Performance Management monitors performance across the organisation with the goal of improving business performance. What that improvement looks like depends on the strategy and goals of the organisation. This makes performance management a framework that the organisation must take and customise for itself. A combination of methodologies and metrics allows organisation to define, monitor and optimise action to achieve organisation goals and improve performance.
Performance management requires comprehensive, real time visibility of performance across the organisation. Comprehensive means a variety of perspectives – strategic perspectives, departmental perspectives, time-based perspectives and performance perspectives. Once the strategy is defined, objectives made clear and key performance indicators (KPIs) set, the task on monitoring and improving strategic performance is a cycle that never stops. Performance management software makes the task of managing performance easier.
Great performance management software:
- Illustrates how employees contributes to the success of the organisation by linking their personal goals and achievements with the organisation’s mission, strategy and objectives.
- Helps employees know what needs to be done to be successful by focusing attention on clear goals.
- Gets staff involved with actually managing performance, not just monitoring, with clear lines of responsibility and ownership.
- Focuses departments on what needs to get done and provides a solid rationale for eliminating unnecessary work through the use of objectives, policies and performance metrics.
- Enables the organisation to quickly identify problems and change course through on-going monitoring and discussions.
- Shifts focus from performance as an annual event to an on-going process.
Strategy maps provide a macro view of an organisation’s strategy. It provides a diagrammatic view that describes how an organisation creates value by connecting strategic objectives in explicit cause and effect relationship with each other. Strategy maps provides clarity and makes it easier to communicate what the key priorities for the organisation are.
Combining strategy maps with balanced scorecards gives the basis for a performance management implementation strategy.
The Balanced Scorecard
The Balanced Scorecard is a popular strategic planning and reporting methodology that takes an organisation’s objectives and splits them between four equally important perspectives: Financial, Customer, Internal Processes and Learning & Growth. Organisational objectives are built from these perspectives, giving the company a clear path for implementation and monitoring of performance.
A balanced scorecard moves performance management from beyond a purely financial view of performance. No single PI is enough to improve strategic performance.
The benefit of using strategy maps and balanced scorecards includes:
- Improving understanding of the key strategic goals of the organisation.
- Requires a critical look at the goals and KPIs that will make a difference.
- Gives management an easy to absorb view of the elements that impact performance.
- Gives a basis to departmental objectives and links employee achievement to corporate goals.
- Improves links between internal initiatives and promotes cross-functional working.
Performance Management Software Solutions
Ideagen offers SaaS solutions that provides comprehensive, real time visibility and control of performance and risk in your organisation. Dashboards and scorecards are used to create a highly visual tool that brings performance management to life. All the relevant factors - KPIs, risks, customer feedback, audit recommendations, policy management and employee performance – can be linked and tracked in a single system.