Successful performance management initiatives involve more than purchasing and implementing software. Despite good intentions, there’s a high probability that you’re not getting everything you should from your system.
by Craig Schiff
As with most corporate initiatives, the intended goal of performance management and what it actually ends up achieving are often quite different. Many companies aren’t even aware of the real purpose of performance management. But it doesn’t have to be that way. To understand what kind of performance a performance management system is meant to manage and how to implement an effective performance management program, it’s helpful to start with a definition: Business performance management is a set of integrated, closed-loop management and analytics processes that address financial as well as operational activities. Done properly, it enables businesses to define strategic goals and then measure and manage performance against those goals.
Ultimately, what is being managed is a company’s performance in achieving its goals. That’s the intent, at least—but far too often not the reality. Let’s look at why this is often the case.