Performance management serves essentially as your business GPS for navigating growth. By tracking, evaluating, and reviewing performance along the way, your business can: identify areas for growth and development, foster a culture of measurement and accountability, and facilitate alignment between the organization’s customer-centric business outcomes and your various functions objectives.  

So, what exactly is performance management? 

Performance management provides a method for assessing how well your company meets specific growth goals and achieves critical path milestones. It encompasses the process your organization uses to motivate, measure, and develop the performance of the organization overall, teams or departments within the organization, and an employee’s individual job performance. It is a hallmark of a high-performance-oriented culture 

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Implementing a performance management strategy might seem so obvious it would be hard to imagine any company lacking one. Yet, a Deloitte study shows that only 8% of companies believe their performance management process is highly effective in driving business value and 58% say it’s not an effective use of time.  

Let’s explore how performance management works as the GPS for your business. Just as a GPS helps you navigate to your destination; it provides valuable information and guidance to help your business reach its goals. By regularly tracking and evaluating performance, you can calculate the best route to achieve results, revise performance targets, and make smarter data-driven decisions. Just like a GPS, performance management serves as an essential tool for businesses that want to stay on course and reach their destination, quickly, cost-effectively, and safely. Like GPS, to chart a route to reach your destination you need to know three things: how to use it, where you are at the moment, and where you need to go.  

performance management, business performance management, alignment, accountability, effectiveness, performance measurement, growth, navigating growth, performance evaluation, business gpsDeploying a successful business performance management strategy and process entails more than implementing an employee performance review process.  Business performance management is not a talent management function. A major tenet of a good business performance management plan is a consistent focus on strategic goals and progress. In this context, performance management is a leadership function. Developing a strong business performance management strategy and implementing a plan takes a lot of effort. When properly implemented it is a time-worthy investment for every business leader who has growth as a priority.

What are the 3 Most Valuable Benefits of Performance Management? 

Performance management delivers many business benefits. These three are among the most valuable, it provides:

  1. Navigation for improvement. First and foremost, it provides valuable insights and helps identify areas for improvement. When everyone understands how performance is measured and evaluated, they are more likely to take ownership of their work and strive to improve. This can lead to increased engagement and productivity, which ultimately leads to better business outcomes. As with any navigation tool, especially with GPS, performance management offers guidance into faster ways and ideally more effective ways to move forward, and when necessary, alternative approaches that may require course corrections 
  2. A guide for accountability. Measurement is a crucial aspect of performance management. Just like a GPS provides regular updates on your progress to your destination and alerts you when you need to adjust, defining and using the relevant measures of success can help you stay on track and avoid potential pitfalls. 
  3. performance management, business performance management, alignment, accountability, effectiveness, performance measurement, growth, navigating growth, performance evaluation, business gpsFacilitation of course alignment: It helps businesses align their activities with their goals and objectives. By regularly tracking and evaluating performance, businesses can ensure that their efforts are focused on the areas that are most important and that they are making progress toward their goals. Just like a GPS helps you avoid detours and stay on the most efficient route; performance management can help your business stay focused and avoid wasting time and resources on activities that are not aligned with your goals. This can help to increase efficiency and ensure that the business is moving in the right direction to grow.  

5 Routes to Better Performance Management and Accountability 

Without a doubt, performance management and accountability are inextricably linked. So, how can businesses improve their performance management and accountability? Here are five routes to consider: 

  1. Start with the end in mind.  Before you can manage performance, you need to know what you’re trying to achieve. Take the time to establish clear, measurable customer-centric outcomes for your business and objectives for each business function and the associated plans or roadmaps. This is like setting your destination in a GPS – without a clear destination, it’s difficult to know which route to take. 
  2. Know what measures matter. With the data available today, measures are not the challenge.  The real challenges are selecting measures that matter and identifying the right set of relevant key performance indicators (KPIs). Once you decide on these, then, it is critical that everyone understands the measures, metrics, and KPIs and how they will be used to evaluate performance. These are like the roads and highways on a map – they provide the framework for your journey and help you track your progress. 
  3. Have a process. Implement a performance management process and system. A performance management system is a tool that is used to track and evaluate performance. There are many different performance management systems available, so choose one that is tailored to your business needs. Inevitably you will want a performance management dashboard. This is like the GPS device itself – it provides the technology and tools you need to track and evaluate your performance. 
  4. Monitor and adjust. Things happen on the road. Performance management is an ongoing process, so it’s important to regularly review and adjust your processes to ensure that they remain effective. Use your performance management dashboard to monitor the data that you are collecting and provide insights from the data being collected to improve the accuracy and relevance of your performance measurements. Just like a GPS provides regular updates and adjusts its route based on current traffic and road conditions, your performance management processes should be flexible and adaptable. 
  5. performance management, business performance management, alignment, accountability, effectiveness, performance measurement, performance evaluation, business gpsProvide regular feedback and support to employees. Performance management is about more than tracking and evaluating data – it’s about business success. To succeed, your teams and people need feedback about the business and their performance. Regularly communicate with your team leaders, employees and even critical suppliers about their contribution and progress and provide them with the resources and support they need to improve. Just like a GPS provides regular updates on your progress and alerts you when you need to make adjustments, regular feedback and support can help your team stay on track and reach their full potential. 

By following these 5 routes, you will reap the 3 most valuable benefits of performance management, improve accountability, and successfully arrive at your ultimate destination – growth. 

We hope you found this episode of What’s Your Edge? helpful. What’s Your Edge? is the creation of VisionEdge Marketing. VisionEdge Marketing, founded in 1999, helps our customers solve the most difficult challenges when it comes to using data, analytics, process, and measurement to accelerate growth, create customer value, and improve performance. We always welcome hearing from you. 

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