Performance Management
Performance management is the comprehensive set of activities followed to establish, implement and improve an enterprise business performance. It includes defining expectations and accountabilities, setting performance standards and performance measures,
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Performance Management
Performance management is the comprehensive set of activities followed to establish, implement and improve an enterprise business performance. It includes defining expectations and accountabilities, setting performance standards and performance measures, and assessing results. It is the centralized and coordinated management of performance measures to: obtain the benefits and control not available from managing them individually and, achieve the enterprise intended strategic objectives and benefits.
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Purpose of Performance Management
Performance management is build and developed within a “performance measures framework” that shows how each performance measure is related to other important measures within the enterprise. A performance measures framework itself is a more comprehensive hierarchical organization of performance measures that fit together according to a logical structure. A good performance measures framework provides enterprise business executives, managers, leaders and employees with visibility into how their local performance measures fit with the enterprise global performance measures. As such, it provides a “line of sight” that enables enterprise business executives, managers, leaders and employees to appreciate the linkages between what they are doing and what is important to the enterprise as a whole. A good performance measures framework also should not just depict the way an enterprise currently measures itself, but help predict future performance, so that better decisions can be made within the enterprise. Within a performance measures framework, the purpose of performance management is not about filling out “template” scorecards. But it is about obtaining increasingly deeper understanding that will lead to progressively better actions to drive desired results, and then communicating that understanding throughout the enterprise through integrated performance measures so that everyone can execute in an integrated manner across the entire enterprise. A. Van Aartsengel and S. Kurtoglu, A Guide to Continuous Improvement Transformation, Management for Professionals, DOI 10.1007/978-3-642-35904-0_7, # Springer-Verlag Berlin Heidelberg 2013
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Performance Management
In other words, the purpose of performance management is to achieve continuously better (and deeper) understanding of how the enterprise intended strategy translates into desired outcomes and drivers of these outcomes, and then to find the best mix of performance measures that conveys strategic intent and integrates the organization to execute that intended strategy. Finding the best mix of performance measures is achieved through tradeoffs decisions. With an overall performance measures framework that shows the relationships between performance measures, it is easier to make the proper trade-off decisions, so that more optimal decisions can be made. There is no single right way to develop and implement a performances measures framework. Commonly used performances measures frameworks are based on th
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