Initiateperformanceassessment

There’s soft factors impacting performance and there are stories behind numbers. Both quality and quantity count.

Every organization is at a different stage of the business cycle, and every company has a different strategic focus. Performance assessment, when used in an individual context, tends to focus on all that is good and has been achieved by the individual, but sometimes, managers have to ask tough questions such as, if individuals’ performance were so good, why is the company failing? Selection of the right set of performance indicators is more critical than measuring them right

It’s crucial to make a multi-scale performance assessment: A performance assessment system is a necessary foundation for continuous improvement. In many business situations, financial indicators only cover part of the story. Conduct a comprehensive performance assessment; not just data exploration, but thorough getting feedback through different sources, or using different tools, etc. They will also set different criteria to select key performance indicators and focus on a different level of performance measurement. The management needs to initiate a multi-scale performance assessment via asking: Were all necessary data sources integrated? Was the system implemented successfully?

It’s good to know that the effective measurements selected should be part of a link to cause-and-effect relationships contextually: The return on investment should take into account both financial and non-financial measures, assessing internal improvements, ongoing requirements as indications of future performance. The measurement method is to persuade management to believe in measuring the value-adding contributions to the organization; present a methodology to acquire the “appropriate” contextual measurement items, and maintain vigilance.

It’s important to assess the ROI of IT investment performance: The process of setting up a performance system will need all common project aspects from sponsorship to implementation so carries an internal cost of setting up as well as any additional spend. The organizational management needs to ponder: Do the results of the system outweigh the investment in the system and its ongoing maintenance? Build an intuitive dashboard to monitor the performance, including: Well selected metrics and performance measure data; IT Departmental P & L Employee Turnover/ Attrition percentage; Key challenges and relevant data. Top accomplishments for strategy execution.

There’s soft factors impacting performance and there are stories behind numbers. Both quality and quantity count. It is essentially moving away from appraisals of past performance to managing and optimizing future performance. Performance Management is an interdisciplinary management discipline to run numbers in context, leverage data to tell stories and keep business fit for the long term.

Posted in: Performance Master