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Performance Management – managing your measure of success

  

Performance management is subtly different to performance measurement. The latter is a sub set of performance management and is more to do with the detail of how and why something gets measured. At the higher level comes performance management. This is more concerned with the strategic alignment of what the critical success factors (CSF’s) are and the key performance indicators (KPI’s). There are four perspectives to performance management:

·         Customer perspective

·         Process perspective

·         People perspective

·         Financial perspective

Benchmarking might also be added to the list. This differs to the rest in so far as it is a technique to gain insight into where opportunities or issues reside. It is a snapshot comparison with another entity or internal business unit.

 

 

The distinction we make is key. There are many businesses and organisations where information is generated, collected and reported under the auspices of being for performance measurement purposes yet it fails to influence performance. Much time is wasted in the process of presenting the data and even more time wasted on debating what the information means. Performance management must begin with a clear understanding about what determines performance and what are the CSF’s. This ought to be aligned with overall strategy and needs careful consideration. The benefit to be gained by doing this can be significant.

 

Getting the measure of success

Clearly performance management and performance measurement have a major role to play in delivering success. If misunderstood or not clearly managed then the consequence is a missed opportunity and at worst can do serious damage (there are many examples of where ill conceived measures have driven inappropriate behaviour)

We can work with you to ensure maximum effectiveness.

 

  
 

·         Looking to introduce a performance measurement system or undertake a benchmarking exercise?

·         Not sure of the best approach?

·         Not convinced that the system you have in place is working as well as it should?

·         Looking for new ways to improve performance?

·         Interested in an overview of this area of management before deciding your next move?