurement, or organizational innovative culture readiness, etc. The goal is to show how the pieces of measurement data directly or indirectly affect business productivity, performance, and profitability.
Customer satisfaction assessment: Being customer-centric is one of the most significant goals for forward-looking businesses to shape a digital future. It’s critical to develop business capabilities across all areas, as customer centric capability is a true representation of the value chain concept. Overall customer satisfaction evaluation is based on the information from multiple sources, departments or markets. The customer satisfaction assessment includes such as corporate resources consumption, growing tendencies, main complaints, service level agreement, end-user information, customer touchpoint digitalization, net performance score, customer experience.
Customer continues to be a key component of any customer-centric business, with the goal to develop related business capabilities to improve customer satisfaction across all areas. Business needs to understand the maturity of customer-centric practices at the overall level (quantified & qualified across all measures) and at specific section levels. In order to measure customer-centricity more objectively, surely the key is to learn from the customers by gathering "actionable insights" from business interactions with them, then to have the processes, structure, and skills to adapt businesses in response to these insights, pick the right set of leading and lagging indicators to make objective assessment.
Invariably, most businesses will demonstrate good performance in certain areas and 'not so good' performance in others. you can only be as strong as your weakest link. Don’t just scratch the surface to manage the numbers, remember the old saying: Often people do what you inspect, not what you expect. Metrics can help you get some objective perspective on what you are trying to manage, but they need to be crafted and interpreted well. Performances are not numbers with metrics, they are numbers in context to make continuous improvement and leapfrog movement.
Change is a process with known/controllable and unpredictable/unknowable variables. Change impact measurement is multifaceted because the associated change benefits can be achieved via financial, market share, productivity, speed or innovation perspective. It is quite a challenge to implement and measure the business progress to the future state. Metric of change management is part of transparent visual management, allowing pulling, and well-define the right “outcome”; ensuring people can see what the outcome will look like throughout the transition, and then, there should be a consideration for a balanced scorecard that measures the progress of the goals you want to achieve during the change transition, this keeps people focused, make proper adjustment and improve change management performance.
Innovation performance assessment: All innovation initiatives should achieve some business result directly or indirectly. The purpose of innovation measurement is to track innovation management effectiveness. In practice, Performance Management assessment is always subjective, controversial and contentious, this is especially true for innovation management. Sometimes the quantitative results mislead the management with a short-term perspective only. But innovation efforts take time to mature; soft innovations bring multifaceted value which cannot be measured easily.
Normally organizations look for performance indicators measuring business results generated by innovation efforts. You choose the right measurement by deciding which are seen as critical to making progress in order to deliver more innovation benefits. Some factors that could be used to measure innovation score include such as % of revenue from new products/services introduced, resources invested (human and financial), employee motivation, number of innovation initiatives being launched, process measurement, or organizational innovative culture readiness, etc. The goal is to show how the pieces of measurement data directly or indirectly affect business productivity, performance, and profitability.
Customer continues to be a key component of any customer-centric business, with the goal to develop related business capabilities to improve customer satisfaction across all areas. Business needs to understand the maturity of customer-centric practices at the overall level (quantified & qualified across all measures) and at specific section levels. In order to measure customer-centricity more objectively, surely the key is to learn from the customers by gathering "actionable insights" from business interactions with them, then to have the processes, structure, and skills to adapt businesses in response to these insights, pick the right set of leading and lagging indicators to make objective assessment.
Invariably, most businesses will demonstrate good performance in certain areas and 'not so good' performance in others. you can only be as strong as your weakest link. Don’t just scratch the surface to manage the numbers, remember the old saying: Often people do what you inspect, not what you expect. Metrics can help you get some objective perspective on what you are trying to manage, but they need to be crafted and interpreted well. Performances are not numbers with metrics, they are numbers in context to make continuous improvement and leapfrog movement.
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